2Agenda Globalisation and Standardisation Hybrid Strategy The republic of technologyAdvantagesDisadvantagesHybrid Strategy“Glocalisation” “Post-global Brand”?Influencing Factors to Global Brands?Issues of Global BrandsGrey MarketCounterfeitingCultural Heterogeneity
3Globalisation“A powerful force drives the world toward a converging commonality, and that force is technology” (p92)“ Everywhere everything gets more and more like everything else as the world’s preference structure is relentlessly homogenised” (p.93)“[People everywhere want] goods of the best quality and reliability at the lowest price” (P93)Levitt (1983), “The Globalisation of Markets,” Harvard Business Review, 61(3), pp
4StandardisationGlobally standardised marketing mix/program that are advanced, functional, reliable and low-priced for all.
5Advantages E.g. Economies of scale in production and distribution Lower marketing costsConsistency in brand imageAbility to leverage good ideas quickly and efficientlyPower and scopeUniformity of marketing practicesZou and Cavusgil (2002), “the GMS: A Broad Conceptualisation of Global Marketing Strategy and Its Effects on Firm Performance,” Journal of Marketing, 66(4), pp
6Power and Scope A global brand profile may communicate credibility An admired global brand can also signal social status and prestigeAlden et al. (1999), “Brand Positioning Through Advertising in Asia, North America, and Europe: The Role of Global Consumer Culture,” Journal of Marketing, 63(1), pp ; Steenkamp et al. (2003), “How Perceived Globalness Creates Brand Value,” Journal of International Business Studies, 34(1), pp
7UniformityA standardised global marketing program may simplify coordination and provide greater control of the way the brand is being marketed in different countriesKeller (2008), “Strategic Brand Management”
8DisadvantagesE.g.Differences in consumer needs, wants, and usage patterns for productsDifferences in consumer response to marketing mix elementsDifferences in brand and product development and the competitive environmentDifferences in the legal environmentDifferences in marketing infrastructureDifferences in administrative proceduresZou and Cavusgil (2002), “the GMS: A Broad Conceptualisation of Global Marketing Strategy and Its Effects on Firm Performance,” Journal of Marketing, 66(4), pp
9Consumer ResponseConsumers in different parts of the world vary in their attitudes toward and opinions about marketing activities.Lee and Green (1991), “Cross-Cultural Examination of the Fishbein Behavioural Intentions Model,” Journal of International Business Studies, 22(2), pp
10Is Levitt right?Goods can be the easiest to standardise, whereas branding and particularly advertising are not moving toward greater standardisationBecause customers and competitive conditions differ across countries or because powerful local managers will not stand for centralized decision making, they argue, global marketing just won't work.Boddewyn et al. (1986), “Standardization in the International Marketing: Is Ted Levitt in fact right?” Business Horizon, 29(6), pp ; Quelch and Hoff (1986), “Customizing global marketing”, Harvard Business Review, 72(4), -p
11Hybrid Strategy“It’s often a mistake to set out to create a worldwide strategy. Better results come from strong regional strategies, brought together into a global whole.”Ghemawat (2005), “Regional Strategies for Global Leadership,” Harvard Business Review, 83(12), pp
12GlocalisationAt best, global marketing activities may exist on a strategic level, while on an operational level and a tactical level, they are less appropriate, if at all realistic and possible to implementSvensson (2002), “Beyond global marketing and the globalisation of marketing activities,” Management Decision, 40(6), pp
13Post-Global Brand Different Brands Same Brand Same products or conceptsBDDifferent products or conceptsACKapferere (2007), The New Strategic Brand Management
14What makes some brands easier to be standardised than others? Product categories?Price level?Turn-over rate?Consumer behaviour?
15Grey MarketTo reach public accessibility, brands must align their prices on the local economic level. However, when a price gap exists among countries not too far apart in distance, a grey market grows, disturbing the sales and trade goodwill invaded by parallel imports.Kapferere (2007), The New Strategic Brand Management
16Counterfeiting1,000% of increase in counterfeit goods in Europe between$650 billion current worth of the international counterfeiting businessInsideCounsel; Mar2008 Issue 196, p14
17Cultural Heterogeneity Global brands are Trojan horses through which transnational corporations colonize local cultures…..The interjection of global brands into local cultures paradoxically produces heterogeneity as global brands take on a variety of localized meaningsThompson and Arsel (2004), “The Starbucks brandscape and consumers’ (anticorporate) experiences of globalization,” Journal of Consumer Research, 31(3), pp