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SCENARIO OF GLOCAL MARKETING AS AN ANSWER TO THE MARKET GLOBALIZATION AND LOCALIZATION. PART I: STRATEGY SCENARIO AND MARKET

Antonio Foglio, Vaidotas Stanevi ius

In this paper the authors present the process of glocalization as a specific subject and as strategic integration of the traditional global and local marketing. Too many local products have a limited local demand therefore need to increase their sales; where? The authors suggest in the specific segments located in the global market. Also many global products have a limited global demand; where to increase it? Only in the local markets after some local adaptations. Many local products need to be globalized and many global products need to be localized; the globalization has a future in the global/local context and the localization in the local/global one. Thereby glocalisation of market opens the new niches for pushing new products and new areas for developing demand. Key words: global and local market, glocalization, process of glocalization, glocal market.

Introduction

Today too many uncertainties condition the approach of the market; there are enterprises, especially small and medium ones, which have not understood how to do it, whether from the viewpoint of the globalization (an incommensurable effort), or of the localization (more accessible, but not without difficulties), or instead, trying the way of the glocalization (accepting and integrating the globalization and the localization in the same time); evidently choosing this way it is necessary to provide this effort with the right strategy of marketing, which is not global, not local one, but only "glocal". Towards the realistic possibilities offered by the glocalization we have to notice, unfortunately, as too many enterprises, for many reasons (lack of entrepreneurial management, poor resources, an excessive domestic orientation, insufficient information, etc) put in evidence a solid gap in front of glocalization; there are enterprises with "glocal products" (local/typical products which can be globalized in some existing specialized niches of the global market and global products which can be localized with opportune adaptations to local markets) which have not taken into serious consideration the glocalization, a fabulous chance to have a

high profile and profitable presence in the global market but also in the local markets.

The process of internationalization [1] of the enterprises passing firstly until ’60 through the export of products, between ’70 and ’80 through the multinazionalitation, from ’90 through the globalization, not always allowed them to take the relative offered chances; small and medium enterprises with the globalisation have been obliged to pay a high price to the impositions of the global market; today thanks to the glocalization we are in presence of a new challenge for many enterprises, in good part belonging to the group which got the benefits of the globalization in marginal way (local enterprises with local products) or in incomplete way (global enterprises which could not reach local markets); in few and clear words we are in presence of "thinking locally and acting globally"[2] for the local/typical products and of "thinking globally and acting locally" for the global products which require locally adaptations; all this means glocalization (strategic integration and interaction between globalisation and localisation). The glocalization becomes a clever way to govern and not already to undergo the globalization for the local enterprises, local products, localisms, territories, but also to perfect the same globalization which can better be understood and answer local demands the generic globalization does not consider. We have also to say that the “global and the local literature” has examined in detail only the respective ambits of reference[3], but without never undertaking the difficult, innovative, utopian project to integrate strategically globalisms and localisms, opening new spaces for the "localized globalization" and for the "globalized localization"[4]. To give answer to this marketing situation we need a "glocal marketing strategy"[3, 5, 6]; it means to

understand the background in front of us, to identify the "glocal market", to focus the "glocal segment-target", the glocal consumer, to position the product glocally, to approach the market with the right glocal marketing

mix (glocal product policy, glocal price policy, glocal distribution policy, glocal communication and glocal

promotion policies), to plan, to organize and to manage glocally.

1. A scenario toward the glocalization

In times of high globalization and of absolute necessity of relaunching the localization, an exam of the scenario with which enterprises, entrepreneurs and management, products must compare, will help us to understand the current situation, to identify the right way for a valid, current and aimed strategy of glocal

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marketing and to answer globalization and localization appropriately, not already separate and in contrast, but strategically integrated in the glocalization. The scenario will show the right and structured way [7] in order the enterprises can take the chances offered by the glocalization. There it is not doubt that we are in front of a complex scenario, but anyway interesting and stimulating; therefore who wants to orient local and global products, to activate local, global and glocal marketing policies and strategies, has to know and to compare with all the elements which in some way characterize and condition it (fig. 1). This analysis will give us the necessary support to activate in organic way the logical and answering approach to all the present and future problems connected with the glocal market that globalization and localization together give origin; in the comparison with this scenario the enterprise with vocation to the glocalization will receive the indications to identify the more appropriate project, the necessary glocal marketing policies and strategies which will allow to face with professionalisms and farsightedness the market.

