Globalization vs Localization - 7th-8th Classes

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Transcript of Globalization vs Localization - 7th-8th Classes

  • 8/11/2019 Globalization vs Localization - 7th-8th Classes


    Senior Lecturer Madalina Moraru Ph.D.






  • 8/11/2019 Globalization vs Localization - 7th-8th Classes


    1. The Age of New Global Products

    itz rs view offers more logical associations as

    thefollowing: Globalization is a transplanetaryprocess or set of processes involving increasingliquidity and the growing multi-directional flows ofpeople, objects, places, and information, as well as

    the structures they encounter and create that arebarriers to, or expedite, those flows.

    Flow of information makes people wish to share samelifestyles or, at least, a similar way of living their lives.

    Metaphorically thinking, the contemporary worldexperiences the contrast of living between solidity andliquidity.

    Mazarella rightfully asserts that the global isconstructed locally just as much as the local is

    constructed globally

  • 8/11/2019 Globalization vs Localization - 7th-8th Classes


    According to The Oxford Dictionary of New Words(1991:

    134), the term glocal and the process of glocalizationare formed by telescoping global and local to make ablend.

    This process points out the way heterogeneity andhomogeneity weave their features in a single cup, toproperly explain the needs of the new societies andcommunities.

    The term is derived from the Japanese word dochauka,which means global localization and describes the

    farming techniques used to adapt the product to localconditions. The marketing experts associatedglocalization with Japanese products that succeed toproperly answer the needs of local consumers. The term

    started circulating in the late 80s when the export ofJa anese cars increased in America.

  • 8/11/2019 Globalization vs Localization - 7th-8th Classes


    1. Economic reasons and market growth implyfinding new strategies to successfully place productson foreign markets, which means externalizingbrand values.

    2Ccultural differences cannot be neglected even ifproducts respond to peoplesdemands.

    3. Advertising campaigns coin brand messages byborrowing the local mentality and the American wayof living using products, or just speaking in thesame melting pot.

    4. Consumer insight is the content of this meltingpot, because its recipe consists of understanding the

    local way of thinking, consuming a specific product,and adding brand values in a convenient shell. 5.Demographic and geographical criteria of

    segmentation cannot be ignored, becauseconsumers acquire what they need based on their

    life conditions.

  • 8/11/2019 Globalization vs Localization - 7th-8th Classes


    3.1. Globalizing has become richer and hasdeveloped new branches such as:Westernization, Americanization,McDonaldization, imperialism.

    3.2. Tomlinson argues that Americanizationcould equally be understood as another form ofspreading capitalism.

    3.3. The American world is very muchresponsible for spreading globalization,

    especially when it comes to advertising andbrand power. The most important brandsdominate the world and create a specialperception of their product categories

  • 8/11/2019 Globalization vs Localization - 7th-8th Classes


    Ritzer (2000) states that fast food created aMcDonaldized society by changing the entire

    lifestyle according to the following dimensions(obviously promoted): efficiency, calculability,predictability and control through NonhumanTechnology.

    McDonalds industry initiated an entire processof localization for global reasons, because itaims to reach many markets and adapt todifferent kind of cultures, whose eating habits

    did not encourage fast-food earlier. Ex: Japan Chicken Tatsuta (chicken with soy

    sauce and ginger); in Beijing (the food is eatenmore as a snack );

  • 8/11/2019 Globalization vs Localization - 7th-8th Classes


    The best term related to cultural globalization, and

    localization is hybridization, which marks out the pointwhere homogeneity and heterogeneity meet, finding mutualfactors according to Pieterse:

    Hybridization is an antidote to the cultural differentialismof racial and nationalist doctrines because it takes as its

    point of departure precisely those experiences that havebeen banished, marginalized, tabooed in culturaldifferentialism.

    In fact, this phenomenon arose from a kind of compromisebetween global invasion and local aspects, and generates a

    syncretism, or what other scientists called: creolization,mtissage, meztisaje, crossover, cultural ecumenism.

