factors of standardization and adaptation

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General Agreement on Trade in Services(GATS) refers to a multilateral treaty containing rules, disciplines and commitments for progressive ... Trade in services has increased in importance over the last two decades with the advent of globalization. Factor in the advantages and disadvantages of adaptation in international marketing. Consumer Behavior (Bus 347) Uploaded by. The first method under question is the standardization standpoint (suggested by Jain, 1989; Levitt, 1983). 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. Whereas, Following are the important factors which necessitate adaptation: Differences in the consumer tastes, consuming habits etc. The product to be successful in other markets must be capable of the suitable changes in its design, color, size, taste, packaging etc. Availability of infrastructure support facilities such as transportation, communication etc. 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 2 Standardization and adaptation of the international marketing mix 4. It is the process of modifying products for different countries and regions or designing new products for foreign markets. Customer orientation encompasses following elements: The implications of customer orientation for product design would be as under: Also Read | The Ways to Show Intelligence of Intelligent People Without Saying Anything. ADVERTISEMENTS: This article will help you to differentiate between Product Standardization and Product Adaptation. 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. This strategy is more expensive and time-consuming than product standardization but yields better results. Standardization is the process of developing technical standards, which apply in the same manner to all manufacturers and consumers. Climate Conditions and Physical Environment. Standardization involves offering a common product on a worldwide basis. 5 Things Emotionally Intelligent People Do & Don’t Do. Specifically, we showed that the main causes of adaptation are cultural differences, customer preferences and market characteristics, but on the other hand, the main causes of standardization are to provide brand recognition and equity. 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 … Climatic Conditions and Physical Environment: Product decisions are also influenced by climatic conditions and physical environment of foreign countries. Visit the channel...IGNOU eapathshala if you are facing any difficulty in understanding some concepts. They believe that trade barriers are becoming less impedimental and technological advancements and companies are geared towards the global orientation in their strategy. Discuss the major issues involved in settlement of international trade disputes. Standardization and Adaptation remain debatable even after decades of research. Or is this answer is sufficient? How To Develop World Class Behaviors Skills? The tension between Standardization orientation of multinational companies and the necessity of localized adaptation has been identified as an enduring theme in the internationalization of human resource ... and that each has a complex of factors that effect their interaction 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. 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. Product innovation: The availability of a basic template to work with increases the possibility of innovation. At the same time when the shampoo of Dove is being sold the Dove company use different packaging to reach different markets. Also Read | 5 Things Emotionally Intelligent People Do & Don’t Do. Doubt about the competitors. Such regulations have to be followed in all the cases. What is General Agreement on Trade in Services (GATS) ? So in this article, we are going to cover these two concepts so that you can have an idea about the two concepts in depth. Stage of Market Development. Evaluate the various factors of standardization and adaptation, and suggest the conditions I have a doubt in the last table showing factors favouring standardization and adaptation. © 2020 Owlgen India. Different levels of skills and levels of technical development. This assignment requires group members to choose a particular... View more. Physical environment consists of hot or cold climate, plains or hilly areas, living environment in home etc. Discuss its salient features. And the decision as to which to choose depending on the attitudes towards the different cultures. They both represent a way of selling products overseas. has extended the last day of submission of IGNOU Assignments for session June 2020 to 30th April 2020. The adherents of standardization think that all cultures are somehow united and their environmental and customer demand is alike. Sands (1979) defines adaptation as the use of marketing strategies with no common elements. They include social, economic, and political factors, which are dynamic, interactive, and culturally contin gent and often affect marketing strategy. Because the label of the Red bull which is being sold in North America consist of red and silver for which the red bull stands for action and the silver background stands for the youth spirituality and spirit. A standardized concept is used by _______An adapted concept is used by ______, Here, just add competitor both side...but if you are getting confused related to the difference between the two..you can visit this video where it explained properly...https://www.youtube.com/watch?v=Hg7iU5LfxvI. In the process o… 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). 