Product life Society Communicatio Globalization n telematics Technological Localization innovation Scenario
Product life
Society
Communicatio
Globalization
n telematics
Technological
Localization
innovation
Scenario
Politics and
Competition
Enterprise
Consumer-
Catering
Trade

Fig. 1. The imperatives of the scenario

The society. A series of factors has characterized the social, economic, demographic, political, cultural, behavioural, consumption development of our human society; thanks to the globalization the society [8] evolves more and more at global level, also however not giving up localisms and traditions; we must think as globalisms and localisms condition the every day life, the culture, the professional and human roles of men and women, the liveliness of young people, the spare time (entertainment, journeys, sport, etc.), the quality of life, the growing information and communication requested and other aspects (too many to list) related to products and market. However it does not mean that the society view is turned only to global market, global products and global culture; the today's society is oriented also to local characterizations; it despite the advance of the globalization our society safeguards and defends local identities, local values, territories, areas, local products and productions, niches of consumptions, traditions; that means that the society besides to be global, can also be "glocal"; this last characterization is due to the fact that also the global society is anyway fruit of many local societies which cannot be cancelled, but on the contrary defended, increased, intelligently and strategically integrated in the globalization thanks to the glocalization; that takes a regard eye to what is homogeneous and global, but also individual and differentiated. The society answers globalization and localization separately, but also glocalization (globalization and localization together). In this society there is a demand of global products made by local consumers and a demand of local products made by the specialized niches of consumers belonging to the global market; really for the aims which these products want to reach, they will not be local and neither global, but only glocal. The globalization. Since long time the globalization is at the centre of a wide debate[6,9,10]; on it detailed analyses were done and taken contrasting positions: pro-global and no-global; there are positions that accept following the so-called beginnings of the "turbo-capitalism" and others instead which see in it a perpetuation of the traditional mechanisms of inequality[11-13]. The globalization exists; then what do? With globalization one can grow or decline; therefore is it right ignoring it and defending from it in the domestic

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market or giving it a strategic answer? With realism it is necessary to compare with it, trying to find the development possibility globalizing, but also taking chances derived from glocalizing. The globalization can have two outlets of interest:

Globalizing globalization: we are in a context of productive, organizational, commercial, communicational, creative logics which suppose a rigid standardization, a widespread communication, the levelling of the differentiations, the standardization of various cultures, the production of economic and cultural monopolies, the unbridled attainment of wide market spaces; certain examples of “world Americanization”[14,15] are the most evident way of the globalizing globalization; the case of the "mcdonallization" process is typical; McDonald's has become the global temple of the fast food which offers global products, as fruit of an operating assembly line to all the latitudes. Localizing globalization: approaching the life of the consumers the globalization takes some localisms, some differentiations into consideration and therefore modifies, becoming localizing; this choice requires good and deep knowledge of the consumers, of the specialized niches located in the global market, of the possible requests, of the necessary adaptations[9]; the consumer, the niches of market are considered by the globalization as important and worthy objects to which it is possible to address also the global offer, anyway with right adaptations. The globalization wanted by the scenario[16] well distinguishes itself from the "mcdonallization process" of the world; the wanted globalization has to melt with the localisms starting a glocalization which directs the local products toward the niches of the global market and the global products towards the local market areas with opportune adaptations according to specific cases. The scenario clearly highlights that an increase in value of the globalization cannot happen ignoring the local contexts of the offer (the producer) and the demand (the consumer); the globalization must be able also to become glocalization. The localization. For too much time and above all in the strong years of the globalization, the "localization" was seen as conservative, reactionary to the progress[19]; we must admit that certain local communities placed resistance to this situation, however with the time they understood that localization development could be assured, if it was able to find an integration with the globalization[17,18]; in fact with the globalization the same localization obtains an increase in value; in the globalized world there is also place for localisms, for the territorial aspects, for what is typical and traditional. While talking about localization we will relate ourselves to the territory meaning, that is a geographic space with social, cultural, economic, productive characterizations which is able to offer resources, products, services with local and inimitable characteristics. Every territory in any place of the world can represent a rich property of products, culture, traditions, history, local communities; it has the possibility of developing it alone, but these potentialities are certainly bigger if they can find a strategic integration with the globalization in the glocalization. On the contrary if the localization refuses this integration, it could lose strength and rush, therefore his strategic characterizations (traditions, typical and local productive processes, etc.). Globalization and localization together can start an internationalization process based on the "globalization of the local product" and the "localization of the global product" without refusing each other or being in contradiction. The local product is positioned in the global market and is accepted if it will have the necessary characteristics to satisfy specific niches of global market and the global product if it will suit those local markets which want it aimed at them and therefore locally modified. The indication highlighted by the scenario will have a double way of development:

localization of the production market: here a company highlights the territory, the uniqueness and

