Strategies Between Kfc And Mcdonald In China Marketing Essay

In the past few years has touched the increase in the number of the worlds transnational corporation, TNC. It has become common, some leading enterprises to expand its products in many countries, become huge in size and economic (Cook and Bredahl, 1991). Along with the economy further thorough development in world, the economic globalization has become the basic trend that economy in the world develops, the activities of international community or everyplace area will bring into global economy, the world will become a system in the market that the unified network turns, the globalization marketing becomes multinational company of inevitable choice¼ˆSheth and Parvatiyar, 2001¼‰. This phenomenon has attracted the emphasis of numerous researchers, and taken to some research in this area. It can be find some interesting researches, when these companies want to reach a new market, the marketing manager also must make a choice, either taken from of domestic market, the same strategy applies to the domestic market or changes it to fit in with the host country (Ghoshal, 1987). Accordingly, the international marketing studies of the most basic problem. When the marketing crosses over national boundary have to consider the change of marketing method, also exists the problem of international marketing globalization and localization definition. The transnational corporation carries out marketing plan in its market in each national market and deliver the mode of information concerning its competitive advantage and implementation competitive advantage probably totally different in the different nation, also probably completely same, the former is international marketing strategy in the market of globalization; And then would be international marketing strategy in the market of localization (Yip, 1989). But different countries and the consumer of region result of the dissimilarity of culture, religion, customs and tradition, it consumes a need or presents huge difference; this will need transnational corporation while carrying on marketing in the world, has to consume demanding difference to set out from these and practices the marketing strategy of localization (Cateora and Graham, 1999). It is thus clear that, as for transnational corporation, globalization and native differentiation turn marketing to combine together, namely global localization marketing strategy in the world is the most ideal marketing strategy choice.

1.2 Purpose

Currently, the debate within global standardization and localization is very important, this because the strategic choice make a significant impact on the formation of business enterprise and maintenance international competitive advantage (Shoham, 1994). This paper summarized the content of international of marketing globalization and localization perspective argue, and analysis of the strengths and weaknesses of the two strategies which could standardize to the international marketing process and the contents with localization to choose a conditional definition has certain instruction meaning aspect for the establishment of the transnational corporation and implementation of international marketing strategy.

1.3 Research question

This article will focus on the compound research of the globalization and the localization, namely what conditions should globalization under which aspects of international marketing activity, or which aspects should localization; how much the degree of globalization should, and also the degree of localization should be. The localizations and globalization being pure all exist shortage, so the effectively international marketing strategy should be the fusion of globalization and localization, namely global localization marketing strategy. Global localization marketing strategy substantially elaborated product standardization and personalized research, analysis of whether the multinational companies in the international markets is a high degree of globalization, or a high degree of localization. This article deepen studies the two kinds of international marketing strategies, which combine case analysis– two greatest fast foods retail KFC and McDonald.

How to balance the between Globalization and Localization of international marketing in different environments?—– Compared with analysis of two cases

2 Literature Review

The issue of international marketing between globalization and localization involves two levels of contents: one is the marketing process of the world’s standardization and localization; the other one is the marketing contents of the world’s standardization and localization. However, the global localization strategy is based on two views argue fusion with the global standardization and localization, this article about global localization strategy to expand the two levels, namely the marketing process and marketing content. Globalization and localization of the marketing process, including the contents of the decision-making philosophy and market segmentation and determined decision model; Globalization and localization of the marketing contents mainly include the choice of international marketing strategy of product, price, promotion, outlet and the brand etc.

2.1 Theoretical Framework

Since 60’s in last century, have been 40 years existing a relevant issue that standardizes with localization during the research and application of the international marketing (Levit, 1983). The early debate focused on the effectiveness of the international advertising. By Buzzell, Quelch and Bartlett(1995), feasible standardization advertising market in Europe, but L¼ŽS¼ŽWalsh(1975) hold the opposite view of Europe is ready to meet the advertising standardization , doubts about ultimately conclude that no one can make European advertising standardization become a common feature possible.

After the 1970s, the focus of debate has been converted to completely standardize and the condition problem of complete localization. 1970s, Buzzell (1968) believe that products and services can be standardized depending on consumption patterns, psychological characteristics and unified cultural standards. Keegan and Green (1996) have found that full integration and adaptation is not the optimal choice, they suggest using a standardized prototypes, for example, the same ads as long as different points as appropriate, in line with the translation of the local language habits and change can be used for multi-national market, which is the advertising industry’s famous “mode of advertising” (Advertisement Pattern). The above controversy always keep on up to now, although there is no clear conclusion, but according to various theoretical support trend can these theories is divided into three parts standardization, localization and global localization.

8 Refence

Levit, T. (1983)¼ŒThe Globalization of Markets¼ŒHarvard Business Review, May-June 1983¼Œpp.92-102¼Ž

Walsh, L¼ŽS¼Ž(1975)¼ŒInternational Marketing, Macdonald & Evans, pp.11¼Ž

Stauble,V. R. (2000), Marketing Strategy¼šA Global Perspective, The Dryden Press¼Œpp.118-326¼Ž

Keegan, W.J. and Green, M.C.(1996), Principle of Global Marketing, Prentice Hall; 1 edition ,September 3¼Œpp¼Ž3¼Ž4¼Ž

Buzzell, R.D¼Ž¼›Quelch, J.A¼Ž; Bartlett C. A. (1995), Global Marketing Management Cases and Readings, 3th edition ¼ŒAddison-Wesley Publishing Company¼Ž

Buzzell¼ŒR. D¼Ž(1968)¼ŒCan You Standardize Multinational Marketing?¼ŒHarvard Business Review, Nov¼Dec¼Œpp.177¼Ž

Shoham, Y. and Cousins, S. (1994). Logics of Mental Attitudes in Al: A Very Preliminary Survey. In Advances in Knowledge Representation and Reasoning, eds. G. Lakemeyer and B. Mebel, 296-309. New York: Springer Verlag.

Cook, M.L. & Bredahl, M.E. (1991). Agribusiness competitiveness in the 1990s: Discussion. Am. J. of Agri. Economics .73(5): 1456-1464.

Sheth, J. & Parvatiyar, A. (2001) .Customer Relationship Management: Emerging Practice, Process, and Discipline. Journal of Economic and Social Research, pp. 1-34.

Cateora, P. R. and Graham, J. L. (1999) .International Marketing. Madrid: Irwin McGraw-Hill.

Yip, George. (1989). Global strategy in a world of nations? Slone Management Review 30: 29-41.

Ghoshal, S. (1987). Global Strategy: an Organizing Framework. Strategic Management Journal, Vol. 8, pp. 40-425.

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