This paper deals with global and strategies regarding products and prices. The second part is about the analysis of the target market of Haagen Dazs.
According to Keegan and Green a product is a “good, service, or idea with both, tangible and intangible attributes that collectively create value for a buyer or user”. The management decision, which product and brand strategies should be followed within the global market, is the indispensably crucial core of international marketing.
What is understood as a product covers not only the functional physical object which is sold, but also the packaging and supporting services which together constitute the value brought to and bought by the customer. The globalization led to the product standardization strategy. The standardization strategy aims to market products in multiple markets, which are essentially the same in respect of the product itself and the sales and promotion activities, the advertising activities and the distribution channels.
Table of Contents
Part 1:
1. Global, Local and Glocal Strategies Regarding Products
2. Global, Local and Glocal Strategies Regarding Prices
Part 2:
1. Analysis of the Target Market of Haagen Dazs
Research Objectives and Core Themes
This work examines the strategic challenges faced by global brands in balancing standardization with local adaptation regarding both product offerings and pricing policies. It further investigates how companies like Haagen Dazs identify and target specific consumer segments globally while navigating cultural and economic differences.
- Global marketing strategies including standardization, localization, and adaptation.
- The philosophy of glocalization in the context of international brands.
- Pricing strategies, including skimming, penetration, and target costing, in a global landscape.
- The influence of national economic factors and buying power on pricing decisions.
- Market segmentation analysis with a specific focus on the premium ice-cream sector.
Excerpt from the Book
1. Global, Local and Glocal Strategies Regarding Products
According to Keegan and Green (2013), a product is a “[…] good, service, or idea with both, tangible and intangible attributes that collectively create value for a buyer or user”. The management decision, which product and brand strategies should be followed within the global market, is the indispensably crucial core of international marketing (Keegan and Green, 2013). What is understood as a product, covers not only the functional physical object which is sold, but also the packaging and supporting services which together constitute the value brought to and bought by the customer. A product however, is different from the brand. A brand is perceived in the customer’s mind. It is the sum of experiences, expectations, and feelings. The perception of a brand for a certain product, can also have the function of a quality certification which encourages customers to buy. Thus, it is a promise of the company towards the customer, that the products have particular benefits. Moreover, it is a tangible attribute which distinguishes a product from those of the competitors. Since the 1980’s, technology drives the convergence of the global consumer markets (Levitt, 1983). The premise that differences between markets are fading out, challenges management to develop strategies to market products under global brands on local, regional, national and international market levels. The globalisation lead to the product standardisation strategy which was heavily relied on (Keegan and Green, 2013).
Summary of Chapters
1. Global, Local and Glocal Strategies Regarding Products: This chapter defines the core concepts of products and brands, exploring the tension between global standardization and the necessity for local adaptation or localization to meet specific market needs.
2. Global, Local and Glocal Strategies Regarding Prices: This section details various pricing strategies—such as skimming and target costing—and analyzes how companies determine pricing policies based on market economic conditions and consumer buying power.
1. Analysis of the Target Market of Haagen Dazs: This chapter provides a practical case study on market segmentation, focusing on how a premium brand successfully targets specific adult demographics globally by aligning product quality with consumer expectations.
Keywords
International Marketing, Standardization, Glocalization, Product Strategy, Pricing Policy, Market Segmentation, Brand Attitude, Consumer Behavior, Global Brands, Skimming Strategy, Target Costing, Purchasing Power, Haagen Dazs, Coca-Cola, McDonald's.
Frequently Asked Questions
What is the primary focus of this publication?
The publication focuses on the fundamental strategies companies employ when operating in global markets, specifically regarding the management of product attributes and pricing models.
What are the central thematic areas discussed?
The core themes include the debate between standardization and localization, the concept of glocalization, various pricing mechanisms in a global context, and the importance of market segmentation.
What is the main objective of the analysis?
The objective is to explain how multinational firms balance global brand consistency with the unique demands of local markets to ensure profitability and customer satisfaction.
Which research methodologies are reflected in the work?
The work utilizes a combination of theoretical framework analysis from established marketing literature and empirical case studies, such as the Big Mac Index and brand attitude surveys.
What topics are covered in the main section of the document?
The main section covers global product strategies, pricing policies (including skimming and ethnocentric approaches), and a deep dive into the segmentation strategy of Haagen Dazs.
Which keywords characterize this work?
Key terms include International Marketing, Glocalization, Product Standardization, Pricing Policy, Market Segmentation, and Global Brand Management.
How does the author define the difference between localization and adaptation?
According to the text, localization involves technical adjustments to fit national standards, such as power sockets, while adaptation involves culturally fitting a product to meet local tastes and expectations.
Why is the Big Mac Index mentioned in the text?
The Big Mac Index is used as a practical illustration to demonstrate how global pricing is often adjusted to align with a nation's GDP per person and the buying power of its citizens.
What specific challenge does the author note regarding IKEA beds?
The author uses IKEA's standardized bed sizes to demonstrate a limitation of the product standardization strategy, where a "one size fits all" approach can lead to inconvenience in markets where average physical characteristics differ significantly.
What does the case study on Haagen Dazs reveal?
The case study illustrates that Haagen Dazs maintains a consistent global segmentation strategy by targeting wealthy adults who prioritize high quality, despite varying local consumer concerns like sugar content.
- Arbeit zitieren
- Ender Gülcan (Autor:in), 2017, Global and Local Strategies Regarding Products and Prices. Communication between Global Brands and Global Markets, München, GRIN Verlag, https://www.grin.com/document/376519