the typical characteristics of productions and products; localization of the outlet market: the company accepts that some local aspects of the outlet market are seriously considered (requests of the consumer-utilizer, of the distributive system, of the communication and promotion aimed at specific areas or niches); in the niches reached by the local products and in the local markets reached by the global products the enterprises must take the local characteristics into serious consideration if they want to reach them in the better way; we refer in particular to some adaptations of the product for technical and legislative reasons, for special requests of the demand (tastes, information, etc), for service level, for distributive characteristics (use of local partners), for logistic requirements, etc.[1]; certainly a localization as here explained will suit well to the saying " think globally, act locally" Also the localization will be able to give a remarkable contribution to the economic development; in fact as the globalization develops a tow function for the global economy, also the localization can develop the same function for those enterprises which have local products and for those global enterprises which direct themselves toward local markets with opportune adaptations of their products.

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The localization will be able to get a series of important aims:

maintenance of a unique and typical productive standard;

availability in the time of an exclusive productive know how;

cognitive, structural, managerial and economic chances;

availability of knowledge and unique competitive advantages;

interaction between producing enterprise and localization of production and outlet market;

cognitive chances deriving from the local context of the production and outlet market;

possibility of integration in a productive system.

From the localization can derive chances and expertise, that if the enterprises are able to exploit well can give a valid contribution to improve their competitiveness; in fact thanks to it the enterprises acquire different

characterizations of remarkable importance to win the challenge of the market. Politics and economy. National and global politics and economy can positively or negatively condition the demand and the offer both in the local and global context [20].

A good political situation bearer of employment, wealth, economic development will support at the

same time localisms to answer the local petitions, but also globalisations to answer the global impositions; a politics in this direction will assure the social, economic, entrepreneurial, cultural growth. On the economic forehead the scenario reports a continuous and surprising advance of the globalism (turbo capitalism) without closing the spaces for localisms provided that they do not give up comparing themselves with it[3,6]; in this way globalism and turbo capitalism cannot be considered in a negative way as they can drag the local identities in their growth; from the point of view of the offer addressing glocal products to the niches of the global market and from the point of view of the demand encouraging the global products to adapt to the local markets. To the offer of glocal products, to the productive systems, which feed it, the scenario assures a prosperous future for the next years if politics and economy can guarantee stability; in absence of this also for the glocal products there will be difficult times. The enterprise. Unfortunately the globalization fundamentally has interested the big enterprises [2], leaving in the doubt and the depression many of the small and medium ones. The scenario imposes to "all the enterprises" to have a confrontation with the globalization directly or indirectly if they have global products, but even if they are local enterprises; the scenario encouraging the glocalization shows that many enterprises can answer effectively to the globalization integrating the localization of the offer, but also of the demand. The glocalization opens new horizons to local and global enterprises, in particular to the small and medium ones seriously interested in facing the “glocal way”. To grow in the global market, but also in the local markets the enterprises must be able to take the offered chances deriving from the relation/integration globalization and localization; for many small and medium companies thanks to the glocalization the local characterization will not be any more a limit, but on the contrary a competitive advantage with which they can face strategically the global market, in particular the special niches located in this market and interested in differentiated products, as the glocal products are. The imperatives of the background imposes to the enterprises which want to be glocal are a quick and convinced answer to the market in terms of production and product innovation, of trade and consumers-utilizers reply, concerning good quality, service, competitiveness, differentiation. The enterprise accepting the local/global integration or the global/local one reaches a new and interesting process of internationalization which strategically reopens the demand and offer circuit. We hope that the enterprise has the will and the capacity, the courage and the decision, the right marketing strategy to take the chances offered by the glocal approach. The trade. The distributive factor holds in this scenario a big importance; offer and demand hope to

have an ally in the trade. This trade recognizes the presence of a global demand and does everything to satisfy it with global distributive systems and techniques; in the same time the trade does not neglect the sale systems for the local, typical, differentiated offer; therefore we are in front of a trade which is interested to satisfy the global consumers-utilizers, but also the niches of the global market with exclusive and selective distributive systems; both cases notice the existence of a glocal trade.

