Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 17 : Global Marketing , R&D
What is Theodore Levitt's contribution to international
business?
Theodore Levitt wrote about the globalization of world
markets in a now-classic Harvard Business Review
article. Levitt suggested that due to technology, the
world was moving toward a converging commonalty
and the emergence of global markets for standardized
consumer products. According to Levitt, this
convergence creates an opportunity for the global
corporation to serve the entire world as if it were a
single entity, or in other words, sell the same thing in
the same way everywhere. Most academics believe that
Levitt has overstated his case, that globalization in
consumer products is probably the exception rather
than the rule. Furthermore, cultural and economic
differences between countries will continue to limit the
effects of any movement toward the standardization of
consumer preferences and tastes. In addition, trade
barriers and differences in product and technical
standards will also constrain a firm's ability to sell
standardized products to global markets using a
standardized marketing strategy.
2 market segmentation. What is its goal?
4. Discuss the notion of a product being a bundle of
attributes. How can approaching a product in this
manner help a firm reach its target market?
A product can be viewed as a bundle of product
attributes. Products sell when their attributes match
consumer needs. For example, BMW recognizes that its
consumers have a need for luxury, quality, and
performance. Accordingly, the company builds these
attributes into its cars. If consumer needs were the
same across the world, the firm could simply sell the
same product worldwide. However, because consumer
needs vary by country depending on culture and the
level of economic development, a firm's ability to sell
the same product will be constrained.
5. How do levels of economic development affect
consumer behavior? What are the implications for
marketing strategy?
Consumers in the most advanced countries often shun
globally standardized products that have been
developed with the lowest common denominator in
mind. They are willing to pay more for products that
have additional features and attributes customized to
their tastes and preferences. In response to this
behavior, firms marketing to consumers in highly
developed markets tend to build a lot of extra
