Global Marketing Essay: Glocalization, Strategies, and Analysis

This essay provides a critical analysis of glocalization within the context of global marketing. It begins with a literature review, defining glocalization and contextualizing it in relation to globalization, while also discussing its connection to global and local business strategies. The essay further explo...Read More

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Global Marketing
Table of Contents

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Introduction.................................................................................................................................................2
Part 1: Literature review..............................................................................................................................2
Glocalization............................................................................................................................................2
Contextualizing this concept in relation to Globalization........................................................................3
Discussing how this concept relates to ‘Global’ and ‘Local’ Business/Marketing Strategies...................4
Reflecting how these concepts relate to ‘standardization-adaptation debate regarding the marketing
mix...........................................................................................................................................................5
The advantages and drawbacks of these different strategic approaches................................................5
Part 2:..........................................................................................................................................................6
Analysis of the marketing mix of two global companies based on the literature review........................6
Two global companies.............................................................................................................................6
First global company McDonald’s corporation....................................................................................6
Second global company Starbucks Corporation..................................................................................6
Analyse the extent to which these two companies apply a ‘glocal strategy’ product and place.............6
Comparison and discussion on how the two companies’ global marketing programmes differ/not
differ and which company is more local/ global compared to the other.................................................7
Critical reflection on the two companies’ global marketing approaches by drawing on literature review
.................................................................................................................................................................8
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9
Introduction
In this study, the term glocalization will be discussed in depth. The focus of the paper is
to understand the meaning of glocal and the process in which it works on the

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organizations. The meaning of this term came into existence by merging two words that
are global and local which means mixing of the global forces to the local ones to
achieve the local and well as international goals of the multinational as well as small
organizations. Either we mix global in local or local in global, it would act same together.
The aim of this particular term is to provide benefits to the companies as well as to the
societies. In this study, we are going to learn how the term glocalization has spread out
in the industries and the markets and affected all in positive ways (Rao, 2009).
To better understand the process of glocalization, it is relevant to understand the
process of globalization. There are two phases of glocalization that are one is
localization and other is globalization. The first says that the process of glocalization is
an alternative of globalization and secondly, it can also be termed as an opposition to
globalization. It has been said by many of the scholars that the term glocalization has
come into existence due to the negative impact and consequences of process of
globalization (Roudometof, 2016).
Part 1: Literature review
Glocalization
The process of glocalization is termed as an integration of social, political and
economical factors that result in various types of outcomes. It is interconnected to all or
we can say it can keep interconnected. It is a process that has led to enhance
communication and interaction between many countries and states. It has made a world
free by enhancing the non-states organisations like multinational corporations, and
transnational companies. Glocalization has also increase the proliferation and
emergence of non-governmental organisation (NGOs), non-state actors, and other
organisations. It has removed the role of states between the worlds (Hampton, 2010).
These types of interactions between the local and the global forces are termed as the
process of glocalization. the captures of glocalization is decreasing the role of states,
local government, local states, representation in the international market by the states,
etc. glocalization aim at enhance the interaction between the local forces with the

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international forces and global to the local ones by influencing each other in a positive
way (Crane, Kawashima, & Kawasaki, 2016).
The process of glocalization is termed as a social aspect due to the fact that it aims to
spread welfare among the global and local forces. It always tries to bring improvement
in the education, rights, children, hospitals, women empowerment, security, ecology,
etc. the process of globalisation is increasing the communication between the nations
and trying to bring culture of homogeneous, safety and security (Willems, and Bossu,
2012).
Contextualizing this concept in relation to Globalization
From this study and research, we can say that somewhere globalization has negative
impact in the social, economic and political growth and development of the global
markets. The biggest impact is that there is an increase in the gaps of rich and poor in
every economy. The term globalization aims at delocalize the activities that are related
to the local economy and turn the activities to the world wide level. Due to this, the local
businesses get affected on a serious note. This process aims ate uplifting of the social
activities to the global extent and make it out from the knowledge of locals. It wants to
place the social activities in the conditioned level of international markets. Many
multinational organizations who are aiming at globalization are not hat effective and
unable to bring homogeneity. This is all termed as globalization under which the global
actors trying to be acceptable in the local markets by a little control provided to the
strategies areas (Kotler, Kartajaya, & Setiawan, 2010).
If we talk about the entire impact of globalization is that it is widening the gap of rich and
poor nations. While the process of glocalization aims at an integration of social, political
and economical factors that result in various types of outcomes. It is trying to
interconnect to all or we can say it can keep interconnected. It is a process that has led
to enhance communication and interaction between many countries and states. It has
made a world free by enhancing the non-states organisations like multinational
corporations, and transnational companies (Matusitz, 2010).

