standardisation adaptation marketing mix

In this strategy, the company will need extra resources for research and development. Nevertheless, Schilke, et al. Sousa, C. and Bradley, F. (2008) ‘Antecedents of international pricing adaptation and export performance’. This research identified that both adaptation and standardisation are used at the same time. 157-176. Le problème auquel sont confrontés les managers aujourd'hui se rapporte davantage à la gestion du marketing mix international qu'à la pénétration du marché. Vrontis and Thrassou (2007) stated that standardizing some components of the marketing mix, while adapting other components to differing market conditions is required. Hello Bobby. (2003) ‘Standardization/adaptation of inter-national marketing strategy. The application of adaptation marketing strategy supports the companies to gain an increased competitive advantage. Standardization Versus Adaptation in Global Markets: Is Channel Strategy Different? However, even though the standardization strategy is more used, its adoption is not absolute. Rocha, T. V., & Silva, S. C. 2011. (2005) ‘The phenomenon of early internationalizing firms. Journal of Research in Marketing, 3(1), pp. Such mistakes are mainly described by a lack of awareness of the role and contributions of adaptation and standardization in international markets. Third, promotion element of marketing mix is the most standardized element. Wal-Mart Korea: Challenges of Entering a Foreign Market. For such a case, adaptation is predetermined. Journal of Marketing Channels, 17(2), pp. Moreover, this company has started to serve healthier foods (e.g. 1.2. 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. standardisation and 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. 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. 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. 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. 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). (2001) ‘Factors influencing the degree of interna-tional pricing strategy standardization of multinational corporations’. 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. 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. (2007) ‘Multiple roles for branding in international marketing’, Palgrave Business & Management Collection. 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. Components of both strategies need to be integrated so that it can enable international companies to achieve desirable success. Journal of International Business and Cultural Studies, 1-29. Your email address will not be published. If companies that have a strong reputation and brand identity decide to follow the standardized approach, they will certainly gain success. Such marketing strategies have proven to be efficient, showed by the company’s 8% increase in profit margins within the last five years. Il s’agira ici de définir ce que nous entendons par retailing mix, c'est-à-dire les politiques de On peut adapter un La Standardisation Et L Adaptation . (Vrontis & Kitchen 2005, 87-88.) An example is McDonald’s vegetarian burgers in India. References. 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. Ruigrok and van Tulder (1995) argue that there is no single marketing mix suitable for different market environments. You can’t mention adaptation without mentioning standardization; they are two sides of the same coin. 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’. One company example is Walmart’s failure when it entered international markets (Kim, 2008). 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. 2010. One of the key focus areas has been the interest in the degree of standardization versus adaptation of various international marketing mix elements. Innovative Marketing, 2(3), pp.7-20. Not affiliated Companies intending to expand internationally need not to treat the world as one singular market. 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 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. 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). La standardisation du marketing international. 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. and Zou, S. (1994) ‘Marketing strategy-performance relationship: an investigation of the empirical link in export market ventures’. Journal of International Marketing, 17(4), pp. Vrontis, D., & Thrassou, A. Most companies around the world globalise some elements of the marketing mix while localising others and they use a combination of multi-domestic, global or regional, and transitional … 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. Not logged in The preferable option for firms is to take such a strategy which is a mixture of standardisation as well as adaptation of the different elements of marketing management programmes. Thank you. Globalizing your company and selling goods and services abroad can present a lot of challenges. Comparison on the Impact of Standardization and Adaptation on International Marketing. 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. What are the key facts that grabbed your attention? Barney, J. In this article we will discuss about 6 steps of developing a marketing mix, examples and key challenges of marketing mix. For decades a key debate in international marketing has been the question of whether it is more appropriate to purse a marketing strategy based on standardisation or adaptation (Vivenne & Tobias, 1999). 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. Under standardization, providing a single strategy for the international market, along with standardizing the marketing mix components, can enable constancy wit… The preferable option for firms is to take such a strategy which is a mixture of standardisation as well as adaptation of the different elements of marketing management programmes. Check all inboxes, any problems please let me know. In nature, companies that are global often engage in manufacturing in various countries. ... avec de fortes chances d'adaptation du marketing mix. 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. Dimitrova, B., & Rosenbloom, B. 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. 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. Researchers and academics such as Levit(1983) and Yip (1996) see markets as becoming more similar and increasingly more global and believe that the key for survival is a company’s ability to globalize. We found three main findings. Adaptation ou standardisation des produits. I hope readers of this discussion can make their own minds up to the standardization versus adaptation in international marketing arguments. Dissertation emailed to the dissertation you submitted in the PayPal invoice. View all posts by Steve Jones. An example of a major corporation that has been able to demonstrate the benefits of both adaptation and standardization strategy is McDonald’s. Moreover, Hise and Choi (2013) posit that standardization facilitates positive consumer perceptions towards certain product. Vignali, C. 2001. between the degree of standardization and adaptation of the different elements of the marketing mix— a challenge that they have succeeded to deal with. 