In your own words, based on your education and experience, provide me with input and insight to each of the inquiries to help enable a better understanding of the content. Thanks.
A. What are the basic factors involved in deciding whether to use standardization or customization in global marketing? As a reminder, the ethnocentric, polycentric, and the geocentric approach are 3 basic factors that a firm should analyze before deciding whether to standardize or customize their international marketing strategy.
B. What are some of the fundamental issues that must be addressed in international advertising? As I personally understand it, the 3 fundamental issues that must be addressed in global advertising are defining the message one wants to get across to the consumer, determining how the message will be communicated to the consumer, and whether or not the message should be revised because of the market it is being broadcast to.
C. Are the four Ps of international marketing of equal importance to all firms? What might cause some to be more or less important than others? As I personally understand it, product, pricing, promotion, and place -- are not of equal importance to all organizations.
D. What are the pros and cons of trying to use a single brand name in different markets, as opposed to creating unique brand names for various markets? As I personally understand it, globalization has caused some multinational organizations to create branding strategies that are similar in both domestic and international markets.
E. How do legal, cultural, and economic factors in the Multi-National Corporation's home country affect their international product policy?
A. What are the basic factors involved in deciding whether to use standardization or customization in global marketing?
There are three basic approaches which a firm may chose for its international or global marketing strategy: Ethnocentric approach, Polycentric Approach or the Geocentric Approach.
Companies taking an ethnocentric approach simply replicate home-market strategies in foreign markets. A polycentric approach entails adapting marketing strategies to each foreign market served. A geocentric approach integrates both of the former into a global strategy, consciously weighing the costs and benefits of each.
The choice of each of these approaches depends upon a number of environmental factors prevailing in individual countries.
Some of the most important environmental factors that shape global marketing efforts and thus help in chosing one of these approaches are:
First, there are cultural factors, including values, customs, cultural symbols, and language. Cultural factors have an important bearing with respect to chosing one of these strategies as there are vast differences with respect to cultural issues, customs, business practices and preferences of the customers. The degree of standardization or customization with respect to the marketing strategy and the choice of one of these approaches is directly affected by the degree of differences that exist between the domestic environment and the environment prevailing in the chosen country. If huge differences exist, companies need to customize their marketing strategies as per the needs, wants and preferences and trends prevailing in the foreign country. An ethnocentric approach might not be suitable in such circumstance.
Economic factors also shape global marketing efforts. These include a country's stage of economic development and economic infrastructure, consumer income and purchasing power, and currency exchange rates. Countries with the same leel of economic development and infrastructure can be captured with similar marketing strategies, while countries such as underdeveloped and emerging nations need to be targeted with different strategies.
Finally, political-regulatory factors in a country or region of the world create a favorable or unfavorable climate for global marketing efforts. The prevailing government, their attitude towards foreign enterprises and ...
What are the basic factors involved in deciding whether to use standardization or customization in global marketing? As a reminder, the ethnocentric, polycentric, and the geocentric approach are 3 basic factors that a firm should analyze before deciding whether to standardize or customize their international marketing strategy.