adaptation vs standardization in international marketing

Mail and Telephone Surveys: The Total Design Method, of country of origin and the 'Made in the USA'. Destination Effects in Buyer Decision Making”. This coding process was, an essential step in preparing data for computer, Questionnaires were posted to marketing directors, and they were kept anonymous. This will, increase the understanding and knowledge of the, integrated approach and develop new theory to aid, marketing practitioners compete effectively and, efficiently within the highly competitive interna-. Essay on Standardization Versus Adaptation in International Marketing The most challenging decision that a company may face in internationalization is the degree of standardization or adaptation in its operations. ics as well as differences in taste, needs and wants, economics and legal systems. Relationshi, 1. Fur-, thermore, the authors suggested that clothing retail-, ers should be cautious in using patriotic themes in, promotion since their effectiveness need not neces-. British Retail Managers view French and Am. perspective underrepresented. 13-24. Further, the focus is predominantly on Western The findings are extrapolated and ultimately in, Multinational companies (companies that compete in, more than one country), in their aim to develop their, business practices, increase profitability and overcome, any problems related with the saturation of exis. These authors believe that standardization and adaptation is not an all-or nothing proposition, instead it … “Standardization/Adaption of Marketing Solutions in Companies Operating in Foreign Markets: An Integrated Approach,” Engineering Economics, 2008 No 1 (56) “Standardization of International Marketing Strategy by Firms from a Developing Country,” International Marketing Review, Vol. This will increase the understanding and knowledge, of the integrated approach and develop models to, guide multinational companies compete effectiv, arena. from the USA, Japan and Germany. Of the two aspects relating to standardization of marketing strategy across national markets—(1) standardization of the pattern of resource allocation across marketing mix variables integral to a business's marketing strategy and (2) standardization of the strategy content with respect to individual marketing mix variables—the latter has been the subject of numerous conceptual articles. These are combined and comprehensively, presented in Figure 2 (see Appendix), along with the, relationship between reasons and factors, and their, The recurrent theme in international marketing in, whether companies should aim for a standardized or, country-tailored marketing approach is very much, debated in the academic literature and is a concern, for every multinational company and marketing, practitioner. origin, etc.) characteristics (Eroglu and Machleit, 1988). As they argue, standardization of the mar-, keting mix elements and the creation of a single strat-, egy for the entire global market promise lower costs as, Levitt (1983) argues that well-managed companies, have moved from emphasis on customizing items to, offering globally standardized products that are, advanced, functional, reliable and low priced. That year Germany, lost in the First World War. The adaptation strategy stresses that differences between countries are still to great (e.g. These actors act based on organizational routines. Thus, McDonald’s is able to achieve advantages of both, standardisation and adaptation strategies in global marketplace. The early sixties first coined the term, ‘global village’ that was further discussed by Roostal, (1963) and Fatt (1964). 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. and ways in determining the right level of integration. Again, comparing the statements of inter-, viewees it is apparent that multinational companies, are aware of the benefits associated with global, standardization. Schooler concluded further attitudes and, used this study to support the hypothesis of the in-, fluence of country-of-origin image on consumers’, perception of product quality and to deduce some, evidence of socio-demographic differences among, consumers regarding the importance of country-of-, Gaedeke tried to examine the opinion of US con-, sumers towards imported products from different, developing countries and the USA. the hypothesis (objective 1) of this research. Placing this in the context, of apparel, a hypothesis may be formed that when, consumers are not familiar with apparel from a par-, ticular country, their perception of the product will be, influenced by the total of beliefs regarding that coun-, In the first recorded research ever into country-of-, origin image, Schooler (1965) proved that there was, an influence of country-of-origin image on consum-. We explore factors, as well as Furthermore, the comprehensive approach that includes the country-, of-origin effect, allows a more realistic incorporation, of the vital marketing element of consumer percepti, The model arms international companies not only with, a mechanism for theoretical comprehensions but also, with an adaptable practical tool for planning and im-. (1998) conducted research to de-, termine if young trend setters and fashion follow-, ers differed in their attitudes depending on prod-, ucts being imported or domestic (the USA). The literature in IM education also presents a confrontation between two mainstream perspectives, ... Fourth, the concepts "standardization" and "adaptation" in relation to the global services economy have also been seldom discussed within IM education. This is illus-, umn of the table represents the level of impor-, It was identified that the most important reasons driv-, ing UK multinational companies towards intern, tional tactical adaptation are culture, market devel-, differences in customer perceptions. According to the model, the degree of standardisation or adaptation is impacted by antecedent factors which have external and internal characteristics. Results from a sample of 100 exporting firms support a 4-dimensional scale -product, promotion, price and distribution strategies - of 30 items. The company opened its theme park in Hong Kong in 2005 applying standardisation strategy to a great extent, through duplication of its theme parks in California and Paris. The contingency strategy claims that firms neither fully standardize nor adapt, but apply a combination of both, ... At one extreme of the spectrum, the heterogeneity among different countries does not allow full standardization of the marketing-mix. The r. four reasons researched were of less importance. Economic, Cultural an Attitudinal Analysis with Particular References to UK Suppliers”, PhD Thesis, University. 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. different types of products from different countries. 22, Issue 1, 2013, Korotkov, N., Occhiocupo, N. & Simkin, L. (2013) “Simulated test marketing in emerging markets: the need to re-think” Marketing Intelligence & Planning Vol.31, Issue 7, 2013, Mitchell, R., Hutchinson, K. & Bishop, S. (2012) “Interpretation of the retail brand: an SME perspective” International Journal of Retail & Distribution Management, Vol.40, Issue 2, 2012, Perlmutter, H.V. This is followed by critical analysis of adaptation strategy as an effective customer-orientation strategy by referring to relevant real-life business case studies. The strategy of adaptation allows global businesses to respond to changes in local marketplace in rapid manner. This article will help you to differentiate between Product Standardization and Product Adaptation. However, it is acknowledged and, impractical. The results of the, study demonstrated that contrary to previous find-, ings, the effect of country-of-origin was relatively, small both before and after the launching of that, campaign. This research identified that both adaptation and standardisation are used at the same time. Not surprisingly, concept mapping reveals broad diversity among the topics covered in IM, most notably related to macro-environmental influences such as culture, the international environment and fundamental aspects related to marketing strategy. As pointed out, adaptation involves modifying a product so as to meet the local requirements and customs. The impact of COM information on consumer perceptions of product quality, price and risk level are also presented. K., Mitchell A., Cummins, F., Wingrove, C.. , Vol. The question is addressed by examining whether competitive strategy and industry structure variables affect market share and business profits similarly or dissimilarly across Western markets, that is, the U.S., U.K., Canada, and Western Europe. (2013) illustrate advantages of adaptation strategy at psychological level. The drawbacks include potentially alienating consumers Recognizing the knowledge-intensive nature of online business, information is managed with the intention of delivering unique customer experience. The, study showed that American consumers were neutral, towards French fashion merchandize, that no differ-, ences existed among the males’ and females’ opin-, ions and that more educated consumers are more in. The, study showed that they were most apprehensive. Export Management Product adaptations (also called differentiation or localization or customization) come in several forms. The global corporation operates, with resolute constancy – at low relative cost – as if, the entire world was a single entity; it sells the same, things in the same way everywhere. 23, Consumer Psychology, pp. Organisational factors relate to organisational culture, type of ownership, the degree of international experience and the share of revenue from international markets (Theodosiou and Leonidou, 2003). The literature on international marketing presents a confrontation between two mainstream schools of thought regarding international marketing. Advertising through digital channels—known as Digital Marketing—is recognized for its transformative impact on companies and for its immense effect on brand–consumer relationships, as it enables interactions with customers at any time and in any place. It aimed to, search on multinational companies’ tactical level of, adaptation and standardization when crossing national, borders. Soon it became a sign of quality.’ As, early as 1962 researchers stated that “made-in”, as a, fifth element of the marketing mix, can have a, tremendous influence on the acceptance and success, of a product over and above the specific advertising, and marketing techniques used’ (Dichter, 1962). It focuses on an issue that has not been addressed from the point of view of the producers of wine. Kaynak et al. Self-administered questionnaires are, completed by respondents. 