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Standardization vs adaptation debate essay
Debate questions for adaptation and standardization
Impact globalization toward international business
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STANDARDISATION VS ADAPTATION
The standardisation versus adaptation debate is an old one in international marketing, as the discussion timidly started more than eight decades ago, in the 1920's, was generalized in the 1960's and continues until today (Vrontis, Thrassou & Lamprianou, 2009). Standardisation and adaptation are two diametrically opposite marketing philosophies, which both have strong advocates and the debate wasn't limited to the academic world, but it also expanded to the real, business world. In other words, it is not only a theoretical dispute, but a real strategic choice for every business that operates in an international scale. Everyday companies all over the world need to make the decision to standardise or adapt their products, their price policy or their promotion methods in order to be successful.
As we have already mentioned, the historical background of the debate is deep and it may well be the oldest debate in marketing history (Vrontis et al, 2009). As soon as globalization made it possible for a firm to sell its product in more than one country, the choice of standardizing or adapting it emerged. In the first decades of the 20th century, when mass production was the rule among businesses and cost minimization their main goal, many economists argued that people in all countries have some universal characteristics, hence standardisation was the best marketing strategy (Ryans, Griffith & White, 2003). Others claimed that all markets are not the same and therefore, a certain type of product adaptation should be applied. Later, in the sixties, businesses who aimed for cost saving opted for standardisation, whereas firms that believed that markets presented a high degree of heterogeneity choose to adapt ...
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... marketing strategies, their products or campaigns or face a hostile market, because it is not easy to “impose” a new product against consumers' special tastes and needs. In consequence, companies that tend to opt for standardisation, should also have in mind the strategy of adapted standardisation, that combines elements from both theories (Vrontis and Papasolomou, 2005). Adapted standardisation's slogan is “Think global, act local” and there are voices who argue that the best choice is to maintain the brand's core the same everywhere, allowing at the same time minor changes to the uniform marketing strategy in order to suit local preferences (de Chernatony, Halliburton and Bernath, 1995). Adaptation -at least of some sort- is more than often the key to success in “difficult” markets and it must be always considered as a viable option by all multinational firms.
Recent study shows a converging tendency of consumers’ tastes. The general advertising and marketing actions and EU labeling regulations dilute the differences between the European countries. The converging habit is an opportunity to coordinate company strategies within the European region.
7-Eleven employed adapted global marketing, but continued to open stores in more countries. 7-Eleven has adjusted their marketing strategy for each of the international markets they are targeting, which in turn has helped them gain a larger portion of the market. 7-Eleven has benefited by this due to them being a premier player in the market for as long as they have. People love that 7-Eleven has items that are tailored to their desires. This example of extreme localization has helped them gain a competitive advantage over their
We propose a branding strategy which takes into account the brands capabilities and competencies, strategies of competition brands and the outlook of consumers experience in their respective societies. As an international brand there is the challenge of staying connected with local customers. We will overcome this by adapting marketing strategy to local needs using a variance of standardized marketing mix and an adapted marketing mix.
Theodore Levitt’s contribution to marketing is undoubtedly un-measurable in any quantity, un-describable in a matter of words and unfathomable to any one who did not have the chance to meet the legendary scholar. The German moved to America after serving in the Second World War, where he received a PhD from the Ohio State University in economics. He later acted as a Professor in Harvard Business School and went on to become an editor for the “Harvard Business Review” (1985-1989). Through the captivating articles he wrote for this, he changed the face and idea of marketing completely. What could have once been summed up in four Ps; price, product, place and promotion, now had depth, dimensions and true meaning. In a few short pages Levitt had the ability to expand, alter and moderinise marketing. The economist managed all this through his compelling article “Marketing Myopia” in which he describes how too much attention is paid to the product and not enough to the consumer. This was a foreign outlook, which no longer looked at just the physical good and maximizing profits but at who was purchasing this product and attempting to entice them to repeat purchase. He saw globalisation as a future phenomenon and saw standardisation as key to global success for a business. Theodore Levitt also had a profound impact on the lives of his students, colleagues, family and friends. He influenced them to think in new ways and to push the boundaries on how they saw the world. The German-American professor contributed greatly to the world of marketing and looked at businesses, selling products and service and where and how to sell them, in a new light.
