2. Overview
A number of academics have held the view that the
needs and wants of consumers from around the world
are converging due to globalisation. We will explore
this notion from the perspective of the consumer
goods industry, evaluating the advantages and
disadvantages of this trend.
We will also take an in-depth look at the extent to
which national environmental factors such as culture
do still play a role in the marketing of consumer goods
products. Thereafter, we will explore how to identify
and research the needs of consumers around the
world and finish off by looking at the opportunities
open to the industry and issues with marketing and
communications globally.
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3. Learning Outcomes
• Determine and describe the key elements of the
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globalisation vs adaptation debate
• Articulate the advantages and disadvantages of
global homogenous and heterogeneous operating
strategies
• Develop a view on how to identify consumer
needs globally
• Highlight key issues relating to global marketing
communications
4. The Globalisation of Consumer Needs
Everywhere everything gets
more and more like
everything else as the
world's preference structure
is relentlessly homogenized.
Theodore Levitt
7. Clearly there a host of cultural differences
around the world
Source: HSBC, 2013
8. The Worlds Local Bank
View Video: https://www.youtube.com/watch?v=6_WAmt3cMdk
9. Three approaches to consider
Ethnocentric Approach
The firm simply markets its goods in international
markets using the same marketing mix it uses
domestically, thereby avoiding the expense of
developing new marketing techniques to serve
foreign customers.
Polycentric Approach
Far more costly because international marketers
attempt to customise the firm’s marketing mix in
each market the firm enters in order to meet the
idiosyncratic needs of customers in that market.
Geocentric Approach
Calls for standardisation of the marketing mix,
allowing the firm to provide essentially the same
product in different markets and to use the same
marketing approaches globally.
10. Global Markets for Products
View video: http://www.youtube.com/watch?v=h52W3D-tuf0
11. So what are the main arguments for global
consumer convergence? According to Levitt...
Transport Communication
14. What are the benefits of globalised
consumers?
They all want the
same things
=
15. What are the benefits of globalised
consumers?
Source: Economist.com, 2013
What are the different
pricing approaches that
can be taken?
Skimming Strategy
Penetration Strategy
Cost-plus Strategy
17. The Role of Adaption
Levitt's vision began to backfire. In emerging markets “from
China to Eastern Europe, enthusiasm for global brands
proved short-lived”. (Quelch, 2003: 22) Local brands began
to attract customers as global brands saturated in their
markets. (Quelch, 2003: 22) The success of global brands,
U.S. brands in particular created a growing attitude of
perceived American cultural imperialism and this led to a
counterattack against U.S brands, particularly in Western
Europe and the Muslim world. (Quelch, 2003: 22)
View video: https://www.youtube.com/watch?v=nI2VmTRR4-E
18. Moving to Glocalisation
According to the sociologist
Roland Robertson, who is credited
with popularizing the term,
glocalization describes a new
outcome of local conditions
toward global pressures.
At a 1997 conference on
"Globalization and Indigenous
Culture," Robertson said that
glocalization "means the
simultaneity --- the co-presence -
-- of both universalizing and
particularizing tendencies.”
19. Moving to Glocalisation
Robertson holds that global culture and local culture
are not two opposing forces at odds, as the term
"globalization" might suggest, but rather see them as
working together, as the term "glocalization" might
suggest.
UK India
28. Which one is it?
Think Global,
Act Local Think Local,
Act Global
?
29. Global Marketing Communication
Challenges: 14 Obstacles by Kanso and
Nelson (2002)
Heterogeneity of
national
populations
Legal constraints
on
message content
Government
regulations of
advertising media
Cultural differences
Differences in
consumers’
lifestyles
30. Global Marketing Communication
Challenges: 14 Obstacles by Kanso and
Nelson (2002)
Variations in
market
infrastructure
Political instability
Lack of reliable
media research
Language diversity
Preservation of
national identity
31. Global Marketing Communication
Challenges: 14 Obstacles by Kanso and
Nelson (2002)
Unavailability of
accurate marketing
research data
Variations in
reaching certain
target public
Trade restrictions
Differences in
media availability
