Standardization versus adaptation. Standardization versus Adaptation in International Marketing essay 2022-10-12
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Standardization versus adaptation is a common debate in the field of international business, as companies must decide whether to standardize their products and marketing strategies or to adapt them to local markets. Both approaches have their own benefits and drawbacks, and the appropriate strategy will depend on the specific circumstances of the company and the market in question.
On the one hand, standardization can be an effective strategy for companies that operate in multiple markets around the world. By standardizing their products and marketing strategies, companies can benefit from economies of scale, as they can produce and promote their products using the same materials and techniques in all markets. This can lead to cost savings and more efficient operations, as the company does not have to constantly modify its products and marketing efforts for different markets.
However, standardization can also have its drawbacks. One major disadvantage is that it can be difficult for a company to fully understand the needs and preferences of consumers in different markets if it is using the same approach everywhere. This can lead to a lack of relevance for local consumers, which can decrease demand for the company's products. In addition, standardization can create a sense of cultural insensitivity, as it may not take into account local customs, values, and traditions.
On the other hand, adaptation can be an effective strategy for companies that operate in diverse markets with distinct cultural, economic, and regulatory differences. By adapting their products and marketing strategies to local markets, companies can better meet the needs and preferences of consumers in those markets. This can increase demand for the company's products and help it to stand out from competitors.
However, adaptation can also have its drawbacks. One major disadvantage is that it can be more expensive and time-consuming for a company to modify its products and marketing strategies for different markets. This can lead to higher costs and slower growth compared to a company that standardizes its approach. In addition, adaptation can be difficult to implement effectively, as it requires a deep understanding of local markets and the ability to quickly adapt to changing conditions.
In conclusion, the appropriate strategy for a company operating in international markets will depend on the specific circumstances of the company and the market in question. Standardization can be effective in certain situations, such as when the company operates in relatively similar markets and is looking to achieve economies of scale. However, in other situations, such as when the company operates in diverse markets with distinct cultural and economic differences, adaptation may be the more effective approach. Ultimately, the decision will depend on a careful analysis of the costs and benefits of each strategy and the specific needs and goals of the company.
Product Standardization and Adaptation: Differences
With more than 6, 500 outlets across the world and the intention of increasing in the near future, the company has transformed coffee into a lifestyle accessory with as much elegance as the latest fashion. This knowledge has marketing implications for tourist destinations in terms of what marketing messages to convey and the best time to introduce marketing campaigns for each country or group of countries, so that the opportunity for reactivation of tourism is maximised. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. According to the model, appropriately encoded messages are sent and decoded by the receiver with the same meaning. The other advantage connected to the standardization approach entails cost reduction, which translates to economies of scale. For example, standardisation is often criticised for neglecting unique aspects of local culture in foreign markets. Advantages and Disadvantages of Standardization and Adaptation in Global Marketing Standardization and global uniformity has several benefits.
Starbucks Coffee: Standardization and Adaptation Strategy
On the other hand, as the name suggests, local adaptation strategy focuses on local markets. For example, Red Bull can in North American market is designed in red, silver and blue colours. The main differences between adaptation and standardisation of the marketing strategies are summarised in table below. It has been one of the important and most popular research topics since 1960s to understand whether standardization is better or adaptation for marketing mix in international marketing. This essay represents a critical analysis of standardisation vs.
Both companies implement the glocalization strategy, though to different extents, such as advertisement, use of local languages on regionalized websites, and provision of products that match local preferences as in case of McDonald's in India and Arabic countries. Therefore, this would reduce confusions, since the consumer is mobile all over the world and due to various types of the advertising media such as television which consumers watch to know what he or she can access internationally, especially when they watch the foreign television programs Chang 1995. Many researchers agree that standardizing certain elements of the marketing mix and adapting others to different market conditions is necessary Vrontis and Thrassou, 2007. The company I have chosen is Starbucks Coffee Company. This can pose a problem since a number of countries implement trade barriers such as the USA and the European Union Products and International Marketing, n. This coffee company grew from four Starbucks store to having currently 16,635 stores globally including 11,068 in the United States, 1000 stores in Canada, and more than 800 in Japan Salomon 271. We take this type of service in the fields of car repairs, transport of goods or when we hire an electrician.