In conclusion, it can be said that global marketing has been emerged very rapidly in recent years. It has provided various opportunities for the companies to expand their business to the other regions of the word. However, there remain certain environmental issues that need to be considered before entering in to the desired region. These issues can be resolved with designing the strong global marketing plans and strategies, the data for which can be gathered through conducting global market research. Despite numerous issues, one can easily say that globalisation has reduced the global reach of the organizations as well as customers. It would not be wrong to conclude that
The adaptation of the major business strategy to all the markets where the company’s products are presented.
The same can be said about a localization strategy. Localization may give a firm a competitive edge, but if it is simultaneously facing aggressive competitors, the company will also have to reduce its cost structure, and the only way to do that may be to shift toward a transnational strategy. This is what Procter & Gamble has been doing. Thus, as competition intensifies, international and localization strategies tend to become less viable, and managers need to direct their companies toward either a global standardization strategy or a transnational
The marketing campaigns must be tailored to meet the foreign markets’ demands, by respecting the consumers’ culture and flavor preferences. Furthermore, in the foreign markets the local brands must not be underestimated as these present high competition for Coke and Pepsi, therefore in order for the kings of the soft drink industry to expand their reign globally they must partner with the local soft drink firms and customize soft drinks with local tastes.
Unilever’s Dove is part of the consumer goods company’s many brands which have historically lacked global identity amongst its many products. The lack of global identity resulted in issues such as diverse marketing standards, varied product development, and lack of brand recognition by consumers worldwide. Unilever’s solution to this problem was to group similar product lines under a few recognizable umbrella corporations. This initiative gave birth to the one of the most controversial marketing strategies in the history of business.
With the advent of the Internet, decreased shipping costs, and the removal of trade barriers, the world market has shrunk in such a way that everyone can be a player. While many businesses thrive solely on serving a small local area, a globalized company has the benefits of increased customer markets, gross production, and brand awareness. Take for example Coca-Cola; this multi-national corporation offers products in countries all over the world, operates in over 200 of those countries with the help of its franchisees, and is the most well-known beverage companies. It is interesting to note however, that as positive as globalization may seem, there are many negative ramifications and a large population of detractors to this movement. While increased product availability is good for profits, if a local market is inundated with imported products, locally grown or manufactured items may be squeezed out, to the detriment of the local economy. Although it is cost effective to have your product produced in another country with low wages, you are essentially taking away jobs from the people of your own country, negatively impacting your national economy. However, if you manufacture your products in a country with higher wages, you must increase your products’ prices which may be harmful to your profits. While maximizing your companies profits is always of great importance, it is essential that you weigh the pros and cons of globalization and its effects on not only your company, but the areas in which you wish to spread.
Gogel, R. and Larreche, J.C. (1991). Pan-European Marketing: Combining Product Strength and Geographical Coverage. San Francisco, California: Jossey-Bass
The shifting of the consumer’s taste of simple products to high quality branded products is not sudden. It grew out in the middle of the 20th century and the companies selling various products needed a new way to differentiate their products from the others giving it a unique identity.
The global economy has enabled customers to enjoy a buyer’s market where the company with the most competitive price possible for a product or service receives orders from customers around the world. The burgeoning world ...
Due to the fact that changing times imply as well a change of society and its changing wants and needs, companies have to be aware that a brand’s position should be adapted to a newly developed lifestyle. “All brands need to be revital-ized on a regular basis in order for them to be kept fresh, vital, and relevant to the contemporary market.” (Keller/Sterthal/Tybout 2002, p. 86).
Change and adaptation is a good thing because without it, the world would remain stagnant and would never improve or expand in knowledge or technology. Thomas Sowell stated “We need only recognize that particular products, skills, technologies, agricultural crops, or intellectual concepts accomplish particular purposes better than their alternatives” (Sowell). If it were not for change and adaption, the ability to accept that some practices are more advanced and more easily used then we would not advance as a society; and essentially we would not survive. Although it is difficult for some to comprehend, we all abandon certain practices of the cultures we were raised with in order to adopt more advanced practices that allow us to compete in today’s society across the world.