Standardising and/or Adapting International Marketing Strategy
Each individual is to complete an essay analysing current opportunities and challenges in regard
to standardizing or adapting strategies across international marketing. The title of the essay is:
“Standardising and/or Adapting International Marketing Strategy – A Critical Review”
The essay should be divided into three parts (below) along with a very brief introduction:
1. Part 1: Each student should complete a review of the international marketing academic and industry literature on the topic of international standardisation versus adaptation and provide a critical review of the key aspects and current debates and developments. This critical review should be based on a broad reading of the relevant literature and not be specific to any one sector/industry.
2. Part 2: Each student should focus on a particular sector and critically analyse the level of standardisation versus adaptation practiced by international companies within that sector. Students may choose from sectors such as food, drink, technology, automobile, pharmaceutical, airlines, hotels etc. etc. Students should provide examples by either focusing on one international company as a single mini-case or provide a number of international companies as examples within that sector. The opportunities and challenges facing chosen company/companies within that sector in relation to standardising/adapting should be outlined. Part 2 may be longer than parts 1 and 3.
3. Part 3: Each student should provide a comprehensive set of conclusions and recommendations regarding the optimum balance that international companies within the chosen sector should try to achieve in regard to standardising and/or adapting international marketing strategies.
The assignment is to be standard format (Time New Roman 12 Pt, 1.5 spacing) and no longer than 2,100 words (excluding references/appendices etc.). A complete set of references directly cited must be supplied. Please put word count on the front of your report.
An electronic copy of the essay along with references must be submitted to Canvas by midday on Tuesday 26th March 2019.
Please note: as McDonald’s has been extensively analysed in regard to this topic, students should not select it as a case study for this assignment.
.
Module Learning Outcomes:
In this assessment the following learning outcomes will be covered:
• LO1. Critique international marketing literature, information sources and data and challenge viewpoints, ideas and concepts.
• LO2. Synthesise information from a variety of sources and perspectives to make reasoned judgements and develop a coherent understanding of theory/practice.
• LO3. Present effectively information in writing.
Grading Criteria:
Key bullet points can be applied or a grading criteria can be included or the marking rubric can be attached.
1. Addresses the Topic that was Assigned
2. Possesses a clear Argument
3. Makes good use of appropriate Evidence and Examples
4. Well Structured and Presented
5. Appropriate use of relevant Literature and Sources
6. Level of Critical Analysis
7. Well-founded Conclusions and Recommendations
Note: All Criteria above are equally weighted
STANDARDIZING and ADOPTING INTERNATIONAL MARKETING STRATEGY – A CRITICAL REVIEW
By
Course Name
Professor’s Name
University
City, State
Date of Submission
Standardizing and Adopting International Marketing Strategy – A Critical Review
Standardization in international marketing can be defined as the ability of an organization to use a standard marketing strategy in different countries. It is mostly a powerful tool where the product that is being marketed as the same appeal globally. It carries various advantages and disadvantages. On the other hand, adaptation in international marketing refers to a situation where various aspects of a certain product or service are changed to satisfy the needs of consumers in the international markets about their differences (Rao-Nicholson & Khan 2017, p. 150). This essay will present a critical review of standardization and adaptation in international marketing in the modern world as well as the advantages and disadvantages of each. The level of standardization versus adaptation in real-life organizations will also be explored, and conclusions on the standardization versus adaption issue will be drawn.
Standardization versus Adaptation
Globalization has opened up vast opportunities for modern-day businesses. Today, organizations can enter foreign markets, which can, in turn, lead to the maximization of revenues. However, to enter and operate in foreign markets successfully, an organization must design and implement an international market expansion strategy (Ashford & Hall 2018, p. 330). This involves, among other things, the decisions on the global branding initiatives to be undertaken as well as the market entry strategies. Various market entry strategies such as exporting, wholly-owned subsidiaries, licensing, and formation of joint-ventures can be used. Most importantly, an organization must decide on the level of standardization or adaptation of its products in the new market (Moorman & Day 2016, p. 30). This decision is a critical success factor that has the potential to directly impact the success of the organization in the foreign market. It also has a direct implication on the level of customer satisfaction, market share, sales, profits, as well as composite performance (Eisend 2015, p. 2).
