Standardising and/or Adapting International Marketing Strategy

STANDARDIZING and ADOPTING INTERNATIONAL MARKETING STRATEGY – A CRITICAL REVIEW
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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 cul...