Per the text, global marketing standardization is production of uniform products that can be sold the same way all over the world.
The cons of this strategy may arise because international concepts of kitchen necessities may vary tremendously. European kitchens, for example, tend to be much smaller than those in the US, with much less storage. European customers for Rubbermaid may want smaller items and may be much less likely to spend on purchases that are used only once or twice a season or for very specific applications (for example, a kitchen with tremendous storage could easily accommodate a waffle maker, two kinds of garlic presses, etc., but in a tight space, one would want to focus on multi-tasking essentials such as reliable knives, bowls that could be for serving or mixing, etc.).
The pros of this strategy could be a tremendously expanded market, and if the same items are being sold around the world, centralized/standardized production and shipping could cut production costs per item.
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Excellent reply. A few other observations:
ReplyDeletePromoting standardized products globally is a recent marketing trend that offers significant advantages including economies of scale in manufacturing and promotion. However, global marketing standardization appears to have significant limitations as well. Few, if any, products have been marketed successfully without at least minor modifications to the marketing mix. Multinational corporations that have adopted the global marketing standardization concept still market the majority of their products locally or regionally. Thus it seems that although world markets do seem to be becoming more alike, many substantial differences in culture, lifestyle, and taste still exist among nations, for sure.