...Abstract This research paper discusses the key term: “standardization” that’s chosen as a topic for this study for module four for International Business class. Recent scholarly articles and various publications were examined and reviewed covering standardization process as a measurement to manage global operation of international business. Its limitations and drawbacks are deliberated as well. Through out this research papers, the following subjects were deliberated: reasons for picking this key term as a topic, a specific explanation and definition of standardization and its role, process, a summary for the major article chosen which is titled “A Model of Advertising Standardization in Multinational Corporations” and the main points it covered, a specific discussion covering the relation of this article to key term and to manage global operations and international market, the relation of the four other scholarly articles research and their discussion to the relation to the major article and main key term. Keywords: standardization, global operation, culture, marketing mix, advertising Standardization Key Term and Why I am Interested In It The key term I decided to extend my research on for this week is “Standardization”. After reading the required material for the International Business class, I have acquired a better conceptualization for the aspects and dimensions of doing business abroad. Consequently, I have desired to further my understandings on one of...
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...countries, communication and economic differentiations. The purpose of this essay is to understand the significance of global integrated marketing communication and to recognize the factors that should be considered in order to adopt standardization or adaptation approach for communication in international market. Standardization According to Kustin (2004), presenting the similar marketing strategies internationally is said to be the standardization approach. As stated by Vrontis & Thrassou (2007), the needs and wants of the consumer does not fluctuates among many of the countries. Moreover, the globalization has playing a great part in escalating the similarities and reducing the differentiations. However, adopting the standardization approach lower down the costs of the organization. Moreover according to (Lundeteg, 2012), standardzied strategy could also be termed as the one size fits for all strategy. The giant organizations and multinational organizations such as P&G should go for the standardization strategy as it saves the extra-costs associated with the labeling, packaging styles, colors and logo of the products. (Loyka & Powers, 2003). Different countries require different things and organizations that adopt standardizations strategy for their products and services might not have the required uniqueness. The individuality...
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...Chapter 12 Global Products Outline * The pros and cons of global product standardization * Localization vs Adaptation * Global product lines * Developing global new products Do Not Read (Unless Noted) Page 401 list 1-5 Page 401-403 Ford’s Global Car Drive, all Page 407 para 3 and 6 Page 408-409 Pitfalls of Global Standardization, all Page 410 Getting the Picture Page 411 para 3 Page 413 Sales Forecast, all Page 416-425, all Introduction * Market coordination * Product standardization * Marketing Mix uniformity Global products/brands have coordination between markets, standardization of products and uniformity of marketing, across all markets. Regional products and brands are unique to a particular trading region. Note: * The difference between Global and Regional products is of degree not kind/type. That is, the issues are the same (kind/type), but the number of countries (degree) to which the marketing analysis applies is different. * Regional products can be thought of as latent global products. Localization vs Adaptation Localization: * Changes that are required for the product to function in a new market. Without localization the product cannot compete because it will not be able to function properly. It will be rejected immediately. NOTE: A standardized product still needs to be localized to function properly. Adaption: * Changes that are required to match customers’ preferences...
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...world by entering to much larger international markets, in the form of international, multinational, transnational and as global corporations. And that’s where the concern of international marketing emerged. The efficiency and effectiveness in the international marketing strategies could enhanced through advanced communication such as social media and promotion by emails and transportation technologies where marketers can use logistic services such as DHL and FedEx, by mobility of finance in transactions could support using PayPal American express, visa and etc. When consider about the globalizations’ impact towards international marketing its essential to give priority to some concepts. Globalization of production, standardisation vs. adaptation, financial risks, Globalization of production In the phase of creating the customer value, where the international marketers need to concern on producing goods and services, globalization of production helps the production with by procuring high quality resources from various locations throughout the globe and advance technology in the world could use in the manufacturing process of the products. In order to lower the cost structures, improve the product qualities and improve the functionality of the products and services in a way in which it gives the competitive advantage to the...
