Summary on Global marketing and advertising (Marieke de Mooij). Chapter 1-11. In English. For preparation of the Global branding exam. As a part of the Global branding & Cambridge English minor.
Chapter 1. The Paradoxes in Global Marketing and Advertising
Paradox: statement that seems contradictory but is actually true
Belonging important where individual achievement is a core value
Economic globalization is accompanied by increased focus on local identity
Global media versus local music preferences
Local segmentation versus global standardization in marketing
Convergence of technology goes with divergence of usage of technology
In business press “Globalization” is Americanization
Globalization discourse dominated by Anglo-Saxon authors who see their own country’s brands
everywhere and think it makes people the same
Globalization & The Myths in International Marketing
‘Globalization of markets’ Levitt (1983) : The world’s needs and desires have homogenized
(Internet) technology brings a world culture
Global business and global media have brought global communities
o youth, business people more similar to each other across countries than to other
people within countries
o similarities in media exposure bring consumer together
Increased wealth makes people travel
Increased travel brings universal values
Result:
Increased focus on similarities, not on differences
An ideal world versus the real world
Global Consumers?
In Europe, in 2001, 44% of young people had not visited another country, and 86% only
one, for holidays (Eurobarometer); 31% do not speak another language
Values of the young and business people similar to general public
There are global products and brands, but there are no global consumers; global markets
consist of local consumers
Cultural differences influence consumption and consumer behavior; the differences are
stable over time
The Global-Local Paradox
The more people know about other countries and cultures, the more they become aware of
their own national and cultural identity
, Along with unification of the different European nations, when citizens of the various nations
learned more about each other, symbols and appeals in advertising became more nationally
oriented
The Technology Paradox
People use new technology to do the things they used to do better, nicer, more efficient
They are extensions of human beings (McLuhan)
People’s behavior is very stable, is based in history; new technology is used to reinforce
existing behavior
o The colder the climate, the more deep freezers and ice cream consumed
o Mobile phone penetration highest where most main telephone lines
Convergence-Divergence
Human behavior stable
New technology often new format of the old.
o Deep freezers, mobile phones
Not necessarily driver of new behavior
No evidence of convergence.
Persistent variation of consumption & consumer behavior across countries.
Increased Wealth Divergence
More discretionary income gives people more freedom to express themselves
Wealth brings choice
The wealthier countries become the more manifest values and value differences
European Union good example: economic convergence but stable value differences
expressed in consumption, motives and communications
For many products after some time convergence turns into divergence
Global Consumers in a Global Village?
Global village concept coined by Marshall McLuhan with the introduction of TV
Cited as if he meant homogenization.
He said the opposite: Uniqueness and diversity could be fostered under electronic conditions
as never before.
New media are used to enhance current activities; they reinforce existing habits.
The Global-Local Dilemma
Standardize or modify
Arguments standardization
, o Global communities with similar habits and values
o Global youth, business men
There is not one global, Asian or European teenage culture
Jeans don’t make a Chinese youth into an American youth.
The Standardization – Adaptation Debate
Discussion ongoing since 1960s
Mostly academic
Three schools of thought
o Standardization
o Adaptation
o Contingency position
Type of studies
o Conceptual papers
o Surveys among managers
o Complex studies including performance measures
o Content analysis of advertising
Variables Standardization-Adaptation
Product, category, product stage in life-cycle
o Country-of-origin concept
o Introduction stage
Company, organizational culture
o Universalism of western companies causes preference for standardization
o Degree of export dependence: standardize when little export
Business environment
o Infrastructure, laws, media
Consumer
o Income
o Culture
Effect on Performance
Increasingly studies find effect on performance
Adaptation leads to better results
Adapt brands to a position that is relevant to minds of consumers
Understand factors that lead to superior performance:
o Handling product adaptation, marketing planning
o Control marketing activities
o Insight in how to differentiate products
o Effective pricing, advertising and distribution
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