Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Nature of distribution channels
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Nature of distribution channels
Global distribution channels vary in general because everyone is trying to discover a way to make money without getting the flow of current distribution channels. Each channel is a very important chapter in the process of the global channel in order for the world to obtain some type of harmony within the distributing between the channels.
The article discusses brand management on a global scale. Marketing across cultures can be done with Theodore Levitt's idea for exploiting the "economics of simplicity" with standardized products, packaging, and communication. Global brands become symbols of cultural ideals; therefore, transnational companies have to offer a high-value product that deliver the cultural myths consumers are looking for. The Global Brands Study found consumers associate global brands with three characteristics (quality signal, global myth, and social responsibility), which are used to evaluate them when making purchase decisions. Global consumers are segmented into four categories: global citizens, global dreamers, anti-globals, and global agnostics.
More than two decades ago, Harvard Business School professor Theodore Levitt provocatively declared in a 1983 HBR article, "The Globalization of Markets," that a global market for uniform products and services had emerged. He argued that corporations should exploit the "economics of simplicity" and grow by selling standardized products all over the worl...
When the consistency of the information is built, the credibility of the brand becomes higher (Bengtsson, Bardhi and Venkatraman, 2010). It is suggested that asymmetric information leads to consumer uncertainty, which would therefore have a negative impact on brand image (Erdem and Swait, 1998, p. 138). Accordingly, consistency of the information has become a key factor that leads to the successfulness of a global brand since it reduces the uncertainty and the thinking process time of consumers (Lee et al., 2007). Several effects have been found regarding to standardization of a brand (Erdem and Swait, 1998, p. 138). Marketers will have a better control of the brand if the brand meaning has been consistent over the time (Erdem and Swait, 1998, p. 138). First of all, it increases brand equity, which would therefore improve consumer’s brand awareness (Erdem and Swait, 1998, p. 138). Second, it would reduce consumers’ uncertainty of the brand, which would thus increase the reliability of the brand and brand loyalty (Erdem and Swait, 1998, p. 138). Third, it greatly reduces the conflict of consumers’ cognitive structures, which would lead them to trust more on the brand (Erdem and Swait, 1998, p.
Scott Szwast’s speech entitled, “Scott Szwast: The global business next door” was an informative look into international trade in America and the effects thereof to a business’s growth potential. Szwast used this speech to dispel the idea held by many American’s, which is that global trade is a market for large corporations. According to Szwast, many business owners don’t take advantage of the business opportunities across the world because of “self-imposed borders”, which are doubt, uncertainty, and fear.
The United States beer industry represents 233 million hectoliters of the world’s 1,501 million hectoliters and is a dynamic part of the United States national economy, contributing billions of dollars in wages and taxes. Within the U.S., the beer market accounts for nearly 50% of total volume of alcohol, with the import specialty and light beer segments driving growth.
Today, many companies enter the global market, and some companies have become extremely successful in the global marketplace and others still struggling. In Theodore Levitt’s article “The Globalization of Markets”, he states that a well managed corporation focuses on selling standardized products with high quality and low priced instead of focuses on selling on customized products with high cost. Levitt defines the differences between multinational corporation and global corporation, and adopts many specific examples to proves his view. He defines the multinational corporation who operates in many countries and adjust its product based on the taste of specific region. This will result in a high cost to produce the product because company have to input more resource into each individual product. However, global corporation sells similar product worldwide at relative low cost. According to Levitt, the cultural differences are becoming more and more “homogenized”; therefore, becoming a global corporation will lead to the successful of the company in the global market.
In his article on ‘The Globalization of Markets’, Levitt argued that there has been a shift of market preferences, and that customers now prefer a low-cost approach regardless of their wants. He also stated that in this modern era, companies should avoid multiple customization markets, which leads to higher production and manufacturing costs and instead, should focus on standardization of products, demand and markets. Levitt brought up the example of a Hedgehog and a Fox- the global company and the multinational company. He encouraged businesses to be like the hedgehog because ‘the hedgehog knows everything about one great thing’. This can be witnessed in how global companies operate by treating their market as a single entity and by doing
We propose a branding strategy which takes into account the brands capabilities and competencies, strategies of competition brands and the outlook of consumers experience in their respective societies. As an international brand there is the challenge of staying connected with local customers. We will overcome this by adapting marketing strategy to local needs using a variance of standardized marketing mix and an adapted marketing mix.
The first decade of the 21st century has seen globalization and identity emerge as the most critical challenge to society. Globalization has seduced consumer appetites. This has led for those consumer identities to be exposed to global advertising focused on the designer car, the latest clothing or the newest piece of architecture.
The freedom to choose and globalization helped in the establishment of modern super markets. A standard supermarket displays more than 30,000 items (Cross, 2000:55). Assu...
There are many definitions of the term brand that are significantly different. Some definitions are based on the brand as a determinant of visual corporate identity of the company. Thus, the definition of the American Marketing Society perceives brand as “the name, term, design, symbol, or other feature that distinguishes one seller's product from those of others.” Visual identity is certainly important, but not the only aspect of the brand. It is a new dynamic experience of the product, which is created in the mind and emotions of consumers. In today's competitive environment, brand can be defined as “a set of expectations, memories, stories and relationships which, integrated, influence customers´
The proponents of standardization approach in international marketing views the globalization trends as a facilitation of technological uniformity, greater level of similarity, and higher convergence of consumer preference, taste, and needs. The growth of international communication channels also facilitate the standardization including th...
15. Hill, Charles W.L. International Business: Competing in the Global Marketplace. New York : McGraw-Hill, 2007.
Svensson, G., 2001. 'Globalization' of Business Activities: A 'Global Strategy' Approach, Management Decision, 39(1), pp.6-18.
With the advent of the Internet, decreased shipping costs, and the removal of trade barriers, the world market has shrunk in such a way that everyone can be a player. While many businesses thrive solely on serving a small local area, a globalized company has the benefits of increased customer markets, gross production, and brand awareness. Take for example Coca-Cola; this multi-national corporation offers products in countries all over the world, operates in over 200 of those countries with the help of its franchisees, and is the most well-known beverage companies. It is interesting to note however, that as positive as globalization may seem, there are many negative ramifications and a large population of detractors to this movement. While increased product availability is good for profits, if a local market is inundated with imported products, locally grown or manufactured items may be squeezed out, to the detriment of the local economy. Although it is cost effective to have your product produced in another country with low wages, you are essentially taking away jobs from the people of your own country, negatively impacting your national economy. However, if you manufacture your products in a country with higher wages, you must increase your products’ prices which may be harmful to your profits. While maximizing your companies profits is always of great importance, it is essential that you weigh the pros and cons of globalization and its effects on not only your company, but the areas in which you wish to spread.
The process of globalization allows the global market to include products and services from all the companies around the world, including all the investments that is across national borders. Indeed, many American companies have taken their merchandise, manufacturing and services to invest in other countries. However, this has produced a negative effect in the global economy. The American companies
However the development of information technology has led to a convergence of buying behavior in markets throughout the world. Professor Levitt’s theory will live on as more and more people become part of the global village by interacting online and getting access to the latest technology as it comes to market. Currently the world is experiencing cultural diffusion which encourages cultures to converge i.e. The reality shows on TV are been duplicated like strictly come dancing, idols, apprentices and master chefs. The boom of the online e-commerce will also drive globalization through allowing more interactive purchase and irrespective of nationality; customers from similar education levels from all over the world now have access to information online and can interact with each other irrespective of their cultural