MK0389 Global Marketing &

Communication
International Marketing Strategies:
Globalisation/Localisation/Glocalisation:
Standardisation verses Adaptation

Objectives
To consider different approaches to
Global Marketing
To discuss the
standardisation/adaptation debate
To confuse ourselves with the different
vocabulary.
To appreciate that globalisation is not
always best.
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Globalisation
Globalisation: a business initiative
based on the premise that the world is
becoming more homogenous and that
distinctions between national markets
are not only fading but for some
products will eventually disappear.
Czinkota et al (1995)

Recent product/brand history

1980s:
Chrysler offered one million auto configurations
Black & Decker sold 19 types of iron
Colgate & Crest offered more than 35 types of
packaging and toothpaste

Levitt said this was unwarranted.

Global branded products

1990s USA & European companies rushing into the
global marketplace and wanted to offer global
branded products
1990s Global market entry was either via
Adapting a domestic brand to suit local market
conditions McDonalds, Coca cola
Or acquisition of a panoply of local brands
e.g. Nestle and Unilever

Global branded products usually start from local

branded products. They have to build a relationship
from scratch in each new market and then extend
their reach. Hollis (2008)

Global Marketing

Refers to marketing activities coordinated

and integrated across multiple country
markets.
The integration can involve:

standardised products,
uniform packaging,
identical brand names and
similar advertising messages.
The principles are roughly similar whether one
talks of 10 or 50 countries. (Johannson, 1997)

So Globalised = Standardised?

Standardisation
- is preserving some level of consistency
in product, sales and promotion,
advertising, distribution and other
marketing mix essentials through multiple
markets. (Johansson (2000)
- is universal marketing agenda applied on
global origins. Global products and usually
brand names are same in each country (Jain
1989)

Negative outcomes of globalised

marketing
Disadvantages

Products lack uniqueness

Localised mix requirements
Anti-globalisation threats
Off-target
Vulnerable to trade barriers
Strong local competitors

Environmental factors influencing the balance

between standardisation and adaptation
Standardisation
Economic/political integration
Internet economy

Balance

Cross-cultural diversity
Tariff/non tariff barriers
Adaptation

(Source: Hollensen)
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Mix elements for

standardisation/adaptation
Easiest
Brand name
Image
Packaging
Advertising
Product characteristics
Labelling
Quality

More difficult
Pricing
Advertising
Service
After-sales
Guarantees
Delivery

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Localisation
Localisation derived from word locale meaning small
area of vicinity.
Localisation involves taking a product and making it
culturally and linguistically appropriate to the target
locale, language, region and country where the
product will be used and sold to that specific
market. [Localization Industry Standard Association (LISA)
(Esselink 2000)]

Adaptation of a product to meet the local taste so

that the users feel the product is suitable for them.

Adaptation allows for:

winning specific buyers and
maximizing sales
not over-designing products for some
countries and under-designing them
for others
not dampening entrepreneurial spirit

Vocabulary debate
Localisation
Adaptation
Differentiation

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Does localisation = adaptation?

Czinkota & Ronkainen (1996) state adaptation is
adapting the whole marketing mix to suit the local
market.
Johansson (2000) argues adaptation & localisation
does not mean the same.

Localisation stands for necessary changes to enable the

product or service to function in a new nation state
E.g. battery chargers for mobile phones requiring different
jacks to suit foreign plugs

Adaptation refers to changes to suit customer flavours and

inclinations.
Meeting customer needs rather than technical or legal
necessities.
E.g. Haagen Dazs Green Tea ice-cream for Asia

Continuum
Globalisatio
n

Standardisati
on

Localisation

Glocalisatio
n

Adaptation/
Differentiati
on
Adaptation

Local
Products/
brands

Examples of adaptation

Coca cola
Lowering of sugar content and using smaller packages in Asian markers
(Johansson 1997)
Red Bull
Different ingredients for French market (Burckel et al 2009)
IKEA
Changes of the sizes of bed and tables to fit their customers in China and
USA (Aheuser et al 2009)
Diesel
Smaller sizes for the Chinese market
Gillette:
selling single razor blades in emerging markets and packages of 5 10 in the
USA and Europe (Jeanette & Hennessy 2004)
Daimler-Chrysler:
developing the Smart Car for Japanese markets to comply with Japans
regulations and qualify for tax breaks for small cars (Jeanette & Hennessey, 2004)

Continuum
Globalisatio
n

Standardisati
on

Localisation

Glocalisatio
n

Adaptation/
Differentiati
on

Local
Products/
brands

 GLOCALISATION

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Glocalisation

Derived form the words global and localisation

Glocalisation means the simultaneity the co-presence of
both universalizing and particularizing tendencies (Robertson,
1997).

Meaning the creation of products or services customised to

suit a local culture but are intended for a global market.
a combination of globalisation and localisation, linking
standardisation with adaptation advantages (Fill 2006)
the best approach to international markets (De Pelsmacker,
Geuens & Van den Bergh 2001)

Not cheap but can pay off in long run

Brand name and image almost always stay the same.

Company Strategies

Coca Cola CEO Douglas

Daft Ours is a local
business we will think
locally and act locally. We
became one of the best
marketers in the world
because we understand
that no one drinks
globally. Understanding
the local culture and acting
on that understanding is
paramount to success (in
Usunier & Lee 2000)

the president of
McDonald's International
has insisted that the
company is as much a part
of local culture as possible
(quoted in Ritzer, 2004)

Glocalisation examples

Use of local celebrity in adverts

Local flavours in food products
Sponsoring local sports events
Web sites with global banners but local
pages

Limits to global product brands

Few brands establish dominating
positions in multiple countries.
Brands that are distributed across
multiple countries tend to have weaker
overall relationships with consumers
than brands that stick close to home.

 LOCAL PRODUCTS/BRANDS

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Local products
Local products can still survive and prosper
next to global brands

Audio products
Shoes
Clothing
Food and drinks

In B2B some local services are very important

Personal attention
Fast delivery
Prompt-after sales service

Bonding with brands

Suggests that brands that

compete in more countries
tend to have weaker
"Bonding" scores overall

Advantages of local brands

Can have the home-field advantage,
provided they qualify as strong brands in
their own right.
The different ways in which a brand can be
perceived as part of the local culture
include the following:

Meeting unique local needs or tastes

Nostalgia being a brand people grew up with
Local operational or logistical advantages
Strong community ties
Cultural identity

Continuum
Globalisatio
n

Standardisati
on

Glocalisatio
n

Adaptation/
Differentiati
on

Think global
act global

Localisation

Think global
act local

Think local act

local (?)

Global branded products live on a continuum from

globally consistent to locally adapted.

Local
Products/
brands

Global markets
Buyers having similar preferences across
multiple countries
Homogenous markets:

Clothes jeans
Electronics cameras
Food burgers
Drinks cola

Pepsi 200 countries

Starbucks 44 countries
Red Bull 130 countries
HSBC 85 countries

All companies who do business in more

than one environment beyond home market
could be considered global E.g.

Summary

Many different terms

Authors disagree on their meaning
Global
Glocal
Local
Decision is based on customer need
All have advantages/disadvantages
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