forms of adaptation in international marketing

06/12/2020 Uncategorized

http://www.sciencedirect.com/science/article/pii/S0969593110000715 The categories are innovators, early majority, late majority, and laggards. However, academics support the notion that adaptation is essential to prosper in global markets.3 And in the instance of advertising to China, the necessity for adaption is ever present. In this strategy, the company will need extra resources for research and development. Internet has reshaped the global market place for international marketers in terms of demand and supply side. The concept of Brand Adaptation calls for the reuse and a minor change in the visual, typographical or messaging elements of a brand and its overall branding strategies by the firm. Individualized Marketing Strategy; Individualized marketing, as its name suggests, focuses each and every targeted market in detail which requires the company to gather an extensive amount of research data. Such action makes sense when the product due to its nature, has similar utility for customers on various markets. Selling huge amounts of non-adapted, same product and purchasing certain constituents in bulk may help in reducing the cost-per-unit. On the contrast, followers of the adaptation strategy focus on the evident differences between the markets of various countries and markets, particularly those for consumer goods, and favour adopting global differentiated marketing initiatives. In the international business market field, standardization versus adaptation debate is not new, where thus far researchers have not agreed on which strategy is effective to be adopted in international market. Choice of a pricing strategy is dependent on: Corporate goals and objectives. Standardization vs. Then, we collect data from secondary sources such as the books, articles, journals and studies. Moreover, all advertisements are provided in twelve different languages, characterizing the tailored products organized to each region or market (Vignali, 2001). Standardizing or Adapting the Marketing Mix across Culture It may have to be modified to conform to government regulations or to operate effectively in country specific geographic and climatic conditions. Wei and Yazdanifard (2014) focus on three factors to analyse adaptation and standardization practices: transferability of competitive advantage; homogeneity of various consumers’ reponse towards the marketing mix; and similarities in the level of economic freedom. First, customers can anticipate similar quality level of any particular brand in all outlets across the globe. (2009) point out that even in markets or countries with the same cultures, such as across the EU, there are variations in customer wants and needs. Product adaptation - involves adjustment of the product and its properties to the conditions prevailing on the par… The Influence of Adaptation and Standardization of the Marketing Mix on Performance: a Meta-Analysis. Level: Bachelor Thesis in Business Administration, Marketing As a result, various research studies have been done on whether c… Your email address will not be published. View all posts by Steve Jones. For the past three years that the company has been conducting a companywide employment survey, employee stratification in respect to pay has been decreasing. Thesis in Marketing, 15 ECTS credits Final seminar: 25.05.2010 Authors : Elise MEYER (890511) Ingrid BERNIER (901218) Supervisor: Jean-Charles LANGUILAIRE Examiner: Roger STRÖM Traditionally, product adaptation has been taken to mean modifying in-house products but it also involves taking points from a competitor’s product. Components of both strategies need to be integrated so that it can enable international companies to achieve desirable success. Moreover, consumer non-durables, such as food products, are highly responsive to variations in national habits and tastes, making the companies to consider some adjustments to fit different markets. Marketing Abstract. The research object. This paper listed some advantages and disadvantages of every strategy, suggesting that the solution to an effective market strategy lies between these two extreme strategies. For over 40 years academicians and practitioners have debated the standardization versus adaptation of international marketing strategy. Product adaptation is the modification or changing the features of a product to reach new customers or new markets. 4) Social Media. DIBC is the ability to manage the international branding process as a dynamic capability. 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. oatmeal), provided consumers are highly health conscious. Despite the country’s fiscal growth, there still remains a large disparity between big cities, like Shanghai and Beijing, versus the more inland provinces4. It is no secret that a majority of Internet content has its origins in the US. As these multinational businesses start to market their products and services in foreign markets, one important strategic decision is whether to change the marketing strategies and mix to match the unique aspects of each local market or whether to adopt a standardized marketing mix (people, promotion, place, price, product, process management, and physical evidence) and a single marketing strategy in all international markets (Vrontis & Thrassou, 2007). It may be redesigned or repackaged to meet the diverse bu… 250-259. Adaptive marketing is an approach that enables marketers to tailor their activities in unparalleled ways to meet their customers’ interests and needs based on … Organizations worldwide use this approach for marketing purposes and legal compliance. 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… Taking a business into international market and successfully selling its products and services can attract a range of challenges. Adaptation of product is a process or strategy of adapting or tailoring an otherwise standardized product or service offering to meet the needs and preferences of a particular market or set of consumers, where such markets and consumers are typically examined and managed within an international marketing context. please cite: Rekha Rao-Nicholson, Zaheer Khan, (2016), Standardization versus adaptation of global marketing strategies in emerging market cross-border acquisitions, International Marketing Review, DOI (10.1108/IMR-12-2015-0292). The biggest dissatisfaction with Hytec, Inc employees according to the employee climate survey; employees are extremely unhappy with their pay. There … Factors involved in international marketing environment are broadly classified into three categories as stated in the figure given below. BAR, Curitiba, 8(3), pp.266-287. Product adaptation is vital for companies that export their goods to foreign nations as it enables them to meet the foreign laws and re… England, U.S., Canada and... ...heavy competition from industry giants like Nokia, the world’s biggest producer of cell phones. To help your employees stay and be more excited to proceed with the new High performance team base environment that Hytec, Inc is entering, we recommend to implementing a gain sharing system. 