A special regard in the point of sale and an adequate support of communication, promotion, logistics,

sale, service are reserved by the trade for the glocal products; certainly a fundamental role is entrusted to the personal selling. If therefore the glocal enterprises will not conform themselves as the trade (big trade, specialized retail) imposes, they could find in a situation of big vulnerability [21]. It is necessary that the enterprises conform themselves with productive, marketing and sale strategies in order to manage their right role. If it should not be

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so the distributive system could impose his logics with a lot of inauspicious consequences to the glocal productive system; this trade requires today and more and more tomorrow, a careful, dynamic enterprise, able to suit the continuous changes and compare with the same dignity with it. The catering. Restaurants, inns, snack bars, hotels, hospitals, schools, communities, etc., to satisfy the food consumer demand, ask products with local and typical characterizations (high qualitative level, nourishment value, uniqueness, etc.) [22]; there are some restaurants which owe their success to the glocal offer they are able to propose. The food glocal offer must be able to give a highly qualitative answer to this solid and growing demand. The scenario lets good possibilities of supply for the catering which will be able to organize and orient well his offer also in this direction. The consumer-utilizer. Today a global demand exists, but also a local one; there are 200 countries in the world which buy the same products Gillette for instance; on the contrary there are many consumers- utilizers located in hundreds of countries of the global market which requires local products. The scenario presents a consumer-utilizer with a precise profile able to discover and to ask the global and the local offer, therefore the glocal one. This consumer-utilizer is aware of his purchases so that he would like to form an alliance with the enterprise which produces and offers a product; that becomes possible if can receive products who are synonyms of excellence, health, service, functionality, etc. A good knowledge of the demand generally and of the consumer-utilizer in particular will provide a valid turn for the glocal offer; through this knowledge it will be possible to identify the behaviour of the consumer-utilizer, to put at his disposal the product which meets his specific requirements and to foresee his possible future developments. The competition. The liberalization of the exchanges and the globalization of the economies have created a competition among enterprises, geographic areas, production systems. The scenario presents a variegated competition; national, international, multinational, global, glocal enterprises who look for a presence in national, international, multinational, global, glocal markets; the competitive battle is relevant and involves every enterprise. The globalization showing the way of the global market to global products, but also to local and regional ones emphasizes the competitiveness at a planetary level [18]; the competition exists therefore not only in the national market, but in all the markets reached by a product; it means that the competition will be global, but also local and glocal; the enterprises will be in presence of a real hyper competition. Defending the products is therefore necessary, but in particular for the local products from the assaults of a competition which will try to imitate them and then to take them to the global market also with deceptive local identities; unfortunately with unprepared consumers-utilizers these attempts will receive answer with serious damage of the authentic local productions. These considerations take to an imperative: the enterprises to keep their supremacy have to be competitive; we refer to strategies and policies of production and product aimed to the excellence, strategies and policies of research, of coalitions, of distribution and sale, of communication and promotion, of management; only with these elements one will be able to win the difficult challenges the scenario assumes. The future will become especially dark for those enterprises which give up going in the direction imposed by the scenario and the competitive battle. The technological innovation. A deep technological change is clear for all the products, included the glocal ones; in fact the innovations of today and tomorrow will considerably condition the producing and commercial enterprises. The technological innovation will be able to meet the market requirements, if it will be as moment of entrepreneurial growth, renewed offer, higher qualitative level, greater competitiveness. In fact as regards the managerial organization and the improvement of the customer services, an important role will be attributed to the technology[23]; the introduction of computer science in the business organization will allow a remarkable reduction of administrative and commercial costs, which means more convenient prices for the consumers- users. It is clear that the technology will involve for the glocal offer innovations in organizational, managerial, commercial, competitive terms. The technology in his several applications reducing the distances and the barriers among the various markets will integrate localisms and globalisms easily, quickly and appropriately. The glocal enterprises must adapt themselves with flexibility to the changes the technological innovation will impose; producing and selling for the glocal market will mean to offer products which are able to answer the continuous and solid technological revolution with effectiveness. To know the technological innovation before the others, to apply it, to organize will certainly be an advantage of big range also for enterprises which choose the glocal way. The communication and the telematics. The time and space reduction that the technological innovation involves, redesigns a new market; the bargaining, the sale, the purchase which fulfilled themselves

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in physical places (markets, commodity exchanges, shops, etc), now with the progress of computer science they will place on electronic nets; that will inevitably involve a new concept of market, a market online, dematerialized [24]. Technological progress, globalization of the markets, telematics, communication, and professional figures will change the market, the access to the information, modifying effectiveness, roles, in particular of the sale staff, requiring new ways of contacting the customers and taking the negotiations ahead. The marketing will have in front a new market where negotiation, offers of products, communication, and competition will go by in real times through the computer. The technology will give a big help to marketing and sale to understand and to act strategically in the new market. Localisms and globalisms of course will be near as several local markets will have many occasions to know global products and segments of the global market to know local products. In particular the small and medium enterprises thanks to communication and telematics will be placed in the happy condition to access the global market with their local products and therefore to receive a valid contribution for his internationalization process. The product life cycle. Technology, competitive battle, globalization of the markets, evolution of the consumer-utilizer impose adaptations, innovations, re-launching in the products life cycles; no product (local, global and glocal) can last in the time ignoring the possible and necessary changes to make; therefore the offer will be forced to keep under control the product life cycles and act adequately and in time. It will be important supporting these product life cycles with continuous check ups, with adequate policies and strategies of marketing and sale, with salesmen able to be valid intermediaries between demand and offer, so to assure the necessary support for a normal and prolonged development of these cycles and avoid dangerous and sudden collapses.

