What exactly is standardization in marketing?
We will discuss what exactly is standardization in marketing with its bases as well as the merits/ importance of standardization in brief. What is standardization in marketing? Standardization is the level or class of the product which have fixed value as well as specification of quality and customer satisfaction.
Should the product or marketing mix be standardized in international marketing?
When dealing with international marketing one of the key points to consider is whether the product or marketing mix should be standardized or adapted to each local market. The question is one of the most debated in the international marketing literature by authors such as Levitt, Usunier and Hollensen.
What is a standardized approach to global marketing?
Selling the same products with the same message globally means little to no differentiation for local markets and their unique needs. Ideally, a standardized approach is based on research that unique needs are not relevant.
What are the factors that influence standardisation in international marketing?
According to Vrontis et al. (2009), the extent of standardisation in international marketing depends on the following five factors: target market, market position, nature of product, environmental and organisational factors.
What do you mean by standardization in international marketing?
Global standardization is a marketing approach that uses standard marketing strategies to promote products internationally. Companies and businesses that sell their products and services to international audiences adopt global standardization.
What is standardisation in international business?
What Is Standardization? Standardization is a framework of agreements to which all relevant parties in an industry or organization must adhere to ensure that all processes associated with the creation of a good or performance of a service are performed within set guidelines.
What is meant by standardisation?
Standardization is the process of developing, promoting and possibly mandating standards-based and compatible technologies and processes within a given industry. Standards for technologies can mandate the quality and consistency of technologies and ensure their compatibility, interoperability and safety.
What is standardization with example?
Processes. Process standardization is a set of rules for how to complete a task or series of tasks. This helps those involved in the task to understand the best way to complete it. An example of process standardization is the procedures baristas follow for making lattes in a coffee shop.
Why is standardization important in marketing?
Standardization plays an important role in marketing. It makes selling and buying functions easy and more effective. Mostly, buying and selling of products is done on the basis of grade or mark. If quantity, size, quality of goods is already known, only price remains to be negotiated.
What is standardization and why is it important?
The goal of standardization is to ensure uniformity to certain practices within the industry. Standardization focuses on the product creation process, operations of businesses, technology in use, and how specific compulsory processes are instituted or carried out.
What is standardization strategy?
Standardization refers to a standardized marketing strategy that can be used internationally in different markets. This strategy focuses on high-quality content and brand consistency in every single market. A localization strategy centers on approaching each market at an individual level.
What is standardization principle?
Understanding the principles of standardisation. Standards can be defined as a system of reference containing the technical specifications related to products, services and organisations and they guarantee their qualities and usage capabilities.
What are the objectives of standardization?
The objectives of standardisation are as follows: (i) To reduce given line of product to fixed types, size and characteristics. (ii) To establish standards of excellence and quality in material. (iii) To establish standards of performance of workers and machines.
What are the steps of standardization?
Here are four steps marketers can take to standardize data.Step 1: Conduct a data source audit. Start by pinpointing all the sources of data in your business. ... Step 2: Define standards for data formats. ... Step 3: Standardize the format of external data sources. ... Step 4: Standardize existing data in the database.
What are the advantages and disadvantages of standardization?
It allows them to have confidence in the particular store they are stopping at because they know it through its branding and its standardized products. The major disadvantage of such standardization is that it robs the individual stores or franchises of any serious uniqueness.
What are some examples of standardized products?
Examples of standardized products include agricultural products (such as grain and milk), most mined minerals, and fish.
What is standardisation and Localisation?
Businesses that expand globally need to decide how they'll approach marketing to their new customers. A standardization strategy delivers a uniform message and consistent content across markets. Localization takes the opposite approach—tailoring strategies, campaigns, and resources at the local level.
What is adaptation and standardisation?
Adaptation is an approach of detailing the differentiation that exists between products and services. Standardization of product is the approach for increasing commonality of product in the supply chain management.
What is standardization strategy?
Standardization refers to a standardized marketing strategy that can be used internationally in different markets. This strategy focuses on high-quality content and brand consistency in every single market. A localization strategy centers on approaching each market at an individual level.
What is standardisation and adaptation in International Marketing?
Product adaptation means that the firm adapts the product to the local markets. It is the process of modifying products for different countries and regions or designing new products for foreign markets. Product standardisation means that the firm sells and advertises a standardized product in the international context.
What is the issue of standardization versus adaptation in international marketing?
