Q1. Is there, as Levitt claimed a convergence in tastes and a concomitant diminution in cultural differences?
Globalization has indeed led to a convergence in tastes as Levitt claimed. For example, a product such as Coca Cola has created a lifestyle and culture of its own. And now whether a consumer of Coca Cola is from the Middle East or Norway, when consuming it, they are all part of the Coca Cola culture.
But although a product such as Coke will help consumers of all regions meet at a some common ground, cultural differences still remain, since what Coca Cola means to an individual of one region may not mean the same to another. An individual from a high context society may perceive the drink as something that brings friends and family close together, while a person from a low context society may see it as liberating and individualistic, but what brings them together is their love for Coke and how fun, refreshed and cool it makes them feel.
Q2. Is globalization resulting in a move away from competition at the local and regional level to competition on a global scale?
I don’t think this is necessarily the case, since a lot of major regional and local brands have already realized and established their positions locally and prefer to keep it this. For example, a Saudi brand such as Almarai is dairy giant within the region, conquering a large market share in the GCC dairy market. Although they have considered expanding globally, they are aware of the risks that comes along with it, which is either great success or great failure, since they will have to compete with a much larger market. Globalization has influenced local markets to think bigger and more creatively, but as it is a cultural trait of high context societies to be non-risk takers, they would prefer to hold on to the success they have created at home rather thank risk it abroad.
Q3. Is globalization resulting in policies of standardization in developing and delivering marketing strategies?
I believe that marketing strategies have been somewhat standardized due to globalization but not completely. As mentioned in the Coca Cola example, globalization has given rise to new cultures and not diminished existing cultural differences. For example, a certain age group of teenagers and young adults are all united under the newfound “Pop culture” globally, which is a culture that did not exist historically. When marketing to these new sub-cultures, marketers are aware that these audience are of a certain age group and lifestyle pattern, so when marketing to them, strategies follow a general and standardized approach.
As companies are growing and becoming more global with many branches, they are definitely taking the centralization of control approach. Having one central control makes management and production more organized, structured and efficient.