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perspective

markathon|may 2013

Is the New Buzzword for Marketeers? Anshul Khandelwal | Prafull Srivastava Indian institute of foreign trade The globalization of economies and trade intensification has lead companies to communicate with consumers of different languages and cultures. It has increased transnational commerce, particularly due to the trade agreements that have become operational. Thus, it has become more common for companies to be selling their products to customers in foreign countries. That is, a company based in France might be doing business in Chile, Kenya, and South Korea, while another company based in South Korea may be doing business in Australia, India, and Jordan. Within the framework of international marketing strategies, advertising plays a key role. It has to resolve a dilemma which can be summarized in the following question: How can a company sell a standardized product to local and different consumers? Should the companies tailor their advertisements for each individual country or region that they do business in, or standardise their advertisements for a global audience? This is a dilemma that every company faces. On one hand, standardisation leads to cost savings, building a single brand image, and maximum exploitation of a good marketing idea. On the other hand, it’s a wellknown fact that customers worldwide have different perceptions and likings owing to the geographical, religious, cultural and behavioural differences. To tap this nerve if the companies customize their promotional strategies specific to region, the communication may be more effective and lead to a larger reach. But this will incur more time, cost and effort. So there will always be a trade-off. According to a survey, several reasons were

given by the fortune 500 companies as to why they undertake localization of their campaign. to meet regulatory or legal requirements increase value of brand To reach more customers in markets they already‌ To meet local customer expectations Value in percentage 60

65

70

75

80

85

Localization due to legal or cultural norms: In most of the Muslim countries you cannot show women and men in close contact or women in scanty clothes. That’s why Coca-Cola shot its ad in 1989 with women in fully covered clothes adhering to Muslim norms and when the Brazilian version of the same ad had to be shot the models had to change into bikinis! Also several categories of products cannot be advertised directly in a country because of the legal

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IIM Shillong Markathon May 2013  

IIM Shillong Markathon May 2013

IIM Shillong Markathon May 2013  

IIM Shillong Markathon May 2013

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