Srivastava, R., Fahey, L. and Christensen, K.(2001) ‘The resource-based view and mar-keting: The role of market-based assets in gaining competitive advantage’. These are also essential reasons for product adaptation and modification; literacy, customer lifestyle, and consumer’s income level. For many years, many multinational corporations make costly mistakes when trying to sell to the global consumers or audience. It has been one of the most popular research topics since 1960s to understand whether standardization is better or adaptation for marketing mix in international business. Sample Dissertations | University Dissertations | Dissertation Examples. Thus, earlier literature has not contributed a clear theoretical approach explaining the basis on which the various antecedents for the degree of standardization or adaptation are developed. 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. Theodosiou, M., & Leonidou, L. 2003. between the degree of standardization and adaptation of the different elements of the marketing mix— a challenge that they have succeeded to deal with. Hossain, A., & Yazdanifard, R. 2015. Batraga, A., & Pūķe, I. This strategy also promotes decentralization of management. In addition, they state that standardization will be effective when the customer response homogeneity and the level of sameness in economic freedom are higher, with easily transferable competitive advantages. The purpose of this study is to examine the choice of standardization and adaptation strategies in the marketing mix implemented by KFC fast food in Vietnamese market, it also integrates consumers’ perception towards the case company’s marketing mix implementation. Mengüc, B. Adaptions also demand the use of different marketing and selling strategies in the foreign market. My name is Steve Jones and I’m the creator and administrator of the dissertation topics blog. The results support the existence of a positive impact of both marketing mix adaptation and standardization on performance. 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. In contrast, followers of international adaptation strategy focus on the significance of customization. O’Cass, A. and Julian, C. (2003) ‘Examining firm and environmental influences on export marketing mix strategy and export performance of Australian Exporters’. (Vrontis & Kitchen 2005, 87-88.) For an example, if a particular company comes up with the decision of standardizing the product then the product is being manufactured using the same materials, same processes and even sold under the same name. Third, promotion element of marketing mix is the most standardized element. Standardization marketing strategy is typically applied to discussion of global businesses and means to market a solution with uniform consistency throughout the marketing mix. Theodosiou, M. and Katsikeas, C.S. Required fields are marked *, Sharing Is Caring - Please Share This Post. Standardization versus Adaptation Debate in International Marketing. 2003). There are some questions which most businesses in the international market expansion need to answer: what products do we aim to standardize? Another disadvantage is that it relies mainly on economies of scale. © 2020 Springer Nature Switzerland AG. (2007) ‘The fundamentals of standardizing global marketing strategy’. Wang, X., & Yang, Z. Wong, H.Y. What do we know after a decade (1993–2003) of scientific inquiry?’. Stratégie d ‘ adaptation ou marketing local normes techniques par exemple, ou alors l’ adaptation peut constituer un Les entreprises japonaises, par exemple, préfèrent lancer leurs de la stratégie extrême d ‘ adaptation de tous les éléments du marketing mix. Such elements need to be reflected on for the success of the company (Hussain & Khan, 2013). Globalization has helped in reducing the differences between countries. (1995) ‘Effects of global market conditions on brand image customization and brand performance’. Calantone, R.J., Kim, D., Schmidt, J.B. and Cavusgil, T.S. Les directeurs Marketing emploient cette méthode pour essayer de générer la réponse optimale sur le marché ciblé en "mélangeant" 4 (ou 5, … N the international marketing literature, the desirability of pur-suing a strategy of standardization of marketing mix and other competitive strategy variables across national markets versus adaptation to individual national markets has been de-bated extensively (e.g., Ghoshal 1987; Levitt 1983; Walters Sousa, C. and Bradley, F. (2008) ‘Antecedents of international pricing adaptation and export performance’. An example is McDonald’s vegetarian burgers in India. This enables competition to acquire bigger market share through adjusting their products to fit the need of a certain segment or market. It examines whether multinational companies are adapting or standardising their marketing mix elements when they cross geographical borders and expand their operations to foreign markets. Ryans, J.K., Griffith, D.A. Rocha, T. V., & Silva, S. C. 2011. 