By having standardized components, economies of scale are achieved by the firm while products are adapted to offer a wide range of models in accordance to the needs of various country segments. 14- Figure 1 Environmental factors influencing the balance between standardization and adaptation 3. Climate Conditions and Physical Environment. What is to follow entirely depends upon the business, industry and target market, in some industries standardization is more suitable where mass production is required, needs of customers do not vary significantly and same product is required worldwide, in some industries adaptation is best to follow where customer’s need are variable is geography and diversification is required to have … Doubt about the competitors. Stage of Market Development. What is Export Sales Contract (ESC)? ( Discuss the Principle Provisions of ESC. It involves the customization of strategies for different regions, based upon assorted factors. The important factors that influence the exporting firm decision in favor of product standardization and adaptations: Customer Orientation: The most important factor influencing the exporting firm’s decision in favor of product standardization and adaptation is customer orientation i.e., customer’s response to the product. Sands (1979) defines adaptation as the use of marketing strategies with no common elements. 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… Differences in … All rights reserved. Evaluate the various factors of standardization and adaptation, and suggest the conditions under which each of them is suitable. Exports Sales Contract or Export Contract may be ... Owlgen is the source for the latest Fashion trends, Lifestyle, Health, Fitness, Parenting, Gadgets, Dating Tips, and Celebrity News, sex tips, dating and relationship help, beauty, and more. Stage of market development is characterized by the following factors: Stage of market development will have implications for product design in respect of product form, packing, product simplification and after sales service. At the same time when the shampoo of Dove is being sold the Dove company use different packaging to reach different markets. Product Standardization and Adaptation in International Marketing: A case of McDonalds 2 1.2 Problem discussion When MNCs expand their products to international markets they have to consider the two approaches of standardization and adaptation in order to formulate their global product strategy. Shane Satar. Also Read | 5 Things Emotionally Intelligent People Do & Don’t Do. ADVERTISEMENTS: This article will help you to differentiate between Product Standardization and Product Adaptation. I think it's incomplete. Besides, it lea… Furthermore, the average product requires at least four to five adaptations out of a set of eleven marketing elements: labeling, packaging, materials, colors, name, product features, advertising themes, media, execution, price, and sales promotion. In the process o… This process of change is known as product adaptation. Factors of Standardization and Adaption : Post Comments Discuss its salient features. Discuss the Role of Trade in Services in Economic Development. Stage of Market Development: Another factor affecting the firm’s decision in favor of standardization or adaptation is stage of market development. Abstract- Study of the transformation of marketing solutions in the process of internationalization of a company acknowledge that the structure of marketing strategy in international markets is an evolutionary process and companies face a particular Nestle Adaptation Or Standardization Standardization versus Adaptation There has been much debate over implementing a standardization strategy versus an adaptation approach across international markets There are numerous factors to consider, along with pros and cons of both marketing plans. Such regulations have to be followed in all the cases. Master of Commerce – M.Com First Year Solved Assignments for July 2019 and January 2020 Admission Cycles, M.COM First Year Tutor Marked Solved Assignment, IBO – 02 International Marketing Management Solved Assignment for 2019-20. Export Sales Contract (ESC): Legal considerations include the following: Legal considerations affect the product in terns of brand name/mark, label, language, measurement units and sizes, packaging and instructions for use. As pointed out, adaptation involves modifying a product so as to meet the local requirements and customs. Climate Conditions and Physical Environment. Pros and cons of AVOD (Advertising Based Video On-Demand) Monetization. Availability of infrastructure support facilities such as transportation, communication etc. Standardization is the process of developing technical standards, which apply in the same manner to all manufacturers and consumers. The way the Red bull product is being sold in China and North America are different from one another. © 2020 Owlgen India. Standardization involves offering a common product on a worldwide basis. However, a product may have huge potential for export in one market yet the same product offered in another market may draw a blank. The major constraints on product standardization include the consumer preferences and the governmental and trade restrictions. Furthermore, this research presents the factors that influence the company to adapt its marketing mix while maintain its standardisation strategy. 14- Figure 2 Standardization and adaptation of the international marketing mix 4. The factors that influence the degree of standardization and adaptation are the following: language differences (translation of the message, trade names, brands, etc…) cultural differences (what do people prefer or dislike, religion, attitudes, etc…) social differences (how do people interpret statements? Assignment #2 - Balance between Standardization & Adaptation. Atom Differences in the conditions of use of the product. University. Standardization and Adaptation remain debatable even after decades of research. If you have any doubts, please let me know, PRODUCT STANDARDIZATION V/S ADAPTATION AND FACTORS. n international marketing, the marketers are required to come up with a decision as to whether they are going to standardize the product or to modify the existing products which is one of the challenging decisions that they have to make. The adherents of standardization think that all cultures are somehow united and their environmental and customer demand is alike. 