Marketing_Management_14th_Edition-min

606 PART 8 CREATING SUCCESSFUL LONG-TERM GROWTH
TABLE 21.2
Globally Standardized Marketing Pros and Cons
Advantages
Economies of scale in production and distribution
Lower marketing costs
Power and scope
Consistency in brand image
Ability to leverage good ideas quickly and efficiently
Uniformity of marketing practices
Disadvantages
Ignores differences in consumer needs, wants, and usage patterns for products
Ignores differences in consumer response to marketing programs and activities
Ignores differences in brand and product development and the competitive environment
Ignores differences in the legal environment
Ignores differences in marketing institutions
Ignores differences in administrative procedures
Deciding on the Marketing
Program
International companies must decide how much to adapt their marketing strategy to local conditions.
39 At one extreme is a standardized marketing program worldwide, which promises the lowest
costs; Table 21.2 summarizes some pros and cons. At the other extreme is an adapted marketing
program in which the company, consistent with the marketing concept, believes consumer needs
vary and tailors marketing to each target group.
As this Prague waiter demonstrates,
many Czech people like to drink
beer!
Global Similarities and Differences
The development of the Web, the spread of cable and satellite TV, and the global linking of telecommunications
networks have led to a convergence of lifestyles. Increasingly common needs and
wants have created global markets for more standardized products, particularly among the young
middle class. Once the butt of jokes, after being acquired by VW, the Czech carmaker Skoda used its
investments to upgrade its quality and image and offer an affordable
option to lower-income consumers worldwide. 40
At the same time, consumers still vary across markets in significant
ways. 41 The median age is about 25 in India and China, and
around 43 in Japan, Germany, and Italy. When asked if they are more
concerned with getting a specific brand than the best price, roughly
two-thirds of U.S. consumers agreed, compared to around 80 percent
in Russia and India. 42 Consider the following beverage facts. 43
• U.S. per capita consumption of soft drinks is 760 eight-ounce
servings, the highest in the world. Mexicans drink 674 servings
per year, Brazilians 315, Russians 149, and the Chinese 39.
• When it comes to beer, the Czech Republic leads the pack in
Europe with 81.9 liters per capita; Norway is among the lowest
at 40.3 liters.
• With wine, Portugal tops Europe with 33.1 liters per capita,
while Finland is among the lowest at 9.9 liters.