International Marketing Adaptation vs. Standardization
When entering new market, decisions need to be taken by strategic level management about the extent of standardisation in relation to each individual component of the marketing mix. In some cases, products may not need to be adapted in either way e. McDonald's also maintains its quality standards across all its outlets and ensures that cultural needs and preferences of local customers are unified. In an effort to improve quality and product uniqueness, Google used the language translator to improve accessibility, while maintaining product standardization. When pursuing product adaptation strategy differences of specific markets can be addressed at product development stage, accommodating differences in customer wants and needs in an effective manner. It is important to note that this essay has presented discussion of standardisation vs. Such approach to marketing also supports positive customer perceptions regarding a product Levitt, 1983.
Standardization and Adaptation Comparison Free Essay Example
Other motivations behind globalization are that the process can yield economies of scale and improve scope in marketing, manufacturing, as well as research and development Levitt, 1983; Paik, et al. Political risks include confiscation, domestication, political sanctions, political reprisals, war, expropriation, and violence. In addition, the section explores the implementation of glocalization strategy in the two companies, while focusing on the levels of local adaptation and global standardization approaches to global marketing. Furthermore, implementing a standardization strategy helps entities center on a uniformed marketing mix, zeroing on a single product or service. However, due to significant cultural differences between Hong Kong and West, the financial performance of Disneyland in Hong Kong has been well below the expectations. Introduction Modern businesses are granted with vast opportunities in terms of revenue maximisation through entering new markets.
Marketing Mix: the Standardization vs Adaptation Dilemma
Drawing on the international marketing and retailing literatures, this study investigates how RBS affects the performance of global retailers in a longitudinal sample of 69 global retailers from multiple countries and sectors, across ten years. The authors continue stressing that for a company to achieve sustainable competitive advantage and growth in the current markets, which are increasingly becoming global and volatile, the companies must understand the diversity and complexity of global marketing. Certainly, we live in the world of globalization but still every country has its own local features and habits. Multinational companies should not treat the world as one single market. Companies that have adopted standardisation remain consistent with the image and brand identity. This flexibility not only opened a new market for the company, but also allowed it to develop brand loyalty that consumers could take with them when their income increased and they could afford higher-end products from the same manufacturer. This is one of few marketing studies concerning Libya, and it adds to the limited literature on an increasingly relevant region.
Standardization versus adaptation of international marketing strategy: an integrative assessment of the empirical research
In addition, any firm that uses the standardization strategy in marketing would not experience any form of resistance from any communication agencies. The distinct features have led to the growth of Asian involvement in international trade. Standardisation enables firms to transfer technology and innovations benefit to the host country. In other words, the adaptation approach is beneficial where a company is obliged to tailor its operations and policies to be in harmony with trader barriers, such as the European Union and the United States. Adaptation approach deals with country specific markets where efforts are adjusted to the differences in the marketing environment. Google and McDonald's are examples of companies that have adapted their strategies to meet the demand and needs of various markets in which they operate. In other words, because there are no or minor differences in marketing communication strategy due to the use of standardisation approach, the same set of tools can be utilised to assess the levels of effectiveness of marketing strategy in relation to each geographical market segment with positive implications on the levels of cost effectiveness.
Standardization versus Adaptation in International Marketing essay
Retrieved November 12, 2013, from 5 Jain, S. A typical example is Coca-Cola that has optimized the concept of distributions channels in China, USA, and many other countries. It facilitates gaining market share iv. Benefits buyer by lowering price. Global image of the brand can be effectively reinforced via the application of standardisation to integrated marketing communication strategy. Whether a company chooses to standardize or adapt its operations depends on its attitudes Critical Analysis of Standardization and Adaptation in International Marketing decision faced by the company to choose between standardization and adaptation in its operations, products or services. Besides, using standard specifications facilitates product compatibility internationally.
