Global Integrated Marketing Communication - Essay Example

Global Integrated Marketing Communication Considering the existing globalized market, many business organisations have seen the internationalisation of their activities and performance as a way to remain competitive. Decision-making regarding the international marketing mix has become critical to accomplishing this, mainly due to the influence this arrangement has on performance (Hollensen, 2015 p., 24). A major debate in the international marketing whether to adapt or standardize marketing operations in global markets is the primary decision firms marketing their products or services overseas require to make. This choice concerns firms starting to market in abroad and those already operating globally and that are considering expanding into more markets (Ringland & Young, 2006 p., 51). The fundamental goal of a global marketing strategy is controlling of the significant variance that emerge beyond domestic borders. From the moment an international marketer decides to spread its business actions into foreign markets, it would settle on either say standardising or adapting the marketing mix (Marcus, 2011 p., 33). This decision can be made when the international marketer explores one strategy in all the countries, or customizes the elements to every market. The international marketer decision to standardize or to adapt its strategies is important, because it influences the company’s central approach to business and how it will compete with other marketers (Ferrell, 2014 p., 26). This paper explores discussions on whether international marketers should either standardize or adapt their communication in markets abroad. The paper looks at the benefits of the two approaches giving an argument based on particular facts (Vasudeva, 2006 p., 54). Virtually all aspects of business activities are affected by the standardization or adaptation decision, including entry strategies, production R&D, procurement, organizational structure finance and its marketing mix (Keegan, 2001 p., 25) Standardised the marketing mix by an international marketer create benefits and drawbacks. However, almost all international marketers choose this marketing strategy (Ringland & Young, 2006 p., 67). The main reasons for choosing standardization are linked to lower production cost, greater profitability integrated image around the world and greater sales volume. A total normalization of the marketing overseas program would involve offering identical product and lines through identical distribution channels at equal prices with identical promotional plans. Two premises underlie the arguments for standardization. These are the basis that an international marketer would consider exploring (Marcus, 2011 p., 73). One is that there are significant advantages associated with a standardization marketing strategy worth exploring and two; the markets over sea are becoming more homogeneous, making standardization feasible (Hollensen, 2012 p., 27). It is worth examining the positive aspects of standardization since that would form the basis of whether the international marketers explore the standardization option (Pucik, 2007 p., 104). Main benefits of international marketing standardization are such as consistency with customers, significant cost savings, greater control across national borders and improved planning and distribution (Ferrell, 2014 p., 37). Reason to engaging in standardization would be an initiation from the fact that advanced technology in transportation and communication has homogenized markets overseas. Due to this fact, global consumers have arisen who demand high-quality products at relatively low prices. These alterations in the global market arena have resulted in changes in the competitive dynamics between international marketers (Kitchen, 2001 p., 45). The concept theory of economies of scale is the argument that leads standardisation of market strategies amidst multinational firms. It is suggested that substantial cost savings can be gotten especially in advertising, packaging and product design areas. It is also suggested that savings via standardised marketing programs and globalized production can lead to high economies. Thus, as a functioning marketing can add precisely to the multinational corporations accomplishment of high economies (Dwyer et al., 2005 p., 98). Standardization can also lead to attaining consistency in handling customers; for instance, it is of interest to note that when a consistent image is projected to consumers there is a high means of increasing sales (Kitchen, 2001 p., 89). The chance of exploiting individuals and good ideas is an extra advantage of standardization, and it is proposed that the scarcity of substantial ideas to a great extent encourages standardization (Richter, 2012 p., 12). . There are proposals that the efficient global use of noteworthy marketing ideas ought to be the general driving force to the standardization of marketing plans. The usage of expertise and knowledge accumulated over the ages by the founding multinational firm should thus be fully made use of. One main source of competitive advantage has suited the capability to produce high-quality goods at a very low cost (Dwyer et al., 2005 p., 76). Because standardisation of business products and overseas marketing strategy eases the achievement of economies of scale in production and marketing, my argument is that international marketers