The Integration Of Globalization And Localization And The Choice Of International Marketing Strategy

Ever since 1960's, there have been long-standing arguments on globalization andlocalization in both academic and practical fields of internationalmarketing.Supporters of Global Standardization believe that Economies of Scale isthe major driving force of global marketing standardization. Globally speaking, thereis more similarity than difference between various markets. Therefore, standardizationstrategy in global marketing will save or reduce costs in R&D, manufacturing, selling,and communication, so that economies of scale can be attained. It will also help inestablishing an integral brand image, simplifying organizational structure, andsystematizing management and control.Contrary to the above thinking, some otherscholars (Ketler, Wind, Fisher, and Douglas) proposed that businesses, within theirscope of competence, should carry out marketing which adapts to a specific localmarket. Supporters of this view believe that global market is heterogeneous, i.e., thereare more differences than similarities between various markets. Therefore, businessesshould adopt different marketing strategies to satisfy specific local needs in differentcountries.Through integrating globalization and localization, glocalization strategyincorporated the advantages and avoided the disadvantages of the two. It is differentfrom both, and at the same time, carries characteristics of both. Glocalization is anevolution based on different kinds of global marketing strategies and it shows thatglobal marketing had walked out of insularity into rationalization.But some obviousweaknesses still exist in this study field (for example, the basis for categorizingglocalization strategy; the specific types of glocalization; which factors should bestandardized and which should be localized in the global marketing mix; the basis andmethodology in determining the proportion of standardization and localization), all ofwhich are to be further explored into later on. On the basis of other relevant theories and research, according to the proportionof standardization and differentiation, glocalization strategy is re-categorized in thisessay. The three binding conditions that influence international marketing strategiesare proposed and discussed. Ability boundary and society boundary are introducedand re-defined; content and indexes in evaluating standardization and differentiationare determined. By resorting to experts' assessments and on the basis of cost analysis,the comparison between business ability boundary and society is made. The finalinternational marketing strategy, which is also the best combination betweenstandardization and differentiation, is also determined. At last, a boundary choicematrix for an international marketing strategy is built. This essay offers a new way ofthinking and a basic analytical frame for multinationals, which will hopefully prove tobe useful and valuable in helping businesses to make international marketingdecisions.