As mentioned earlier, standardization incorporates using the same marketing strategy across all the markets served by the organization. This involves offering the range of products, at the same prices, and using the same locational and promotional strategies. The concept of standardization is pegged on the need to homogenize the consumer wants to intensify the forces of globalization. Standardization is also preferred since it can allow an organization to focus on its core competitive advantage (Gomes et al. 2017). The degree of standardization or adaptation adopted by an organization depends on various antecedent factors arising both internally and externally. External factors include market characteristics, environmental factors, competition, customer issues, as well as the state of the product and the industry. Managerial and organizational factors form the bulk of the internal factors. Organizational factors include the organizational culture, the level of international experience, and type of ownership of the business. Managerial factors include the style of making decisions regarding various matters that affect the organization (Josephson et al. 2016, p. 550). The level of standardization adopted should also be considerate of every aspect of the marketing mix; product, place, price, and promotion.
Standardization has several advantages for an organization. Most importantly, it offers the advantage of economies of scale when buying. Besides, the organization can also enjoy the cost advantages that come with the replication of store designs and similar marketing techniques across all the markets. Generally, standardization helps an organization cut on costs since the organization does not have to cater to special marketing in each of the markets. It also leads to a positive synergetic effect due to the global uniformity of the organization’s processes and brand. Therefore, standardization helps create a strong brand capable of having similar effects in any part of the world (Liu et al. 2016, p. 360).
Varying levels of sensibility across different countries is the major challenge facing standardization. A certain product may be appreciated in a certain market, but disliked in another market. For instance, while a car may be viewed as a normal product in the developed world, the same is viewed as a luxury in developing countries. Moreover, while sensual advertisements do well in some countries, rational and conservative messages are preferred in other countries. Such challenges might force an organization to come up with more customizable marketing strategies while entering new markets. Incorporating the unique aspects of a certain culture into a product or service can improve the appeal of the product in a particular country. However, standardization neglects such aspects and hence may not fully exploit the new markets. Standardization also limits the flexibility of the organization in the new markets (Rao-Nicholson & Khan 2017).
On the other hand, the adaptation strategy allows the organization to meet the needs at the different markets at different levels. This way, adaptation leads to higher customer satisfaction as compared to standardization. When the adaptation strategy is chosen before an organization enters a new market, the differences existing in the various markets are addressed during the product development stage. This ensures that the differences in customer needs and wants are accommodated effectively. Customers are attracted more to products that are designed to suit their specific needs. This strategy also offers the organization the flexibility to respond to changes within local markets in a more rapid manner. Other than the differing customer needs, different government legislation and conditions can inform the adoption of an adaptation strategy (Mooij 2018).
However, the strategy is also associated with various drawbacks. It is more capital incentive as compared to the standardization strategy. It also eliminates the advantages that could have otherwise been accrued using economies of scale. It also calls for extensive research into the culture of the targeted market, which could delay the entry. When implemented at an extreme scale, it can cause disparity of the organization’s image (Rao-Nicholson & Khan 2017).
Standardization versus Adaptation in the Beverage Industry
The Coca-Cola Company is one of the biggest players in the beverage industry. This paper will use the company to explore standardization and adaptation in the industry. The company operates in more than 200 countries around the world. Notably, the company has to cater to a wide range of markets characterized by different needs and preferences. Though the company has largely been successful, it has struggled to maintain its market share in the face of competition from rivals such as Pepsi, especially in the Asian market. This study will seek to find out how the company has managed to serve the diverse global market without compromising its revenues or its brand.
Looking at its history, it is evident that the company has shifted from one strategy to the ...