Product standardization creates general practices and standards that all similar items on the market must meet. Viswanathan delaware state university, dover, delaware, usa, and peter r. Standardization is the process by which a company makes it methods, especially its production processes, uniformidentical throughout its organization. Product adaptation versus standardization cleverism. Focuses on the issue of product standardization versus adaptation, with special reference to the practices of japanese multinational companies mncs operating in the middle east. Adaptation versus standardization the main goal of a global strategy is management of the great differences that emerge beyond domestic borders ghemawat, 2007a. Consider how universal components hook together across the nut and bolt industry. Standardization refers to companies using the same or similar marketing materials regardless of cultural or linguistic diversities amongst the audience being targeted. Develops a comprehensive framework to capture the relevant factors that determine the selection of the appropriate international advertising. The question is addressed by examining whetherstandardization is better than adaptation in a company. Whereas for adaptation, a company would change their methods such as the price, promotion. A case of mcdonalds ii acknowledgements writing this thesis during the past ten weeks of spring 2012 has been a process of continuous learning and hard work. Standardization of international advertising strategies. In this case, a laptop is the best example of a standardized product.
International marketing is defined as the process of management responsibility in identifying, anticipating and satisfying customer requirements across international boundaries. Jun 03, 2016 a conceptual model of international marketing strategy in relation to standardisation vs. Therefore for the firm it is important to choose the right strategy between the product adaptation and product standardisation. The decision to use standardization or adaptation as the product marketing strategy pms is situationspecific and should be the outcome of thorough analysis of the relevant factors prevailing in. You cant mention adaptation without mentioning standardization. Finally, discusses the ways and the degree to which international advertising strategies can be adapted to different situations. Rather than a big corporate project, it is often better to run small projects with a.
Standardization versus adaptation of international marketing. And finally, underdeveloped communication infrastructure can hinder the information collection process. The ideal business model is one which takes the disadvantages into account, uses the advantages and ultimately employs a combination of standardization and adaptation. Standardisation in international marketing the countryoforigin effect article pdf available january 2007 with 8,961 reads how we measure reads. Standardization of product is the approach for increasing commonality of product in the supply chain management. Dickson florida international university, miami, florida, usa abstract purpose to examine issues of standardization and adaptation in global marketing strategy and to explain the dynamics of.
Internationalization and the dynamics of product adaptation. It helps lower prices by encouraging a broad range of different resources for shoppers that all offer somewhat different benefits but still meet a generally accepted idea. Product adaptations were more profound among firms producing. To create completely new product for foreign markets adaptation new product development. Product standardization refers to marketing a product in the overseas markets with little change except for some cosmetic changes such as modifying packaging and labelling. Nerdynaut is a media organization dedicated to the nerdish community. Download pdf product standardization and competitive. Tradeoff strategy between product standardization and adaptation. Product standardisation versus product adaptation in. Product standardisation versus product adaptation in international marketing manfred daberto essay business economics offline marketing and online marketing publish your bachelors or masters thesis, dissertation, term paper or essay. Comparison on the impact of standardization and adaptation. Whereas for adaptation, a company would change their methods such as the price, promotion, packaging andor the product itself in order.
Standardisation vs adaptation in international marketing. Standardization makes forming a global standardization strategy clear. Product standardization is a very useful strategy, with many benefits. This research paper examines the issues of standardization global strategy and adaptation customization in global marketing strategy and suggests methods that can guide multinational companies compete.
Standardization versus adaptation of standardized advertising campaign for the. Product adaptation vs standardisation when planning to enter a foreign markets, you need to consider whether or not your current products will meet the needs of the foreign target market. Product adaptation and standardization flashcards quizlet. The advantages of selling a standardized product bizfluent. Although, the main inconveniences involved in standardization policy are cultural differences and, the eterogenity of advertising laws. However, despite its contributions, prior research on pmi has largely neglected the factors that lead to the standardization or adaptation of marketing strategies adopted during. Export management product adaptations also called differentiation or localization or customization come in several forms. Hbr has previously explored the impact of competition, product and demand on the pricing strategies of businesses.
Standardisation and adaptation discuss the advantages and disadvantages of standardization strategies and adaptation strategies in a global environment. Standardize all components by standardizing the basic components of all your products, you can expand your market area. This includes factors relating to the customers, product and market. Product adaptation in international marketing, the marketers are required to come up with a decision as to whether they are going to standardize the product or to modify the existing products which is one of the challenging decisions that they have to make. Adaptation the first view is the standardization standpoint as proposed by jain, 1989. Standardization refers to companies using the same or similar marketing materials regardless of cultural or linguistic. It helps lower prices by encouraging a broad range of different resources for shoppers that all offer somewhat different benefits but still meet a generally accepted idea of what a specific product is meant to be. However, adaptation of online advertising is sometimes essential because. It is the process of modifying products for different countries and regions or designing new products for foreign markets. Product standardization and adaptation in international.