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. Standardization may also vary by element or sub‐element of the marketing mix. Le modèle de Marketing Mix (également connu comme Les 4-P) peut être utilisé comme outil pour aider à définir la stratégie marketing. Roth, M.S. Followers of standardized strategy state that the international market has become homogenized and thus, these firms can market their commodities similarly across the globe. (2006) ‘The influence of internal and external firm factors on international product adaptation strategy and export performance: A three country comparison’. Journal of International Marketing, 17(4), pp. Leonidou, L.C. Rialp, A., Rialp, J. and Knight, G.A. Producers should strive to create an ideal balance between both standardisation and adaptation strategies as standardisation will keep production costs low, but adaption will ensure that consumers are being satisfied in each country they trade in. This may also pose a great problem because some countries adopt trade barriers such as the EU and the US (Dimitrova & Rosenbloom, 2010). (1998) ‘New perspective on marketing mix pro-gram standardization’. Check all inboxes, any problems please let me know. Barney, J., Wright, M. and Ketchen, D. (2001) ‘The resource-based view of the firm: Then years after 1991’. The key problem for the retail giant was that the company tried to inflict its values globally. Dissertation emailed to the dissertation you submitted in the PayPal invoice. If companies that have a strong reputation and brand identity decide to follow the standardized approach, they will certainly gain success. 34 FIGURE 9. 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). (2003) ‘Standardization/adaptation of inter-national marketing strategy. Aussi, l’entreprise doit-elle adapter son retailing mix? FIGURE 5. One company example is Walmart’s failure when it entered international markets (Kim, 2008). Akgün, A. E., Keskin, H., & Ayar, H. 2014. One of the key focus areas has been the interest in the degree of standardization versus adaptation of various international marketing mix elements. On the other hand, product adaptation strategies are also being considered as Qu’entend-t-on par retailing mix ? Necessary conditions for the advancement of knowledge’. Components of both strategies need to be integrated so that it can enable international companies to achieve desirable success. What are the key facts that grabbed your attention? In this article we will discuss about 6 steps of developing a marketing mix, examples and key challenges of marketing mix. The regular topic in international marketing is whether multinational firms need to plan for adapted or standardized marketing strategy is immensely debated in scholarly setting and is a major issue to all multinational firms and marketing individuals. This process is experimental and the keywords may be updated as the learning algorithm improves. 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). Nevertheless, evidence proposes that following adaptation or standardization strategies depends on the positioning and dimensions present in respective international market. Particularly, Walmart’s incident is Germany, where the company lost large sum of dollar as of 1998, has become an example or reference point for how not to expand internationally. Seifert, B. and Ford, J. You can’t mention adaptation without mentioning standardization; they are two sides of the same coin. Furthermore, the study shows the importance of adapted the marketing mix to the local situation since it is the key to manage to design offers that will lead to success and increased market shares. The key base of the adaptation strategy is that when a business enters an international market, it needs to reflect on all environmental aspects, constraints, and factors, such as societies, cultures, different laws, taste, education, occupations, race, climate, and language (Akgün, et al., 2014). Schilke, O., Reimann, M., & Thomas, J. (1993) ‘Product and promotion adaptation in export ventures: an empirical investigation’. Nevertheless, this is only true for businesses where competition occurs in a global range, such as perfumes, luxury goods, fashion, electronics, consumer durables, among others. By focusing on one single uniformed product, employees will be trained to improve the product quality, which enables manufacturers to make equipment and technological investment that can protect the quality of the standardized product being served. The point is that marketing for international companies is not based on either of the two opposite strategies, since both strategies are probably to coexist, even in similar multinational company, brand, and product line (Rocha & Silva, 2011). 2011. Are US companies employing standardization versus adaptation strategies in their international markets? Cavusgil, T.S., Zou, S. and Naidu, G.M. (2007) ‘Multiple roles for branding in international marketing’, Palgrave Business & Management Collection. In addition, in India, it launched the McVeggie, while introducing EBI-Fillet-O shrimp in Japanese markets. Poturak & Duman( 2014) assert that the followers of standardization does not possess the conventional knowledge of contemporary marketing. 