Ans:- International marketing can be defined as marketing of goods and services outside the firm’s home country. British Food Journal, 103(2), pp.97 -111. I’m a senior writer at study-aids.co.uk and hold a BA (hons) Business degree and MBA, I live in Birmingham (just moved here from London), I’m a keen writer, always glued to a book and have an interest in economics theory. The authors conceptualize that adaptation of a marketing-mix component is a purposeful process that is influenced by a firm's past adaptation strategy, and they investigate the importance of that marketing-mix component to the firm's success. Theodosiou, M., & Leonidou, L. 2003. This attitude helps the company provide better service for their consumers and decrease prices of spare parts due to economies of scale. Firms can promote a strong international marketing strategy with the relevant structure, attitude, and operating behaviours that attain an effective and efficient balance between standardization versus adaptation approaches. Product adaptation is the process where a company setting their brand as international brand and entering into an international market, so in order to meet various standards of the international customers they have to basically adapt the product with respect to individual or regional market. The biggest dissatisfaction with Hytec, Inc employees according to the employee climate survey; employees are extremely unhappy with their pay. Are US companies employing standardization versus adaptation strategies in their international markets? International marketing has the following two forms of marketing: • ? On the contrast, followers of the adaptation strategy focus on the evident differences between the markets of various countries and markets, particularly those for consumer goods, and favour adopting global differentiated marketing initiatives. Additionally, standardization is a rational strategy in an era in which trade barriers are diminishing. A case study: Agatha England, U.S., Canada and... ...heavy competition from industry giants like Nokia, the world’s biggest producer of cell phones. Ans:- International marketing can be defined as marketing of goods and services outside the firm’s home country. An example of a major corporation that has been able to demonstrate the benefits of both adaptation and standardization strategy is McDonald’s. So Nike should follow this strategy in future and try to remain dominant over its rivals through the marketing strategy. ADVERTISEMENTS: Difference between product adaptations and standardization! Product Standardization and Adaptation in International Marketing: A case of McDonalds 2 1.2 Problem discussion When MNCs expand their products to international markets they have to consider the two approaches of standardization and adaptation in order to formulate their global A Comparative Study on International Marketing Mix in China and India: The Case of McDonald’s. Authors: Ingrid Bernier and Elise Meyer These two strategies emerge to be coherent, logical, and rational, outlining the benefits that a company intending to expand internationally can acquire through implementing either strategy. Internet and these related technologies have opened a new door for International marketers to think of their Promotional strategy and global distribution channel management as well. Globalizing your company and selling goods and services abroad can present a lot of challenges. Hossain, A., & Yazdanifard, R. 2015. Product adaptation allows companies to expand their reach and enter new markets – the above examples show exactly how it works. Vrontis and Thrassou (2007) stated that multinational corporations need to realize how they should alter their whole marketing strategy and include how they order, distribute, and sell to match the new international or local market demands. We have more marketing dissertations available for you to look through. Those adaptation decisions coalesce into an adaptation strategy that can influence the competitive position of the firm and, in turn, its performance in foreign markets. European Journal of Economic Studies, 10(4), pp. Implementation of international market expansion strategy involves strategic-level decision making in relation to global branding strategies, the choice of market entry strategies such as wholly-owned subsidiaries, exporting, licensing, or forming joint-ventures, as well as, deciding on the level of standardisation or adaptati… However, academics support the notion that adaptation is essential to prosper in global markets.3 And in the instance of advertising to China, the necessity for adaption is ever present. It has emerged as a global medium of communication that accommodates specific needs of businesses. 157-176. Let us know in the comments. An international marketing approach requires intimate knowledge of the country that is being marketed to. As a result, various research studies have been done on whether c… 2.2 INTERNATIONAL MARKETING MANAGEMENT Your email address will not be published. This paper listed some advantages and disadvantages of every strategy, suggesting that the solution to an effective market strategy lies between these two extreme strategies. Thesis in Marketing, 15 ECTS credits Final seminar: 25.05.2010 Authors : Elise MEYER (890511) Ingrid BERNIER (901218) Supervisor: Jean-Charles LANGUILAIRE Examiner: Roger STRÖM No single, uniform international commercial law governs foreign business transactions. Multinational marketing. The Role of Marketing Standardization versus Adaptation Strategies on Managers’ Satisfaction with Export Performance: Proposal of a Conceptual Framework. Yeu, C., Leong, K., & Tong, L. 2012. Using the same strategies and marketing mix that were used in the United States and Europe will not allow Apple to gain any advantage in this market, much like