Lecture 2 industry studies student
- 1. Industry Studies: Consumer Goods Industry Meeting the needs of people on a global scale
- 2. Overview A number of academics have held the view that the needs and wants of consumers from around the world are converging due to globalisation. We will explore this notion from the perspective of the consumer goods industry, evaluating the advantages and disadvantages of this trend. We will also take an in-depth look at the extent to which national environmental factors such as culture do still play a role in the marketing of consumer goods products. Thereafter, we will explore how to identify and research the needs of consumers around the world and finish off by looking at the opportunities open to the industry and issues with marketing and communications globally. 2
- 3. Learning Outcomes • Determine and describe the key elements of the 3 globalisation vs adaptation debate • Articulate the advantages and disadvantages of global homogenous and heterogeneous operating strategies • Develop a view on how to identify consumer needs globally • Highlight key issues relating to global marketing communications
- 4. The Globalisation of Consumer Needs Everywhere everything gets more and more like everything else as the world's preference structure is relentlessly homogenized. Theodore Levitt
- 5. Consider your own experience of travelling… is everywhere the same?
- 6. Consider your own experience of travelling… is everywhere the same?
- 7. Clearly there a host of cultural differences around the world Source: HSBC, 2013
- 8. The Worlds Local Bank View Video: https://www.youtube.com/watch?v=6_WAmt3cMdk
- 9. Three approaches to consider Ethnocentric Approach The firm simply markets its goods in international markets using the same marketing mix it uses domestically, thereby avoiding the expense of developing new marketing techniques to serve foreign customers. Polycentric Approach Far more costly because international marketers attempt to customise the firm’s marketing mix in each market the firm enters in order to meet the idiosyncratic needs of customers in that market. Geocentric Approach Calls for standardisation of the marketing mix, allowing the firm to provide essentially the same product in different markets and to use the same marketing approaches globally.
- 10. Global Markets for Products View video: http://www.youtube.com/watch?v=h52W3D-tuf0
- 11. So what are the main arguments for global consumer convergence? According to Levitt... Transport Communication
- 12. Consider the role of technology and exponential growth
- 14. What are the benefits of globalised consumers? They all want the same things =
- 15. What are the benefits of globalised consumers? Source: Economist.com, 2013 What are the different pricing approaches that can be taken? Skimming Strategy Penetration Strategy Cost-plus Strategy
- 16. There’s just one issue…. …Not everyone wants a Big Mac!
- 17. The Role of Adaption Levitt's vision began to backfire. In emerging markets “from China to Eastern Europe, enthusiasm for global brands proved short-lived”. (Quelch, 2003: 22) Local brands began to attract customers as global brands saturated in their markets. (Quelch, 2003: 22) The success of global brands, U.S. brands in particular created a growing attitude of perceived American cultural imperialism and this led to a counterattack against U.S brands, particularly in Western Europe and the Muslim world. (Quelch, 2003: 22) View video: https://www.youtube.com/watch?v=nI2VmTRR4-E
- 18. Moving to Glocalisation According to the sociologist Roland Robertson, who is credited with popularizing the term, glocalization describes a new outcome of local conditions toward global pressures. At a 1997 conference on "Globalization and Indigenous Culture," Robertson said that glocalization "means the simultaneity --- the co-presence - -- of both universalizing and particularizing tendencies.”
- 19. Moving to Glocalisation Robertson holds that global culture and local culture are not two opposing forces at odds, as the term "globalization" might suggest, but rather see them as working together, as the term "glocalization" might suggest. UK India
- 22. In the digital world can you customise? I mean IKEA is IKEA right?
- 23. Identifying Consumer Needs: The Right Balance of Global and Local
- 24. Start with a needs based approach
- 25. Understand global trends Source: http://www.taiwanforesight.org.tw/Eng/images/megaTrend-chart-1.gif
- 26. A VUCA world View video: https://www.youtube.com/watch?v=YA02Jvpo8LQ
- 27. But understand local needs and appreciate differences
- 28. Which one is it? Think Global, Act Local Think Local, Act Global ?
- 29. Global Marketing Communication Challenges: 14 Obstacles by Kanso and Nelson (2002) Heterogeneity of national populations Legal constraints on message content Government regulations of advertising media Cultural differences Differences in consumers’ lifestyles
- 30. Global Marketing Communication Challenges: 14 Obstacles by Kanso and Nelson (2002) Variations in market infrastructure Political instability Lack of reliable media research Language diversity Preservation of national identity
- 31. Global Marketing Communication Challenges: 14 Obstacles by Kanso and Nelson (2002) Unavailability of accurate marketing research data Variations in reaching certain target public Trade restrictions Differences in media availability
- 32. Compare and Contrast Marketing In…
- 33. Appendix – Sources for illustrations Slide 4: www.greatthoughtstreasury.com Slide 5: www.wikipedia.org Slide 6: www.globaleducation.edu Slide 11: www.easyjet.com; www.iwillbelikethis.org Slide 12: www.thefinanser.co.uk Slide 14: www.ford.com; www.emeraldinsight.co.uk Slide 16 and 18: www.mcdonalds.com Slide 19: www.wikipedia.org Slide 21: www.tomfishburne.com Slide 22: www.ikea.com Slide 24: www.timvandevall.com Slide 27: www.livemint.com
- 34. End of presentation © Pearson College 2013