Blog# 5

Blog Post 5: Globalisation in Marketing

Has Globalisation Made Marketing Easier or More Complex?

Enter any contemporary market, be it a brick-and-mortar retail chain or an online one, such as Amazon, and you are instantly bombarded with a plethora of foreign brands competing with each other. Globalisation has allowed countries to manufactureand sell products globally by removing geographical borders,and unifying markets across the world. Consequently, companies can connect with consumers much outside their home markets, but this has also come with new strategic and marketing challenges. Globalised marketing is directly related to the theory of global standardisation developed by Levitt (1984), stating that the companies can sell the same products in the global market, by meeting the identical requirements of the consumers. This approach helps companies to benefit from economies of scale and lower production and promotion expenses without sacrificing global brand image. A good example is that of Apple - its minimal design, high-end positioning and smooth advertising is to a great extent similar across markets, which helps to strengthen strong, coherent brand identity.

Likewise, Coca-Cola maintains the same approach and does not change their famous logo, red color palette, and message of joy and unity in the world (Ajala, 2022). The name of this congruence is the in-line brand equity theory, which assumes that the increased the brand exposure, the more customer response and loyalty.

Nevertheless, globalisation does not go without its problems. The cultural diversity is one of the primary issues that can be traced to the Hofstede cultural dimensions theory (2009) that explains the difference in values across cultures. What would be attractive in one culture, will not be, and possibly even be revolting in another. For example, McDonalds integrates its products across the world-market; however, in India, it introduced McAloo Tikki burger in its restaurants to accommodate the taste of its vegetarians and in Japan, it introduced Teriyaki burgers. This is a localisation (adaptation) tactic in which companies modify components of the marketing mix (product, price, place, promotion) to suit local preferences and conventions.

This creates a fundamental conflict in international marketing: standardisation VS adaptation. Even though, standardisationintroduces efficiency and recognition to brand, adaption renders it more pertinent and appealing to the customer. Most firms strive to achieve a glocalisation strategy, which is global brand image and local customisation - Nike is such a company, having a global brand image, but tailoring their marketing campaigns to the local athletes and local stories.

Another critical issue is the increased competition. Globalisationimplies that companies are not only competing with domestic companies, but also major global brands. According to Porters Five Forces, with increase in competition there is an increase in the need to differentiate, to innovate and be strategically positioned. Thus, companies need to invest more on digital marketing, data analytics, and customer experience in order to stand out in intense competition.



References

Ajala, O.I., 2022. An examination of the use of culture by Coca-Cola (Doctoral dissertation, Dublin, National College of Ireland).

Hofstede, G., 2009. Geert Hofstede cultural dimensions.

Levitt, T., 1984. Marketing myopia. Journal of Library Administration, 4(4), pp.59-80.