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. 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. However low a cost a marketing mix may incur, it has no value if it is not accepted in the foreign market. Les directeurs Marketing emploient cette méthode pour essayer de générer la réponse optimale sur le marché ciblé en "mélangeant" 4 (ou 5, … Adaptation ou standardisation des produits. 250-259. 24–46. Hi. Proponents of adaptation oppose standardisation by arguing that “standardisation is at best difficult and, at worst, impractical” (Jain 1989, p.3). between the degree of standardization and adaptation of the different elements of the marketing mix— a challenge that they have succeeded to deal with. As pointed out, adaptation involves modifying a product so as to meet the local requirements and customs. This strategy also promotes decentralization of management. Adaptation and standardization should not be considered an ‘all or nothing’ proposal; rather it should be considered a matter of degree. European Journal of Economic Studies, 10(4), pp. 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. On the other hand, product adaptation strategies are also being considered as Given that different markets have varied tastes and needs, by adopting the standardized strategy, businesses can become more at risk. It may be worth mentioning advertising is directed to a large number of people and not to one individual and this forms standardization in marketing. Problem Solving Decision Making Supply Demand. Batraga, A., & Pūķe, I. Continuum of standardization and adaptation. Standardization and adaptation is one reason of concern for the organization to choose. Standardization versus Adaptation Debate in International Marketing. Moreover, consumer non-durables, such as food products, are highly responsive to variations in national habits and tastes, making the companies to consider some adjustments to fit different markets. Wang, X., & Yang, Z. Any indication when this will be sent? 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. A marketing mix should be judged by its effectiveness and not by the cost that it will incur. Second, while the product concept, colour and packet in product mix are adapted, the label and brand name are standardized. 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. (1996) ‘Product standardization or adaptation: the Japanese approach’. To respond to this, Unilever produced a low-cost packaging product and various other alternatives that enabled it to provide radically cheaper alternatives. 2015. Journal of Asia-Pacific Business, 9(4), pp.344-357. Standardization and adaptation of the international marketing mix. Using similar approaches will lead to higher margins and reduced costs. BAR, Curitiba, 8(3), pp.266-287. Kim, R. 2008. In 21st century most of the organization is going global. Barney, J., Wright, M. and Ketchen, D. (2001) ‘The resource-based view of the firm: Then years after 1991’. Brei, et al (2011) state that businesses managed effectively have shifted away from customizing their products to serving internationally standardized items that are low priced, reliable, functional, and advanced. Johnson, J.L. The company also selects convenient locations for its franchises, which include local neighbourhoods, airports, and malls. They also state that trade barriers are being reduced and advancements in technology, where multinational companies reveal global integration in their strategies. The choice is also not between standardization and adaptation, but between the how much to … Mengüc, B. (1998) ‘New perspective on marketing mix pro-gram standardization’. In contrast, the other consideration identifies the challenges in adopting a standardized strategy, and thus, supports market adaptation or customization. Akgün, A. E., Keskin, H., & Ayar, H. 2014. and White, D.S. Cite as. Kotler (1986) advocates a planning matrix based on mapping standardization vs adaptation of different marketing mix elements across countries. 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). Required fields are marked *, Sharing Is Caring - Please Share This Post. When Does International Marketing Standardization Matter to Firm Performance? Did you find any useful knowledge relating to the impact of standardization and adaptation on International Marketing in this post? Adaptation ou standardisation des produits; Arguments pour l'adaptation de la politique de produit; 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 of marketing promotes communication about products or ideas. In contrast, followers of international adaptation strategy focus on the significance of customization. 2007. Yeu, C., Leong, K., & Tong, L. 2012. Ce document a été mis à jour le 17/03/2011 For many years, many multinational corporations make costly mistakes when trying to sell to the global consumers or audience. McDonald’s: “think global, act local” – the marketing mix. 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. Let us know in the comments. 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. 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. oatmeal), provided consumers are highly health conscious. Thanks for the input, I found it useful and debatable. Hise, R., & Choi, Y.-T. 2013. As a result, selling or offering one unified item poses lack of uniqueness. 3- Un choix stratégique mix (adaptation/ standardisation).-----CONCLUS 2 2009/2010. Any chance you'd include our actionable guide on “Marketing Mix” (https://www.cleverism.com/understanding-marketing-mix-concept-4ps/) in your … Cavusgil, T.S. Nevertheless, evidence proposes that following adaptation or standardization strategies depends on the positioning and dimensions present in respective international market. adaptation strategy for each element of the marketing mix to achieve the best per-formance and effectiveness. International Business Review, 12, pp.141–171. and Arunthanes, W. (1995) ‘Ideal and actual product adaptation in US exporting firms: market related determinants and impact on performance’. Standardization versus adaptation of international marketing strategy: an integrative assessment of the empirical research. Internext – Revista Eletrônica de Negócios Internacionais da ESPM, 6(1), pp.63-83. Theodosiou, M. and Katsikeas, C.S. 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. and Dickson, P.R. Asian Journal of Business Research, 1(2), pp.25-36. Standardization or Adaptation in International Advertising Strategies: The Roles of Brand Personality and Country-Of-Origin Image. Necessary conditions for the advancement of knowledge’. 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. This service is more advanced with JavaScript available, Resources, Efficiency and Globalization Aussi, l’entreprise doit-elle adapter son retailing mix? (1989) ‘Are exporting firms modifying their product, pricing and promotion policies?’