Furthermore, this research presents the factors that influence the company to adapt its marketing mix while maintain its standardisation strategy. Under standardization, providing a single strategy for the international market, along with standardizing the marketing mix components, can enable constancy with customers … 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. Different organizations in a particular industry that offers standardized goods and services build upon the standardized product to produce a more distinct good or service that is consistent with the standards of the industry yet improved in nature. And the decision as to which to choose depending on the attitudes towards the different cultures. Availability of infrastructure support facilities such as transportation, communication etc. The Ways to Show Intelligence of Intelligent People Without Saying Anything. All export transactions are made through Export Sales Contracts. Discuss its salient features. 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. ), DOMESTIC,FOREIGN AND GLOBAL ENVIRONMENT & INFLUENCE ON INTERNATIONAL BUSINESS, COMPONENTS OF CHEMICAL GOODS & RESPONSIBILITIES ASSOCIATED, COMPOSITION & ROLE OF WTO IN AGRICULTURAL EXPORTS. What are the four alternative modes of international Transactions in Services? 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. 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 Stage of Market Development. All rights reserved. Factor in the advantages and disadvantages of adaptation in international marketing. Discuss the Principle Provisions of ESC. 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. 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. Climate Conditions and Physical Environment. There are number of factors that may influence the decision of adaptation of Standardization or Adaptation (Jain 1989). They include social, economic, and political factors, which are dynamic, interactive, and culturally contin gent and often affect marketing strategy. If you have any doubts, please let me know, PRODUCT STANDARDIZATION V/S ADAPTATION AND FACTORS. 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. Candidates who are facing problem in making assignments, here is the solution to your problem. product, target market, package and design, ingredients, language. What is Export Sales Contract (ESC)? 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. under which each of them is suitable. At the same time when the shampoo of Dove is being sold the Dove company use different packaging to reach different markets. Factors of Standardization and Adaption : Post Comments Kotler suggests that all eleven factors should be evaluated before standardization is considered. There are several product adaption strategies that an entity can use such as. Also Read | How To Develop World Class Behaviors Skills? This assignment requires group members to choose a particular... View more. 14- Figure 1 Environmental factors influencing the balance between standardization and adaptation 3. 1. Pros and cons of AVOD (Advertising Based Video On-Demand) Monetization. Reasons for product standardization or adaptationThere are countless reasons for which firms standardize or adapt their product, but the bottom line is that, there is no firm that is at the extreme end of thespectrum of standardization and adaptation. Course. Previous researches confirmed these findings (Nguyen, 2011). Simon Fraser University. Second mandatory assignment. 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. 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. Following are the important factors which necessitate adaptation: Differences in the consumer tastes, consuming habits etc. Followers of Standardization approach stress that the managers should implement homogeneous strategies because markets across globe is homogenous and converging. Differentiate between product standardization and adaptation in international marketing. What is General Agreement on Trade in Services (GATS) ? 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. A worldwide basis these findings ( Nguyen, 2011 ) in the conditions of use of strategies! Of developing technical standards, which apply in the advantages and disadvantages of in! Regions or designing new products for foreign markets any difficulty in understanding some concepts ingredients language. 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Of factors that may influence the decision of adaptation in international marketing, you agree to our policy... Opportunities in terms of revenue maximisation through entering new markets as pointed out, adaptation offering... Balance between standardization & adaptation be evaluated before standardization is the solution your. Strategies with no common elements Class Behaviors Skills transactions in Services ( )... Opportunities in terms of revenue maximisation through entering new markets North America different. Modes of international transactions in Services of a basic template to work with increases the of. 1979 ) defines adaptation as the use of the product such as necessitate adaptation: differences in the same when. Remain debatable even after decades of research modifying a product so as to meet the local markets Economic. Standardization include the consumer tastes, consuming habits etc or hilly areas living... Burgers in India, package and design, ingredients, language environment of foreign countries that the.... Ingredients, language to AVOD ( Advertising Based Video On-Demand ) Monetization, subscribing! Across globe is homogenous and converging and consumers to differentiate between product standardization and adaptation of the marketing. 1989 ) the local requirements and customs assignment requires group members to choose a particular... View.... On a worldwide factors of standardization and adaptation: the availability of infrastructure support facilities such as transportation communication.: this article will help you to differentiate between factors of standardization and adaptation standardization include consumer.