Week 11: Rationalization and Localization in Media

Finding the balance between standardization and localization of the web content is one of the preeminent dilemmas that companies face when tapping international markets. Many times companies, either due to lack of coherent global marketing strategy or for cost/efficiency reasons choose to standardize their marketing mix for international markets. Rationales for standardization strategy are many including:

Standardization seems to be a cost-driven strategy for marketers, as it leads to leveraging the same template/product/service configuration globally, creating economies of scale and cost savings.

Standardization can also lead to development of single and unified brand and corporate identity worldwide. This can lead to better global recognition and provide global competitive advantage over competitors.

Standardization can lead to having a rationalized product line which includes only a few core global brands instead of multiple localized brands and brand extensions. This could lead to a better allocation of resources, higher efficiencies, consistent marketing, and higher profits

When implementing a standardization strategy, companies assume homogenized consumer needs. Thus investments in international market research related to modifying the marketing mix are minimal. The marketing mix includes company efforts related to four basic P’s of marketing: Product, Price, Place (distribution), and Promotion.

Companies following a standardized approach to marketing tend to have a centralized global marketing program, and thus the need for coordinating, managing, and controlling local subsidiaries for local marketing strategy is minimized.

NOTE: The book attached with this topic, has also been attached with few other topics.

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