2. The answer to the scenario: the glocal way

The scenario highlighted that globalization and localization are separately, but also together integrated in the glocalization are able to characterize market, enterprises, products and production systems, trade, segments, consumers-utilizers; the glocalization becomes a valid answer to what the scenario imposes and the market requires. The globalization and localization directly or indirectly force the small, medium and big enterprises to rethink their way of being present in the market; only aiming to the globalization ignoring the localization or vice versa does not seem to be the suitable answer to discover the market which in many cases requires the integration between globalisms and localisms of the market. In front of the opportunities the scenario has highlighted, the global and the local enterprises are required to give strategic answers; an answer could be to undertake the glocal way, orienting themselves towards the glocal market with conviction, with a project, looking for new perspectives. To mcdonallization the glocalization opposes the personalization, the differentiation, the inimitability, the local culture and the local identity. With a globalization which generalizes, the localization could not be depreciated; instead in a strategic integration with the globalization, the territory, the localisms, the tradition find a space and can increase in value thanks to a specialized demand (niches of the global market and local markets) which requires them and to the offer of local and global companies; in fact with the glocalization it is possible to answer the globalisms for the enterprises with local products and localisms for the enterprises with global products. The globalization of the business, of the products, of the competition takes both the local enterprises and the global ones to take the integration of the localization with the globalization into consideration. What we get is the glocalization which is distinguished well from globalization and localization (fig. 2). Globalization and localization could seem terms in contrast, but it is not like that; they have more convergences than divergences; in fact for a local enterprise with -traditional products it is possible to reach global specialized niches and vice versa for a global enterprise to reach local markets obviously with the right adaptations; in this way globalization and localization do not diverge, but on the contrary they strategically integrate. Globalization and localization are so complementary faces of what we call as glocalization.

Globalization

Localization

Glocalization

Search and defence of globalisms Undifferentiation Answer to mass demand c Rationality and quantities

Localisms defence Differentiation Answer to specific demand Values and quality

Integration of globalisms and localisms Localisms globalize and globalisms localize Answer to global market and local market niches Integration between rationality/quantities and values/quality

Fig. 2. Globalization, localization and glocalization: the differences

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2.1. Definition of glocalization

In the moment that McLuhan[25] talks about the "global village" he gives an implicit definition of what is glocal besides global; the global village presents itself contradictory (a "village" which is "global"), but also happily integrated from the local and global points of view; the "village" expresses territory, traditions, therefore it has a meaning of localism, while "global” means that it can reach all the planet (globalization of localisms) and vice versa (localization of globalisms).

It is useful at this point to give a technical and complete definition of glocalization to understand when

one is in presence of glocal market, glocal enterprises, and glocal consumers-utilizers. When an enterprise globalizes what is local or localizes what is global, we are in the context of the glocalization; that means not giving weight to localisms or globalisms in their specific context, but instead only in the reciprocal one; therefore we say that glocalization is:

a way to supplement globalization and localization synergy ally and strategically;

a system to manage the approach to the glocal market (global/local market);

the capacity to remain rooted strongly in the local reality, also facing the global market; the chance of articulating in global and local (glocal) key the chain of the value (system of activities developed by the enterprise to plan, produce, sell his products or services);

a method which allows the local or global enterprise to arrive in optimum way respectively to the

global or the local market. Glocalization will mean change, activation of a strategy, big chance and no threat; if managed well the glocalization can become a growth factor both for the local enterprise and the global one.

2.2. Aims

A valid glocalization process will allow getting important aims:

answer to the globalization and to the localization; counter-proposal to the universalism of the globalism and opposition to the levelling caused by the globalization; defence of the ethnic, cultural and local particularities; support in competition, promoting local and regional characterizations; setting of a management able to harmonize and supplement the resources inside the company and outside in the glocal market; visibility to the localism of the producing market (producing company, production and local product) in the case that local products reach the global market or of the outlet market in the case that a global product has to adapt to local demands; integration between universal and local/national culture and between territorial and global communities; new market outlets to exceed the saturation of the local and global market; exploitation of new geographic areas both for local and global products; rediscovery of the "territory", of the "local areas" with all their identity and uniqueness and diffusion in the niches of the global market or in local areas interested in the offer of glocal products[26]; acquisition of new competitive advantages (glocal advantages) to set up the international process of the enterprise.

