Standardization
Levitt (1983) and Ohmae (1985) says that Following the globalization trend, technological, consumer needs, tastes and preferences going to be similarity that cause the market in the world become uniformity. They also point out that “Further facilitated by the growth of international communication channels, the emergence of global market segments, and the appearance of the Internet.” (Levitt, 1983;Douglas and Craig, 1986; Yip, Loewe, & Yoshino, 1988).
(http://www.sciencedirect.com.v-ezproxy.brunel.ac.uk:2048/science/article/pii/S096959310200094X)
Samiee and Roth(1992) emphasizes the conceptualized of standardization has been in the different ways. Like the same strategy can be used in all markets. or it can be mean the same marketing strategy can be adopted in the both market which are the domestic market or foreign market (Cavusgil,1993)
In addition, some standardization supporters believe that consumer demand, desire and demand of different markets and the country. They believe that the world is becoming greater similar in the environments and customer needs, whether they are consumers have the same requirement. As they said, standardization of marketing mixes elements and creating a market strategy for the entire global commitment to reduce costs and consistency with the customers.
(http://www.businessperspectives.org/journals_free/im/2007/im_en_2007_04_Vrontis.pdf)
Definition of Adaptation
Sands (1979) define “adaptation as the use of marketing strategies with no common elements.” That is, the firm should always consider about national identity, life style, language, tastes and so on. Defenders of adaptation believe that macro-environmental issues can be changing by markets, such as race, occupations and so on (Baalbaki & Malhotra, 1993; Jain, 1989)
Adaptation strategies are changing the entire thing including the price, promotion and product packaging or even the product itself, that in order to satisfy the customer in the particular country. Usually adaptation strategies used by the firm entering a foreign market for achieve a competitive. Thus, adaptation involves the use of specific strategies in each market, where the organization adapts its marketing mix to each environment (Ang & Massingham, 2007; Zou, Andrus, & Norvell, 1997). It involves the customization of strategies for different regions, based upon assorted factors. (http://anpad.org.br/periodicos/arq_pdf/a_1205.pdf)
Adaptation strategies are changing the entire thing including the price, promotion and product packaging or even the product itself, that in order to satisfy the customer in the particular country. Usually adaptation strategies used by the firm entering a foreign market for achieve a competitive.
Difference with the standardization strategy, adaptation approach advocates argue that, even the globalization tendencies are growth, but there are still have a number of
The first one of these adaptations was conformity. This is the most widely practiced form of adaptation. Conformists buy into the conventional goals of society and they believe they need to work hard in order to achieve these goals. These people strive for success through hard work. Even if they realize that their aspirations may be a little high, they continue to follow social rules (Gomme, 2007) and “grin and bear it” (Winfree & Abadinsky, 2003) the legitimate way. If they fail to achieve their goals, they place the blame upon themselves and still strive harder to obtain
As previously mentioned, today’s world has experienced huge changes that have transformed businesses and people’s lifestyles. These changes are largely attributed to globalization,
The simplest definition of adaptation sees it as the process by which an organism that adjusts to the environment, both in physical and mental conditions. It is a dynamic process of mutual influence in the ultimate goal of maintaining life in changing circumstances. However, adaptation does not refer only to organisms, but also to the organization to which we can apply the rules of living systems because they are not just material goods but rather the people.
For example, Henry Ford had developed the automobiles that was affordable to the middle class by using the assembly line. Even though he did not invent the automobile or assembly line, he was the one create the affordable cars to the America middle class by manufacturing the exact same cars. By manufacturing the same product, he was able to lower the price for each unit and lower the unit product cost of automobile as well. Hence, price is an essential factor that drives the consumers’ purchasing decision. Therefore, standardized product is an effective way to attract more consumers because the price is
Marketing strategy is deeply affected by political trends. Issues like new laws, regulations, change in foreign policies etc brings change to t he bus...
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.
For any company that has an unstable environment, the adaptive advantage is what will best assist in the processes of improvement. One of the reasons for this is that in a an adaptive advantage there are both different forms of operation, as well as different forms of thinking about useful strategies (Reeves & Deimler & Morieux & Nicol, 2010).
The increasing process of globalization, coupled with an organization seeking to satisfy the needs of consumers globally, contributes significantly in embracing technology in the marketing process. In addition the marketing strategies are inclined towards reaching not only the targeted segment, but also potential customer that can be captured based on the market forecast of the firm. Therefore, integrating various tools of communication as well as platform of reaching out to a wide range of audience has been embraced by corporate globally. Notably, effective communication is vital in the marketing process (Percy, 2008). On the other hand, reaching out to a wide range of customers or audience in the advertising process in significant important. From this perspective organization can utilize both effective communication and a contemporary platform to reach to a wide range of
The adaptation of the major business strategy to all the markets where the company’s products are presented.
The proponents of standardization approach in international marketing views the globalization trends as a facilitation of technological uniformity, greater level of similarity, and higher convergence of consumer preference, taste, and needs. The growth of international communication channels also facilitate the standardization including th...
Zhou, L. (2012). Cultural adaptation pattern analysis of McDonald’s and KFC in the Chinese market. Retrieved from http://www.diva-portal.org/smash/get/diva2:534795/FULLTEXT01.pdf
The second strategy is Market development strategy which focuses on selling the existing product in a completely new market. The organization targets the new geographical area, region which share the same demographic profiles than in the home country. The organization does not have to make a huge change in the product nor they have to change their marketing strategies. There are few of the following ways through which this could be done:
According to Doyle, (1983) positioning strategy refers to the selection of a marked market segment that shows all the customers a type of business that could seek out to serve and the option of choosing the differential advantage that explains the way it is going to compare against all its competitors in the same segment. It could be said from this definition that a positioning strategy applies mainly at a certain product’s level or/and service, working in the limits of a particular market and the fact that it should not really be mistaken with a wider concept of “corporate” strategy, or with any other concepts that are more specifically related to strategy such due to the fact that it could be related to every individual matter in the marketing mix, such as a “pricing” or “promotional” strategy.
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).