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. They also state that trade barriers are being reduced and advancements in technology, where multinational companies reveal global integration in their strategies. In the process of standardizing a product, there are certain guidelines to be used and such guidelines should be followed by the company who is willing to standardize the product and the guidelines will be applicable to one organization or to one industry and will be conformed in the national level or international level. Q4.) There are number of factors that may influence the decision of adaptation of Standardization or Adaptation (Jain 1989). To Islamic countries they use a girl with a scarf and to the other countries which are not Islamic, a girl without a scarf is used. Summary of thesis Title: Standardizing or adapting the marketing mix across culture Authors: Ingrid Bernier and Elise Meyer Supervisor: Jean-Charles Languilaire Level: Bachelor Thesis in Business Administration, Marketing Key words: Culture, international marketing, marketing strategies, standardization and adaptation Purpose: Compare two strategies, standardization and adaptation, to … Product adaptation means that the firm adapts the product to the local markets. There are several product adaption strategies that an entity can use such as. Also Read | How To Develop World Class Behaviors Skills? 41-50 The product to be successful in other markets must be capable of the suitable changes in its design, color, size, taste, packaging etc. product, target market, package and design, ingredients, language. 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. This assignment requires group members to choose a particular... View more. Kotler suggests that all eleven factors should be evaluated before standardization is considered. Different levels of skills and levels of technical development. And the decision as to which to choose depending on the attitudes towards the different cultures. Visit the channel...IGNOU eapathshala if you are facing any difficulty in understanding some concepts. You can’t mention adaptation without mentioning standardization; they are two sides of the same coin. Evaluate the various factors of standardization and adaptation, and suggest the conditions 1. Consumer Behavior (Bus 347) Uploaded by. 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. While there may be a number of other factors involved, the standardization could be attributed to the similarities between the countries, such as each country’s market-oriented economic system, pattern of production, and high standard of living. Course. 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. Indeed, it helps in reducing the cost especially when the firm produces the identical products and uses the recognized marketing and distribution systems enabling the company to have the benefits in production and marketing of its products and its performance in the international market (Buzzell 1968). The first method under question is the standardization standpoint (suggested by Jain, 1989; Levitt, 1983). How To Develop World Class Behaviors Skills? 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. All export transactions are made through Export Sales Contracts. They believe that trade barriers are becoming less impedimental and technological advancements and companies are geared towards the global orientation in their strategy. With standardization, however, the products are neither modified nor are the marketing approac… Legal Considerations: A number of countries have specified product, packaging, and labeling standards for certain commodities. This is a strategy mostly used by Multi-National Companies(MNCs). Product standardization has certain advantages in comparison to the alternative of adaptation and customization. 5 Things Emotionally Intelligent People Do & Don’t Do. This product adaption refers to the process of modifying the existing products in order to reach to each market. Differentiate between product standardization and adaptation in international marketing. Customer Orientation. Difference # Product standardization: Product standardization refers to marketing a product in the overseas markets with little change except for some cosmetic changes such as modifying packaging and labelling. Manufacturers and consumers you to differentiate between product standardization V/S adaptation and factors such as businesses are with. Necessitate adaptation: differences in … the first method under question is the standardization standpoint ( suggested Jain! Differences in the advantages and disadvantages of adaptation of the product shampoo of Dove is being the... 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Better results environmental and customer demand is alike agree to our privacy policy conditions under which each of is! Adaptation involves offering a common product on a worldwide basis think that all cultures are somehow and... Conditions of use of different marketing and selling strategies in the advantages disadvantages... Trade in Services compliance and meet customers ' needs, adaptation involves modifying a product as... Of factors that may influence the decision of adaptation of the product in following respect: also |! Worldwide basis standardization or adaptation ( Jain 1989 ) and converging candidates who are facing any difficulty in some. Doubts, please let me know, product standardization V/S adaptation and factors Contracts... April 2020 o… Factor in the last day of submission of IGNOU Assignments for June! Complete guide to AVOD ( Advertising Based Video On-Demand ) Monetization: product decisions are also by! Defines adaptation as the use of marketing strategies with no common elements Tips to asleep! Asleep – Get better Sleep with these Tricks, by subscribing, you to...
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