Adaptive marketing is an approach that enables marketers to tailor their activities in unparalleled ways to meet their customers’ interests and needs based on … The research object. An example of a major corporation that has been able to demonstrate the benefits of both adaptation and standardization strategy is McDonald’s. A product may have to be adapted in a number of ways to meet the physical, social or mandatory requirements of a new market. There … As well as taking into account traditional price considerations such as fixed and variable costs, competition and target groups (click here for further information about marketing mix pricing) an organisation needs to consider additional factor such as Schilke, O., Reimann, M., & Thomas, J. Thesis in Marketing, 15 ECTS credits Final seminar: 25.05.2010 Authors : Elise MEYER (890511) Ingrid BERNIER (901218) Supervisor: Jean-Charles LANGUILAIRE Examiner: Roger STRÖM
International marketers are taking these opportunities to go global, and that actually gives them competitive advantage in foreign land (Helsen, 2011). To help your employees stay and be more excited to proceed with the new High performance team base environment that Hytec, Inc is entering, we recommend to implementing a gain sharing system. Promotions and Discounts. Vignali, C. 2001. Aforementioned, different international markets mean different consumer’s preferences. Example of companies using this strategyis IKEA. Rather, they should initiate market research and establish their customers, and their wants and needs. Journal of Asia-Pacific Business, 9(4), pp.344-357. Global marketing. In global marketing, a company will (generally) maintain one … Hello Bobby. Adaptation of product is a process or strategy of adapting or tailoring an otherwise standardized product or service offering to meet the needs and preferences of a particular market or set of consumers, where such markets and consumers are typically examined and managed within an international marketing context. Other benefits linked to economies of scale consist of reduced investment costs, marketing operational costs, and enhanced research and development. However, academics support the notion that adaptation is essential to prosper in global markets.3 And in the instance of advertising to China, the necessity for adaption is ever present. Or you could be dealing with more complex perspectives - cultural traditions,… In such cases, it is possible that the brand name corresponds to an unflattering nature or a brand …
Standardization Versus Adaptation in Global Markets: Is Channel Strategy Different? Ethnocentric Model
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. 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. (2017) Standardization versus adaptation of global marketing strategies in emerging market cross-border acquisitions. Followers of standardized strategy state that the international market has become homogenized and thus, these firms can market their commodities similarly across the globe. Adopter Categories In the adoption process developed by Everett Rogers, a typology of buyers at different stages of the “adoption” or product life cycle. The categories are innovators, early majority, late majority, and laggards. In addition, they state that standardization will be effective when the customer response homogeneity and the level of sameness in economic freedom are higher, with easily transferable competitive advantages. Whatever might be the strategy followed, pricing has to reflect the proper value in the eyes of the consumer wherever they are situated. When an international company puts forth all its efforts of the extreme side of either strategy, it normally becomes incoherent and unfeasible.
Hello, great write up. Problem Solving Decision Making Supply Demand. Product adaptation - involves adjustment of the product and its properties to the conditions prevailing on the par… Among them is Deere & Company whose agriculture and construction equipment is exported and used around the world.
An international marketing approach requires intimate knowledge of the country that is being marketed to. Gain sharing is where the business agrees to share the company profits with its employees on the basics of the level of contribution to the gain of the overall profits. In such cases, similar product may be sold across all markets. Summary of thesis
For the past three years that the company has been conducting a companywide employment survey, employee stratification in respect to pay has been decreasing. Journal of International Marketing, 17(4), pp. Apple retail stores are only present in 35 of those countries, with Apple product presence in other parts of the world being represented by third parties. There are organisations that support standardisation while some of the organizations support adapting to the business environment in building a competitive edge. As a result, various research studies have been done on whether companies need to standardize or adapt certain behaviours in international market. Adaptation allows a company to individualize its marketing strategies and optimize itself for success in international markets. The authors conceptualize that adaptation of a marketing-mix component is a purposeful process that is influenced by a firm’s past adaptation strategy, and they investigate the importance of that marketing … 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. So Nike should follow this strategy in future and try to remain dominant over its rivals through the marketing strategy. This concept means making one global product in the belief the same product can be sold across markets without significant modification. Nevertheless, standardization poses a range of shortcomings. oatmeal), provided consumers are highly health conscious. Such marketing strategies have proven to be efficient, showed by the company’s 8% increase in profit margins within the last five years. For such a case, adaptation is predetermined. Taking a business into international market and successfully selling its products and services can attract a range of challenges. 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. Product adaptation is the process where a company setting their brand as international brand and entering into an international market, so in order to meet various standards of the international customers they have to basically adapt the product with respect to individual or regional market. Did you find any useful knowledge relating to the impact of standardization and adaptation on International Marketing in this post? Product standardization - company introduces unchanged product on the foreign market. Adaptation versus standardization in international marketing – the country-of-origin effect. 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