ekani

"As companies decide to expand their markets to foreign territories, they need to follow one of the two major strategies. Discuss these."

I would be very grateful if someone could help me with this. Do you know the major reason after which the a consumer look for a reference group?
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attourney
"As companies decide to expand their markets to foreign territories, they need to follow one of the two strategies. Mention these. i) They could offer the product/service offerings with the same marketing mix (standardized and global), as in their native country. Such a strategy is known as an undifferentiated strategy, i.e., one marketing strategy for all countries. Such a global strategy maintains the same product name; the features, attributes and other ingredients also remain the same (maybe with slight modifications); so do the other Ps. A large number of companies prefer a “world brand”, i.e. products and service offerings are positioned, designed, priced, promoted and sold all over the world in the manner that is similar to the country of origin. The approach leads to a worldwide brand name, company image, recognition and reputation. Examples of such brands are IBM, Sony, etc.ii) They could adapt the product/service offerings in the foreign country. This would present a more “localized offering” where the and service offerings are positioned, designed, promoted and sold in a manner that is distinctive and specific to foreign countries and cultures. This strategy is referred to as adaptive global marketing or a “localized marketing strategy” where the objective is to meet the local needs in the most effective manner. The strategy has also been termed concentrated or differentiated marketing. The marketer offers differentiated marketing strategies for each country, with changes in product and /or brand name, as also product features, attributes and other ingredients as also the other Ps. The marketer would need to take into account differences in consumer behavior. McDonalds is a perfect example; when they entered India, they adapted their product offering by offering chicken burgers instead of the beef and pork (as consumption of beef and pork is a taboo with Hindus and Muslims). Further they introduced the McTikki Aloo Burger for vegetarians; they positioned themselves a “family” restaurant keeping in line with the Indian family concept. Companies that do not localize their offerings may find penetration into foreign cultures a difficult exercise. An example that can be quoted is Kellogg’s Breakfast Cereal. They found it difficult to penetrate the Indian market as the very concept of cold milk at breakfast was against the traditional Indian belief (where hot milk was preferred especially at breakfast, and cold milk was regarded as unhealthy). It is thus concluded that a “world brand” may not always be favored. The marketer needs to adapt his product/service offerings. Companies like Unilever, Nestle, Proctor and Gamble follow a mixed approach. They have standardized offerings in terms of their brands, but they blend and adapt their 4Ps to suit the needs of the local culture. Their offerings are generally standardized but the implementation strategy “local”. Thus, they introduce under the same family brand name, soaps for different kinds of skin, shampoo for different kinds of hair (depending on the skin and hair types across countries and cultures), and detergents for different water types (hard water or soft water). This is where study of cross cultures becomes essential so as to identify differences and similarities across nations. A marketer has to go through the process of acculturation.Source: http://in.docsity.com/en-docs/Product_Recognition_Continuum_-_Consumer_Behavior_-_Solved_Quiz_"
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