Hey, we are meeting in a global village! Corners of this world are no more faraway. People in the global village think quite similarly when satisfying their requirements. Hence, businesses implement marketing campaigns under a “global standardization strategy”.
The Content of the article is as follows
- The Definition
- Why Businesses should Follow this?
- When and How to Apply?
- McDonalds as an Example
- Advantages and Disadvantages
Definition of Global Standardization Strategy
The organization appears in a SIMILAR OUTFIT THROUGHOUT THE WORLD. They maintain its applicability in every region, culture, economy, or country.
Why do Businesses Follow Global Standardization Strategy?
- People in this global village keep their thinking patterns more or less alike.
- Therefore, they perceive needs and wants quite similarly.
- Accordingly, businesses in the Global Market make their worldwide customer base to capture their product in a similar manner.
- For that, Businesses follow a Global Standardization Strategy in their Marketing Campaigns.
Let’s have a look at the ORGANIZATIONAL APPLICABILITY of this trendy marketing module.
When and How to Apply?
Here, businesses apply a similar marketing module across the entire world. But ultimately, customer attitudes decide its applicability.
Some products deliver a similar satisfaction to everybody in the world. Accordingly, global Standardization Strategy is easily applicable for those products.
Example Let’s get McDonalds for an example. Majorly, they provide good moments with the delicious feel. Hence, they deliver quick food items by making customers feel happening. A McDonald Customer from anywhere in the world expects happiness from McDonalds. Hence, the world perceives McDonalds alike. Therefore, McDonalds maintain a uniformity in every branch in the world. They wrap a cheerful feeling in their every food item. And, they do not include their food items with traditional purposes which differ region to region. Every McDonald Branch in the world follows a similarity even from seats arrangement.
However, sometimes it is hard to apply the same marketing kit as it is in every region of the world. The other angle of the Global Standardization Strategy comes here. You do not need to totally change your marketing attire. But you need to include a tiny change which matches the cultural perception of those regions.
Example: Cont’d McDonalds do not sell Beef Burgers in India. Because, India maintains a rich tradition and refuse eating beef. However, McDonalds maintain a happy feeling in their Indian Branches in every other manner. They delimit their food items only from beef. Other than that, McDonalds carry their strategy of “delicious feel-good moments easy for everyone” alike. Likewise, Global Standardization Strategy faces the regional barriers with tiny changes. It never changes the core strategy anywhere.
Like every other marketing module, this marketing approach also has carries advantages & disadvantages.
Advantages of Global Standardization Strategy
Saving of cost, time, and efforts.
Global standardization strategy saves your time, cost, energy, when preparing your marketing mix.
You do not need to bother to create different marketing strategies for different regions of the world. Because, you follow a single marketing approach across the entire globe. Hence, this is not like the costly situation where different regions demand separate marketing strategies. Therefore, this provides you the ability to solve your marketing needful one shot.
As discussed, Global this strategy maintains a uniformity in your marketing mix. Whatever the world region would be, that is it!
A marketing approach draws an image of the product in customer mind. Accordingly, a uniform strategy makes the brand image stable, worldwide. Likewise, it makes the brand stability and the brand strength ensured. Hence, it makes you easy to expand the scope and the spread your business.
You reach your customers with a constant quality, constant utility and especially with a constant satisfaction. This motivates your customers to make repeat purchases. Because, they trust the satisfaction to be even. Likewise, with this, you can receive a strong brand loyalty from the customers’ end.
Disadvantages of Global Standardization Strategy
Cultural contrasts prevailing in the globe
The trend of globalization has run to a high extent by now. But still, some regions follow cultural values in large scales. Such regions require an appropriate positioning. Unless, the market entrance will not succeed. Some regions abolish every activity contradictory to their cultural values. Moreover, they consider them as punishable offenses. At such times, Global Standardization Strategy hardly lets you in. these barriers strictly consider advertisements and commercial visuals.
Difficulty to compete with local organizations
Global standardization strategy does not specify for one market. Because it follows a global fixture. There, the entities with more focused approaches receive an added advantage. This rival emerges only within that region. However, since globalization gets tuned day by day, one can argue this as a temporary drawback. Further, if you follow a similar marketing approach everywhere, you can have an added advantage. None other than the vast ability to expand your business to different regions. But, the locally focused entities hardly achieve it.
Involvement of Macro Environmental Facts
The globalized practices generalize the customer perception of needs and wants. Therefore, it provides a great opportunity to your business. It let you to approach the entire world using a single strategy. However, customer perception gets filtered through various facts. For an example, economic statistics, political restrictions, natural environment conditions etc. vary depending on the area. Under this scenario, this strategy requires an extra effort to reach consumers. Because you need to make your approach resilient to all those facts.
Globalization makes every consumer to perceive alike. Hence, businesses follow a this Strategy to reach worldwide customers. They face regional barriers with small changes made in the core strategy. Likewise, businesses keep the core marketing strategy constant. It gives you brand loyalty, brand consistency, and savings. However, cultural contrasts and other micro economic factors challenge this concept.