Question

Question 2 (35 marks, maximum 300 words)
A traditional view of globalization is that it involves rolling out the same offering across the globe using the same ingredients, brand name and marketing communications. However, organizations have realized that they need to adapt their offerings and communications to local preferences and conditions.
By using B207B course material and other resources such as Dell website, discuss what is the difference between globalization and customization in marketing segmentation and marketing mix in relation to Dell Computers.

Answer 1

Globalization refers to exchanging and carrying trade globally. Now a days its very common. Companies are exporting their products to different countries contributing to globalisation. It sets a standard which is to be followed by a group of similar products.

Customization is adapting to a certain standard which depends on cultures, regions or nation differences.

Let's look at the difference between the two -

In context of marketing segmentation : Market segmentation is diving the market with the population who are to be served on the basis of the differences in their preference. It makes easy to hit a target market this way more properly.

When we divide the market, then we get to know what each group wants and what are their needs. This helps to cater each group more properly.

If we see globalization in link with market segmentation, then usually the segmentation is done on the basis of nation. As the trade would be conducted all over the world, every country has its own set of needs according to the technology prevailing in the country.

Like if we take example of dell computers, it is demanded all over the world. In every countries dell computers are being sold. But each country has their own technology and if the computer being sold in a particular country does not match the technology that prevails there, it would be tough to connect these computers and laptops.

Therefore, market segmentation needs to be done, and countries with same technologies would be placed together. Now this would differenciate countries with different technologies and which needs different types of computers. Now with the help of these segmentation, a target market is selected whose technology matches with the technology used in the manufactured computers and only those markets are served by that particular dell company which has the same need of technology.

This way customers are properly served.

If we talk about the customization in link with market segment, then there is need to divide the population on same choices but its little difficult because some have very specific choice. So it's hard to meke up with this.

Like in case of dell computers, a student of class 10 is in search for a computer to handle his basic needs to practice his school works being taught on ams office, whereas on the other hand a python expert wants to open his cafe for giving students training of python. Now these both needs laptop with different features, one usually customized with MS office software and other with python software.

So this is the example of customization.

If we talk about marketing mix, it's a type of tools that includes product, price, place and promotion.

In globalization, it really matters which product is going to be exported to which country, whether people over there are in need of that particular product or not, or if the price or cost related with the product is in the range that people can afford.

These are the things that should be focused. Like if a particular dell computer is sold to Iran, which does not gas that technology to run the computer, there is no profit selling those in Iran. So these four factors have to be kept in mind.

In the case of customization, these four factors are of great importance. A seller should know the need of his customer and accordingly he should sell that particular goods which would satisfy him

Like in case of dell computers, a middle class man wants to buy a computer for his child studying in school, the one discussed above, can afford computer costing less than 25000, then the seller needs to give options of only such computers which would satisfy the condition of customer.

This we saw how this market segmentation and market mix has relations to the trade done globally or through customization and the difference between them.