Theodore Levitt's Strategy On The Globalization Of Marketing

2. Chapter 2: Literature review (2500 words)

2.1. Introduction

Due to the globalisation of the past decade, the branding environment looks quite different. Levitt (1983) has a very extensive strategy on the globalization of markets. Due to the arrival of the Internet, the global market knows fewer boundaries than before. The barriers keeping developed and developing countries apart are slowly fading away. Because of this, consumers have a lot more choice in terms of products than before (Samiee, 1994). This means that brands have to find and innovating ways to differentiate them from the competition. According to McLellan (2005) Globalisation is not just an economic force, it also is a process which gives the economy the possibility an opportunity. He declares that the market becomes a tool, which can regulate value. This is where a country of origin approach comes to mind.

This research will exist of two main components, which are the country of origin effect and brand trust.

2.2. Globalisation

Theodore Levitt broke ground in 1983 with his “globalization of markets”. He stated that a global market for uniform products had emerged. In addition to this he explained his “economics of simplicity”, where he explains that when a brand wants to grow internationally, it needs to launch standardised products. In terms of cost effectiveness, this was the better approach, since it is cheaper to launch the same product without adaptations over the entire world.

According