Global vs. Local Marketing. An Analysis of the Usefulness for Global Companies

Seminar Paper , 2016 , 17 Pages , Grade: 1,0

Business economics - Offline Marketing and Online Marketing

This seminar paper evaluates the dimensions of standardized global marketing and local marketing for global companies by starting with a short insight into globalization and global firms in general, followed by an illustration of the global-local dilemma, that forces a decision on the choice between selling the same product across all boundaries and the implementation of local marketing strategies in order to respond to regional differences. The term paper continues with an explanation of local and standardized global marketing, exemplified by the global players McDonald’s and Apple and concludes with a comparison of both approaches.

The debate on standardization and adaptation in marketing has sparked a debate for decades. Dating back to Levitt, who is one of the leading advocates of the standardization approach in marketing, many other researchers followed Levitt’s argument about the homogenization of consumer markets. However, critics of this thesis argue, that just a just a few products can be easily standardized in a global manner. Kotler argues that national marketing can’t be simply extended to an international level as consumer behavior significantly varies depending on the country. Today, virtually every major company is forced to compete in the global market. And global marketers need to navigate through diverse cultures that go along with unpredicted rules and differences. Companies that are taking their business global and aim to successfully sell their products and services in foreign markets face many challenges. The most challenging decision in this progress is the degree of standardization or adaptation in the firm’s operations. Many companies have understood the importance of global activities.

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Globalization and Global Companies
• Local Marketing versus Standardized Global Marketing
  • The Global-Local Dilemma in Global Marketing
  • Local Marketing
    • The Model of Local Marketing
    • Local Marketing through the Example of McDonald’s
  • Standardized Global Marketing
    • The Model of Global Marketing
    • Standardized Global Marketing through the Example of Apple
  • Comparison of the Strategies

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This seminar paper evaluates the dimensions of standardized global marketing and local marketing for global companies. The paper begins with a brief overview of globalization and global firms, followed by an illustration of the global-local dilemma. The paper then explores local and standardized global marketing, exemplified by the global players McDonald’s and Apple. It concludes with a comparison of both approaches.

• The global-local dilemma in marketing
• Local marketing strategies and their effectiveness
• Standardized global marketing and its benefits
• Comparison of local and standardized global marketing approaches
• The importance of cultural sensitivity in global marketing

Zusammenfassung der Kapitel (Chapter Summaries)

• Introduction: This chapter sets the stage for the seminar paper by discussing the ongoing debate regarding standardization and adaptation in marketing, highlighting the challenges faced by global companies in navigating diverse cultures and markets. It introduces the key question of the paper: the degree of standardization or adaptation in a firm’s operations.
• Globalization and Global Companies: This chapter provides a broad overview of globalization, its key drivers, and its impact on businesses. It examines the concept of global companies, their characteristics, and the advantages they possess in a globalized world.
• Local Marketing versus Standardized Global Marketing: This chapter delves into the core dilemma of global marketing - the choice between standardization and adaptation. It discusses the contingency approach to marketing, which suggests that there is no one-size-fits-all solution, and explores the rationale behind both local and global marketing strategies.
• The Global-Local Dilemma in Global Marketing: This chapter examines the various factors that influence the choice between local and global marketing, focusing on the cultural, economic, and societal differences that must be considered when operating in foreign markets.
• Local Marketing: This chapter defines local marketing and explores its principles. It examines the importance of cultural sensitivity, consumer preferences, and government regulations in adapting marketing strategies to local markets. It provides the example of McDonald's, highlighting their successful adaptation of their menu and marketing campaigns to suit diverse cultural contexts.
• Local Marketing through the Example of McDonald’s: This chapter presents a case study of McDonald's, showcasing their 'think global, act local' philosophy. It analyzes how McDonald's has successfully adapted its products, marketing campaigns, and operations to cater to the unique needs and preferences of consumers in different countries. It also emphasizes the importance of respecting local cultural norms and traditions.
• Standardized Global Marketing: This chapter defines standardized global marketing and explores its benefits. It emphasizes the importance of economies of scale, brand consistency, and efficient product rollout as key advantages of a standardized approach. It provides the example of Apple, highlighting their successful global branding strategy and their focus on creating products that appeal to cosmopolitan consumers worldwide.
• Standardized Global Marketing through the Example of Apple: This chapter presents a case study of Apple, showcasing their global branding strategy. It analyzes how Apple has achieved success through a standardized approach, emphasizing the importance of product innovation, consistent brand messaging, and a focus on global consumer values.
• Comparison of the Strategies: This chapter compares and contrasts local and standardized global marketing approaches. It examines the trade-offs associated with each strategy, considering factors such as cost effectiveness, cultural sensitivity, and brand consistency. It also explores the importance of finding a balance between standardization and adaptation, recognizing the unique challenges and opportunities presented by different markets.

Schlüsselwörter (Keywords)

The key focus areas of this seminar paper are globalization, global companies, local marketing, standardized global marketing, cultural adaptation, brand consistency, economies of scale, global-local dilemma, and consumer behavior. The paper examines the interplay of these concepts within the context of global marketing strategies, emphasizing the importance of understanding cultural differences and balancing standardization with adaptation to achieve success in diverse markets.

• College: The FOM University of Applied Sciences, Hamburg
• Grade: 1,0
• Author: Valea Adams (Author)
• Publication Year: 2016
• Pages: 17
• Catalog Number: V350847
• ISBN (eBook): 9783668373938
• ISBN (Book): 9783668373945
• Language: English
• Tags: global marketing, local marketing, standardization, adaption, marketing, apple, mcdonals, lokales und standardisiertes marketing