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Discussing how this concept relates to ‘Global’ and ‘Local’ Business/Marketing
Strategies
There is a strong relation between the glocalization of global and local buisness or
marketing strategies. This is due to the strategies of the concept to enhance the
activities of not only the global market but also the local markets. The aim of
glocalization is to make the local market stronger by applying the global theories that
are effective and efficient in nature (Drori, Höllerer, & Walgenbach, 2013). The
marketing strategies of glocalization
Global Local Glocalization
 The customer
preferences is
undiffertiation and
changes in the
preferences of
customers
 The source of income is
across the target
nations with the
economical growth and
trade
 Takes mass demand in
to the account
 Globalism
 Quantity
 Awareness among the
international brand
names
 Gains cost benefits from
the standardization
 Differentiation in
customer preferences
 Income from the target
nations
 It takes the specific
demand
 Localism
 Values and quality
 Recognition to the local
brands
 Competition form he
successful brands
 International brands and
also the domestic
products
 High cost of trade
creates secluded
markets
 Using the experience
form global names of
brand, and then brings
differentiation in the
offer so that he local
markets can be
appealed.
 It tries to operate within
the local markets niches
and global market
niches
 It tries to integrate both
the localism and
globalism
 Tries to mix the values
and quality of the
products and services to
get large scale of sale
 High notoriety
 A global service and
product have to face
competition from both

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local and international
market
Reflecting how these concepts relate to ‘standardization-adaptation debate
regarding the marketing mix
From the five decades, it is a topic for debate for all the multinational corporations that
whether to standardise the company marketing mix to the entire world or to adapt the
local situations. It has become relevant for the companies to re-examine this topic that
is important and everlasting as there is huge competition, growth and development in
the technology and the increase in the global economical crisis (Maringe, & Foskett,
2012). The aim of doing this conceptual research is to find it and draw a specific
framework that can depict the factors related to the adaptation and standardisation of
the marketing mix of the companies. The framework can help the companies a vital
understanding of the deep relations between the internal and external factors of
environment of the company. They have a huge impact on the adaptation and
standardization decision of the corporations.
According to me, the companies should add the framework into the progress, growth
and development of them so that they can bring improvement in the business
organisations (Hong, & Song, 2010).
The advantages and drawbacks of these different strategic approaches
The advantages and drawbacks of these different strategic approaches (i.e.
local/adapted, global/standardized, or glocal (adapted and standardized)) in Global
Marketing are very effective.
Advantages Drawbacks
Local/Adapted  Benefits to local
markets
 Taste and preferences
of local customers
 Less competition
 No advancement
 low standards of the
products and services
Global/Standardized  Benefits to global  High competition

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customers
 Profit in the firm form
international customers
 Expanding the gaps of
rich and poor
 Profit maximisation is
the motive
 No social
Glocal (Adapted
And Standardized)
 social welfare
 Benefits to both local
and global customers
 Hard for practical
operations
 Less feasibility
 Restrictions
Part 2:
Analysis of the marketing mix of two global companies based on the literature
review
Two global companies
First global company McDonald’s corporation
MacDonald is the world’s largest corporation of hamburgers. It is a fast food chain that
is serving 58 million and above customers on a daily basis. The company was started
by the two brothers Richard and Maurice McDonald in the year 1940 in San Bernardino,
California. The company is enjoying being pioneer for introducing “speedee service
system” (Roudometof, 2016).
Second global company Starbucks Corporation
Starbucks is a retail company who has adopted glocalization into its heart. It is an
America company who sells coffee as it is a chain of coffeehouse in various parts of the
world. The company was started in the year 1971 in Washington. It has been
represented as the second wave company as it has made a signature place in the
markets of food and beverages industry.