When dealing with international marketing one of the key points to consider is whether the product or marketing mix should be standardized or adapted to each local market. The question is one of the most debated in the international marketing literature by authors such as Levitt, Usunier and Hollensen. The focal point of this paper is the issue of standardization versus adaptation in the global marketing. As the first the theoretical perspectives are reviewed, in relation to Levitt’s controversial and much controversial article from 1983 ‘ The Globalization of Markets’, followed by an outline of the criticism against Levitt and the theory of standardization. The cases of two global companies McDonalds and Ikea are given and finally conclusions and further reading.
Why is standardization important?
Second, a standardization of products and marketing provides an opportunity to achieve economies of scale in production and lower costs. This leads to low price of the products thus freeing resources to product development.
What are the limitations of standardization?
Common to the authors, highlighting the limitations of standardization strategy is that they point to the cultural differences as one of the key barriers to a standardization strategy. The key concept that has been used to describe the importance of culture in marketing strategy is “cultural bind.” This suggests that products can be more or less tied to the cultures they consumed, and that the degree of cultural bonding determines whether they can be standardized or not. Food and clothing should therefore be strongly culture-bound products, which are difficult to standardize, while industrial goods are more “culture free”, and therefore easier to standardize. In between you place the consumer durables, which are more “culture free” eg food but more culture bound than industrial goods XXXXX (Usunier 1993). XXXXX Tjek hvad Usinier skriver
What are the two extremes of marketing?
Stadardisation and adaption are two extremes in marketing. In his article Kellogg’s – internationalisation versus globalisation of the marketing mix (2001) Claudio Vignali cites Terpstra, V. and Sarathy, R. (1994) for writing that when adopting a “completely” localized marketing strategy only coincidental similarities exist. Completely standardised marketing is identical in all markets. Neither extreme i usually used. Coming up are some examples of how two multinational companies engaged in or have used the global market. The examples are taken from international journals, and each of them gives an insight into situations that underpins the complexity in a global marketing manoeuvre. The two cases chosen are, respectively, McDonalds and IKEA. These cases are particularly interesting because it has two large companies whose basic concept is tight concept management and standardizing for obtaining economies of scale in marketing, sales and production. These descriptions provide examples of how, despite their overall standardization strategy, they have had to have to adapt to local markets to be succesfull.
What does Honda stand for?
Several brands have different image to different markets. For example Honda stands for reliability and quality in the U.S. while the Japanese market, where these properties are considered self-evident, they see Honda as an expression of speed, youth and energy (Aaker and Joachimsthaler, 1999).
Is IKEA a standardized company?
Another case of a largely standardised company is IKEA. In the article ”A standardized approach to the world? IKEA in China”, ( Johannson, U. and Thelander, A., 2009), the authors give an insight into the challenges IKEA has had with global marketing in a case description of their introduction and marketing in China. IKEA has successfully standardized all marketing and roll out in large parts of the world, but China was a special challenge as the standardising concept was not possible to effectuate due to the market, and in particular, cultural.
Is McDonald's business model the same?
McDonald’s business model is basically the same regardless of which country it goes to, but there are local differences, the company must face . The case of McDonald’s is described in the article “McDonalds: “Think global, act local” – the marketing mix (Vignali XXXXXXXX).
What is Global Standardization?
What it is that you love about that product? How did you find out about the product? How did the company capture your attention and convince you to purchase its product? Now, what if that product was to be marketed internationally? Would the same marketing approach that grabbed your attention work for others around the world? If the answer is yes, this is called global standardization.
Which company is known for global standardization?
One company that is a well-known advocate of global standardization is Coca-Cola. Coca-Cola is able to use standard packaging, distribution, and brands in international markets.
What is the difference between sensual and developing countries?
And while one country may sell a health product using sensual advertisement, a more conservative country might need a more rational message . These differences in perspective could force a company to develop a more customizable market strategy for different areas of the world.
Does a company have to pay for special marketing?
Costs - a company does not have to pay for special marketing for each market. One marketing strategy can be used in multiple areas of the world, therefore cutting the cost of having to develop several marketing strategies.
What is standardization in marketing?
Standardization in marketing in a broader sense is using same strategies or methods of marketing. in across all the nation which means the content remains constant rather the only difference is the. language. The advantage of standardization in marketing is that it becomes easy for the firm to.
What is the method of marketing?
country. The method of marketing is researching, attracting and selling products. The market
How does global marketing affect business?