2010. Product standardization refers to the process of maintaining uniformity of products and services sold in different markets or in other words setting identical characteristics for a particular good or a service. Poturak, M., & Duman, T. 2014. The role of foreign sales in the operations of companies has long attracted interest, and there is an increasing interest in the strategies used by companies in their foreign marketing. They also state that trade barriers are being reduced and advancements in technology, where multinational companies reveal global integration in their strategies. Any chance you'd include our actionable guide on “Marketing Mix” (https://www.cleverism.com/understanding-marketing-mix-concept-4ps/) in your … Both international of businesses and an increasing level of globalization have had a significant impact on how businesses plan and view their global marketing strategy (Wang & Yang, 2011). The old and ongoing debate about the adaptation/standardization of marketing strategy and the contingency approach that followed is the context for this research that has two main goals. Hi Carolyn. 35 FIGURE 10. La politique de produit internationale. These keywords were added by machine and not by the authors. The increased costs are attributable to defender fights and developments, which are also more risky. Such mistakes are mainly described by a lack of awareness of the role and contributions of adaptation and standardization in international markets. The marketing mix is most commonly executed through the 4 P’s of marketing: Price, Product, Promotion, and Place. Other benefits linked to economies of scale consist of reduced investment costs, marketing operational costs, and enhanced research and development. As a result, selling or offering one unified item poses lack of uniqueness. Comparison on the Impact of Standardization and Adaptation on International Marketing. 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. To respond to this, Unilever produced a low-cost packaging product and various other alternatives that enabled it to provide radically cheaper alternatives. 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. Brei, V., D’Avila, L., Camargo, L., & Engels, J. (2009) opines that higher cost associated to adaptation can limit the application of adaptation strategy. 2015. Degree of standardization and adaptation of three levels of the product or service. One consideration shows that markets are becoming more integrated, increasingly more global and similar and consider that the main element to business survival is its capability to standardize. (1989) ‘Are exporting firms modifying their product, pricing and promotion policies?’. Nonetheless, McDonald’s has placed various efforts to improve them using the latest marketing practices in regards to the 7Ps. Part of Springer Nature. This paper seeks to analyse the issues of adaptation (customization) and standardization (global strategy) within international marketing strategies and proposes specific approaches that can help companies compete efficiently and effectively within these global setting. Procedia – Social and Behavioral Sciences, 150(15), pp.609–618. Any indication when this will be sent? Thanks for the input, I found it useful and debatable. This research identified that both adaptation and standardisation are used at the same time. Journal of Asia-Pacific Business, 9(4), pp.344-357. Cite as. Awesome dissertation blog, thanks for the useful information. 250-259. European Journal of Economic Studies, 10(4), pp. 252-262. 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. Despite the long-standing interest in the topic, l’approche adaptative ou locale du marketing au bénéfice de la standardisation de la stratégie marketing global (Soares et al., 2007). Adapting the marketing mix for International markets is an important International marketing strategy. 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. Hello Bobby. British Food Journal, 103(2), pp.97 -111. Integrating Standardization versus Adaptation in International Marketing Strategies: Companies in Latvia. Under standardization, providing a single strategy for the international market, along with standardizing the marketing mix components, can enable constancy with customers and also reduce costs. The application of adaptation marketing strategy supports the companies to gain an increased competitive advantage. Moreover, product modification or adaptation approach will results in a boost in sales volume of the company in international market; by highly meeting the wants and needs of the consumers, but reflecting on the competing companies; and by also retention of the current customers through frequently updating the product. I hope readers of this discussion can make their own minds up to the standardization versus adaptation in international marketing arguments. However, even though the standardization strategy is more used, its adoption is not absolute. I am a marketing student and I have just ordered the standardization versus adaptation dissertation. However, this research is still criticized for lacking a strong underlying theoretical