Câu hỏi 779056 - Đọc 4 - EN32

The Global Product – the World as a Single Market

AFor business, the world is becoming a smaller place. Travel and transportation are becoming quicker and easier, communications can be instantaneous to any part of the world and trade barriers are breaking down. Consequently, there are tremendous opportunities for businesses to broaden their markets into foreign countries. The challenge facing those promoting products globally is to determine whether marketing methods should be adapted to different markets based on specific cultural factors.

BMany theorists argue that, with the ‘shrinking of the world, global standardization is inevitable. Over time, and as economies develop, it has been suggested that consumer buying patterns will blend into on another and national differences may disappear. Kellogg, the American breakfast cereal producer, has been very influential in challenging consumption patterns in countries outside the United States. In France, for example, breakfast cereals were almost unheard of, and market research suggested that the market was closed to companies like Kellogg. However, today, there is a demand for breakfast cereal across France. Nevertheless, the standardization of products for worldwide consumption in this way is rarely the most effective strategy as it evident from an analysis of the following key aspects of global marketing.

CFirst of all, it is considered better business practice by many large, established companies to change their products from one country to the next. Take the example of Coca-Cola. The recipe for this drink is change to suit local tastes – the brand in the US is much sweeter than in the UK, whilst in India the product’s herbs and flouring are given more emphasis. In terms of the car industry, it would be too expensive for manufacturers to develop and build completely different vehicles for different markets yet a single global model is likely to appeal to no one. In response to varying needs, Nissan, for example, sells in 75 different markets, but has eight different chassis designs. The Ford Mondeo was designed with key features from different markets in mind in an effort to make its appeal as broad as possible. The best policy, as far as most multi-national companies are concerned, is to adapt their product to a particular market.

DSecondly, it is important to consider whether a product should be launched simultaneously in all countries (known as a ‘sprinkler launch’) or sequentially in one market after another (‘a waterfall launch’). In practice, most companies producing consumer goods tend to launch a new product in one or two markets at a time rather than attempt to launch a product across a range of countries at a single time. Many high-tech products such as Blu-ray players reach the market in Japan before reaching the UK. Hollywood films are often seen in the United States weeks or months before they arrive in other countries.

EThe advantage for firms is that it is easier to launch in one market at a time. Effort and concentration can be focused to ensure the best possible entry into the market. Moreover, for technical products especially, any initial problems become apparent in a single market and can be corrected prior to launch elsewhere. Even though this method can be time-consuming, it is usually a safer approach than a simultaneous launch. Despite this, in certain highly competitive markets such as computer chips, companies such as Intel tend to launch their new products internationally at the same time to keep the product ahead of its competitors.

FThe final consideration when planning to enter a global market, rather than assuming the product will suit all markets is to take cultural differences into account. Prices have to convert to a different currency and any literature has to be translated into a different language. There are also less tangible differences. It is quite possible that common practices in one country can cause offence and have grave consequences for business success in another. In one situation in China, a western businessman caused offence to a group of local delegates because he started to fill out the paperwork immediately after shaking hands on a deal. Completing the legal documents so soon after the negotiations was regarded as undermining the host’s trust. Knowledge about such culture differences is absolutely vital.

GTherefore, if a company is attempting to broaden its operations globally, it must take the time to find out about local customs and methods of business operation. Equally important is to ensure that such information is available to all necessary workers in the organization, For example, in order to attempt to avoid causing offence to passengers from abroad, British Airways aims to raise awareness of cultural differences amongst all its cabin crew.

HIt can be concluded that global standardization of products to ‘fit’ all markets unlikely to be the most viable option. Marketing methods employed will depend on many factors, such as the type of products, the degree of competition, the reputation of the firm and/or the brand, the state of the economy into which the product is to be launched and how and when to launch. In short, the key to marketing success on a global level is to have sufficient information on how cultural differences are likely affect the marketing of a product and then allow the appropriate decisions to be made.

In high-tech market, companies tend to introduce their new products internationally at the same time to…