must pursue a standardised product and services and international marketing strategy to be successful in the modern global market. Similarly, today in the triad of the USA, Europe, Japan consumer demand has become more homogeneous. International marketers must never be blinded by the apparently heterogeneous economies, cultures, and political systems across various countries (Hollensen, 2007 p., 35). These companies must seek the chance to rationalize their global operations and consider the world as a single global market. To be effective overseas competitors, firms have to conquer national breakups of markets and cross-subsidize their activities in parts of the world. One way to ease cross-subsidization is to standardize the products and the international marketing strategy because global brand domination and the benefits of the global system can be enhanced (Reviews, 2013 p., 17). Normally the choice is also not between adaptation and standardization, but between the much to standardize and the much to adapt. Habitually, marketing oriented multinational corporations ‘marketers have operated somewhat differently in every country (Dwyer et al., 2005 p., 109). They have provided different product features, advertising, packaging, etc. The concept has been that markets are dissimilar in their requirements and features, and hence should be served differently. The counterargument is that communication and technology today have made the world lesser so that every person in every market requires practically the similar products and services (Hollensen, 2013 p., 47). Hence, there is one huge global market for standardised products for consumers instead of segmented foreign country markets served with dissimilar products. The truth and facts are somewhere between the two concepts. Foreign markets are never similar from each other in few ways, but they are similar. The challenge is to identify the comparison and the differences, and finally, the areas where these similarities and differences are (Czinkota, & Ronkainen, 2013 p., 145). Despite the benefit that comes with standardization, there are several potential drawbacks associated with a standardization strategy, and this is the foundation that any international marketers could consider in adopting adapting strategies in overseas marketing (Ringland & Young, 2006 p., 98). International marketing standardisation is feasible only under certain conditions. Marketing standardization is subject to both external and internal constraints. Failure to address these constraints can allow a firm success in international markets. Internally, the business existing global network of operations could be mismatched with a standardised strategy (Gummesson, 2002 p., 57). Moving too fast towards global standardization can lead to the disruption of set operations and the loss of chief assets and managerial skills. In addition, standardization is probably to encounter essential resistance from local subsidiary management. Hence, conflict can develop, and the effectiveness of the business international strategy may be negatively affected. The extent of standardisation must also be consistent with the business international experience (Hendon, 1996 p., 55). Company with dissimilar levels of international involvement always pursues a different level of standardisation. Externally, a standardised plan is subject to diverse government rules and regulations and marketing infrastructure changes. A standardization strategy could not be feasible when government rule and regulations vary across markets, more so when foreign businesses are required to meet environmental regulations, product safety principle, or local content needs (Thorelli & Becker, 1980 P., 122). The adaptation school has the opposite view on things, and international marketing companies can consider choosing the strategy in the overseas market. It stresses culture and the cultural dissimilarities that exist between countries; hence, it favors adaptation of advertising (Burton et al., 2012 p., 46). One of the motives why advocates of this method favor adaptation is to increased communications effectiveness and form a local sensitivity, which will give a differential advantage over other competitors (Hendon, 1996 p., 67). Advertisers in the international market require considering the differences between nations as stages of economic growth, legal and political systems and customer lifestyles and values. Consequently, tastes, different cultures, media availability, race, economic conditions, climate, occupations, taste, laws and society must be taken into thought in the preparation of an advertising programmme (Percy & Elliott, 2012 p., 16). . Hence, adherents of the adaptation strategy are of the opinion that advertising or communication is the single element of the marketing mix which cannot be standardised. They express that advertising is greatly resistant compared to products and brands also have the same view and state that advertising is the element of the marketing mix that is dependent on cultural influence. Adapting company’s marketing communications to local conditions ensures that creative work involves relevant messages, offers, images and creative treatment and at same time retaining the strength and value of their brand (Culpan, 2002 p., 89). If the company is entering markets where the product is not known, communications will focus on market education. Working with marketing