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.
Inhaltsverzeichnis (Table of Contents)
- Part 1: Strategies
- 1. Global, Local and Glocal Strategies Regarding Products
- 2. Global, Local and Glocal Strategies Regarding Prices
- Part 2: Analysis of the Target Market of Haagen Dazs
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This text aims to explore the complexities of global marketing strategies, focusing on product and pricing decisions. It examines how businesses navigate the challenges of standardizing products and prices across diverse global markets while simultaneously adapting to local preferences and economic conditions.
- Global vs. Local Product Strategies
- Global Pricing Strategies
- The Concept of Glocalization
- Market Skimming and Penetration Pricing
- Ethnocentric, Polycentric, and Geocentric Pricing Policies
Zusammenfassung der Kapitel (Chapter Summaries)
1. Global, Local and Glocal Strategies Regarding Products: This chapter delves into the core of international marketing, examining the crucial decisions around product and brand strategies in a global marketplace. It differentiates between a product and a brand, emphasizing the brand's role in shaping consumer perception and acting as a quality indicator. The chapter then explores three key strategies: standardization (using the example of Coca-Cola), localization (adjusting products for local regulations, such as plug types), and adaptation (modifying products to suit cultural tastes and preferences, exemplified by McDonald's localized menu offerings). The concept of "glocalization," the simultaneous convergence and divergence of market tendencies, is introduced as a crucial approach for global brands navigating diverse consumer expectations. The chapter effectively highlights the need for companies to balance global consistency with local responsiveness to successfully compete in international markets.
2. Global, Local and Glocal Strategies Regarding Prices: This chapter shifts focus to global pricing strategies, highlighting the interplay between pricing objectives and market realities. It emphasizes the relative ease of adjusting prices compared to other marketing mix elements. Several pricing strategies are discussed: market skimming (charging premium prices for superior products, as seen with Apple), penetration pricing (selling below cost to gain market share), captive pricing (bundling products where one subsidizes another, such as with game consoles), and cost-plus pricing (adding a margin to production costs). The chapter introduces target costing, a customer-centric approach that focuses on identifying the price customers are willing to pay for specific product attributes. Finally, it explores three pricing policies: ethnocentric (uniform pricing worldwide), polycentric (subsidiaries set local prices), and geocentric (prices determined by considering various market factors). The Big Mac Index is used to illustrate how pricing should reflect purchasing power in different markets, avoiding both overly high and overly low prices.
Schlüsselwörter (Keywords)
Global marketing, product standardization, localization, adaptation, glocalization, pricing strategies, market skimming, penetration pricing, captive pricing, cost-plus pricing, target costing, ethnocentric pricing, polycentric pricing, geocentric pricing, Big Mac Index, international marketing, brand image, consumer perception.
Frequently Asked Questions: Global and Local Marketing Strategies
What is this text about?
This text is a comprehensive preview of a work exploring global marketing strategies, focusing specifically on product and pricing decisions. It examines the challenges of balancing standardization with adaptation to local markets, a concept often referred to as "glocalization."
What are the main parts of the text?
The text is divided into two main parts: Part 1 focuses on global, local, and glocal strategies regarding products and prices. Part 2 delves into an analysis of the target market of Haagen Dazs (although this part is not detailed in the preview).
What are the key themes explored in the text?
Key themes include global versus local product strategies, global pricing strategies, the concept of glocalization, market skimming and penetration pricing, and ethnocentric, polycentric, and geocentric pricing policies.
What are the key strategies discussed regarding products?
The text discusses standardization (using Coca-Cola as an example), localization (adapting to local regulations, such as plug types), and adaptation (modifying products for cultural tastes, as seen with McDonald's). The crucial concept of "glocalization"—balancing global consistency with local responsiveness—is emphasized.
What pricing strategies are covered in the text?
The text covers market skimming (charging premium prices, like Apple), penetration pricing (selling below cost to gain market share), captive pricing (bundling products, like game consoles), and cost-plus pricing. It also introduces target costing, a customer-centric approach, and explores ethnocentric, polycentric, and geocentric pricing policies. The Big Mac Index is used as an example to illustrate how pricing should reflect purchasing power.
What is glocalization, and why is it important?
Glocalization refers to the strategy of simultaneously standardizing and adapting products and prices to meet both global and local market needs. It is presented as a crucial approach for global brands to successfully compete in diverse markets by balancing consistency and responsiveness.
What are ethnocentric, polycentric, and geocentric pricing policies?
Ethnocentric pricing involves uniform pricing worldwide. Polycentric pricing allows subsidiaries to set local prices. Geocentric pricing considers various market factors to determine prices, aiming for a balance between global and local considerations.
What is the role of the Big Mac Index in the text?
The Big Mac Index serves as an illustration of how pricing should reflect purchasing power in different markets. It helps demonstrate the need to avoid both overly high and overly low prices.
What are some key words associated with the text?
Key words include global marketing, product standardization, localization, adaptation, glocalization, pricing strategies, market skimming, penetration pricing, captive pricing, cost-plus pricing, target costing, ethnocentric pricing, polycentric pricing, geocentric pricing, Big Mac Index, international marketing, brand image, and consumer perception.
What is the purpose of the chapter summaries?
The chapter summaries provide concise overviews of the main points and arguments presented in each chapter of the text, allowing for a quick grasp of the content.
- Citation du texte
- Ender Gülcan (Auteur), 2017, Global and Local Strategies Regarding Products and Prices. Communication between Global Brands and Global Markets, Munich, GRIN Verlag, https://www.grin.com/document/376519