The spread of global marketing communications in the context of business management is caused by the need of companies to adjust strategies to the technological era of digitalization. As a result, international enterprises promote the use of their products and services in different countries with the help of communicational instruments, including advertising, social media networks, electronic mail, and others. The use of these digital instruments helps to minimize meaningless marketing activity and concentrate only on the methods that can potentially increase the profits of global companies. The research focuses on the review of theoretical literature about the importance of marketing communications and defines the practical aspects of the use of communicational instruments that can work simultaneously in different locations due to the correct choice of channels. The purpose of the article lies in the analysis of ties between global marketing communications and the consistent progress of reputation of the brand caused by the combination of social media publications, advertising, public relations, and promotion. The primary research question of the article focuses on answering how international businesses can use global marketing communications for the aim of building positive images of these companies. Another secondary research question defines what is the role of globalization in the choice of possible methods of control that can be used to organize the management of marketing communications during various branding campaigns. The hypothesis of the article deals with the fact that modern companies can achieve visible progress in chosen areas of business activity if they follow the guidelines of effective management of global marketing strategy that include the accuracy in defining preferable channels for reaching their audience, the understanding of the population that forms the number of potential customers, the implementation of technological equipment for the further development, and the rational division of financial resources of marketing departments.
Can marketing strategies be standardized?
marketing strategies be standardized or adapted. The only element that can be standardized for
Is there an argument between globalization and localization?
There has long been an argument between globalization and localization. The argument is about
What is localization in global marketing?
Localization in global marketing focuses on creating localized content in each region. It’s the process of adapting all elements of your international marketing to your target markets —from using different languages to adapting your messaging, visuals and campaigns. This helps ensure that your marketing reflects the interests, needs and context of your target audience in each region.
Should you standardize or localize your marketing strategy? Or do a mix of both?
If standardization is all about finding common ground and ensuring brand consistency, localization centers on tailoring marketing strategies to the nuances of local markets. Both are global approaches that can benefit your company, and in many cases, the best option is usually a combination of the two.
Why is standardization important?
Standardisation is mainly a client in relation to industrial types of products because industrial products are purchased from the same reasons all over the world. Moreover, standardisation can prove to be particularly effective for highly sophisticated and complex products from technical viewpoint (Vrontis et al., 2009).
What are the four categories of managerial factors that impact the degree of standardisation or adaptation?
Managerial factors impacting the degree of standardisation or adaptation relate to decision-making style in general prevalent in organisation, and decision-making orientation in relation to foreign operations which is divided by Perlmutter (1969) into four categories: ethnocentric, polycentric, regiocentric and geocentric.
What are the factors that impact the success of a business in a new market?
Market entry strategies, branding strategies and the levels of standardisation or adaptation of each single element of marketing mix can be rightly specified as critical success factors directly impacting the success of business in the new market.
Why is it important for global businesses to take advantage of both strategies?
In this way global businesses can take advantage of benefits offered by standardisation such as achieving economies of scale and exercising the same competitive advantage for all markets, at the same time when taking advantage of benefits offered by adaptation as well such as addressing unique needs of local customers and responding to changes in local marketplace in rapid manner.
What is international market expansion?
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 adaptation of products and service in new markets.
What is an adaptation strategy?
Adaptation strategy implies changing various aspects of products and services to a considerable extent in order to meet the needs of consumers in international markets taking into account their differences (Chung, 2009). Adaptation strategy offers advantages of meeting differences of local markets at various levels, and in this way achieving greater levels of customer satisfaction. When pursuing product adaptation strategy differences of specific markets can be addressed at product development stage, accommodating differences in customer wants and needs in an effective manner.
Does Nike's adaptation strategy affect its brand?
Adaptation strategy implemented at extreme scale may compromise core competitive advantage of a global brand causing disparity of image of the company. As it was discussed above, Nike brand image is associated with dynamism and active lifestyle effectively communicated though its slogan ‘Just Do It’ to the global marketplace. Decisions by Nike strategic management to increase the level of adaptation of its marketing message for international markets might negatively affect its core brand identity compromising its chances for further growth.
Why is standardized marketing important?
Increased globalization of world businesses contributes to more similarities among international marketplaces. This has led some companies to realize the benefits of providing a consistent, and uniform product and marketing system around the world. Because these organizations are producing same products and reusing established marketing and distribution systems, they also get economies of scales benefits in production and buying.
What is standardization strategy?
Standardization marketing strategy is typically applied to discussion of global businesses and means to market a solution with uniform consistency throughout the marketing mix. This is an opposite approach to an adaptation strategy, under which multinational companies differentiate their product and adapt it to fit the unique needs of countries.
What are the disadvantages of standardized marketing?
Selling the same products with the same message globally means little to no differentiation for local markets and their unique needs. Ideally, a standardized approach is based on research that unique needs are not relevant. However, companies open the door for competitors to enter the market and offer some type of standardized product, service, or unique marketing messages.