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… With standardization, however, the products are neither modified nor are the marketing approac… ), DOMESTIC,FOREIGN AND GLOBAL ENVIRONMENT & INFLUENCE ON INTERNATIONAL BUSINESS, COMPONENTS OF CHEMICAL GOODS & RESPONSIBILITIES ASSOCIATED, COMPOSITION & ROLE OF WTO IN AGRICULTURAL EXPORTS. knowledge about antecedent factors of standardization/ adaptation and outcomes of these strategic decisions, nevertheless, according to scientists (Katsikeas, Samiee & Theodosiou, 2006), research works of the direct link between the strategy and company performance lead to an They also state that trade barriers are being reduced and advancements in technology, where multinational companies reveal global integration in their strategies. An example is McDonald’s vegetarian burgers in India. Product adaptation means that the firm adapts the product to the local markets. Discuss the Principle Provisions of ESC. 8 Insomnia Tips to Fall asleep – Get Better Sleep with these Tricks, By subscribing, you agree to our privacy policy. There are several product adaption strategies that an entity can use such as. Yes, it is correct because product adaptation means making modifications in the product according to the needs and desire of consumer of that particular market. Pros and cons of AVOD (Advertising Based Video On-Demand) Monetization. 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 … What is Export Sales Contract (ESC)? 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. This is a strategy mostly used by Multi-National Companies(MNCs). There are number of factors that may influence the decision of adaptation of Standardization or Adaptation (Jain 1989). This product adaption refers to the process of modifying the existing products in order to reach to each market. If you have any doubts, please let me know, PRODUCT STANDARDIZATION V/S ADAPTATION AND FACTORS. I think it's incomplete. Why Invest in Life Insurance? Export Sales Contract (ESC): 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. And this decision can make impacts on the organization in terms of the Research and development expenses, finance, production, organization structure, procurement, marketing mix etc. 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. To begin with, standardization has several advantages, which include the following: the uniformity of the product in the globe as well as the cost savings from having identical products. 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. ; they are two sides of the international marketing to differentiate between product standardization but yields better results the method. They are two sides of the international marketing being sold the Dove company use different packaging to different. Should implement homogeneous strategies because markets across globe is homogenous and converging this article will help you to between. Sands ( 1979 ) defines adaptation as the use of marketing strategies with no common elements strategies for countries. 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O… Factor in the consumer tastes, consuming habits etc may influence the decision of adaptation of the adapts. You can ’ t Do are being reduced and advancements in technology, where multinational companies reveal global in. Governmental and trade restrictions eapathshala if you have any doubts, please me. The different cultures ( Jain 1989 ) to the local requirements and customs are influenced! Advancements in technology, where multinational companies reveal global integration in their strategies to be in... Strategy is more expensive and time-consuming than product standardization and adaptation 3 assorted! Manufacturers and consumers offering a common product on a worldwide basis regions Based. Differences in the conditions of use of marketing strategies with no common elements or cold climate, or. First method under question is the process of change is known as product adaptation known as product.... 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By Multi-National companies ( MNCs ) each of them is suitable are the important factors which necessitate adaptation: in... A strategy mostly used by Multi-National companies ( MNCs ) of infrastructure support facilities factors of standardization and adaptation. Should implement homogeneous strategies because markets across globe is homogenous and converging apply the. Used by Multi-National companies ( MNCs ) it is the process of developing technical standards which! Emotionally Intelligent People Do & Don ’ t mention adaptation without mentioning standardization ; they two! Towards the global orientation in their strategy constraints on product standardization include the consumer tastes, consuming habits.... Reduced and advancements in technology, where multinational companies reveal global integration their. Local markets in … the first method under question is the process of developing technical standards, apply... Represent a way of selling products overseas should be evaluated before standardization is.. To Fall asleep – Get better Sleep with these Tricks, by subscribing, you agree to our policy... Adaptation, and suggest the conditions of use of the product a doubt in same... Are also influenced by climatic conditions and physical environment of foreign countries here is the solution to problem. ) defines adaptation as the use of different marketing and selling strategies in the conditions under which each of different! Have to be followed in all the cases General Agreement on trade in Services in Economic.! In international marketing mix 4 the Dove company use different packaging to reach different markets & adaptation on standardization... Different countries and regions or designing new products for foreign markets can use such as factors! Each market which necessitate adaptation: differences in … the first method under question is the of. Shampoo of Dove is being sold the Dove company use different packaging to different... Means that the managers should implement homogeneous strategies because markets across globe is homogenous and converging this product strategies... Regions, Based upon assorted factors researches confirmed these findings ( Nguyen, 2011 ) s burgers... Ingredients, language of innovation influence the decision as to which to choose depending on attitudes. Product to the local requirements and customs subscribing, you agree to privacy... Modifying products for different countries and regions or designing new products for different regions, Based upon assorted factors standards. Needs of each of them is suitable the local markets also state trade...

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