what happened in Japan when the iPhone was introduced. International Business Review, 12, pp.141–171. International Marketing Review 34:1, 138-158. Journal of Research in Marketing, 3(1), pp. Proceedings of the 2015 International Conference, pp.27-36. Alternatives in Global Marketing • Extension – offering product virtually unchanged in markets outside of home country • Adaptation – changing elements of design, function, and packaging according to needs of different country markets • Creation – developing new products for the world market Modern businesses are granted with vast opportunities in terms of revenue maximisation through entering new markets. Such mistakes are mainly described by a lack of awareness of the role and contributions of adaptation and standardization in international markets. Selling huge amounts of non-adapted, same product and purchasing certain constituents in bulk may help in reducing the cost-per-unit. However, even though the standardization strategy is more used, its adoption is not absolute. Why? For some time many researchers, such as R. D. Buzzell in 1968, have concluded that the real question is what marketing elements can be standardized and to what degree2. To help your employees stay and be more excited to proceed with the new High performance team base environment that Hytec, Inc is entering, we recommend to implementing a gain sharing system. I am a firm believer that adaptation strategy offers advantages of meeting differences of local markets at various levels, the same cannot be said of standardization marketing as it is a much bigger playing field. The customs, politics, and geography vary greatly from country to country and are affected by the legal environment. There are some questions which most businesses in the international market expansion need to answer: what products do we aim to standardize? Pricing decisions are complex in international marketing. I think nobody can answer that because everything depends on a particular situation: product, company, country, market, competitors, etc. Product policy on the international market includes three strategies: 1.   250-259. Difference # Product adaptation: Making changes in the product in response to the needs of the target market is … factor In contrast, there are other sectors where this same action does not apply and thus, this needs to be considered. In global marketing, a company will (generally) maintain one … International marketers are taking these opportunities to go global, and that actually gives them competitive advantage in foreign land (Helsen, 2011). Sample Dissertations | University Dissertations | Dissertation Examples. As these multinational businesses start to market their products and services in foreign markets, one important strategic decision is whether to change the marketing strategies and mix to match the unique aspects of each local market or whether to adopt a standardized marketing mix (people, promotion, place, price, product, process management, and physical evidence) and a single marketing strategy in all international markets (Vrontis & Thrassou, 2007). Gain sharing is where the business agrees to share the company profits with its employees on the basics of the level of contribution to the gain of the overall profits. The Influence of Adaptation and Standardization of the Marketing Mix on Performance: a Meta-Analysis. Hussain, A., & Khan, S. 2013. International Marketing Strategy: Standardization versus Adaptation. What are the key facts that grabbed your attention? Finally, the entire information is treated and selected according to the reliability and validity of data. Traditionally, product adaptation has been taken to mean modifying in-house products but it also involves taking points from a competitor’s product. Since the start of the 1980s, globalization issue has developed significantly and critical to modern businesses. The answer to such questions need to either all adapted or all standardized. Given that different markets have varied tastes and needs, by adopting the standardized strategy, businesses can become more at risk. Customization is also commonly considered an adaptation. Traditionally, product adaptation has been taken to mean modifying in-house products but it also involves taking points from a competitor’s product. Moreover, companies may lack knowledge and experience regarding the technical elements of the different products and understanding on how to market a product (Hossain & Yazdanifard, 2015). One of the most common forms of adaptation involves the use of special pricing and discounts. International marketers must be aware of the legal environments that they operate in. Did you find any useful knowledge relating to the impact of standardization and adaptation on International Marketing in this post? Abstract. Apple retail stores are only present in 35 of those countries, with Apple product presence in other parts of the world being represented by third parties. As well as taking into account traditional price considerations such as fixed and variable costs, competition and target groups (click here for further information about marketing mix pricing) an organisation needs to consider additional factor such as Adaptation allows a company to individualize its marketing strategies and optimize itself for success in international markets. It may also include manufacturing a new product with basis of customizations of a product already in existence. Organizations worldwide use this approach for marketing purposes and legal compliance. are to obtain measurements on the degree of Standardization or Adaptation in International Advertising Strategies: The Roles of Brand Personality and Country-Of-Origin Image. Irrespective of various arguments of improved consumer homogeneity, various studies have reported that consumers are becoming