This paper investigates the relationship between strategies of standardization and adaptation of the marketing mix and performance in an international context. Greater conformance to product specificationshigh market share. Innovative marketing, volume 3, issue 4, 2007 demetris vrontis cyprus, alkis thrassou cyprus adaptation vs. Differentiate between product standardization and adaptation in international marketing. Despite the importance of, and tremendous interest in the topic, and the volume of scholarly activity this topic has generated, the debate remains unresolved. Offering standard products in all territories can lead to failure if the product does not meet local market. Standardization is a framework of agreements to which all relevant parties in an industry or organization must adhere to ensure that all processes associated with the. Whereas for adaptation, a company would change their methods such as the price, promotion, packaging andor the product itself in order. Despite the importance of, and tremendous interest in the. Among the adaptation choices, price should be the first element of the marketing mix to be adapted, followed by promotion, product and distribution. Marketing strategies in a country bycountry basis are tailored with the peculiarities of the local market. Use the link below to share a fulltext version of this article with your friends and colleagues.
This can be achieved by exporting a companys product into another location, entry through a joint venture with another firm in the target country, or foreign direct investment into the target country. This research also analyze degrees of adaptation to be applied to different segments, regions, and sectors, among other. The key to succeed in the international market is to use the mix of standardization and adaptation strategy and try to create the balance between the two. Adaptation of international business marketing strategy diva portal.
Though product adaptation is a core aspect of international marketing strategy, little research has investigated modifying the physical product and packaging to adapt to different cultures calantone et al. To address this issue, the authors conduct a metaanalysis to quantitatively synthesize and analyze the empirical findings on antecedents and. Product standardization and adaptation in international marketing a case of mcdonalds. These errors are primarily explained by a lack of understanding of how standardization and adaptation play in international markets. Download product standardisation versus product adaptation in. Furthermore, we note that most papers on the execution of marketing standardization have been conceptual in nature. International marketing mix is prepared in light of this environment. Throughout the past four decades, researchers have examined several antecedents and consequences of international marketing program standardization.
One of the key focus areas has been the interest in the degree of standardization versus adaptation of various international marketing mix elements. Decision between standardisation and adaptation is not mutually exclusive rather it is a matter of degree a certain degree of adaptation of a product is required in international markets. Standardization of international marketing strategy. Adaptation of international business marketing strategy. Adaptation strategies involve changing the price, promotion and packaging of a product, or even the product itself, in order to fit the needs and preferences of a particular country. The websites marketing is becoming an important tool both for multinationals and smes, in their effort to internationalizing their business. Foreign market strategy adaptation has been discussed as one of the key. Standardization and adaptation remain debatable even after decades of research. Example of product adaptation strategy in global marketing duration. 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. Binh quoi tourist villages wedding services to french and japanese markets bachelors thesis of degree program in international business, 97 pages, 12 pages of appendices autumn 2011 abstract. Adaptation occurs when any element of the marketing strategy is modified to achieve a competitive advantage when entering a foreign market. However, our results suggest that companies should slightly emphasize the marketing mix adaptation es mean. There has been much debate over implementing a standardization strategy versus an adaptation approach across international markets.
Aug 23, 2019 adaptation allows a company to individualize its marketing strategies and optimize itself for success in international markets. Product standardization and adaptation in international marketing. For decades a key debate in international marketing has been the question of whether. There are numerous factors to consider, along with pros and cons of both marketing plans. By differentiating, this standardization versus adaptation in international marketing by artistry the polytechnic approach will set up global subsidiaries, and each will have its own marketing objectives, as well as policies and procedures, apart from the parent company, such as hiring, marketing, production, human resource, finance, and discounts. Adaptation can concern all the characteristics of the product. However, the findings reported in the literature are too fragmented to yield clear insights. Difference between product adaptations and standardization. The importance of standardization in international marketing.
Standardization versus adaptation international marketing. Faculty member, department of management sciences, islamabad campus, comsats institute of information. Followers of standardization approach stress that the managers should implement homogeneous strategies because markets across globe is homogenous and converging. Melanie brown abstract in the practice of international marketing, the debate between standardization and customization of advertising has been longrunning. Standardization adaptation of international marketing. Standardization versus adaptation of international marketing strategy. Export management product adaptations also called differentiation or localization or customization come in several forms. Product standardisation versus product adaptation in. Jul 29, 2018 in the international business market field, standardization versus adaptation debate is not new, where thus far researchers have not agreed on which strategy is effective to be adopted in international market. Furthermore, it categorises the reasons pulling towards adaptation or standardisation into significant and peripheral. A case of mcdonalds, authornampungwe beatrice membe and maria doriza loukakou, year2012. The influence of adaptation and standardization of the marketing. The high growth often found in emerging country markets makes them lucrative or potentially lucrative markets for mncs.