or local agencies professionals who understand local customer requirements helps company adapt their communications program (Zou & Fu, 2011 p., 28). Adaptation of an international advertising and communication strategy suggests that every market must be deliberated, for the most section, as a distinctly detach unit and adaptations must be made accordingly due to changes in culture, legal conditions, economic status and foreign market media. Localisation or adaptation of marketing is embedded in the realization that there are strong drawbacks to standardization (Doole & Lowe, 2001 p. 3). In several cases, a standard globalized approach to marketing may lead to serious failure. The growth by company of these distinctive marketing strategies for every national market could be termed polycentric marketing (Burton et al., 2012 p., 78). Supporters of the adaptation approach in global marketing argue that, in spite of rising globalization trends, differences between nations in such scopes as culture and traditions, laws and regulations, technological development, user conditions, consumer needs, purchasing power and commercial infrastructure are even now too great, therefore its necessary for a firm to adjust its marketing strategy to the specific needs of each foreign market (Sethna et al., 2013 p., 188). To be specific, they have criticized the strategy of standardization as a fresh kind of marketing bias. They argue that it represents an oversimplification of reality, therefore, contradicting the marketing idea (Panda, 2008 p., 28). They also stress the point that the vital objective of the company is the reduction of cost through standardization but rather, the long-term productivity through higher sales accumulated from a better utilization of the different consumer wants across nations (Kleinaltenkamp & Ehret, 2006 P., 67). . Through their fight for international competitive advantage, companies identify strategic options that allow them to save costs and this assists them to market their services and goods on a global scale (Panda, 2008 p., 14). The ease of administration and the cost-benefit issue make the standardization of global marketing programs an eye-catching choice for many companies thus; standardization is considered probably the most influential feature of international marketing plan (Myers, & Tan, 2002 p., 108). Adaptation in marketing policies is very important for multinational firms wishing for organisational success (De Kluyver, 2010 p., 23). As firms operate in various societies and target various customers, changing elements of the marketing program is key, even when implementing an international marketing strategy. Adaptation occurs to be able to meet differences connected to people and with the macro and micro environment (Vachani, 2006 p., 26). Studies show that people are different and that some nations do not want to standardize since the various markets have different demands. It’s worth noting that adaptation is supreme to achieve maximum cost benefit from client there is need to; contact and conform to different cultures, laws, market share and measure of operations, environmental differences and level of competition (Doole & Lowe, 2001 p., 70). In conclusion, standardizing or adapting the distribution networks depends on various factors that are the product, culture or customer. Distribution networks are the element of the global marketing blend that can be most adapted (De Kluyver, 2010 p., 32). This varies on the differences in purchasing power, distribution of infrastructure and disposable incomes. A firm has to adapt for added reasons like, for instance, when it has a product line that is not ordinary, or it has a low sales volume (Hofstede, 1994 p., 90). The distribution networks have an extent of standardization or adaptation depending on which nation the firm is founded (Welch et al., 2007 p. 77). The managers and marketers have to understand every aspect of the distributions networks since it contributes to the achievement of the firm without which the company cannot compete well (Kotler et al., 2008 p., 77). It is in order for global marketers to standardize communication overseas so as to be able to market well. The development and realization of international marketing strategy have been surrounded by some extent of ambiguity concerning its underlying determinants and results (Sarstedt et al., 2011 p.45). But it’s important that the global marketer investigates this approach to make sure they maximize their returns and expand their operations overseas. Main benefits of global marketing standardization are for instance; improved planning and distribution, consistency with customers, greater control across country borders and significant cost savings (Vachani, 2006 p., 90). Reasons of participating in standardization would be beginning from the notion that advanced technology in communication and transportation has homogenized markets overseas. In spite of the advantages that may appear to come with adaptation, it prudent for global marketers to explore the standardization (Griffith & Jain, 2011 p. 45). References Published books Burton, P., Parker, G., & Lawley, B. (2012). 42 rules of product marketing: learn the rules of product marketing from leading experts from around the world. Cupertino, Calif, Super Star Press. Culpan, R. (2002). Global business alliances theory and practice. 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