OCP International Marketing

Question 2: Describe ONE of the International Marketing Strategies Available to Companies and Provide
Examples of Companies That Use the Different Strategies.

Thank you, Mark, for offering valuable insights on the topic of standardization. As previously indicated,
one of the viable international marketing strategies that organizations can choose is Standardization,
which is sometimes referred to as worldwide marketing or global standardization plan. This method
entails providing identical products or services with limited customisation across several international
marketplaces. The objective is to attain economies of scale and cost efficiency through the production
and marketing of a standardized product on a global basis. Allow me to contribute to the ongoing
discourse by providing instances of Malaysian companies who employ the Standardization strategy.

Petroliam Nasional Berhad (Petronas) is the state-owned oil and gas monopoly of Malaysia. Petronas
has a global presence, exploring, producing, and marketing energy resources all over the world. The
company follows a standardized approach in its branding and operations, ensuring a consistent image
and quality in the international energy market.

Maybank, officially known as Malayan Banking Berhad, is a prominent financial establishment in

Malaysia, renowned for its substantial size and influence within the country's financial sector. Maybank
has extended its geographical reach to multiple nations in Asia and other regions. The organization
utilizes a standardization strategy in its provision of banking services, ensuring uniformity in its banking
products, digital services, and branding across its global branches and subsidiaries.

The Genting Group, a multinational business based in Malaysia, is engaged in the operation of resorts
and casinos throughout many nations. Resorts World, a part of the Genting Group, implements a
standardization plan to ensure uniformity in gaming experiences, entertainment offerings, and hotel
services throughout its several worldwide facilities.

Q3: What are the elements that make up culture? Discuss the impact of one element of
Malaysia culture that has an impact on international marketers that is based in Malaysia.

Chia Wen, thank you for sharing your thoughts on this. Like you explained, a variety of factors
that influence a group of people's views, values, behaviors, and customs are included in the
different elements that lead to the construction of culture. We can obtain insights into the
complexity and diversity of civilizations all across the world by comprehending these
components. It was formerly stated that the artifacts, language, beliefs, and values of a society
collectively make up its culture. This theory posits that there are two primary components of
culture: symbolic concepts and material artifacts. Nonmaterial culture, often known as symbolic
culture, consists of a civilization's defining ideals, concepts, symbols, and language. The second
type of culture is called "material culture," and it includes anything that can be touched, used, or
seen by members of that community. This includes things like clothing, tools, technology,
dishes, and transportation. Cultures are rich in symbols, which can be nonverbal actions or
physical objects that represent ideas and provoke emotions. Shared symbols are crucial for
social interaction, as they facilitate understanding. Nonverbal symbols, like handshakes or
gestures, differ in meaning across cultures. For instance, nodding means "yes" in the U.S. but
"no" in Bulgaria. "Thumbs up" may signify approval in the U.S. but an insult in certain European
regions. Using your left hand for eating offends some in the Middle East and Asia. These shared
symbols are essential for culture but can also lead to misunderstandings and conflicts,
emphasizing their importance in social interaction and meaning. As for me, one element of
Malaysian culture with substantial implications for international marketers operating in Malaysia
is the concept of "face" or "muka." In Malaysian society, the preservation of one's reputation and
social standing is held in high regard, and this cultural value significantly influences the
approach that international marketers should adopt when developing their marketing strategies
in the country. The notion of "face" in Malaysia centers on the preservation of dignity, respect,
and the avoidance of embarrassment or shame. Consequently, marketers must exercise great
care in their actions and communication to ensure they do not compromise the face of
individuals or groups. This cultural norm extends its influence across various dimensions of
marketing, encompassing advertising, product positioning, and customer relations. For instance,
in the realm of advertising, marketers must exercise prudence when crafting campaigns to avoid
using content that could be construed as offensive or disrespectful. Sensitivity to the cultural
norms and values of the Malaysian audience is paramount to prevent any potential
embarrassment or loss of face. Product positioning strategies also need to be cognizant of these
cultural values, ensuring that the product or brand aligns with the local ethos and does not
conflict with these values. In terms of customer relations, maintaining a respectful and courteous
approach is essential, as any actions or interactions that might be perceived as disrespectful can
damage the reputation of a brand or company. In essence, the concept of "face" in Malaysian
culture highlights the importance of respect, dignity, and preserving one's reputation, and it
necessitates a nuanced and culturally sensitive approach for international marketers.
Understanding and incorporating these values into marketing strategies is not only a matter of
cultural competence but also an imperative for building successful and lasting relationships with
the Malaysian market.

