1. Introduction To Global Marketing

Question 1

A primary global marketing challenge is standardization vs adaptation. What factors affect standardization versus adaptation

Answer 1

Standardization
- Similar tastes in diverse countries
- Strong country of origin image
- scale economies in production
- R&D
- Marketing
- High cost of adaptation

Adaptation
- Variations in consumer needs and conditions of use
- Variations in consumer income and ability to buy
- Strong cultural differences affecting produce and use
- Differences in technical standards
- Differences in government regulations affecting the product

Ex. Coca-cola was adapted to different languages!

Question 2

How is Red Bull a good example of adaptation to global markets?

Answer 2

• An Austrian found a Thai energy drink and brought it back to Europe. He adapted it for European customers: not as sweet and in carbonated form.

Question 3

What you need to have a global mindset?

Answer 3

• Knowledge of other countries, economics and cultures
• Understanding of how the global economy works
• Ability to recognize and use ideas from different markets