Taking a business into international market and successfully selling its products and services can attract a range of challenges. Evaluate the various factors of standardization and adaptation, and suggest the conditions under which each of them is suitable. Standardization and adaptation of international marketing. Adaptations in international marketing your business. By this, product adaptations are considered as necessary strategy in order to cater to. Standardisation vs adaptation in international marketing. Pdf the international marketing strategy of grocery. According to the model, the degree of standardisation or adaptation is impacted by antecedent factors which have external and internal characteristics. This study focuses on the international opportunities that are present within the european markets. Adaptation to the international business environment dialnet. Of the two aspects relating to standardization of marketing strategy across national markets1 standardization of the pattern of resource allocation across marketing mix variables integral to a.
Zaheer ahmed khan1, saba hamid khan2, umer mahmud3. During the past 40 years, there have been numerous studies focussing on the general question of whether to standardize or adapt in international marketing strategy ryans, griffith, and white 2003. International marketing environment is a set of controllable internal and uncontrollable external forces or factors that affect international marketing. Standardisation versus adaptation as an international marketing strategy. Instead, researchers recommend considering intermediate solutions combining both options when developing international marketing strategy. According to ohmae 1985, the united states, western europe, and japan, which constitute the major world markets accounting for the bulk of product, appear to be becoming fairly homogeneous and hence fit for globalization. Standardization is the process by which a company makes it methods, especially its production processes, uniformidentical throughout its organization. In international marketing, adaptation is an essential. Comparison on the impact of standardization and adaptation on international marketing article pdf available august 2014 with 4,039 reads how we measure reads. The recent increase in the presence of emergingmarket firms emfs in global markets requires a.
Standardization versus adaptation in international marketing. Nov 26, 2014 abstract the primary international advertising topic over the past five decades is the question of whether, and to what degree, advertising can and should be standardized or adapted to be effective ford et al. When dealing with international marketing one of the key points to consider is whether the product or marketing mix should be standardized or adapted to each local market. However, recently some empirical papers concerning implementation of marketing standardization have been published e. Ms student of management, department of management sciences, islamabad campus, iqra university 2. The approaches of international marketing follow three different aspects. International marketing adaptation versus standardisation. Since there are many potential factors influencing the appropriateness of such a strategy, it is difficult to say when it is best relative to a standardization approach. In my presentation, i will be discussing international marketing planning with specific reference and relation to the long debated issue of standardisation and adaptation. Standardisation versus adaptation as an international. Decisionmaking concerning the international marketing mix has become.
Adaptation of marketing mix elements in international markets. Adaptation versus standardization the main goal of a global strategy is management of the great differences that emerge beyond domestic borders ghemawat, 2007a. 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. Standardization versus adaptation in international. Here, it is argued that the last 40 years of scholarly research has advanced without a strong. Main adaptations are analyzed with regard to psychic distance in terms of consumer characteristics. Internationalmarketingpan african enetworkthe course introduces the student to the various aspects of international marketing withthe principle objective of developing skills in the identification, analysis and solution ofthe problems encountered in the theories and the practice international marketing abroad. Advertising adaptation versus standardization effectiveness. Adaptation to the international business environment.
Standardization versus adaptation in international marketing introduction the most challenging decision that a company may face in internationalization is the degree of standardization or adaptation in its operations. Standardization marketing strategy is typically applied to discussion of global businesses and means to market a solution with uniform consistency throughout the marketing mix. Standardization versus adaptation of international marketing. Product standardization and adaptation in international. Optional product adaptation physical distribution local use conditions climatic conditions space constraint consumer demographics as related to physical appearance users habits environmental characteristics price limiting product movement across national borders gray marketing. Advertising crosses borders and transcends nationality by. 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. Integrating adaptation and standardisation in international marketing. International marketing environment consists of global forces, such as economic, social, cultural, legal, and. Standardizationadaptation of international marketing. One theme that dominates the international marketing literature is the degree of standardisation and\or adaptation of marketing activities, either employed by a company e. Global marketing is not a synonym for standardization in marketing. The study is based on a survey of executivelevel managers in u. Product and sevice mix adaptation for international marketing.