Q4: What do you understand by the term 'globalisation' and 'global localisation'?

Here is how I see globalisation and global localisation. The term "globalisation" refers to
the practice of marketing and selling goods and services beyond international borders.
On the other hand, localisation is a concept that goes beyond national boundaries to
meet the demands of a specific group of people. These two business approaches touch
every facet of commerce, albeit in distinct manners.

Globalisation is a comprehensive term that encompasses worldwide expansion. It

signifies the process of amalgamating and impacting economies and cultures. In the
context of commerce, "globalisation" refers to interconnected economies marked by
unrestricted trade, the free movement of capital across borders, and the availability of a
wide variety of resources. Organizations can save money by outsourcing business
processes or services to enterprises in other countries. For instance, a Singapore
company might contract out customer service to a call center in Malaysia. Integration of
brands across national boundaries is made easier by globalisation, which also promotes
the free flow of innovative ideas, technology, goods, and services. However,
globalisation can be slowed down and information dissemination made more difficult by
the existence of cultural, political, and linguistic differences throughout the globe. These
variations create obstacles for businesses venturing into international markets and often
necessitate adjustments closely tied to localisation.

Global localisation, sometimes known as "glocalisation," describes how a good or

service is developed, delivered, and marketed globally while being specifically adapted
to meet the needs and preferences of local markets. Localisation is the process of
tailoring a worldwide product, service, or piece of information to the specific linguistic,
cultural, and social norms of a specific market. It necessitates a fusion of global and
local elements. . An example of this is automobiles that are sold all around the world but
are modified to fit local rules for emission levels or steering wheel placement. This idea
can be extended to cultural spheres as well, such as when a worldwide fast food chain
introduces dishes that cater to the tastes of certain regions. Users are more likely to
purchase a "glocalised" product if it meets their specific requirements and is applicable
to their situation. The effects of glocalisation on the global economy have been varied.
As a result of glocalisation, multinational corporations will be able to compete more
effectively with their domestic counterparts, which should improve the level of
competition, drive down prices, and increase product availability. However, because
glocalisation is primarily used by large multinational corporations, it may be
disadvantageous to smaller local businesses that find it difficult to compete with these
companies' cost-effective production methods.

In conclusion, while globalisation describes the overarching trend toward increased

international communication and cooperation, global localisation is the process by which
international concepts and goods are adapted to the unique requirements of regional or
national markets. Both ideas are prevalent in today's globalised world and have an
effect on many facets of society, including the economy, culture, and daily life.
Permalink Show parent
Reply
Q5: Discuss briefly some of the forces that drive companies to the global. Provide at
least three factors.

I appreciate your valuable input, Jia Wen. In addition to the factors you've already mentioned,
there are several other driving forces behind companies' global expansion:

i) Exploration of Innovation and R&D Opportunities: Many businesses aim for global expansion
in order to work more closely with foreign R&D facilities, academic institutions, and other
innovation hotspots. New products and technologies may be developed as a result of these joint
efforts. Pharmaceutical companies, for instance, frequently establish global research facilities to
capitalize on international expertise.

ii) Consideration of Government Incentives and Regulations: Many nations' governments offer
financial incentives to businesses and investors from abroad. These incentives could take the
form of grants, tax incentives, or other financial aid, making international expansion a more
financially viable choice. Conversely, adjustments in rules or alterations in trade agreements can
serve as motivations for corporations to grow abroad in order to adapt to developing trade
conditions.

iii) Pursuit of Resource Accessibility: The need to gain access to raw materials, energy sources,
or specialized equipment that may not be easily accessible or cost-effective in the home country
can motivate a company to expand internationally. A manufacturer, for instance, might relocate
to a country with cheap labor and abundant natural resources in order to cut expenses.

iv) Supply Chain Optimisation: Supply chain optimization requirements are a common driver of
international expansion. In order to cut down on shipping expenses, shorten delivery times, and
improve inventory management, many businesses are setting up operations in strategically
favorable worldwide locations. This is particularly important for sectors like e-commerce and
retail.