. It is also very vital to adjust the marketing strategy and mix to fit local preferences and tastes, customer non-equivalent requirements, and special market needs. Roth, M.S. 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). 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. Leonidou, L.C. Since the start of the 1980s, globalization issue has developed significantly and critical to modern businesses. The marketing mix is most commonly executed through the 4 P’s of marketing: Price, Product, Promotion, and Place. 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). Modern businesses are granted with vast opportunities in terms of revenue maximisation through entering new markets. l’approche adaptative ou locale du marketing au bénéfice de la standardisation de la stratégie marketing global (Soares et al., 2007). 26 FIGURE 6. Adaptation ou standardisation des produits Lors de la définition de la politique de produit internationale, l'entreprise doit arbitrer entre les souhaits d'une clientèle locale et … The debate is about Standardisation Vs Adaptation and this … Theodosiou, M., & Leonidou, L. 2003. Adopting a standardized approach assists multinational businesses to direct their emphasis on a uniformed marketing mix particularly concentrating on one single product or service, enabling adequate space for quality improvement. 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. Ryans, J.K., Griffith, D.A. Customization is also commonly considered an adaptation. These are also essential reasons for product adaptation and modification; literacy, customer lifestyle, and consumer’s income level. A core element of any international marketing strategy is to decide which marketing mix elements or sub‐elements to standardize and to what degree. In contrast, there are other sectors where this same action does not apply and thus, this needs to be considered. Adaptation occurs when any element of the marketing strategy is modified to achieve a competitive advantage when entering a … Standardization versus Adaptation of International Marketing Mix Activities: A Case Study. They also state that trade barriers are being reduced and advancements in technology, where multinational companies reveal global integration in their strategies. Nevertheless, standardization poses a range of shortcomings. In a global setting, positive word-of-mouth can imply an improvement in sales. This enables competition to acquire bigger market share through adjusting their products to fit the need of a certain segment or market. The answer to such questions need to either all adapted or all standardized. Standardizing many parts of a marketing mix is beneficial, but there are certain areas where modification will yield the best results. Four main characteristics of service. (2009) point out that even in markets or countries with the same cultures, such as across the EU, there are variations in customer wants and needs. 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. 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. The key arguments towards implementing adaptation approach is that it entails the individual approach as it enables the company to be aware of the preferences, wants, and needs of each market or consumer. 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. Rather, they should initiate market research and establish their customers, and their wants and needs. 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… One of the key focus areas has been the interest in the degree of standardization versus adaptation of various international marketing mix elements. 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. Followers of standardized strategy state that the international market has become homogenized and thus, these firms can market their commodities similarly across the globe. This makes it less meaningful to talk of the entire marketing mix as either standardized or adapted (Vrontis 2003). 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. (1993) ‘Product and promotion adaptation in export ventures: an empirical investigation’. First, customers can anticipate similar quality level of any particular brand in all outlets across the globe. 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). 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). 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. Portuguese wine producers about the degree of adaptation of the marketing mix elements to international markets. One of the key focus areas has been the interest in the degree of standardization versus adaptation of various international marketing mix elements. Other benefits linked to economies of scale consist of reduced investment costs, marketing operational costs, and enhanced research and development. Standardization may also vary by element or sub‐element of the marketing mix. Great marketing dissertation. 252-262. Are US companies employing standardization versus adaptation strategies in their international markets? Globalization has helped in reducing the differences between countries. © 2020 Springer Nature Switzerland AG. 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. Another disadvantage is that it relies mainly on economies of scale. When an international company puts forth all its efforts of the extreme side of either strategy, it normally becomes incoherent and unfeasible. Within the field of international marketing, the debate over the amount or extent of standardization or adaptation is one of the longest. Qu’entend-t-on par retailing mix ? The Influence of Adaptation and Standardization of the Marketing Mix on Performance: a Meta-Analysis. Another benefit embraces cost reduction that provides the economies of scale (Hise & Choi, 2013). Additionally, standardization is a rational strategy in an era in which trade barriers are diminishing. Aforementioned, different international markets mean different consumer’s preferences. and Merrilees, B. 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). 35 FIGURE 10. Calantone, R.J., Kim, D., Schmidt, J.B. and Cavusgil, T.S. Hussain, A., & Khan, S. 2013. International Marketing Strategy: Standardization versus Adaptation. Michell, P., Lynch, J. and Alabdali, O. And do we standardize distribution channels, pricing, marketing communications, product support and customer service? The results support the existence of a positive impact of both marketing mix adaptation and standardization on performance. In addition, the section explores the implementation of glocalization strategy in the two companies, while focusing on the levels of local adaptation and global standardization approaches to global marketing. The increased costs are attributable to defender fights and developments, which are also more risky. 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’.

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