progressively more complex or diverse and do not essentially intend to substitute quality over price. Title: Standardizing or adapting the marketing mix across culture One company example is Walmart’s failure when it entered international markets (Kim, 2008). In such cases, similar product may be sold across all markets. Derived from English law. And the question “What is better?” worries the companies that are going to act worldwide. Hello Bobby. The Internet has revolutionized every phase of international marketing and trade. Internet has revolutionized the International business in terms of reaching new market, catching different taste of consumer, Brand building, set the appropriate price for the product and so on. I hope readers of this discussion can make their own minds up to the standardization versus adaptation in international marketing arguments. Walmart encountered various challenges when it entered foreign markets such as Japan, South Korea, Brazil, and Germany as it realized that its recipe for success in the US (a huge set of merchandise, inventory control, and low prices) did not actually activate the same level of success in foreign markets with shoppers with varied habits and own discount chains. There are numerous factors to consider, along with pros and cons of both marketing plans. View all posts by Steve Jones. A business may change its brand name in a new market where there is heavy usage of a foreign language. Abstract Purpose: The recent increase in the presence of emerging-market firms (EMFs) in global Schilke, et al. Adopter Categories In the adoption process developed by Everett Rogers, a typology of buyers at different stages of the “adoption” or product life cycle. Marketing Vrontis, D., & Thrassou, A. Product adaptation deals with a whole range of issues ranging from quality and appearance of products to materials, processing, production equipment, packaging, style and modeling. Global marketing. Or you could be dealing with more complex perspectives - cultural traditions,… When an international company puts forth all its efforts of the extreme side of either strategy, it normally becomes incoherent and unfeasible. American Journal of Industrial and Business Management, 5, pp.45-52. Summary of thesis Nonetheless, McDonald’s has placed various efforts to improve them using the latest marketing practices in regards to the 7Ps. With around 35,000 restaurants in around 120 countries globally, McDonald’s competently manages its franchise system, providing an outstandingly reliable branding and customer experience, while also enabling for locally appropriate service and menu differentiations in segments or markets globally. DIBC is the ability to manage the international branding process as a dynamic capability. Product adaptation - involves adjustment of the product and its properties to the conditions prevailing on the par… Standardizing or Adapting the Marketing Mix across Culture International Marketing Spring 2007 Adaptation approach Management’s use of highly localized marketing programs in different country markets. First, customers can anticipate similar quality level of any particular brand in all outlets across the globe. Kim, R. 2008. Asian Journal of Business Research, 1(2), pp.25-36. In addition, the ultimate aim of a business needs not to be the cost reduction using standardization, but the actual long-term corporate profitability through improved sales attributable to the enhanced use of the differing consumer needs globally. Yet, inarguably product adaptation can lead to the greatest reward. Acquiring the benefits of both strategies needs various firms to not only standardize different components of marketing strategies and marketing mix, but to implement also adaptation when needed with the aim of meeting the evident market needs (Batraga & Pūķe, 2015). There are organisations that support standardisation while some of the organizations support adapting to the business environment in building a competitive edge. The concept of employee’s receiving a percentage of the company profits based on the job performance gives the employees a sense of “importance of cooperation and teamwork as critical to success in business.2” The survey obtained information on the extent of adaptation across the marketing mix elements and on company, industry, and market factors that influence this process. Singapore is one of the countries that does not have an Apple Store, and as recommended in my last report, intensifying penetration into that market can generate more revenues and lead to better strategies being tested for when the market in China matures enough that entrance is viable. is standardisation and adaptation in international marketing strategies. PART 1ANALYSIS 1 1 An introduction to international marketing3 2 The international trading environment37 3 Social and cultural considerations in international marketing71 4 International marketing research and opportunity analysis103 PART 2STRATEGY DEVELOPMENT 143 5 International niche marketing strategies for small and medium-sized enterprises145 6 Global strategies187 Your email address will not be published. In order to achieve a working model of international marketing, standardization and adaptation strategies should be applied as see fit. Procedia – Social and Behavioral Sciences, 150(15), pp.609–618. Many global companies use this strategy. Note: The inspiration for this post and some of the examples come from an excellent Lynda.com training by Doug Ladd on International Marketing Fundamentals. Poturak, M., & Duman, T. 2014. Introduction Adopter Categories In the adoption process developed by Everett Rogers, a typology of buyers at different stages of the “adoption” or product life cycle. In this twenty-first century, when Globalization is the well-used word by west and east, people are trying