Global Reach Local Scale

- <date>

Global ReachLocal Scale

Intersperience Research Ltd.Open IdeasMay 2011

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• Globalisation has been underway for last couple of hundred years

- 26th May 2011Intersperience Research Ltd.

• Type of definition of globalisation we’re taking here:

“Globalisation is the more or less simultaneous marketing and sale of identical goods and services around the world.”

– The Economist, 2009

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• Globalisation affords …

– Economies of scale

• e.g. One distribution centre, one call centre

– Control and consistency

• Unification of branding and marketing

• Search Engine Optimisation

Intersperience Research Ltd. - 26th May 2011

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• The rise of the internet has had a big effect on globalisation of brand and customer service

• It has led to faster, more effective communications generally enabling products and services to be delivered more widely and more efficiently

“It is modern communications that make it possible; for the British service sector to deal with its customers through a call centre in India, or for a sportswear manufacturer to design its products in Europe, make them in south-east Asia and sell them in north America.”

– Stewart Jefferies, The Guardian

Intersperience Research Ltd. - 26th May 2011

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• Use of internet also means small, local or ‘virtual’ companies can market their products globally

• Can create a much larger ‘web footprint’ than their physical size or turnover would suggest

Intersperience Research Ltd.

− Power of internet to sell products and social media to market brand means they can go global easily

- 26th May 2011

6Intersperience Research Ltd.

• Large corporations, can be serving customers…

– From different cultures

– Across many different parts of the world

– With services located within many different countries and cultures

“Culture as a concept is like a fish immersed in water – we do not always appreciate this power until we encounter a different environment… The effect of encountering such differences can be so great that the term ‘culture shock’ is not an exaggeration”

(Solomon et al, 2006)

• Do globalised, standardised products and services increase the chance of culture clash?

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• Identifies culture across 6 underlying behaviours

• Allows measurement and clustering by culture: identifying gaps


Do people here look to the future/plan ahead? Or are they more attached to the past?

Short term/Long term orientation

Are individual needs prioritised here or is collective wellbeing more important?

Individualism/Group orientationHow hierarchical is the society?

Power – Distance

Do people like to try new things?

Novelty

How ‘direct’ are speech styles?

High context/Low context

Is personal ambition or caring more important?

Mastery/Nurturance

The Cultural Lens

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– The most highly individualist cluster: marketing needs to target benefits to the individual

– Low power-distance and so may be more inclined to make use of self-service


North Sea cluster

Latin cluster

e.g.: The UK

e.g.: Spain

– High collectivist dimension means strong influence of family in making purchase decisions and choosing how to spend their leisure time

– Highest power-distance cluster; probably less willing to use self-service and more importance is likely to be placed on personal service

- 26th May 2011


• So far we have seen

– Globalisation of products and services is a key trend

– This means that marketers want to standardise products and services

– This may lead to culture clash

• However, an opposing key trend is personalisation…

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• There is also an increasing demand for services to be personalised and tailored to the individual

• Scope for internet and mobile to offer one-to-one marketing and personalised service encounters

• Location based services also tap into this trend


• Need for messages to mobile to be tailored

– Semantic web (3.0) to allow more tailoring

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• There has been a huge rise in the use of mobile internet (whether by smartphone, laptop or tablet)

• 24% of the UK population regularly use mobile internet Laptop (58%)

Mobile/ Smartphone (59%)

Landline phone (55%)Printed Newspaper (49%)In

crea

sed

in 3

yea

rs

Decreased in 3 years

Q: How has your use of the following changed in the last 3 years?

Deloitte (Sep 2009) Intersperience Digital Selves research (2011)- 26th May 2011


“The mapping between activities and places will dissolve, and everyplace will be for everything all the time.”

− Aigre, 2001

• Does this increase the chance of culture clash?

Intersperience Digital Selves research 2011

• Internet can be consumed where and when you want: global access from anywhere, at any time, in any situation

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• There can be a lot of factors affecting the context in which marketing messages and services are consumed

• These will operate to different extents in different individuals in different contexts

• These three affect satisfaction with service most

• These have around a 16% stronger effect than age, gender etc.1


Physical surroundings

Social surroundings

Temporal perspective

Task definition

Antecedent state

Where you are and what’s going on around you – sights, sounds, smells

Who else is with you? Who are you dealing with?

Time or perception of time

What you are trying to do and why

Mood etc

After Belk (1975:159)

Intersperience Experience Laboratory ‘Experiential Segmentation’ (2007)- 26th May 2011


GLOBALISATION• Internet &

marketers• Centralisation• Control• Consistency

LOCAL CONSUMPTION• Technical• Personalised• 1 to 1• Affected by

context

In summary….

- 26th May 2011


• Research is necessary to understand context and culture

Context

Culture

GLOBALISATION− Internet & marketers− Centralisation− Control− Consistency

LOCAL CONSUMPTION− Technical− Personalised− 1 to 1

- 26th May 2011

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Global ReachLocal Scale

Intersperience Research Ltd.Open IdeasMay 2011

Global Reach Local Scale

Business

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