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Global Standardization in Marketing: Definition & Strategy

Global Standardization in Marketing: Definition & Strategy
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  • 0:05 What is Global…
  • 0:48 Pros and Cons
  • 1:59 Examples
  • 3:26 Lesson Summary
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Lesson Transcript
Instructor: Brianna Whiting
In this lesson we will discuss global standardization. We will look at the pros and cons as well as examples of businesses that can, and cannot, use global standardization.

What is Global Standardization?

Think about a product you purchase regularly that you absolutely love. What it is that you love about that product? How did you find out about the product? How did the company capture your attention and convince you to purchase its product? Now, what if that product was to be marketed internationally? Would the same marketing approach that grabbed your attention work for others around the world? If the answer is yes, this is called global standardization.

The general definition of global standardization is the ability to use standard marketing internationally. In other words, it's the ability for a company or business to use the same marketing strategy from one country to the next, and across various cultures. When a product has basically the same appeal all over the world, global standardization is a useful tool.

Pros and Cons

Why would a company want to use global standardization? Well, if a customer in the United States uses a product one way, and a customer in Japan uses the product the same way, a company can utilize global standardization. So, what are the positive aspects?

  • Costs - a company does not have to pay for special marketing for each market. One marketing strategy can be used in multiple areas of the world, therefore cutting the cost of having to develop several marketing strategies.
  • Brand - a strong brand can have the same effect in different areas around the world. What makes a strong presence in one country, can have the same effect in other countries.

Now, there is at least one negative aspect to global standardization.

  • Sensibility - while some countries may appreciate and accept a product, others may not agree or have a different opinion about that product. A Western country may view a car or a washing machine as normal in everyday life, while a developing country could view the same item as a luxury. And while one country may sell a health product using sensual advertisement, a more conservative country might need a more rational message. These differences in perspective could force a company to develop a more customizable market strategy for different areas of the world.

Examples

You may be asking, what are some examples of companies that can utilize global standardization? One company that is a well-known advocate of global standardization is Coca-Cola. Coca-Cola is able to use standard packaging, distribution, and brands in international markets. This allows the company to market its product in a similar fashion to consumers worldwide, while at the same time, cutting costs and maintaining a strong recognizable brand.

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