Standardization versus adaptation of international marketing strategy. Standardizing or adapting the marketing mix across culture. In the international marketing literature the issue of advertising standardization has ignited a lively and heated debate among academics and managers alike. As pointed out, adaptation involves modifying a product so as to meet the local requirements and customs. The best product standardization strategies allow you to balance the need for targeted adaptation with the cost savings of standardization. Product standardisation versus product adaptation in international. The concept of standardization, first discussed by erik elinder in his 1961 paper. An example is mcdonalds vegetarian burgers in india. May 17, 2012 the question is addressed by examining whetherstandardization is better than adaptation in a company. In international marketing, the marketers are required to come up with a decision as to whether. To develop the product with characteristics adjustable to the majority of markets and sell it globally adaptation.
Product standardisation versus product adaptation in international marketing manfred daberto essay. The fundamentals of standardizing global marketing strategy nanda k. However, the decision whether to standardize or not cannot be considered a dichotomous one. According to the model, the degree of standardisation or adaptation is impacted by antecedent factors which have external and internal characteristics. Product adaptation tends to become a reactive response to the market.
Download product standardisation versus product adaptation in. Start studying product adaptation and standardization. The fundamentals of standardizing global marketing strategy. Product adaptation means that the firm adapts the product to the local markets. Rather than a big corporate project, it is often better to run small projects with a clear focus on a specific set of processes. Global marketing is not a synonym for standardization in marketing. Generally, products with high technological intensity such as heavy. If a company wanted to sell their product in the united states and also in poland, they would use two completely different sets of advertisements to target their customer base in each country. Dec 16, 2017 product adaptation is also a vital player for companies which would like to introduce a new product in the market but lack the required resources and funds. Meet differences at the stage of economies in research and development, consumer differences in development. Product mix product mix strategy main reason product concept adaptation market characteristics, customer preferences and distributive costs colour adaptation market characteristics, customer preferences packet adaptation market characteristics, customer preferences label standardization brand recognition and brand equity brand name. Standardisation versus adaptation linkedin slideshare.
Mar 31, 2019 the cost savings on producing a standardized product are twofold. Marketing strategies in a country bycountry basis are tailored with the peculiarities of the local market. First one is the drivers which make the standardization approach feasible, and the second aspect is the potential benefits are firm can gain by. Download product standardization and competitive strategy ebook pdf or read online books in pdf, epub.
Standardization versus adaptation of international. A firm operating in international markets has to carefully carry out the costbenefit analysis of the decision to market the standardized product across countries or customize it, depending upon the market requirements. Standardization you cant mention adaptation without mentioning standardization. Largely, mnes have to adapt prices to account for local conditions. Standardization is a marketing strategy aimed to create uniformity in order for offerings to be viewed the same across all platforms. Discuss the advantages disadvantages of standardized international marketing advantages standardization is the process by which a company makes it methods, especially its production processes, uniformidentical throughout its organization. It is also very seldom that companies can enter a foreign market without adapting their product at all this is commonly referred to as product standardisation usually some form of product modification is necessary if only very minor this is referred to as product adaptation or product differentiation. A standard product does not need to have all the characteristics of the other products buyer requires. The second most advantage of standardization is the fact that it can help with the reduction of costs because only what is important for the product will be included.
Product standardization and adaptation in international marketing. Reveals that the degree of adaptation of japanese goods is generally moderate, with labelling, packaging and internal features attracting most alterations. Standardization in international marketingthe countryoforigin effect. Standardization and adaptation of international marketing mix. There are two main aspects of using standardization approach. There are many different brands of laptops, but they all perform the same function. Advantages and disadvantages of standardization, essay sample. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Author links open overlay panel marios theodosiou leonidas c. The influence of adaptation and standardization of the. The cost savings on producing a standardized product are twofold. According to these authors, supporters of standardization believe that there is a union of cultures with similar environmental and customer demand around the globe. Standardization is the degree to which firms apply common marketing mix1 variables across. By this, product adaptations are considered as necessary strategy in order to cater to.
Some researchers think that a relationship between standardization and performance does not occur. Product standardisation means that the firm sells and advertises a standardized product in the international context. If youre looking for a free download links of product standardisation versus product adaptation in international marketing pdf, epub, docx and torrent then this site is not for you. Then proposes that the standardization and adaptation of international advertising strategies represent the polar ends of a continuum of transitional stages. Adaptation is an approach of detailing the differentiation that exists between products and services. In this article, we build on this by looking at the pricing in the global context. International marketing mix, adaptation, standardization, case study. Standardization and adaptation of international marketing. Are us companies employing standardization or adaptation. Feb 19, 2014 these errors are primarily explained by a lack of understanding of how standardization and adaptation play in international markets. Comparison on the impact of standardization and adaptation on.
Although standardization of products has many advantages such as economies of scale and establishing a strong brand as well as consistency czinkota and ronkainen, 2004, several authors have different views regarding the benefits associated with product adaptation. Despite 40 years of debate on international marketing strategy standardization vs adaptation, extant empirical research is too fragmented to yield clear insights. Standardization versus adaptation of global marketing. This article will help you to differentiate between product standardization and product adaptation. The third advantage of standardization is on marketing. They both represent a way of selling products overseas. Not only does a business save money by only having one template in production, but the template is less expensive to purchase because it is a standard one that is readily available. Are us companies employing standardization or adaptation strategies in their international markets. Difference between product adaptations and standardization. Adaptation free download as powerpoint presentation. We are more leaned onto psychological and tech stuff. These errors are primarily explained by a lack of understanding of how standardization and adaptation play in international markets.
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