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Unit 3: International Retailing: Internationalization and Globalization

Number of studies and real-life cases have proven that localisation and adaptation to consumer Notes
culture and values increases the marketing effectiveness. Globalisation is bringing new products
and services and experiences to customers and thus it makes the consumer needs and behaviour
even more diverse.
There are many examples of companies that have introduced centralised global management
and standardised marketing mix and as a result suffered financial and market losses. This proves
that adopting standardised marketing strategy is inappropriate for countries with different
economic development and cultural values. The success of standardisation is also dependant on
the type of products or services offered.

Some retail products and especially food are deeply integrated into the culture, for example the
spices for Indians, milk products for Bulgarians, or pastry for Italians, or sushi for Japanese, etc.
Not taking into account the cultural differences, and relying on the idea of convergent cultures
is risky when going international.

Self Assessment

Fill in the blanks:

6. Consumers prefer to shop …………………… to avoid the chaos of the high street.
7. ……………………… is predominantly a domestic market activity.
8. International …………………. can be achieved through the establishment of international
buying groups and networks, which function to link manufacturers, wholesalers, agents
and retailers across national boundaries.
9. Retail ………………………… is the process of a retailer transferring its retail operations,
concept, management expertise technology, and/or buying across national borders.
10. The process of globalization may introduce new retail …………………….. into markets.
11. An acquisition, also known as a……………………………., is the buying of one company
(the ‘target’) by another
12. ………………………… is the duplication of public events in other geographical areas,
while retaining the original brand (logo), mission, concept and format of the event.

13. Franchising refers to the method of practicing and using another person’s
………………………. of business.
14. A ………………………………. is an entity formed between two or more parties to undertake
economic activity together.
15. ………………………… is the opening new outlets using existing brand/fascia or creating
a new brand.

Task Explore the web sites of retailers that are based in your local market or visit the
branches of international retailers and domestic retailers that operate in your domestic
market.
(a) Where do they say they source their products?

(b) Are international retailers more likely to source from international markets than
retailers operating in their domestic market?

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