2.3. The glocal way: to localize what is global and to globalize what is local

The way of the glocalization is based on the internationalization process the enterprise has activated or intends to activate towards the global or local market; it reconciles the local products, the territory with the globalization and the modified global products with the localization and the territory; the enterprise accepts, the globalization, but also the localization, here one makes strategically live together and supplement what is local with what is global. The glocalization rediscovers and increases the value of various traditions and cultures, of the local identities and positions them in the global vision with their characteristics. The glocal way has a process well distinguished from other possible ways:

global way: following this way one proceeds to globalize product, market, marketing strategy; local way: one increases the value and aims to everything which is local (product, market, marketing strategy); glocal way: one proceeds to globalize what is local and to localize what is global; the local product arrives in the niches of the global market, while the global product suiting itself with adaptations reaches

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the local markets; in both cases we are in front of a glocal market, glocal
the local markets; in both cases we are in front of a glocal market, glocal consumers-utilizers, glocal
marketing strategy.
Glocalization
Localization
Globalization
Glocal way

Fig.3. Glocal way: a strategic integration of globalization and localization

The glocalization will not be a way of opposing the globalization and the localization, but on the contrary a concrete and qualified way to think of them and manage them in different way, activating a new process of internationalization. With the glocal way globalization and localization will melt together; that will highlight as the localization will be a complementary part of the globalization; the harmony and the reciprocal influence between local and global factors will determine the strategic glocal way (fig. 3). At the same time the glocalization re-launches the typical/local product, but also the global product which adapts locally, supporting them with a glocal marketing process (fig. 4). With the glocalization one does not indiscriminately answer a mass market, but supports a local product addressed to special niches of the global market or a global product adapted strategically to some local markets; the glocalization must be considered from these two points of view:

For those enterprises which have the glocal vocation, the glocalization can represent a fabulous opportunity; the glocal way will have a key function in supplementing strategically the globalization and the localization in an effective and promising internationalization process.

The glocal way is the right way for:

a local enterprise which shows interest in specialized niches of the global market and has products able to satisfy them (fig. 5);

a global enterprise which shows interest in local markets and is ready to make some adaptations to satisfy them (fig. 6).

Process of glocalization
Process of glocalization
Process of glocalization

Process of

glocalization

Process of glocalization

Local/typical

product

6). Process of glocalization Local/typical product Globalization Global market niches Local markets Glocal

Globalization

Global market

niches

Local markets

Glocal product

Glocal product

Glocal product
Glocal product
Glocal product
Glocal product
Glocal product
Glocal product
Global market niches Local markets Glocal product Localization Global product Fig. 4. Glocalization process

Localization

Global product

Global market niches Local markets Glocal product Localization Global product Fig. 4. Glocalization process

Fig. 4. Glocalization process

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34 VADYBA / MANAGEMENT. 2006 m. Nr. 1(10) Fig. 5 . Glocal way: enterprise with local

Fig. 5. Glocal way: enterprise with local product addressed to specialized niches of the global market

addressed to specialized niches of the global market Fig. 6. Glocal way: enterprise with global product

Fig. 6. Glocal way: enterprise with global product addressed to local markets with opportune adaptations

The glocal way must be searched under the push of stimuli as the obtainment of greater scale economies, the enlargement of the intervention fields, a better distribution of the growing costs, a widening of the production volumes, etc.; the glocalization will permeate directly enterprise, products, production, marketing, sale and indirectly also the induced activity which depends. The "glocal choice" cannot be abstract, but concrete in aims and means. The glocal way is not a formula, but a strategy which must be thought, studied, put in act, coordinated, planned and controlled; it will bring a big development to the enterprises which have glocal products and the necessary characterizations (adaptability, flexibility, rationality, decision-making); it does not suppose an easy process, but on the contrary difficult and with considerable investment of human and financial resources; it is clear that these resources will concentrate where there will be the bigger advantages in terms of new outlet markets. While showing the glocal way for the enterprise we want to remember that there are chances to be gathered, but also challenges, uncertainties, risks which require a lot of consciousness, professionalism, will.

2.4. The pushing glocal factors

The factors which push the enterprise to search and to accept the glocalization are various; their knowledge will be useful in order to arrange the possible and better glocal marketing strategy and to strengthen its application.

