According to these authors, supporters of standardization believe that there is a union of cultures with similar environmental and customer demand around the globe. Product adaptations were more profound among firms producing. 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 is defined as the process of management responsibility in identifying, anticipating and satisfying customer requirements across international boundaries. 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. Standardization of international advertising strategies. Product standardization and adaptation in international marketing. You cant mention adaptation without mentioning standardization. A standard product does not need to have all the characteristics of the other products buyer requires. Adaptation free download as powerpoint presentation. 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.
Product adaptation tends to become a reactive response to the market. In the international marketing literature the issue of advertising standardization has ignited a lively and heated debate among academics and managers alike. Comparison on the impact of standardization and adaptation. May 17, 2012 the question is addressed by examining whetherstandardization is better than adaptation in a company. Product standardization creates general practices and standards that all similar items on the market must meet. Generally, products with high technological intensity such as heavy. 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. Some researchers think that a relationship between standardization and performance does not occur. 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. Jun 03, 2016 a conceptual model of international marketing strategy in relation to standardisation vs. Feb 19, 2014 these errors are primarily explained by a lack of understanding of how standardization and adaptation play in international markets. Whereas for adaptation, a company would change their methods such as the price, promotion.
Adaptation the first view is the standardization standpoint as proposed by jain, 1989. Product adaptation and standardization flashcards quizlet. Download pdf product standardization and competitive. It is the process of modifying products for different countries and regions or designing new products for foreign markets. Meet differences at the stage of economies in research and development, consumer differences in development. Start studying product adaptation and standardization.
Although, the main inconveniences involved in standardization policy are cultural differences and, the eterogenity of advertising laws. The ideal business model is one which takes the disadvantages into account, uses the advantages and ultimately employs a combination of standardization and adaptation. Consider how universal components hook together across the nut and bolt industry. Develops a comprehensive framework to capture the relevant factors that determine the selection of the appropriate international advertising.
Marketing strategies in a country bycountry basis are tailored with the peculiarities of the local market. Standardization is the process by which a company makes it methods, especially its production processes, uniformidentical throughout its organization. Export management product adaptations also called differentiation or localization or customization come in several forms. Largely, mnes have to adapt prices to account for local conditions. The fundamentals of standardizing global marketing strategy nanda k.
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. Product standardization is a very useful strategy, with many benefits. Adaptation versus standardization the main goal of a global strategy is management of the great differences that emerge beyond domestic borders ghemawat, 2007a. 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. We are more leaned onto psychological and tech stuff. The best product standardization strategies allow you to balance the need for targeted adaptation with the cost savings of standardization. To create completely new product for foreign markets adaptation new product development. Whereas for adaptation, a company would change their methods such as the price, promotion, packaging andor the product itself in order. Despite 40 years of debate on international marketing strategy standardization vs adaptation, extant empirical research is too fragmented to yield clear insights. By this, product adaptations are considered as necessary strategy in order to cater to. Standardization is a marketing strategy aimed to create uniformity in order for offerings to be viewed the same across all platforms. Nerdynaut is a media organization dedicated to the nerdish community. Product adaptation versus standardization cleverism. 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.
Product standardisation versus product adaptation in 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. However, adaptation of online advertising is sometimes essential because. In this case, a laptop is the best example of a standardized product. Reveals that the degree of adaptation of japanese goods is generally moderate, with labelling, packaging and internal features attracting most alterations. Standardization versus adaptation of international marketing strategy. Learn vocabulary, terms, and more with flashcards, games, and other study tools. There are two main aspects of using standardization approach.
Standardization refers to companies using the same or similar marketing materials regardless of cultural or linguistic. 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. In international marketing, the marketers are required to come up with a decision as to whether. Standardisation vs adaptation in international marketing.
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. Standardization of product is the approach for increasing commonality of product in the supply chain management. Product standardization and adaptation in international. Are us companies employing standardization or adaptation strategies in their international markets. Product standardisation means that the firm sells and advertises a standardized product in the international context. Standardization versus adaptation of standardized advertising campaign for the. Viswanathan delaware state university, dover, delaware, usa, and peter r. Rather than a big corporate project, it is often better to run small projects with a clear focus on a specific set of processes. Standardization and adaptation of international marketing mix. 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. 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. However, the decision whether to standardize or not cannot be considered a dichotomous one. Author links open overlay panel marios theodosiou leonidas c.
Standardization makes forming a global standardization strategy clear. There are many different brands of laptops, but they all perform the same function. Standardization versus adaptation of international. As pointed out, adaptation involves modifying a product so as to meet the local requirements and customs. 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 standardisation versus product adaptation in international marketing manfred daberto essay. The question is addressed by examining whetherstandardization is better than adaptation in a company. Standardization versus adaptation of international marketing. Rather than a big corporate project, it is often better to run small projects with a. 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. Then proposes that the standardization and adaptation of international advertising strategies represent the polar ends of a continuum of transitional stages. Standardisation and adaptation discuss the advantages and disadvantages of standardization strategies and adaptation strategies in a global environment.
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. In this article, we build on this by looking at the pricing in the global context. The cost savings on producing a standardized product are twofold. 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. An example is mcdonalds vegetarian burgers in india. Adaptation is an approach of detailing the differentiation that exists between products and services. The advantages of selling a standardized product bizfluent. The influence of adaptation and standardization of the. Finally, discusses the ways and the degree to which international advertising strategies can be adapted to different situations. Standardization you cant mention adaptation without mentioning standardization. Download product standardization and competitive strategy ebook pdf or read online books in pdf, epub.
And finally, underdeveloped communication infrastructure can hinder the information collection process. Standardization versus adaptation of global marketing. Mar 31, 2019 the cost savings on producing a standardized product are twofold. 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. 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. The third advantage of standardization is on marketing. They both represent a way of selling products overseas. Internationalization and the dynamics of product adaptation.
Hbr has previously explored the impact of competition, product and demand on the pricing strategies of businesses. 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. This includes factors relating to the customers, product and market. Therefore for the firm it is important to choose the right strategy between the product adaptation and product standardisation. Standardization is the degree to which firms apply common marketing mix1 variables across. These errors are primarily explained by a lack of understanding of how standardization and adaptation play in international markets. 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 and adaptation of international marketing. The concept of standardization, first discussed by erik elinder in his 1961 paper. The fundamentals of standardizing global marketing strategy. Product adaptation means that the firm adapts the product to the local markets.
Standardize all components by standardizing the basic components of all your products, you can expand your market area. Standardization in international marketingthe countryoforigin effect. Difference between product adaptations and standardization. Standardisation in international marketing the countryoforigin effect article pdf available january 2007 with 8,961 reads how we measure reads. Tradeoff strategy between product standardization and adaptation. Advantages and disadvantages of standardization, essay sample. According to the model, the degree of standardisation or adaptation is impacted by antecedent factors which have external and internal characteristics. Standardisation versus adaptation linkedin slideshare. This article will help you to differentiate between product standardization and product adaptation. First one is the drivers which make the standardization approach feasible, and the second aspect is the potential benefits are firm can gain by.
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