155-199. essing the Impact of Country-of-Origin on Product Evalua-. Standardisation involves using “the same range of products, the same pricing, promotional and location strategies” (Gupta and Randhawa, 2008, p.77). Nous nous interrogeons sur les stratégies de traduction (adaptation, localisation et culturalisation) des sites web touristiques d’une part et, d’autre part, sur les facteurs (inter)culturels qui régissent ce besoin de les adapter aux visiteurs. A Critical Review of Project Management Standardisation” International Journal of Managing Projects in Business, Vol.5, Issue 3, 2012, Kinard, B.R., Capella, M.L. the international adaptation approach, who react, directly to the sweeping and somewhat polemic, character of their argumentation. Customisation is an international marketing strategy based on the idea that due to culture and other differences within countries, marketing should be tailored specifically to a country. in almost all previous researches (Smith, 1993). The conclusions are that the effect has a, universal and diachronic existence, though its mani-, festation into actual consumer attitudes and prefer-, ences varies considerably. In some cases, global businesses pursuing adaptation strategy may even initiate changes in certain markets, therefore deriving first-mover advantages (Kinard et al., 2013). The study findings provide insights into both the merits of standardizing the strategic resource mix across Western markets and the competitive strategy and market structure variables that are major explanators of business performance across Western markets. The one supports the standardization approach and argues that multinational companies' behavior should be uniform to minimize total costs and promote a global corporate image. tional Marketing Strategy: An Empirical Investigation”, Presented at the annual conference of Association for. Country-of-origin may be classified as an, extrinsic cue since the ‘made in’ label can be re-, moved from a product without altering its physical. They both represent a way of selling products overseas. are standardized/transferred and those that are adapted. Compromise between standardisation vs. adaptation argument can be achieved in a way that standardisation can be applied in order to develop global marketing strategies in general, at the same time when applying adaptation to address unique aspects of local markets. This research investigates companies' practical level of adaptation and standardization in international markets. This confus, The debate over the amount or extent of standardisa-, tion or adaptation is of long duration. RÉSUMÉ L’introduction des sites Web a largement influencé la communication et l’image des villes touristiques. A theoretical model is developed based on the findings. Standardisation critics argue that its application diminishes the levels of flexibility of the business in new markets. consumers’ perception of product quality. From Policy Document to Implementation: Organizational Routines as Possible Barriers to Mainstreamin... Culture Metadata – A tool for the internationalization of e-Learning. Factors influencing firms’ standardization and adaptations decisions tend to be treated as static isolated entities in the extant literature. This argument can be justified by mentioning the case study of Disneyland Co. Moreover, Schmidt et. The results indi-, cated the ethnocentrism of Canadian consumers and, supported the stereotype regarding the quality of, Italian products and the risk involved with Eastern. The effect of country-of-origin labelling on consumers' as sessments of product quality, risk to purchase, perceived value and likelihood of purchasing was tested experimen tally in a multi-product, multi-cue setting. It is argued that standardization and adaptation are, not an all-or nothing proposition but a matter of, degree. © Demetris Vrontis, Alkis Thrassou, 2007. the process. The strategies that have been most effective involve including the community in the marketing process, prioritizing relationships, segmenting customers geographically, educating customers about products, using local distribution partners and having a flexible approach to strategy adaptation. international marketing-mix standardization and international performance using the pro cedures that Borenstein et al. literature. However, it is acknowledged that theory that, seeks to integrate both concepts is limited, offering, and the necessity of developing new theory to cap-, It is apparent that the debate on whether multination, marketing behaviour is contradicting. Analysis of Choice Processes”, in: Finlay, American Psychological Association Division. Stereotypes 4. 2. The other argues f, al markets. Standardization vs. In other words, because there are no or minor differences in marketing communication strategy due to the use of standardisation approach, the same set of tools can be utilised to assess the levels of effectiveness of marketing strategy in relation to each geographical market segment with positive implications on the levels of cost effectiveness. Supporters of this, approach believe that multinational companies, should have to find out how they must adjust an, entire marketing strategy and, including how they, sell, distribute it, in order to fit new market de-, mands. Products’ image, is created, products, country-of-origin being one of them. , Vol. Primary re-, search, described in more detail below, was collected, by a questionnaire survey. Factors affecting program standardization are examined critically. However, a confi-, dential ID (identity) number allocated to different, companies was added at the back of every question-, The administration of the actual questionnaire