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Saturation of the market. The local and the global enterprise can be in presence respectively of an internal and global market which are saturated, therefore finding new outlets becomes necessary; the local enterprise will direct itself toward the niches of global market interested in particular products as the local/typical ones, while the global enterprise to the local markets producing the necessary requested adaptations; choosing the glocal way local and global enterprises can get new demand. Presence of a glocal demand (differentiated niches in the global market and local markets). The demand does not only require generic mass products which do not meet the local requirements, but it also wants specialized products as the typical/local products requested by the niches of the global market or products locally fitted if we refer to global products requested by the local markets. When these differentiations, these adaptations are necessary, the glocal approach becomes obvious; there are in fact some economic, social, cultural, consumption, competitive, legislative and legal factors which refuse the globalization, but on the contrary require the glocalization. Territory and localism. The glocal strategies with the localisms which characterize them (territory, tradition, local identity of the producer, of the product, of the demand, etc) cannot find suitable answer in the globalization, but only in the glocalization; thanks to the glocalization the territory and the localisms of the offer and demand become competitive advantages on which one can base the strategy of glocal marketing. Costing. Increasing the market with new segments (specialized niches of the global market, local markets interested in modified global products) allows to divide better the costs and lower the unitary costs of the product. Interest in local culture and tradition. There are cultural, historical, consumption aspects which support localisms and therefore require the glocal way. Increase of the sales. Addressing to the glocal market both the local and the global enterprises register increases for their sales with all a series of advantages which this situation involves. Laws and rules. Some countries impose local adaptations to some imported products; in this context the glocalization becomes the only way to export. Glocal management. The availability of a management able to perceive and manage what globalization and localization are able to offer with the glocal choice, is surely one of the most important glocal pushing factor. Glocal marketing. The glocal enterprise with an appropriated glocal marketing strategy will certainly have a decisive factor in developing the glocal choice; the glocal approach cannot be left to the case and the improvisation, but must be strategically managed by the enterprise with successful glocal marketing.

2.5. The obstacles

Besides being encouraged the glocalization can be also obstructed by some direct and indirect factors. Geopolitics. Geographic, political, demographic, economic, climatic situations can directly or indirectly obstruct the glocal choice, as any other global or local choice [19,23]. Situation of some country. There are specific situations of a country as level of the demand, customs and fiscal impositions, protectionist barriers, etc., which present difficulty, if not impossibility of access to the market, included the glocal one; in this case the glocal approach is evidently unsuccessful. Mission of the enterprise. Respecting the mission and the vocation of the enterprise is necessary; if an enterprise has no disposition to the glocalization (lack of glocal products, exclusive orientation towards of the globalization or the localization, etc.) [27,28], the glocal choice will certainly be impossible Conservatism. The lack of flexibility and of a modern enterprise culture makes difficult the integration between localization and globalization. Excessive globalism. In the case we find in front of an absolute globalization which does not give spaces to the localism, activating the glocal choice will turn out impossible; there are companies who want to remain global, so they are not interested in making adaptations to the localisms of certain markets. Excessive nationalism/regionalism. Often some enterprises place some barriers to defend their nationalism, regionalism and localism; it means that the space reserved to certain typical products must be only local; these companies do not want to take into consideration to bring these products to the specialized niches of the global market. Geographic distance. While activating a glocal approach, the space conditions in sensitive way the glocal choice of an enterprise; developing a strategy of glocal marketing is evidently easier with foreign countries and niches market which are near geographically, as they are able to receive better the offer thanks to this closeness; in the moment one must address to a very far demand it will be very difficult to support the glocal choice.

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Psychological distance. To face local markets and niches without knowing their psychology (culture, history, traditions, conditionings, etc.) will make the glocal approach very difficult; a valid market research can certainly help to reduce this psychological distance. Global products which refuse adaptations. If a global product cannot accept the adaptations requested by the local market, it will not have any chance to reach it; the missed adjustment becomes a strong obstacle for the glocal choice. Typical/local products with poor productive potentiality. Enterprises not able to satisfy the internal market have no chance to serve the glocal market;

3. The glocal market

As the glocalization results from the integration of globalisation and localisation, in the same way the glocal market derives from the integration of local and global market (fig. 7). The glocal market is fundamentally inserted in the global market with some important distinctions and differentiations; in fact for global market we mean a market with homogeneous demands in several countries and therefore opened to products of different origin; the glocal market instead is a market with national, regional, particular and local characterizations; it answers specific and well differentiated requirements of niches of the global and local market; these niches reached by local products and global products fitted to them, determine the glocal market.

global products fitted to them, determine the glocal market. Fig. 7. Glocal market as integration between

