Q4-What is the significance of the concept of market (or customer ) homogeneity
ID: 1134811 • Letter: Q
Question
Q4-What is the significance of the concept of market (or customer) homogeneity as it pertains to global product standardization? Properly use the concepts of globalization, localization and standardization, Theodore Levitt and cost control in your answer Below is what Theodore Levitt mention about homogeneity
In 1983, the great professor Theodore Levitt argued that marketers
were becoming confronted with a ”homogeneous global village.” He
advised firms to market standardized , high-quality, world products, i.e.,
standardized advertising, pricing, distribution and product features.
Explanation / Answer
Global firms nowadays have a challenge of standardization of their products across different cultures. The process of standardization has changed the international marketing approach over the years. Standardization has increased performance outcomes along with the emergence of homogenous markets worldwide. The foundation of standardization is based on consumer or market homogeneity. Customers are candidates for standardized marketing strategy if they respond to the marketing mix.
The degree of marketing standardization is a function of the level of homogeneity of customer response to the marketing mix, transferability of competitive advantage, and homogeneity of economic freedom across markets.
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