was, very important. ( 2009 ) implemented. In order to stimulate change in organizational routines, the focus should be on reflecting on existing routines, legitimacy building and learning. The adherents of standardization think that all cultures are somehow united and their environmental and customer demand is alike. However, standardisation can be associated with certain disadvantages. When companies’ approach can fall. (1969) “The Tortous Evolution of the Multinational Corporation” Columbia Journal of World Business” Vol.4, Issue: 1, 1969, Poulis, K. & Poulis, E. (2013) “The influence of intra-national cultural heterogeneity on product standardisation and adaptation: A qualitative study” International Marketing Review ,Vol.6, Issue 3, 2013, Schmidt, S.O., Tyler, K. & Brennan, R. (2007) “adaptation in inter-firm relationships: classification, motivation, calculation” Journal of Services Marketing, Vol.21, Issue 7, 2007, Schumpeter, J. Research shows that in the global marketplace, individuals from different cultures rely on different typologies of information for making shopping decisions. Their results showed that in this particular case there, occurred no country-of-origin effects. micro-evident in the situation analysis. The study indicated considerable differentia-, tion in the perception of quality, technical advance-, ment and price, and further indicated demographic, trends of perception. 1 Standardization versus adaptation of global marketing strategies in emerging market cross-border acquisitions Rekha Rao-Nicholson Bristol Business School University of the West of England Bristol, UK rekha.nicholson@uwe.ac 16, No. Therefore, this study identified nine factors, (and their influencing elements) that were found to, have a profound influence on international tactical, behavior and are described as critical in identifying, the level of tactical integration in relation to interna-, tional adaptation and standardization. (2003) and Kanso and Nelson (2002), highlight the importance and necessity of both adap-, tation and standardization and support the argumen-, tation that both concepts should be used simultane-, ously. (1980) investigated the product, images of American, French and British products, among British retail managers. The central conclusion that stems from this analysis is that the decision whether to standardize or adapt the marketing strategy to achieve superior business performance will largely depend on the set of circumstances that a firm is confronted by within a particular foreign market at a specific period of time. and, to some extent, confusing findings attributable to inappropriate conceptualizations, inadequate research designs, and weak analytical techniques. This, indicates a response rate of 24.8%, which was suffi-, cient for statistical analysis to continue, Research results illustrated that UK multinational, companies use both adaptation and standardization, across their marketing mix elements. 11-23. Consequently, when crossing bor-, ders, UK multinational companies standardize a, number of marketing tactics. According to Levitt (1983) the globalization of, markets is at hand. Extended marketing mix also comprises people, process and physical environment along with its four core components mentioned above. Country-of- origin information was found to be more important in affect ing product quality assessments than were price and brand information. Once more, the study re-, sults showed that country-of-origin also plays a, decisive part in consumers’ perception of product. It follows there is a linkage between the choices made in relation to these organizational practices and the firm's coordination and control systems since the latter determine the degree to which the former is transferred in response to the host country environment. & Lamprianou, I, (2009) “International Marketing Adaptation versus Standardisation of Multinational Companies” International Marketing Review, Vol. & Bonner, G. (2013) “Old pricing effects: an examination using adaptation-level theory” Journal of Product & Brand Management, Vol. When a company decides to begin marketing products will chose which fundamental strategic would be used: a standardized marketing mix (product, price, place, promotion, people, physical evidence, process management) and a single marketing strategy in all countries or whether to adjust itself and the marketing mix in other to fit to each local market, ... En effet, le degré de standardisation ou d'adaptation d'un site web international, ou encore d'une publicité, par exemple, dépend notamment de paramètres commerciaux, à savoir du type de produit ou de service ; du produit ou service à faible ou à forte implication ; du positionnement du produit ou du service ; de l'importance du pays d'origine ; des caractéristiques des marchés de l'entreprise (culture, contexte socioéconomique, environnement juridique, etc.). provided proof for it when, they conducted a multidimensional research into car, properties (price, safety, horse-power, country-of-. The study was based on 55 students at the, University of Maryland where the respondents were, asked to assess the importance of the attributes of, style, cut, fabric quality, content, price and brand, when deciding to purchase apparel. Moreover, learning the specifications of local culture in order to integrate this knowledge to the elements of marketing mix can prove to be a costly initiative.

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