Global Standardization vs Localization

 

“Eina Bier, Bitte”, “Uno Birra, Par favor”, and “Another Beer, please” are three different ways to ask for that frosty, cold, and ubiquitous multinational beverage, albeit in different languages. However, they will all result in very much the same way - a beer. The message is clear and concise. Unfortunately, there are many times when the translation often has a different meaning. Take for example the Rathaus in Munich, which is essentially the town hall, that I strolled by a few weeks ago. In English, we would easily interpret that as the Rat House, a house for rats. Why in the world would I want to conduct governmental business in a place with Rats running about the place!

When a company begins expanding to international markets they have a many decisions to make. In the case of marketing in the new regions, a company can adopt Global Standardization, Localization, or a combination thereof. 

In the case of Global Standardization, the marketing message and business model is the same in every international market. While this is cost efficient and easier to manage, you can run into issues, like the above, if you do not do enough research. The company could also be diluting their message by making it resonate with across many countries and cultures. This strategy can also prohibit entering new geographical markets. For example, a winter coat company would not open a shop in Northern Africa. 

Conversely, the Localization strategy is geared towards the local consumers’ preferences and location specific requirements, rather than a one size fits all approach. Using a location’s predominant language, instead of English, is an example of this, but is only the beginning. For example, a fast food chain would change their menu based on the availability of natural ingredients in that location. 

So, which strategy is the correct one? Unfortunately, that is very debatable, but in the case of a global company, it is best to employ a hybrid approach based on market and product. Using the combined technique a company can reduce costs and still adhere to the “Voice of the Customer”. As global commerce continues to grow, how we go to market and the strategy used will be of high importance.