R. J. Reynolds revitalized Camel as a global brand after the German subsidiary came up with a successful and transferable positioning and copy strategy. In the field, regional managers often focus on representing the views of individual countries to headquarters, but at headquarters they become more concerned with ensuring that the country managers are correctly implementing corporatewide policies. Before Coca-Cola got rolling in West Germany, for instance, it had to go to court to halt the nagging operations Coördination Office for German Beverages, which was churning out defamatory pamphlets with titles like “Coca-Cola, Karl Marx, and the Imbecility of the Masses” and the more succinct “Coca-Cola? The Sista launch was especially challenging because it involved the extension of a product and program already developed for a single market. They generally do not wish to transform these organizations into mere sales and distribution agencies. Headquarters needs to give the field time to adjust to the new decision-making processes that multicountry brand teams and other new organizational structures require. P&G International did, however, invite local managers to suggest how the global program could be improved and how the nonglobal elements of the marketing program should be adapted in their markets. To ensure that they have enough attention-getting power to overcome their foreign origins, however, marketers often have to make worldwide commercials expensive productions. Experience also suggests that products will be less culture-bound if they are used by young people whose cultural norms are not ingrained, people who travel in different countries, and ego-driven consumers who can be appealed to through myths and fantasies shared across cultures. The markets for high-tech products like computers are not only very competitive but also affected by rapid technological change. Large markets with strong local managements are less willing to accept global programs. Casualties can occur on both sides: If management is not careful, moving too far too fast toward global marketing can trigger painful consequences. Small markets, being more tolerant of deviations from what would be locally appropriate, are less likely to resist a standard program. Here are two examples: By making the transfer of information easy, a multinational leverages the ideas of its staff and spreads organizational values. The local manager who has clear autonomy and profit-and-loss responsibility cannot hide behind such excuses. There is no better way to learn than to take in the knowledge from more experienced brands. 2. In this article, we’ll first provide a framework to help managers think about how they should structure the different areas of the marketing function as the business shifts to a global approach. There are many companies which have opted mass customization to take their business one step ahead. To overcome the limits of persuasion, many multinationals are coordinating their marketing programs so that headquarters has a structured role in both decision making and performance evaluation that is far more influential than person-to-person persuasion. In the best of all possible worlds, marketers would only have to come up with a great product and a convincing marketing program and they would have a worldwide winner. In the best of all possible worlds, marketers would only have to come up with a great product and a convincing marketing program and they would have a worldwide winner. Too often, executives view global marketing as an either/or proposition—either full standardization or local control. Partly because product quality and accounting data are easier to measure than marketing effectiveness, standardization can be greater in production and finance. This means the marketing mix of a … #1 Nikeid: One popular example of a successful business which has implemented mass customization successfully and made a profit … On the other hand, local managers are more likely to accept a standard concept for those elements of the marketing mix that are less important and, ironically, often not susceptible to scale economies. When poorly implemented, global marketing can make the local country manager’s job less strategic. Thus the country manager’s control over the content of advertising is not compromised, and the company achieves a reasonably consistent presentation of its names and logos worldwide. Country managers who cooperate with a product director can quickly become heroes if they successfully implement a new idea. Now let’s look at the issues that arise when executives consider the four dimensions shown in Exhibit 1 in light of the degree of standardization or adaptation that is appropriate. Global marketing programs can free them to focus on and develop their skills in these other areas. Consider these two examples: 1. Feeling compelled to review local performance more closely, headquarters may tighten its controls and reduce resources without adjusting its expectations of local managers. While Shutterfly has gotten creative with personalized emails and subject lines, one unique thing it did recently was personalize item offerings on its app. With a properly managed approval process, a multinational can exert effective control without unduly dampening the country manager’s decision-making responsibility and creativity. The five intervention levels are cumulative; for headquarters to direct, it must also inform, persuade, coordinate, and approve. For example, when a product with the same brand name is sold in different countries, it can be difficult and sometimes impossible to sell them at different prices. In addition, local managers competing for resources and autonomy may devote too much attention to second-guessing headquarters’ “hot buttons.” Eventually the good managers may leave, and less competent people who lack the initiative of their predecessors may replace them. Yet management must recognize that even with a one- or two-year transition period, some turnover among field personnel is inevitable. Slow response time is an especially serious problem with products for which barriers to entry for local competitors are low. 3. 7 Best Product Customization Examples. In many multinationals, some functional areas have greater program standardization than others. Products that enjoy high scale economies or efficiencies and are not highly culture-bound are easier to market globally than others. Third, immigration regulations and foreign service relocation costs are burdensome. It approved changes in several markets. To compensate local management for having to accept a standard product and to fit the core product to each local market, some companies allow local managers to adapt those marketing mix elements that aren’t subject to significant scale economies. For Nestlé, global marketing does not so much yield high manufacturing economies as high efficiency in using scarce new ideas. We have entered an age in which customer service and user experience are valued above all else.. Over the last decade, personalization in the business world has become more and more prevalent. As global competition grows, so does the need for rapid worldwide rollouts of new products. Persuasion, however, has its limitations. Two problems recur with the prime-mover approach. Nutella. Management in Atlanta made all strategic decisions then—and still does now, as Coca-Cola applies global marketing principles, for example, to the worldwide introduction of Diet Coke. The product, brand name, positioning, and package design were standardized globally. But despite the obvious economies and efficiencies they could gain with a standard product and program, many managers fear that global marketing, as popularly defined, […]. But performance aside, small markets depend more on headquarters assistance than large markets. The European sales manager, who was a project team member, discovered that salespeople as well as tradespeople in the target countries were much more enthusiastic about the proposed program than the field marketing managers. In this section, you will learn about a few examples of companies who have taken mass customization abroad. Customization refers in the context of international marketing to a country-tailored product strategy which focuses on cross-border differences in the needs and wants of target customers, appropriately changing products in order for them to match local market conditions. Country managers who have risen through the line marketing function often don’t spend enough time on local manufacturing operations, industrial relations, and government affairs. Second, if there are more new products waiting to be launched than there are prime-mover organizations to launch them, headquarters product specialists are likely to give in to a country manager’s demands for local tailoring. [1] Therein, customization follows a market-driven orientation (as opposed to a product-driven orientation) and aims at increasing customer satisfaction by adapting the company's products to local needs. (The best newsletters are written as if country organizations were talking to each other rather than as if headquarters were talking down to the field.).

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