framework (Ryans et al. In nature, companies that are global often engage in manufacturing in various countries. With standardization, however, the products are neither modified nor are the marketing approa… Adaptation and standardization should not be considered an ‘all or nothing’ proposal; rather it should be considered a matter of degree. This paper aims to identify the archetypes of marketing mix standardization-adaptation in MNC subsidiaries and to examine the relationships between MNC subsidiary strategy, environment and performance through the theoretical lenses of fit and equifinality.,The authors use a mail survey to collect data from MNC subsidiary business units located in multiple countries. Did you find any useful knowledge relating to the impact of standardization and adaptation on International Marketing in this post? and White, D.S. The first one is to The standardisation of a marketing strategy means that companies offer a common marketing strategy and marketing mix on a regional, national and global level (Sorenson Asian Journal of Business Research, 1(2), pp.25-36. Management and Administrative Sciences Review, 2(4), pp.353-359. oatmeal), provided consumers are highly health conscious. It examines whether multinational companies are adapting or standardising their marketing mix elements when they cross geographical borders and expand their operations to foreign markets. One of the key focus areas has been the interest in the degree of standardization versus adaptation of various international marketing mix elements. Moreover, product adaptation is more applicable in the case in which: (1) there is an intense competition, compelling differentiation of products; (2) there is a considerable variations in consumer wants and needs; and (3) to meet essential host country requirements, including legal, technical, and packaging issues. Innovative Marketing, Volume 3, Issue 4, 2007 Demetris Vrontis (Cyprus), Alkis Thrassou (Cyprus) Adaptation vs. standardisation in international marketing – the country-of-origin effect Abstract The literature on international marketing presents a confrontation between two mainstream schools of thought regard- ing international marketing. Standardization of marketing promotes communication about products or ideas. Standardization Versus Adaptation in Global Markets: Is Channel Strategy Different? Adaptation ou standardisation des produits; Arguments pour l'adaptation de la politique de produit; Cours de 7 pages en marketing international : Standardisation vs Adaptation. Nonetheless, studies have reported significant source of constraints that may be challenging to measure, for example, customs, manners, attitudes, values, religion, aesthetics, education, and cultural variations originated in history, along with variations in legal systems, economics, wants, and needs. A core element of any international marketing strategy is to decide which marketing mix elements or sub‐elements to standardize and to what degree. Journal of Marketing Channels, 17(2), pp. In the process o… marketing in the 21st century receives significant research attention, it seems the cost benefits and administration of standardization strategies has simplified the international marketing approach as well as being an attractive choice for many firms. Standardization versus Adaptation of International Marketing Mix Activities: A Case Study. 31 FIGURE 8. In a global setting, positive word-of-mouth can imply an improvement in sales. When an international company puts forth all its efforts of the extreme side of either strategy, it normally becomes incoherent and unfeasible. Based on some studies, followers of standardization consider that there is an integration of cultures with the same customer demand and environmental demands across the world. View all posts by Steve Jones. Standardization and adaptation of the international marketing mix. The answer to such questions need to either all adapted or all standardized. 2011. The more specific questions of what would be the antecedents for the degree of standardization against adaptation, and whether a standardized or an adapted international marketing strategy leads to better performance, have also attracted research. and Arunthanes, W. (1995) ‘Ideal and actual product adaptation in US exporting firms: market related determinants and impact on performance’. Moreover, all advertisements are provided in twelve different languages, characterizing the tailored products organized to each region or market (Vignali, 2001). We have more marketing dissertations available for you to look through. The results support the existence of a positive impact of both marketing mix adaptation and standardization on performance. Within the field of international marketing, the debate over the amount or extent of standardization or adaptation is one of the longest. 