Balancing Local Responsiveness and Global Synergies

Question 1

Why is there a tension between global rationalization and local responsiveness?

Answer 1

Global rationalization may allow economies of scale and scope, but with standardized products, they might not be enough adapted to local preferences

Question 2

What is the difference between economies of scale & scope?

Answer 2

Economies of scale refer to one product, economies of scope refer to a product portfolio

Question 3

• Which environmental factors hinder rationalization/standardization?

Answer 3

o Extreme weather events, climate change, extreme weather conditions

Question 4

• Which frameworks can be used to analyze environmental influences on marketing?

Answer 4

o PESTEL is the most prominent one

Question 5

• What is the Gini coefficient?

Answer 5

o shows the economic differences within a particular market (measured from 0-1 or 1-100)

Question 6

• What is the difference between trademarks/patents/copyrights?

Answer 6

o patent usually refers to pharmaceuticals or machineries where you have a certain blueprint or recipe that is patented; trademark Lacoste example; copyright as in the marketing book

Question 7

• What are non-deceptive counterfeits?

Answer 7

o consumers knows about them, e.g. Rolex for 10€

Question 8

• What is culture?

Answer 8

o Rather learned than something you are born with

Question 9

• Why is culture so central to consumer behavior?

Answer 9

Family, reference groups, religion etc are all part of culture -> culture is important and should influence your marketing campaigns

Question 10

• How can culture be measured?

Answer 10

o Hofstede and Schwartz models; 6 factors: individualism, masculinity, power distance, uncertainty avoidance, indulgence, long term orientation

Question 11

• How do differences in value affect global marketing?

Answer 11

o covering the shoulders of a woman in an advertising campaign, woman was removed from Ikea catalogue in Arabic countries

Question 12

• What are examples of religious influences on marketing?

Answer 12

o Kosher, halal, covering one’s shoulders

Question 13

• How do aesthetic differences affect global marketing?

Answer 13

o Whitening creams in Asia

Question 14

• What are the core ideas behind Hofstede, Schwartz and Hall’s work on culture?

Answer 14

o understand the differences in culture across countries and to discern the ways that business is done across different cultures

Question 15

• How are global marketing activities affected by differences in geography and infrastructure between countries?

Answer 15

o size of the country, sophistication of infrastructure, sophistication of stores

Question 16

• What is meant by glocalization?

Answer 16

o mixture between globalization and adaptation

Question 17

• What is difference between push and pull strategy?

Answer 17

o either pushing products through distribution channels, incentivizing sales force; or pulling by strong advertising and creating demand

Question 18

• Why should marketing distinguish between situations where standardization of communication is ‘feasible’ and where it is ‘desirable’?

Answer 18

o Feasible: local laws, media, local advertising agencies, literacy rate
Desirable: cost savings, homogeneous consumers

Question 19

• How can differentiated advertising help to curb grey markets?

Answer 19

o prevents companies to buy from low-cost countries and sell to low-cost countries

Question 20

• Which questions should be asked before engaging in a standardized marketing communication campaign?

Answer 20

o 1) has the market developed in the same way from country to country?

2) are the consumer targets similar in different nations?
3) do consumers share the same wants and needs around the globe?