Standardization, adaptation, and contingency approach zaheer ahmed khan1, saba hamid khan2, umer mahmud3 1. This article provides marketing researchers and practitioners with an overview of the major factors that influence marketing tactical attitudes in international markets. The role of cultural pattern in a society and its effect on consumption mcleish ukomatimi otuedon dba scholar, smc university, vorstadt 26a, 6302 zug, switzerland abstract. Standardization versus adaptation of international. The question is one of the most debated in the international marketing literature by authors such as levitt, usunier and hollensen. The paper aims at identifying the degree of websites marketing standardization vs. Adapting the brand message international markets will likely have differences in language and culture, which means companies should adapt their brands message to resonate with the local consumers. Become familiar with different frameworks and mechanisms for market entry strategies. Comparison on the impact of standardization and adaptation on.
This is an opposite approach to an adaptation strategy, under which multinational companies differentiate their product and adapt it to fit the unique needs of countries. Standardisation in international marketing the countryoforigin effect article pdf available january 2007 with 8,961 reads how we measure reads. Therefore, the appropriate international marketing strategy is vital and essential for a multinational enterprise and the primarily of a international strategy concern is adaptation or standardisation in the world marketing field. Emmanuel ahoulouvineet kumar tyagi tatiana serrano xingang yu 2. Companies that operate in international markets must take into account local differences in language, culture, legal and regulatory requirements and distribution channels. Jan 22, 2014 international marketing international marketing is the export, franchising, joint venture or full direct entry of a marketing organization into another country. This research identifies the extent to which individual marketing mix elements are adapted for international markets and how company, industry, and market factors influence the level of adaptation. While standardization is equated with brand consistency, lower advertising costs, and overall synergy, adaptation is often required to address cultural differences for more. International marketing mix, adaptation, standardization, case study 1. The subject of marketing strategy and marketing mix element adaptation versus standardization has been the subject of much marketing research and debate. International marketing is not equivalent to standardization in marketing processes.
Research question the research question, that this study attempts to answer, is, what and why grocery retailers, which specifically work with the strategy of standardization, adapt in their marketing mix to the host market. The merits of each have been discussed, argued, and rehashed over and over again. Adaptation occurs when any element of the marketing strategy is modified to achieve a competitive advantage when entering a. Methodology this study presents a qualitative research design. Standardization and adaptation of international marketing mix. Are us companies employing standardization or adaptation.
Ibo 02 international marketing management solved assignment for 201920. To address this issue, the authors conduct a metaanalysis to quantitatively synthesize and analyze the empirical findings on antecedents and consequences. Whether to standardize or adapt marketing operations in international markets is the major decision companies marketing their products or services overseas. Are us companies employing standardization or adaptation aabri. Product in international market masaryk university. Standardization versus adaptation of global marketing. Standardisation versus adaptation linkedin slideshare. 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.
Standardisation and adaptation discuss the advantages and disadvantages of standardization strategies and adaptation strategies in a global environment. N the international marketing literature, the desirability of pursuing a strategy of standardization of marketing mix and other competitive strategy variables across national markets versus adaptation to individual national markets has been debated extensively e. The majority of the studies on product adaptation highlight the. Although each element of this process is influenced by standardization, this can be only one of the approaches used by the company. Standardization of international advertising strategies. The influence of adaptation and standardization of the. Integration of standardisation and adaptation marketing. The decision between adaptatian and standardization of international business marketing strategy is also a key issue in doing business in emerging markets. Generally, products with high technological intensity such as heavy.
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. The question of standardization or adaptation affects all avenues of a business. The remainder of the article is organized into six sections. This article will help you to differentiate between product standardization and product adaptation. 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 the marketing mix. Internationalization and the dynamics of product adaptation. For over 40 years academicians and practitioners have debated the standardization versus adaptation of international marketing strategy. Jun 03, 2016 a conceptual model of international marketing strategy in relation to standardisation vs. Global management standards international organization for. Comparison on the impact of standardization and adaptation. What is adaptation of product or product adaptation. International marketing standardization springerlink. Whereas for adaptation, a company would change their methods such as the price, promotion.
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