24–46. Ethnocentric Model Ans:- International marketing can be defined as marketing of goods and services outside the firm’s home country. For many years, many multinational corporations make costly mistakes when trying to sell to the global consumers or audience. Although it is not always the case, it is usually easy to distinguish between companies taking a global marketing approach and international marketing approach simply based on their social media account (s). For instance, diversity across various countries and markets does not enable whole standardization. Using the same strategies and marketing mix that were used in the United States and Europe will not allow Apple to gain any advantage in this market, much like what happened in Japan when the iPhone was introduced. (2009) opines that higher cost associated to adaptation can limit the application of adaptation strategy. No single, uniform international commercial law governs foreign business transactions. Hussain, A., & Khan, S. 2013. International Marketing Strategy: Standardization versus Adaptation. The roots of ethnocentrism stem from a sociological construct explaining “majority” versus “minority” conflicts. Factors involved in international marketing environment are broadly classified into three categories as stated in the figure given below. Firms can promote a strong international marketing strategy with the relevant structure, attitude, and operating behaviours that attain an effective and efficient balance between standardization versus adaptation approaches. Since the start of the 1980s, globalization issue has developed significantly and critical to modern businesses. Dimitrova, B., & Rosenbloom, B. British Food Journal, 103(2), pp.97 -111. Before instant communication was as simple as a phone call, email or text, global marketing was much more challenging. Let’s consider standardization. Comparison on the Impact of Standardization and Adaptation on International Marketing. Standardization or Adaptation in International Advertising Strategies: The Roles of Brand Personality and Country-Of-Origin Image. Global uniformity and standardization have various benefits. Export Marketing should be used in order to gain entry into the Singaporean market. Both international of businesses and an increasing level of globalization have had a significant impact on how businesses plan and view their global marketing strategy (Wang & Yang, 2011). Product policy on the international market includes three strategies: 1. Promotions and Discounts. As a result, various research studies have been done on whether companies need to standardize or adapt certain behaviours in international market. In 1906, sociologist William Graham Sumner coined “ethnocentrism”. Multinational marketing. There are also certain drawbacks of product adaptation or modification of different marketing strategy, including duplication of the practices across the company and additional cost needed for the promotional practices. International marketers are taking these opportunities to go global, and that actually gives them competitive advantage in foreign land (Helsen, 2011). Key words: Culture, international marketing, marketing strategies, standardization and adaptation The Trish McEvoy is an international brand which has prior experience of the international market as there a… Vrontis and Thrassou (2007) stated that multinational corporations need to realize how they should alter their whole marketing strategy and include how they order, distribute, and sell to match the new international or local market demands. There is a need to establish a brand which can be applied globally or could be altered in order to fit in the local markets. So Nike should follow this strategy in future and try to remain dominant over its rivals through the marketing strategy. In the century, when almost every company wants to operate globally and many of them have already been doing it, firms face the choice of marketing strategy that provides a success to their product/service in different markets. Why? It is also very vital to adjust the marketing strategy and mix to fit local preferences and tastes, customer non-equivalent requirements, and special market needs. Yet, inarguably product adaptation can lead to the greatest reward. However, even though the standardization strategy is more used, its adoption is not absolute. Product policy on the international market includes three strategies: 1. please cite: Rekha Rao-Nicholson, Zaheer Khan, (2016), Standardization versus adaptation of global marketing strategies in emerging market cross-border acquisitions, International Marketing Review, DOI (10.1108/IMR-12-2015-0292). 157-176. Common law International Marketing Mix:Price (Pricing) Pricing on an international scale is a complex task. The organization's actual performance is compared to baseline performance (often a historical standard) to determine the amount of the gain1.”Therefore, this concept gives Hytec, Inc the opportunity to tie employee advancement/ team performance to a monthly, quarterly or annually gain sharing bonus. A critical evaluation of market focus, product, and service including reasons for the company’s international strategy development (reasons for international marketing research) use relevant theories. Acquiring the benefits of both strategies needs various firms to not only standardize different components of marketing strategies and marketing mix, but to implement also adaptation when needed with the aim of meeting the evident market needs (Batraga & Pūķe, 2015). A product may have to be adapted in a number of ways to meet the physical, social or mandatory requirements of a new market. Hi Carolyn. Vignali, C. 2001. Adopter Categories In the adoption process developed by Everett Rogers, a typology of buyers at different stages of the “adoption” or product life cycle. Many global companies use this strategy. are to obtain measurements on the degree of Theoretical framework: Our theoretical framework is based on... ... Traditionally, product adaptation has been taken to mean modifying in-house products but it also involves taking points from a competitor’s product. Adopter Categories In the adoption process developed by Everett Rogers, a typology of buyers at different stages of the “adoption” or product life cycle. Wei, S., & Yazdanifard, R. 2014. Example of companies using this strategyis IKEA. Companies intending to expand internationally need not to treat the world as one singular market. Followers of standardized strategy state that the international market has become homogenized and thus, these firms can market their commodities similarly across the globe. International Business Review, 12, pp.141–171. The use of this strategy is comfortable and not very expensive. As well as taking into account traditional price considerations such as fixed and variable costs, competition and target groups (click here for further information about marketing mix pricing) an organisation needs to consider additional factor such as A business may change its brand name in a new market where there is heavy usage of a foreign language. In order to achieve a working model of international marketing, standardization and adaptation strategies should be applied as see fit.   While standardization is equated with brand consistency, lower advertising costs, and overall synergy, adaptation is often required to address cultural differences for more effective communication and proves that cutting costs does not always facilitate higher profits1. 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