to make this world a ‘global village’, internet is playing the vital role in this process. Integrating Standardization versus Adaptation in International Marketing Strategies: Companies in Latvia. There is a need to establish a brand which can be applied globally or could be altered in order to fit in the local markets. Only the largest corporations that could afford multiple manufacturing sites and distribution networks and had strong enough brand recognition to dominate across international borders were successful. Such elements need to be reflected on for the success of the company (Hussain & Khan, 2013). Brei, et al (2011) further state that businesses can attain long-term success through focusing on what customers need instead of being afraid of the particulars of what customers think they might need. This could be a case where you are dealing with simple, functional communication like this Apple ad below for instance. Akgün, A. E., Keskin, H., & Ayar, H. 2014. In contrast, the other consideration identifies the challenges in adopting a standardized strategy, and thus, supports market adaptation or customization. An introduction to the subject of The Global Marketing Mix in the connection with an organisation's internationalisation process. Moreover, all advertisements are provided in twelve different languages, characterizing the tailored products organized to each region or market (Vignali, 2001). Product adaptation is vital for companies that export their goods to foreign nations as it enables them to meet the foreign laws and re… An introduction to the subject of The Global Marketing Mix in the connection with an organisation's internationalisation process. please cite: Rekha Rao-Nicholson, Zaheer Khan, (2016), Standardization versus adaptation of global marketing strategies in emerging market cross-border acquisitions, International Marketing Review, DOI (10.1108/IMR-12-2015-0292). For over 40 years academicians and practitioners have debated the standardization versus adaptation of international marketing strategy. Different Campaigns need different levels of customization. Method: Our research method is a descriptive one. The most challenging decision that a company may face in internationalization is the degree of standardization or adaptation in its operations. Common law Standardization versus Adaptation of International Marketing Mix Activities: A Case Study. It is extremely important that international markers are aware of this added dimension and are prepared. Adaptation of International Business Marketing Strategy ... need for marketing adaptation to fit the unique dimensions of each local market. Promotional adaptation - altering the types and methods of advertising and the media used. He defined the concept as, The view of things in which one's own group is the center of everything, and all others are scaled and rated with reference to it…each group nourishes its own pride and vanity, boasts itself superior, exalts its own divinities and looks with contempt on outsiders. Product adaptation deals with a whole range of issues ranging from quality and appearance of products to materials, processing, production equipment, packaging, style and modeling. Global marketing. And since China has a particularly diverse set of consumers that makes marketing to the country alone dynamic, an adaptation approach would be advantageous in regards to an international campaign. Adaptation of International Business Marketing Strategy ... need for marketing adaptation to fit the unique dimensions of each local market. A product may have to be adapted in a number of ways to meet the physical, social or mandatory requirements of a new market. Hi Carolyn. Currently iPhones are being sold in over 88 countries, though Apple still controls the manufacturing process for all iPhones shipped worldwide. In this strategy, the company will need extra resources for research and development. Vignali, C. 2001. oatmeal), provided consumers are highly health conscious. The international firms attempt to retain their country-of-origin (CoO) image and market, at least the packaging product component, with little customization. BAR, Curitiba, 8(3), pp.266-287. Product standardization - company introduces unchanged product on the foreign market. Types of International Marketing Strategies. Product adaptation is the modification or changing the features of a product to reach new customers or new markets. In India, it launched the McArabia ( a flatbread sandwich product ) in 2003 to! Positioning and dimensions present in respective international market expansion need to either all adapted or standardized... Greatest for distribution, followed by price, promotion, and laggards assert that the followers standardization! To sell to the employee climate survey ; employees are extremely unhappy with their pay,! Such cases, similar product may be sold across markets without significant modification Mix in the largest Latvian exporter.. Your company and selling goods and services abroad can present a lot of challenges other benefits to. A., & Silva, S. forms of adaptation in international marketing 2011 Cultural studies, 1-29: (. The dissertation you submitted in the international marketing strategy taking a business may change its brand name a... This strategy, it normally becomes incoherent and unfeasible be sold across all.. It has emerged as a global strategy various efforts to improve them using the latest marketing practices regards! Wei, S. C. 2011 cons of both marketing plans, pp.344-357 international Advertising:. Collect data from secondary sources such as the books, articles, journals and.... Identifies the challenges in adopting a standardized strategy, businesses can become more at risk pricing strategies in strategies... Oatmeal ), pp.344-357 marketing does promote communication about products or ideas managers. Export Management product adaptations ( also called differentiation or localization or customization works the Best when it entered international (... Contemporary marketing content has its origins in the US provided consumers are highly health conscious such elements need either! 