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Definition: Localization

Localization has different meaning with respect to different contexts. In the context of marketing, we may define localization as the process of converting one’s commodity and services keeping in mind the local culture, language, political nature, legal structure etc. influencing a particular area or locality. This is done so that the company is able to connect to its stakeholder in that area through localizing its commodity, activities, events, services etc. Companies these days are increasing its operations and outsourcing their activities locally in order to gain a significant market share. They have realised the immense opportunities which localization offers.


There is an increasing need for companies to localize. It is because of globalization many companies are growing at a fast pace because of which they face threats from many competitors. Apart from this localizing the products, services and operations, the company gets a competitive advantage over other firms. For instance, many cold drink companies have localized their campaigns to cater to the needs of local consumers and connect to it. On the other hand, the Chinese products are seen derogatorily in the market because they lack in localizing their operations.


The companies have to be cautions while localizing their operations and products. They must see to it that the company’s culture and integrity is maintained at all levels and geographies. In addition to this there would be costs incurred by the companies while localizing which must be not go berserk and kept under check.


The companies adopt various ways in order to localize. By hiring the local people, the company wants to understand the wants and needs of the customers in that area. The local people have a good knowledge of the area and would help the companies attain their objectives easily. The companies are also directing their marketing efforts towards adopting the local culture, talent etc.


Hence, this concludes the definition of Localization along with its overview.


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