    On the market, cultural hybridization refers to the mixing ofuniversal values with local ones, by preserving nationalidentity and importing external consumer models and


  • 8/11/2019 Globalization vs Localization - 7th-8th Classes


    Hybridization encourages diversity as a form ofexpressing differences inside the nationalborders and sharing cultural issues regardless oflocal aspects and restrictive barriers.

    We may speak about Americanization in Europe,in terms of importing lifestyles, celebrations andconsumer behaviour.

    Hybridization means the reinforcement ofcreativity, at least in communication campaigns,given the effort to find new ways to recombinelocal cultural issues with external models.

    Advertising is a case in point because the only

    cultural purpose it aims at is brand credibility

    and consumer loyalty

  • 8/11/2019 Globalization vs Localization - 7th-8th Classes


    The American society is a very hybridized one from

    religious, cultural, racial viewpoint, so any kind ofcombining local aspects with global demands ismost welcomed.

    When it comes to Europe, the situation changes

    and this process of reviving old practices in newshapes becomes a real challenge, considering thathistory and old cultural issues are quite diverseand well rooted in peoples mind.

    Such phenomena as religious and culturalsyncretism, on the one hand, and political andsocial restrictions, on the other refer to the balancebetween standardization vs. adaptation.
  • 8/11/2019 Globalization vs Localization - 7th-8th Classes


    According to Moriarty, Mitchell, and Wells there are three

    approaches that focus on the balance betweenstandardization, localization and combination.

    Standardizationis the model that focuses on consumersimilarities from everywhere in the world.

    Localization, sometimes termed adaptation, consists ofpaying attention to important coordinates of eachmarket, such as lifestyles, cultural, economic andpolitical particularities.

    Combinationmeans mixing both directions to produce

    more effective advertising by preserving andtranslating general brand strategy for local customers.

    Glocalization is a way to create a new identity, resultingfrom weaving two kinds of societies : the global one, asthe American society wants to be viewed, and the localone, as each country should be considered .

  • 8/11/2019 Globalization vs Localization - 7th-8th Classes


    The first category describes local environmental

    determinants and consists of the culturalenvironment, economic and legal conditions,competition, advertising infrastructure, consumerprofile and the image of the country of origin.

    The second set regards firm environmental

    determinants and includes managerial and financialcharacteristics (corporate strategies, internal culture,decision-making authority, and the financialcondition of the organization) and nature of theproduct.

    The last category refers to intrinsic determinants,which are international advertising objectives, therelationship between multinational agencies, creativestrategies, media strategies, the communication mix,support activities and barriers.

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    For market similarities; Standardizationdissolves differences between countries andcultures for the sake of profits and successfulbusiness.

    Standardization is available for marketswhose consumers are very adaptable andshare similar values, in terms of targetsegmentation.

  • 8/11/2019 Globalization vs Localization - 7th-8th Classes


    The main issues facing global brands when itcomes to hiring and training employees invarious countries are variations in skills andcultural differences.

    The local culture is an issue that transcendsjob levels, and needs to be well understoodbefore organizations are able to workeffectively in foreign countries.

    One of the first to explore the influence oflocal culture on organizations was Hofstede(1980).

  • 8/11/2019 Globalization vs Localization - 7th-8th Classes


    On the basis of research conducted among IBMemployees in 56 countries, he identified the

    following 4 cultural dimensions: A. power distance : the extent to which less powerful

    members of society accept and except that power isdistributed unequally;

    B. individualism vs. collectivism: people looking afterthemselves and their immediate family only, versuspeople belonging to in-groups that look after themin exchange for loyalty.

    Masculinity vs. femininity: achievement and successversus caring for others and quality of life;

    Uncertainty avoidance: the extent to which peoplefeel threatened by uncertainty and ambiguity and tryto avoid these situations.

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