🌍 Marketing Products vs Services Globally
Big Idea: Marketing products (tangible goods) across borders differs from marketing services (intangible). MNCs must understand these differences to succeed globally.
Key differences
- Products can be standardised more easily across countries
- Services are harder to standardise because delivery depends on people and local culture
- Products can be manufactured in one place and shipped worldwide
- Services often must be delivered locally
- The extended marketing mix (7Ps) is essential for services, especially people, process and physical evidence
In exam answers about MNCs, consider whether the business sells products, services, or both. This affects global marketing strategy.
Two strategic approaches
- Standardisation: same product and marketing worldwide. Benefits include lower cost, consistent brand image, and economies of scale
- Adaptation: modifying product or marketing for each market. Benefits include better local fit and cultural sensitivity, but higher cost and complexity
- Glocalisation: a mix of both. Standardise the core brand but adapt specific elements locally
Fast food chains keep the same brand and core menu worldwide but adapt items locally, such as vegetarian options in India. This is glocalisation.
Factors affecting the choice
- Legal requirements such as labels, ingredients and safety standards
- Cultural preferences, values and traditions
- Economic conditions and local purchasing power
- Competition from local rivals
- Brand identity, especially for luxury or technology brands
Standardisation = cheaper and consistent. Adaptation = better local fit but costly. Most MNCs use glocalisation. 🌐
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🌍 Marketing Products vs Services Globally
Big Idea: Marketing products (tangible goods) across international borders is fundamentally different from marketing services (intangible). MNCs must understand these differences to succeed globally.
Key differences
- Products can be standardised more easily across countries -- a phone works the same everywhere
- Services are harder to standardise because they depend on people and local culture -- a banking service must comply with local laws and customs
- Products can be manufactured in one location and shipped worldwide
- Services often must be delivered locally -- you cannot ship a haircut or a hotel room
- The extended marketing mix (7Ps) is essential for services -- people, process and physical evidence are critical for quality and trust
When discussing MNCs in exams, consider whether they sell products, services, or both -- this fundamentally affects their global marketing strategy.
Two strategic approaches
- Standardisation -- using the same product and marketing across all countries. Benefits: cheaper (one campaign, one product), consistent global brand image, economies of scale in production and marketing
- Adaptation -- modifying the product or marketing for each local market. Benefits: better fit with local tastes, legal compliance, cultural sensitivity. Costs: more expensive, more complex to manage
- Glocalisation -- most MNCs use a mix of both: standardise the core brand and product, but adapt specific elements for local markets
A global fast food chain: Standardised elements = same logo, same brand colours, same core menu items worldwide. Adapted elements = different menu items in different countries (vegetarian options in India, rice-based meals in Asia, larger portions in the USA). This is glocalisation in action.
Factors affecting the choice
- Legal requirements -- some countries mandate different ingredients, labels or safety standards
- Cultural preferences -- tastes, values and traditions vary significantly between markets
- Economic conditions -- pricing must reflect local purchasing power
- Competition -- local competitors may already serve customer preferences that must be matched
- Brand identity -- some brands (luxury, tech) benefit from a consistent global image
Standardisation = cheaper and consistent. Adaptation = better local fit but costly. Most MNCs use glocalisation (a mix of both). 🌐