Fig. 7. Glocal market as integration between global and local market

The integration of local/global and global/local in the glocal market will require two passages (fig. 8).

in the glocal market will require two passages (fig. 8). Fig. 8 . From the local

Fig. 8. From the local and global market to the glocal market

From the local market with local products to the glocal market: the local market opens to the global one passing through the glocalization; in fact what is specific, typical (tradition, local production, etc.) has the capacity to recall what is global; we think of typical Italian food products as wine, cheeses, oil, pasta, etc. only produced in some geographic areas; thanks to their exclusivity these products find big diffusion if they reach special niches of the global market; once in these niches the products glocalize themselves as the glocal market requires; with particular reference to the small and medium companies, we must say that it is the inaccessibility of the global market to direct them toward the glocal market; in fact these enterprises not having the qualifications to be in the global market (they do not have global products, but only differentiated, local ones) they have only the chance to address to special niches located in the global market which are able to accept their offer, if not even to require it; the localism reaching these niches of the global market can increase the outlet market, therefore lengthen the product life cycle and last in the time. From the global market with global products to the glocal market: globalism and localism do not exclude each other, but they integrate well; in this way localism can become also a happy characterization of the globalism; it happens when a global product with a local adaptation discovers a local market; thinking globally does not prevent from acting at local level; in this way the globalization can increase the value of the

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localism, of the territory giving listening to local requirements, conforming with appropriate adaptations, answering the glocal market; certainly discovering the glocal market and adapting to it, many global companies can increase their sales in markets which otherwise would have no place for global products. The glocal market has nothing doing with an anonym and mass market; on the contrary it is specialized, personalised, well differentiated, open and dynamic, with values and symbols which must discover interesting and refined market segments, loving the good quality, the tradition, the differentiation and the personalization; for all this the glocal market is also a complex and competitive market; we are in presence of a market in which enterprises and products search for profitability, safeguard of their local and traditional characterizations; we think of typical products as food, wines, clothing, shoes, furniture, glass and ceramics, etc.

This market is a reality and the glocal enterprises with patience, courage, professionalism must analyse it, identify it in order to address the suitable marketing interventions. The glocal market can not be considered as a limit, but on the contrary as a fabulous chance especially for the small and medium companies which have glocal products; thanks to the glocal market many small and medium companies replace themselves strategically in the global circuit of the demand and offer.

3.1. The characterizations of the glocal market

The glocal market has specific characterizations which must be held well in evidence.

1. Territorial market: the glocal market depends on its territory; the globalization has sacrificed

territory and localism in his process, the glocalization increases the value of them and attributes a territorial profile to the market from the productive point of view (production of typical/local products) and from the point of view of the demand (discover of local markets by the global products locally adaptable); the territory becomes a characterization of big importance, a true and real competitive factor, the starting point of the glocalization process.

2. Global market: as the glocalization supplements localism and globalism, the glocal market besides a

territorial characterization has also a global one [26].

3. Accessible market: the market is accessible provided that one has the qualifications requested by the

glocalization (glocal products, policies and strategies of glocal marketing, etc).

4. Consumer oriented market: the glocal market is made by the consumer-utilizer when he decides to

buy the glocal products, the local ones for the global niches and the global ones modified for the local markets;

if the glocal consumers-utilizers decide, therefore it is necessary keeping account and addressing in their direction.

5. Modern market: the glocal offer must answer a modern market; the glocal setting cannot be old, but

on the contrary actual and modern, in order to safeguard localisms, traditions, cultural identities in modern

key.

6. Flexible and adaptable market: as the localization must integrate with the globalization and vice

versa, it requires that the glocal market is flexible and adaptable; this characterizations will evidently require a

consequent flexible and adaptable glocal marketing strategy.

7. Differentiated market: the market will reveal itself differentiated as the offer is characterized by

territory, uniqueness, inimitability of the products (typical/local products) and the demand by localisms to satisfy in the local markets or in specialized niches of the global market.

8. Segmented market: the consumers-utilizers of the glocal market are located in special niches of the

global market or specific local markets; that makes the glocal market highly segmented.

9. Dynamic market: the market is subject to continuous changes.

Conclusions

The glocalization is a clever way “to govern the globalization” and to supplement the valid contribution of the localization in this process. The glocalization cannot be an emergency towards globalization, but a wonderful strategy able to produce fabulous chances for the enterprises which want to take this opportunity. Glocal management with an appropriate strategy will certainly have a decisive factor in developing the glocal choice and it must be strategically managed by the enterprises with glocal marketing. The glocal market has all that same characteristics as global and local market and is more flexible adaptive, more viable and more dynamic as others.

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