global competitors able to incorporate the latest product inventions. The joint effect of these two forces makes product standardization not only possible but the preferred alternative. (Johansson, J.K., 1997)
Because of the soft and impressionistic data that usually underlie a proposal for global marketing, the global marketers need to develop and present a more qualitative argument in favour of global approach. The focus should be the degree to which a convergence of preferences is under way (W.J. Keggan, 2002). There are at least three important driving points in an analysis of the global convergence of preferences:
1. Recognize that customer preferences are dynamic and changing.
2. A major driver of changing preferences is new products on the market.
3. The new standard-setting products are first introduced and tested in leading markets.
In addition to the analysis of common customer needs there is also need to analyze competition. The analysis of global competitors adds a level of complexity to the analysis of domestic-only competitors. The global competitor usually has available a wider repertoire of competitive actions, which makes for a stronger competitor and makes prediction more difficult. Global competitors are always a threat to enter any local market where they at the moment might not have a presence (Johansson, J.K., 1997).
Globalizing marketing involves global coordination of marketing activities. It involves taking a global management perspective on the marketing operation in any country. Most typically it involves a certain degree of marketing standardization. There are several advantages and disadvantages of marketing standardization.
Table 3. Advantages and Disadvantages of Marketing Standardization. W.J. Keggan (2002)
Advantages
Disadvantages
Cost reduction. Cost reductions gained by scale economies constitute the primary benefits from standardization. Because of the longer production series there are considerable savings to be gained in manufacturing as well as purchasing. /Td>
Off-target. Standardized products, services and promotional mix are likely to miss the exact target in terms of customers 'preferences in any one country, because customers in different countries have widely dissimilar tastes and needs. /Td>
Enhanced customer preference. Positive experience with product in one country naturally encourages a consumer to buy the same brand elsewhere. /Td>
Lack of uniqueness. Of customization or exclusivity is one of the overriding purchase considerations, a standardised offering is in a weak position. /Td>
Improved quality. Since additional recourses can be focused on the product development eff...