What is standardized approach?
Ideally, a standardized approach is based on research that unique needs are not relevant. However, companies open the door for competitors to enter the market and offer some type of standardized product, service, or unique marketing messages.
What are trade barriers?
Trade barriers and tariffs are common tools global governments use to force companies to adapt to local market needs and requirements. Many countries have varying expectations on delivery from external sources. Not all businesses benefit from a standardized approach to international marketing and business.
What are the advantages of standardization?
2. Product standardization leads to production economies. Economies of production, better planning, effective control and better use of creative managerial personnel are the advantages of standardization. 3. If cost is the only factor being considered in the foreign market, standardization helps reduce production costs.
What are the socializing forces that prevailing worldwide are similar?
1. Socializing forces prevailing worldwide are similar. They have fostered a homogenization of tastes, needs, and values in a significant segment of the population. This has resulted in a large global market with similar needs and wants.
Is there a worldwide demand for the same reasonably priced products of good quality and reliability?
As a result, there is a worldwide demand for the same reasonably priced products of good quality and reliability. Modern products usually fit into the lifestyles of urban consumers wherever they are. Studies identify that the needs of young urban professionals are similar to those of contemporaries in Singapore.
Do modern products fit into the lifestyles of urban consumers?
Modern products usually fit into the lifestyles of urban consumers wherever they are. Studies identify that the needs of young urban professionals are similar to those of contemporaries in Singapore. This similarity can be found among significant segments of the global market. Families in New York need the same dishwashers as families in Paris. Families in Rome make similar demands on a washing machine as do families in Tokyo.
What is standardization in business?
What is Standardization? Standardization is the process of creating protocols to guide the creation of a good or service based on the consensus of all the relevant parties in the industry. The standards ensure that goods or services produced in a specific industry come with consistent quality and are equivalent to other comparable products ...
Why is standardization important in the trading industry?
Standardization in the trading industry is set by the exchanges on which the security is traded. This provides greater liquidity for investors. It also makes the trading process the same for all investors.
How does standardization affect consumers?
Also, standardization may limit producers from providing more value to consumers than their competitors, because they are constrained by the standards.
What is the goal of standardization?
The goal of standardization is to ensure uniformity to certain practices within the industry. Standardization focuses on the product creation process, operations of businesses, technology in use, and how specific compulsory processes are instituted or carried out.
Why is it important to standardize products?
Standardizing products that are available in various states, countries, or continents ensures that customers receive the same product or service regardless of where they buy it . This applies to big brands that customers are already very familiar with, where any change in the product would likely be noticed immediately.
Why are standards continually modified?
The standards are continually modified to mirror advancements in technology. Standardization among manufacturing businesses ensures that customers get similar products regardless of the manufacturer or geographical location of the store where customers buy from.
When competing firms standardize their products and services, the competition shifts from integrated systems to individual components?
This means that companies whose main selling point is the integrated system must change strategy to focus on the individual components of the system.
Introduction
- When dealing with international marketing one of the key points to consider is whether the product or marketing mix should be standardized or adapted to each local market. The question is one of the most debated in the international marketing literature by authors such as Levitt, Usunier and Hollensen. The focal point of this paper is the issue of ...
Teoretiske Koncepter – Standadisering Versus Adaption
- According to Levitt – the most radical of the proponents of standardization thinking – there is much in favour of a standardization strategy. In Theodore Levitt’s article from 1983, where he discusses the globalization of markets and the standardization of products and production processes, Levitt stated, “Only global companies will achieve long-term success by concentratin…
Critical Assessment
- XXXXXXX Contingency Theory: from Product and Promotion adaption in Export Ventures XXXXXXX Levite argumentation that companies can gain competitive advantage by exploiting economies of scale XXXXX Levitt, Theodore (1983), “The Globalization of Markets’, Harvard Business Review (May-June), 92-102. pp 92]. XXXXX On the one hand it is true that globalizatio…
Neither Or
- Stadardisation and adaption are two extremes in marketing. In his article Kellogg’s – internationalisation versus globalisation of the marketing mix (2001) Claudio Vignali cites Terpstra, V. and Sarathy, R. (1994) for writing that when adopting a “completely” localized marketing strategy only coincidental similarities exist. Completely standardised marketing is ide…
Konklusion Og Videre Læsning
- Konklutionen I To what extent should a consumei goods multinational corporation vary its marketing from country to countryl Konklusion • Should marketers attempt to standardize their products and marketing communications so as to minimize the costs of doing business internationally? Or should they adapt their products and messages depending on the market in …