Global Strategy

Topics: Marketing, Pricing, Globalization Pages: 6 (1822 words) Published: February 16, 2011
Compare and contrast standardized, concentrated and differentiated Global Marketing. Critically evaluate each strategy with an example from a global company to illustrate the differences There is a tendency for international corporate-level strategies to be substituted for global marketing strategies; namely, multi-domestic strategy to concentrated marketing, global strategy to standardized marketing, and transnational strategy to differentiated marketing. However, the borderline lies as the former focuses broadly on firm’s operations while the latter narrowly involves factors within the marketing mix that directly influences the customer behavior. Although this distinction is used to promote accuracy across the paper, there will be instances that corporate strategies, at least in their concept, can provide the necessary platform of discussion. With respect to product, standardized marketing differs from its opposite extreme concentrated marketing as products are introduced to a foreign country without any change*. Although the strategy is cheaper due to absence of research and development and other operational modifications, it can be expensive and unprofitable in the long-run. . Campbell Soup Company lost millions of dollars in England by using this strategy. This is where customization and customerization become crucial wherein decentralization about product features and designs are made suited to local customers. Nokia adjusted the voice recognition capability of cellular phones in the Asian market to adapt to its crowded streets while Mister Donut’s coffee cup and donuts were made smaller and lighter for an average Japanese consumer. Also, the adaptation implemented by Hyatt Hotels in Singapore with regards to feng shui was deemed to boost the profitability business. Lying in the middle, differentiated marketing seeks to achieve both the efficiency of standardized and local responsiveness of concentrated. As a result, the necessity for product invention plays vital role not only for faster reaction to market needs but also permanent realization of profits. The National Cash Register Company adjusted to relativity of product life cycle across different countries which constituted backward invention. It sold crank-operated cash register at cheaper price compared to global pricing to anticipate the local response to relatively unknown machine. Forward invention, on the other hand, gave Toyota a rationale to design specific vehicles to suit the budget of less developed countries. Although this strategy is very promising in the long-run, start-up product innovation/ research and substantial financing connotes risky venture to partake. With respect to promotion, the three strategies can be distinguished in the methods of branding, product name, advertisement and the use of media. The cost-effectiveness inherent to standardized marketing differs from concentrated as the former can take one message to reflect its intention. Considered an inappropriate promotional tool due to unique cultural and language nation factors, there are few global firms that use the former absolutely. Exxon’s “Put a tiger in your tank” was internationally recognized with still minor variations. In the contrary, the latter adapt or limit taboos and language context in the local market to avoid discouraging meaning like Dairy Association’s “Mist Stick” translation to German as “manure stick”. To prevent futility of promotions even tendency to adversely affect behavior, Carlsberg adapted the copy to suit the culture not for the whole country but to cities and its close neighbors.
Differentiated marketing is the broad version of concentrated particularly in geographical markets as it tends to be national-bounded. The best illustration can be observed in different country restrictions on advertising. Cigarettes and alcohol companies must select another kind of media aside from television in...
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