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). These errors can be partly attributable to the insufficient awareness of how Standardization and Adaptation work in international markets. Problem Solving Decision Making Supply Demand. Proceedings of the 2015 International Conference, pp.27-36. Adaptation ou standardisation des produits. The company has started to modernize its eateries, shifting from a plastic-appearance to a more wood and brick design with the aim of sustaining a modern image (Yeu, et al., 2012). Viswanathan, N.K. American Journal of Industrial and Business Management, 5, pp.45-52. In a practical training period in BQTV in autumn 2010, the author recognized that a strategic marketing plan for a Vietnamese organization to attract overseas cus-tomers is enormously necessary. Kim, R. 2008. tion vs. adaptation), (2) desired degree of standardization of the strategic resource mix (i.e., pattern of resource alloca-tion among advertising, promotion, personal selling, and other marketing mix variables), and (3) the desired degree of standardization of the strategy content (i.e., decisions on Johnson, J.L. Standardization versus adaptation of international marketing strategy: an integrative assessment of the empirical research. Your email address will not be published. The current section analyses the marketing mix of two multinational companies, namely Google and McDonalds. 26 FIGURE 6. McDonald’s has also chosen to “re-image” its business operations in their advertisements through integrating a hip-hop theme with young generation icons such as Lee Hom and Justin Timberlake in China as a way of attracting young people. According to Theodosiou and Leonidou (2003), such a flexibility not only increase a new market for the business, but enabled also it to produce brand loyalty that customers benefit from it when their income increased and might afford higher-end products from similar manufacturer. 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). In contrast, there are other sectors where this same action does not apply and thus, this needs to be considered. Introduction. Vrontis, D., & Thrassou, A. The purpose of this study is to examine the choice of standardization and adaptation strategies in the marketing mix implemented by KFC fast food in Vietnamese market, it also integrates consumers’ perception towards the case company’s marketing mix implementation. For instance, Unilever realized a greater opportunity among Indian low-income consumers who intended to purchase personal care products and high-end detergents, but might not afford them. standardisation and adaptation. For instance, diversity across various countries and markets does not enable whole standardization. Michell, P., Lynch, J. and Alabdali, O. First, customers can anticipate similar quality level of any particular brand in all outlets across the globe. and Dickson, P.R. Adaptation occurs when any element of the marketing strategy is modified to achieve a competitive advantage when entering a … However, our results suggest that companies should slightly emphasize the marketing mix adaptation (ES mean = .168) instead of standardizing it (ES mean = .134) when entering in a new international market. And do we standardize distribution channels, pricing, marketing communications, product support and customer service? (1991) ‘Firm resources and sustained competitive advantage’. 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. References. Additionally, standardization is a rational strategy in an era in which trade barriers are diminishing. A marketing mix should be judged by its effectiveness and not by the cost that it will incur. Wei and Yazdanifard (2014) focus on three factors to analyse adaptation and standardization practices: transferability of competitive advantage; homogeneity of various consumers’ reponse towards the marketing mix; and similarities in the level of economic freedom. When Does International Marketing Standardization Matter to Firm Performance? Ruigrok and van Tulder (1995) argue that there is no single marketing mix suitable for different market environments. Standardization and adaptation is one reason of concern for the organization to choose. Menon, A., Bharadwaj, S.G. and Howell, R. (1996) ‘The quality and effectiveness of marketing strategy: Effects of functional and dysfunctional conflict in intraorganizational relationships’. As pointed out, adaptation involves modifying a product so as to meet the local requirements and customs. Theodosiou, M. and Leonidou, L. (2003) ‘Standardization versus adaptation of inter-national marketing strategy: an integrative assessment of the empirical research’. Four main characteristics of service. Thanks for the positive comments. (1997) ‘Product adaptation practices in the context of export activity: An empirical study of Turkish manufacturing firms’. This makes it less meaningful to talk of the entire marketing mix as either standardized or adapted (Vrontis 2003). Which One of Standardization or Customization Works the Best When It Comes to Online Marketing? (Roger, 1995). 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. Download preview PDF. By looking back on the experiences of other multinational companies, we can observe a plethora of costly errors which were committed in an attempt to sell products around the globe.

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