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Analyse the extent to which these two companies apply a ‘glocal strategy’
product and place
The company Starbucks has adopted the policies of glocalization and they have started
it in the china markets. The company has said that there are two conditions that are
required to be fulfilled for international corporations to be glocalise that is to understand
the local markets in which they have to cater. The second one is to search for a balance
between the local brand and global brand expansion. The company has started serving
the China customers for the first time due to this policy.
On the other hand, MacDonald's has also adapted the policies of glocalization not only
in china but also in other countries. Their policies are different as they are trying to
merge the needs of local markets to the needs of global markets to make a balancing
situation (Cho, 2009).
The Starbucks is trying to manage the prices as per the markets of China as they want
to compete with the local brands and already existing other multinational brands
On the other hand, MacDonald’s is a company whose prices are almost same for the
global customers. There is a difference in the products depending on the taste and
preferences of the customers. The companies are trying to apply the policies of
standardization and adaption of their marketing mix to their marketing programme
(Gond, & Boxenbaum, 2013).
Comparison and discussion on how the two companies’ global marketing
programmes differ/not differ and which company is more local/ global
compared to the other
Somewhere we can see that the companies are adopting similar policies and strategies
to apply glocalization in their corporations. Both are the companies are international
corporations so they have to manage the customers on a large scale (Mangram, 2012).
Marketing
mix/companies
Macdonald corporation Starbucks corporation
Product  Brand and corporate image
 Meals to enhance the
 Modified product line
 Ongoing product innovation

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customers
 Diversification of products
 Innovation in the products
avoiding to local and global
customers
process to serve diverse
population
 Specialised products and
services
Place  at places where company can
get highest sales revenue
 kiosks for limited editions
 mobile apps for virtual
customers
 post mate websites
 analysing the vision and
mission of the customers of
different places
 Coffeehouses with impressive
interior
 Retailers
 Mobile applications
 Online stores
 Bring changes according to the
markets
Promotion  Better communication and
interaction
 New information
 Transparency
 Public relations to generate
ideas according to customers
 Helping in green
environmental program for
better promotion
 Direct marketing where it
requires
 Positive promotion by word of
mouth
 Public relations by campaigning
like race together public relation
campaign
 Foundations to help the people
Price  In certain places, the company
use bundle pricing strategies
and psychological strategies of
pricing for new customers
 Premium pricing strategies
 Understanding the behavioural
tendency for pricing
 Too expensive for m MacDonald’

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(Smart, & Smart, 2012)
Critical reflection on the two companies’ global marketing approaches by
drawing on literature review
In this we can understands that there is a competition between the localization and
standardization among the companies. There is a need to balance both of the situations
to bring harmony in the company. Starbucks and its pricing depend on the international
marked in which it is dealing. The pricing of MacDonald’s is according to its own. The
companies should approach to competitive pricing policy. Selling products and services
for the same price decrease the potential of the companies (Wilson, & Grant, 2013).
MacDonald is trying to build distribution alliances to curb the international markets.
Strabucks is trying to enhance their customers by using internet, mobile phones,
electronics distribution and social media. In this way both the companies are trying to
expand the business but they need to check that whether they are fulfilling the local and
global policies at a time (Lee, & Carter, 2011).
The aim of doing this conceptual research and differentiation is to find out specific
framework that can depict the factors related to the adaptation and standardisation of
the marketing mix of MacDonald and Starbucks. The framework can help the
companies a vital understanding of the deep relations between the internal and external
factors of environment of the company. They have a huge impact on the adaptation and
standardization decision of the corporations.
Conclusion
At last, we can conclude that the process of glocalization is very effective for all the
companies. The adaptation of the international products and services has become
important for all the people around the world. To predict the consumer behaviors, it is
important for the global companies to enhance their marketing strategies and operations
so that the world can be converted into a single entity. Each and every brand and
company that is linked with the international market must realize the strategies and
policies that help them to apply glocalization in the same (Cheung, 2010).

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This can be done specifically for the social, environmental, economical and other
important factors. In order to meet the needs and wants of the customers, the marketers
must acknowledge all the channels of marketing efforts. The purpose of glocalization is
to enhance the quality and quantity of the products and services so that the customers
can be satisfied at the end. The need of customers is brands that can be global or local
so that they can feel that they are a part of the international market and global
community. It will help them to feel linked and connected by the taste, preferences,
feelings etc. (Sandıkcı, & Rice, 2011).

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