global reach local scale
DESCRIPTION
Products and services are purchased at a very local level while increasingly delivered globally. How do we understand and prepare for service delivery that is both universal and locally sensitive?TRANSCRIPT
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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?
- 26th May 2011
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• Identifies culture across 6 underlying behaviours
• Allows measurement and clustering by culture: identifying gaps
Intersperience Research Ltd.
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
- 26th May 2011
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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
Intersperience Research Ltd.
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
9Intersperience Research Ltd.
• 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…
- 26th May 2011
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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
Intersperience Research Ltd.
• Need for messages to mobile to be tailored
– Semantic web (3.0) to allow more tailoring
- 26th May 2011
11Intersperience Research Ltd.
• 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
12Intersperience Research Ltd.
“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
- 26th May 2011
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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
Intersperience Research Ltd.
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
14Intersperience Research Ltd.
GLOBALISATION• Internet &
marketers• Centralisation• Control• Consistency
LOCAL CONSUMPTION• Technical• Personalised• 1 to 1• Affected by
context
In summary….
- 26th May 2011
15Intersperience Research Ltd.
• 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