Elements of both approaches should be incorporated in order for multinational companies to succeed. Clearly not all of the above expressed purposes are feasible, e. On the contrary, there are other industries in which the same does not apply and this must be considered. It is important to alter the marketing mixed and marketing strategy to suit local tastes, meet special market needs and consumers non-identical requirements Vrontis and Thrassou,2007. Supporters of this theory include Boddewyn, Soehl Picard, Douglas, Sommers and Kernan. Standards regarding programme objectives and outcomes In respect of programme objectives and expected outcomes, schools should endeavour to reach the following: 2. Marketing of products sold internationally may be standardized to keep a uniform image among the varying markets.
The Academy of Management Executive, 12 4 , pp. Will one marketing strategy reach consumers of various cultures or does a business need to customize a marketing plan that is unique to each market? How standards come about is a mystery to most people should they even ponder the question. This information builds profits, increases efficiencies and keeps participants ahead of the competition. Retrieved November 12, 2013, from 5 Jain, S. He can be reached at gkushnier gmail. Global marketers must realize the extent to which plans and programs may be extended or need adaptation.
If the same message works universally, you don't have to spend money to develop customized marketing messages. This research paper examines the issues of standardization global strategy and adaptation customization in global marketing strategy and suggests methods that can guide multinational companies compete effectively and efficiently within the international markets. To begin development of this article we sent invitations to substantially more than one hundred individuals and standards organizations who are expert in the field of globalization and standardization academic, private sector, and public sectors to submit their views and comments on this critical issue. One result was the use of 270 different radios being installed around the world. However, from an ethical point of view the migration of those social workers that wish to practice in another country should be enabled and not blocked. One goal is to save 40 percent on the cost of radios by using only 50 instead of 270 different ones. Now, there is at least one negative aspect to global standardization.
The Strategic Value of Technology Standards and International Trade For several years, it has been generally accepted that technology standards directly affect at least eighty percent of international trade. The suggestion was that such a document must be sufficiently flexible to be applicable to any context. As they believe, creating one strategy for the global market and standardizing the marketing mix elements can achieve consistency with customers as well as lower costs. Positive word-of-mouth can mean an increase in sales around the globe. Examples You may be asking, what are some examples of companies that can utilize global standardization? Coca-Cola is able to use standard packaging, distribution, and brands in international markets. So, what are the positive aspects? This forces McDonald's to deviate from a 'standard' marketing strategy, and configure one that is unique to the country in which it is reaching out to. This is a difficult issue to address because there is an absence of data on the effects of competition in the global standardization process.
Whoever controls the power of standard making and has its technology as the leading standard, commands the initiative of the market. Pros and Cons Why would a company want to use global standardization? These companies may include international strategies in their business model to increase sales, but they know that their main target consumer is local. Developing a global marketing strategy is a key concern for multinational companies. The short term goals of the business would be related to improving the day-to-day operations of the company while the long term objectives are generally targeted towards increment of the profits, sales and earnings of the company in the long run ensuring growth and stability of the business and dominance over the national or regional market. Global standardization is the ability to use standard marketing internationally. Both the definition and the commentaries that follow are set within the parameters of broad ethical principles that cannot be refuted on an ideological level. The purpose of this paper is to share some insights into the relationship between globalization and standardization, and to pose some issues relating to this issue for future thought and study.
Executives assumed that when the weather turned cold, Americans would put a blanket over their cars just like Japanese would. These differences in perspective could force a company to develop a more customizable market strategy for different areas of the world. He can be reached at donpurcell strategicstandards. For example, diversity among different countries does not allow full standardization. Edwards Deming Standards are stepping stones to reach new levels of performance and are key components for the technical foundations of laws and regulations. Standardization also supports positive consumer perceptions of a product Products and International Marketing, n.
Globalization is not the only thing influencing events in the world today, but to the extent there is a North Star and a worldwide shaping force, it is this system. Standardization versus adaptation is the extent to which each marketing mix element can be executed in the same or different ways in various country markets. How to build the necessary global presence? Global Competition and Control of the Global Standardization Process Among the most important issues are global competition and who controls the global standardization process. This article is written like a that states a Wikipedia editor's personal feelings or presents an original argument about a topic. Consumer nondurables, including food products, are the most sensitive to differences in national tastes and habits, making them more likely to need changes for various markets. Technology has been the other principal driver of globalization. In addition, the company has begun to offer healthier food products, such as oatmeal, given consumers are more health conscious.
Adjusting the marketing strategy such that it takes into account these variations enhances the product's chance of success. Among other benefits, standardization made it easier to integrate acquired companies. But after an arduous journey, Nestle, the world's largest food company, has achieved a balance that has been successful for its business,. The ability to influence at the standards level has a cascading affect from national standards body to national regulation to internationally recognized regulation. Nevertheless, these firms are able to take advantage of scale economies and , because it is able to mass-produce a standard product, which can be exported providing that demand is greater than the costs involved. The global standard for drilling equipment specifications and quality assurance.