Global Strategy
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
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