The Role Of Marketing In Multinational Subsidiaries: Standardization Versus Localization

This study focuses on differences between the character of marketing activities in subsidiaries governed primarily by the philosophy of standardization and those governed primarily by the philosophy of localization. 87 Czech marketing managers who were in charge of marketing departments in multinational subsidiaries were asked about the activities their department was involved most of the time. In case of high parent control, marketing managers’ involvement with strategic marketing activities, such as brand strategy, positioning and new brand development, tended to be limited. On the other hand reporting to the headquarters was quite often mentioned as one of the most frequent activities of the marketing department. Opposite pattern was typical for marketing managers working in subsidiaries with low parent control. At the same time both group of marketers differed also in ambitions they had, as well as in knowledge and skills gaps of their junior colleagues they perceived. The findings are of high importance especially for HR managers of multinational corporations and for business faculties. Working in subsidiaries with high parent control will be more suitable for employees who prefer standardized tasks and who do not mind following strict regulations. On the other hand, working in subsidiaries with low parent control should be more suitable for employees who appreciate less structured tasks, who enjoy complexity of marketing and who are strong in strategic and creative thinking. However the findings of the study can be useful also for top management of multinationals who compare pros and cons of strategies of standardization and localization.