Essay About Various Authors And Research Paper

Product Globalization
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Submitted to:
Dr. Y.L.R.Moorthi
Professor, Marketing
Indian Institute of Management, Bangalore
Submitted By:
Kapil Dabur (0311016)
CONTEMPRARY COURSE STUDY
Project Report on:
Product Globalization
Acknowledgement
I am extremely grateful to my guide Dr.Y.L.R.Moorthi. He provided valuable
inputs to me throughout the duration of the study. His informative and exhaustive
lectures as well as pertinent real life examples helped me assimilate the
intricacies of this complex topic in an extremely lucid way.
I am also very thankful to the library staff who helped me a lot in finding relevant
journals, and other literature.
I am also thankful to various authors who have published various research
papers on this topic and have allowed them to go in public domain. Their work
was very helpful in understanding the intricacies of this topic.
This study was more in the form of a research project and hence the format used
is that of a Research paper.
Kapil Dabur
PGP-II
IIM Bangalore
Defining a Global Product, Different ways to Globalize
your product.
Abstract:
The author conceptualizes and examines the different ways in which a product
can be globalised. The paper is about global PRODUCTS and not about global
brands. The first step in the process involves defining what a global product is?
It requires theorizing a model that is applicable in every product category. A
study of globalization and Internationalization literature forms the foundation of
the model. Various ways of managing the Product component are discussed and
grouped under two types of managerial orientations.
“In about five years there will be two types of CEOs: those who think
globally and those who are unemployedфЂ‚Ò.
Peter F. Drucker (1909- ) Management Consultant and Author
This quote exemplifies the importance of thinking about global markets in a fast
changing global economy.
Why think for the Global Markets:
Nowadays, a belief that a new era has begun seems to be dominating
international societies. Globalization has taken over and it is hitting us at every
possible point. Markets are expending, distances are getting shorter and
exchanges are bringing people closer and closer.
The development of worldwide access to the Internet has largely contributed to
accelerate the globalization process. Then, domestic markets are getting
saturated and there is a growing need for looking for new markets. Awareness
and knowledge about consumer behavior across global markets is also rising.
And this has made the Product managers focus on global markets.
Economies of scale, saturation in domestic markets, drastic reduction in transport
and communication time, learnings from different types of consumers et are
some of the main reasons for thinking for global markets.
Due to the overwhelming globalization process in the world economy, a new
product category has appeared. The global product!
For over thirty years there has been ongoing development of the Globalization
theory. There is no consensus on the meaning and ways to go about it.
Levitt1 (1983), argued for use of standardized marketing strategies for global
markets. This paper fuelled the ongoing debate on product globalization process.
Most of the arguments in the debate were based either on standardizing so as to
maximize economies of scale by maximizing by selling the same product, using
the same advertising, prices and promotions, in all markets Or on customizing
the Product so as to get a better Positioning in each market.
Standardization:
Yip2 (1989) spoke about improving the product quality by standardizing the
product. Michael Porter3 (1980, 1985) talk about economies of scale in
production, logistics, distribution and R&D. Quelch and Hoff4 (1986) focus on
standardization based upon economies of scale in Promotion and Advertising.
Kale and Sudarshan5 (1987) invoke the segmentation argument for it.
Adaptation:
Shoham and ALbaum6 (1994) argue for adaptation basing it on their �theory of
friction between headquarters and local representatives’. Samiee and Roth7
(1992) suggest opportunity of Price Discrimination based on a better Positioning