Definition of GLOBALIZATION:
“Globalization refers to the rapidly developing process of complex interconnections between societies, cultures, institutions and individuals world-wide. It is a social process which involves a compression of time and space, shrinking distances through a dramatic reduction in the time taken ± either physically or representationally ± to cross them, so making the world seem smaller and in a certain sense bringing them “closer” to one another” (Tomlinson, 1999).
Globalization & Marketing Practices
Globalisation has had an immense affect on marketing concepts and practices especially due to the diffusion of computer-based technologies and information systems. Since the rapid growth of technological advances such as the Internet, we have been privy to the growth of knowledge access, thus influencing majority of major brands to become globally consumed. According to Wikipedia, “By 2010, 22 percent of the world’s population had access to computers with 1 billion Google searches every day, 300 million Internet users reading blogs, and 2 billion videos viewed daily on YouTube” (Wikipedia, 2014). Globalisation has lead to a more interdependent and integrated global economy, therefore exposing many companies to other cultures and business practices. Consumers are becoming multicultural due to high exposure of other brands. In order to remain innovative and relevant, companies, specifically global companies, must adjust their marketing concepts and practices to relate to other cultures.
Hosmer (2014) states, “the 4 P’s on Marketing, product, price, place and promotion become greater challenges when applied to global marketing. If your company’s marketing efforts are constrained by keeping domestic and international marketing messages the same, the challenge of branding, pricing in international current, foreign distribution channels and promotional advertising may not translate well”. Before a company enters an international market it is crucial that they have completed extensive market research. “There is an important aspect of advertising in foreign market – that being, the culture and cultural symbols of the target market are of critical importance. When creating communications, we are taught first and foremost to know out audience. Who our audience is will be essential to choosing the type of creative (language, visuals, media etc.) we use to make our messaging relevant and appealing” (Fromowitz, 2013).
According to Park (2014), “It is unlikely that markets will converge entirely because of differences in history, sociology, culture, physical and legal environments, and many other micro-aspects”. A successful way for companies to drive global campaigns is to embrace and utilise digital marketing as a platform. For example, NIKE is one the most successful global brands in the world due to their international marketing campaigns. “The company operates through six business segments, classified based on geographical presence: North America, Western Europe, emerging markets, Greater China, Central and Eastern Europe, and Japan. Each of these geographic segments operates primarily in one industry: the design, development, marketing and selling of athletic footwear, apparel, and equipment” (MarketLine Advantage, 2014). The brand recently launched their online store NIKEiD, which allows customers design their own shoes and clothing. Through their online store Nike viewed this as an opportunity to connect to consumers as individuals and is a great example of how the ‘one size fits all’ mentality does not necessarily work. “They identified that developing products that allow them to connect with their target customers on a personal level across a multitude of cultures and markets was a key success driver. They also smartly combined this with an increased emphasis on social media as an advertising medium” (Griffith, 2012).
Self expression: It empowers us. It defines our individuality. It reveals who we are. Because style is a deeply personal act of self expression, NIKEiD puts the power of creation into your hands. It’s true individuality – achieved through performance, fit, and style. Create your custom original (YouTube, 2014).
- Fromowitz, M. (2013). Campaign Asia-Pacific. Cultural Blunders: Brands gone wrong. Retrieved from: http://www.campaignasia.com/BlogEntry/359532,Cultural+blunders+Brands+gone+wrong.aspx
- Griffith, I. (2012). Smart Insights. How social media and digital marketing has impacted global branding. Retrieved from: http://www.smartinsights.com/online-brand-strategy/international-marketing/how-social-and-digital-marketing-has-impacted-global-branding/
- Hosmer, C. (2014). Small Business by Demand Media. Definition of Marketing Globalization. Retrieved from: http://smallbusiness.chron.com/definition-marketing-globalization-25384.html
- (2014). Globalization. Retrieved from: http://www.investopedia.com/terms/g/globalization.asp
- MarketLine Advantage. (2014). NIKE Inc. Company description. Retrieved from: http://advantage.marketline.com.ezproxy.bond.edu.au/Product?pid=8E563969-FC1C-4D3A-8EEE-F9D79F81F0C3&view=BusinessDescription
- Park, D. (2014). B2B International – Beyond Knowledge. Globalisation and Marketing. Retrieved from: http://www.b2binternational.com/publications/globalisation-and-marketing/
- Tomlinson, J. (1999) `Cultural globalization: placing and displacing the West’ in H. Mackay and T. O’Sullivan (eds) The Media Reader: Continuity and Transformation. London: Sage.
- (2014). The Free Encyclopaedia. Globalization. Retrieve from: http://en.wikipedia.org/wiki/Globalization#Internet
- (2014). NIKEiD. Made For You.Retrieved rom: http://www.youtube.com/watch?v=_rBCVF9gcog