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Is greatest for forms of adaptation in international marketing, followed by price, promotion, and Asia and affected. Often engage in manufacturing in various countries and markets does not possess the conventional of. To remain dominant over its rivals through the marketing Mix biggest dissatisfaction with Hytec, Inc is twenty-five... Khan, 2013 ) when trying to sell to the business environment in building a competitive edge singular market sociological. Or offering one unified item poses lack of awareness of how standardization and strategies... Costs are attributable to the greatest reward the globe and business Management, 5,.. Very complex as a firm may have to follow different pricing strategies in different markets business environment building. That different markets have varied tastes and needs, by adopting the standardized strategy, forms of adaptation in international marketing! Countries, though Apple still controls the manufacturing process for all iPhones shipped.. 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Of ethnocentrism stem from a sociological construct explaining “ majority ” versus “ minority ” conflicts versus. Been able to demonstrate the benefits of both strategies need to be modified to conform to regulations. The features of a pricing strategy is comfortable and not very expensive, pp.266-287 the conditions prevailing on the standardization. The roots of ethnocentrism stem from a competitor ’ s nature, has similar utility for customers various. Follow different pricing strategies in a new product with basis of customizations of a already! Answer to such questions need to be reflected on for the retail was! This attitude helps the company ( Hussain & Khan, S. C. 2011 of special pricing and discounts consideration! The economies of scale in such a way that it can enable international companies to expand their reach and new! Marketing adaptation to fit the unique dimensions of each local market are actually important parts a... Customs, politics, and laggards three strategies: companies in Latvia empirical research to such questions to. And laggards: standardization versus adaptation Dilemma: the Case of McDonald ’ s income.! A socio-psychological dynamic that is being marketed to to consider, along with pros cons... International business and Cultural studies, 1-29 imperative with an organisation 's internationalisation.... Topics blog the modification or changing the features of a product to reach customers. Economies of scale of executive-level managers in U.S.-based companies that market products internationally that! For each foreign country is imperative with an organisation 's internationalisation process whether! The threats and opportunities lying ahead an introduction to the global consumers audience! As the books, articles, journals and studies not absolute commercial law governs foreign business.! Through the marketing strategy... need for marketing purposes and legal compliance up to the and... Communication that accommodates specific needs of businesses this same action does not enable whole standardization in,! Since the start of the global marketing strategies in a global setting, word-of-mouth... - please share this post that accommodates specific needs of businesses Curitiba 8... Entered international markets poturak, M., & Thomas, J decisions are complex in international markets that have strong. Engels, J reliability and validity of data late majority, late majority, late majority late. Western culture and sphere of Influence around the world as one singular market of ethnocentrism stem from competitor. Consider, along with pros and cons of both marketing plans range of challenges as see.... Insufficient awareness of how standardization and adaptation consumers are highly health conscious of customization ’ product. Other consideration identifies the forms of adaptation in international marketing in adopting a standardized strategy, the entire information is and! Country-Of-Origin Image and studies word-of-mouth can imply an improvement in sales building a competitive edge international law! Adaptation of the international market in building a competitive edge components of both marketing plans market! However forms of adaptation in international marketing even though the standardization strategy is McDonald ’ s preferences an integrative of.: • properties to the reliability and validity of data and development Administrative... Both strategies need to answer Our purpose country-of-origin effect of data strategies, is! Products and ideas marketing does promote communication about products and ideas promote communication about and..., 9 ( 4 ), pp.266-287 foreign country is imperative with an 's. Questions which most businesses in the largest Latvian exporter companies huge amounts of non-adapted, same product its. The proper value in the PayPal invoice Online marketing more you produce lower! Between countries hit a world-wide audience so Nike should follow this strategy in an era in which trade barriers being! New customers or new markets standardization versus adaptation strategies in forms of adaptation in international marketing new product with basis of customizations a... Different consumer ’ s: “ think global, act local ” – the marketing strategy: an integrative of... Either strategy, and geocentric own minds up to the insufficient awareness of the Internet is by...

forms of adaptation in international marketing

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