Going global, acting local - communicating global brands to global markets

Running head: GOING GLOBAL AND ACTING GLOBAL 1
Going global, acting local - communicating global brands to global markets
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GOING GLOBAL AND ACTING GLOBAL 2
The concept of globalization
Today businesses are increasingly recognizing that success depends on efficiency and scalability
which mean that the business must be able to mobilize resources and reach out to the global
market. In the 21st century, globalization is the key to business success (Kraidy, 2003).
Subsequently, globalization comes with business decision-making beyond the control of the local
strategies. As a result, the company’s strategic plans decisions making which with respect to
market expansion, realignment, or closure are made independent of the local market and local
management.
Globalization and International Marketing
When it comes to the discussion of operations of large multinational companies like Toyota Inc.
the concept of globalization and international marketing cannot be left out. Globalization is the
economic integration at global levels (Hollensen, 2014). This definition constitutes two main
features, one being that most trading takes place between multinational corporations and the
other emphasize the flow of monetary values in form of derivatives, investments, etc.
Globalization, therefore, means the relation between various economies through open trade and
other transactions. The main objective of globalization is to diversify the market for local
companies thus the concept of international trade.
On the other hand, international marketing is marketing in other nations where the market
environment is different from the local market. Also in the global marketing, the service and
facilities cost differ from one country to the other (Doole, Lowe & Kenyon, 2016). Therefore, it
is evident from the definition of the concepts of globalization and international marketing are not
different because they both aim at market diversification and expansion. The difference between
the two lies in the fact that globalization can be derived from international marketing.
Localization and international marketing
Localization is how the company adapts the product to the culture of the market and the
customers. It takes into account the diversity that exists in the international market and that
customers have values, beliefs, and behaviors which are uniquely derived from their culture
(Jeong, Lee & Kim, 2018). The main aim of localization is to understand the needs of local
customers and their specific requirements then apply the marketing strategies aiming to satisfy
those needs and requirements. There are companies which have failed to communicate this
message appropriately and this led to misinterpretations in the international markets.
Companies like Pepsi, Electrolux, Chevrolet, Colgate, and Gerber, sent the localized messages in
the wrong way which offended customers in various countries. In 2002, Abercrombie & Fitch’s
T-shirt with Asian stereotypes stirred customer protests in the US. The slogans “Two Wong’s
can make it White” and Get your Buddha on the Floor” were publicly condemned and people
boycotted the products. Localizing the brand names to fit the local language and culture without
changing the identity of the brand cannot be ignored in the global marketing and communication.
This has become a problem when trying to delocalize the language phonetics and semantics.

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Some companies like Coca-Cola translated the name to Chinese as ko-ka-ko-la which was
translated to mean “bite a wax tadpole” (Brand Source, 2009)
Glocalization and international marketing
Glocalization refers to the way companies conduct business n conformity to both local and
global factors (Toyota Corporation, 2017). Managers have to take into consideration the local
and global issues to succeed in the international market. Many companies have made blunders
with their slogans and brand names in the international market. Some of these brand names and
slogans make sense in one country yet in another leads to offensive interpretations. These
interpretations are based on cultural understanding and connotations that might be attached to the
names and slogans. For instance, McDonald which has ubiquitous brand names offers the
Maharaja Mac in India, the McArabia in Saudi Arabia and Cremoso al panettone in Italy.
The target market for Toyota Hybrid Vehicle-Prius
Communication and advertisement
The company has established a communication strategy which informs the target market of the
brand value. The company has adopted advertisement campaigns for the global market to build
on the brand image. The company uses radio, television, advertisement, print media, billboards,
and the internet to do brand campaigns (See Appendix 1.0).
Prius Target Market
The Toyota hybrid Prius belong to the lower and medium passenger car segment. The advantage
with Toyota Prius is being the first mass-produced hybrid car and has no close substitute except
for Honda Insight. When compared to the only option there is that is Honda Insight, Prius is
offering better comfort like any other conventional segment C car. The target market for the
Toyota hybrid Prius is divided into two major categories, that is Business Buyers and Consumer
Buyers
The business buyers are the consumers who purchase the car for commercial reasons or as part of
the company vehicles. The hybrid Prius has a lower operating cost to the company and therefore
more appealing to the Toyota business buyers. Other business consumers are the car dealers who
do not have the free will because they have to sell what the company produces; therefore, the
number of these customers is set by the company. The customer buyers are the private car
owners who buy a Prius for personal use and the family. These segments buy this car because of
its efficiency in maintenance.
Market segmentation
The Toyota Hybrid Prius segmentation and target market are guided by its philosophy “right car
right place”. The company has segmented all the countries and regions across the globe as the
market. The Prius brand has addressed the needs of all the consumer segmentation. Segmentation

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is based on demographics, psychographics, geographic, and economic (Dibb & Simkin, 2013).
Toyota uses psychographic and behavioral approach to segment its global market.
Demographic
(Source: US Hybrid Vehicle Market Share Grows By 41% In 2012)
The most important segment in the international market is the consumer buyer. These buyers age
between 30 to 50 years and are either male or female. This segment may have a family with
children or unmarried. They are elites’ adults who have appreciated the need to have good
automobile technology like the hybrid Prius and its effect to the environment. The range of
income for this group is between $4376-$10,941 for seekers and $10,941-21,882 for strivers.
Therefore the groups are in the middle class in high-end occupations ranging from managerial to
professional positions. Hence the group is aware of the environmental benefits that come with
Prius and are ready to pay for high price for the car to get that comfort and cost saving.
Psychographic