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...Standardisation vs. adaptation international marketing approach with regards to McDonald’s operations in India Introduction The central purpose of the study is to determine the best international marketing strategy for McDonalds in India and shedding light on these strategies- Standardisation or Adaptation. Background McDonald's™ is a pioneer in the foodservice industry with over 32,000 restaurants in about 130 countries. The brand is handled and overseen by two following business organisations in India: * Connaught Plaza Restaurants Private Limited, headed by Mr. Vikram Bakshi, JV Partner and Managing Director, East and North India * Hardcastle Restaurants Private Limited, headed by Ms. Smita Jatia, Managing Director (MD), West and South India McDonalds believes in Q-Quality, S-Service, C-Cleanliness and V-Value. This motto is their driving force in the Indian marketplace. For McDonalds, India was the first country wherein no-beef or pork products were served. McDonalds in India catered to wants and needs of the people, with different menus as well as food processing plants for vegetarian and non-vegetarian customers. Currently, in India there are 300 McDonalds. Discussion Standardisation approach is quite different from the adaptation international marketing approach. When the needs and wants of the target market are same, standardization strategy comes into the picture. On the other hand, if the wants and needs of the target audience are different, and also...
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...Part 1: international marketing mix strategies: standardization and Adaptation 2 Second part: Internationalization process theory 3 Conclusion 3 Introduction Many companies operation internationally today with elimination of many trade barrier in many countries in the world. These firms need to come up with international marketing strategies that will enable them complete favourably in these new markets. International marketing strategies mean that international subsidiaries act and formulate marketing ways independently as if they were local companies with minimal coordination or supervision from the parent company. This aims at meeting the local consumer needs in the market but at the same time not lowering the international standards of a brand. This paper discusses the two main marketing strategies that international firms like Coca cola use. These are standardization and adaptation. In standardization, a multinational company uses a uniform approach to marketing her brand so as to minimize costs and promote a global corporate image. On the other hand adaptation means that a firm uses unique marketing dimension that are adaptable to fit each of her local markets (Mathew & Zander, 2007).This paper looks at how practical a brand like Coca cola has used adaptation and standardization in international markets. Part 1: international marketing mix strategies: standardization and Adaptation It is important to note that the two market...
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...Implementation and Standardization Strategies Success in today’s business world implies that all aspects of planning be utilized to the fullest. This includes the analysis segmentation and targeting of a potential market to facilitate sales whether retail, local, or global. When these protocol are combined this results in implementation and standardization strategies. Current research also show that, “targeting implementation also implies developing media and message strategies to reach each selected segment”(Johansson, 2009). Team A will construct a document that reviews the implementation strategy for their products which includes the protocol to be used in the global standardization of the merchandise. Factors influencing local and foreign buyer behavior There are many factors that could influence the local and foreign buyer behavior but in this paper, we will focus on four major aspects of influencing. The four key components that we will elaborate on are Cultural, Social, Personal, and Psychological factors. These four key components can be interchanged on the local and foreign buyers market. Understand these particular factors will not only be a good basis for a successful product launch but it can also help bridge the gap within global affairs and communication. Cultural factors involve many situations depending on the country of orgin, or if there is a specific need for the product within that country. According to Perrau, Culture is essential when it comes...
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... There are also differences regarding the target groups in the different markets, e.g. KFC, which was positioned for the middleclass in Australia whereas attracting blue collar in the U.S. The first and the biggest category is the burger segment with McDonalds and Burger King as main players of the market. One of the main problems competitors are facing in this segment are health concerns by the customers like mad cow disease, overweight, cholesterol or diabetes especially in western countries. Another challenge for the burger industry is the religious and ethical background. Very good examples for this are the lamburger in India and the abolishment of pork in Muslim countries. In our opinion the main effect influencing the business strategy concerning standardization or adaption are the different taste preferences in various...
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...when it comes to globalization. This essay will deal with luxury products, and more particularly with high-end jewellery from the French brand Cartier. These products will be launched within the Chinese market, as it is close to become the largest luxury market in the world. In order to make this project as successful as possible, this essay will be divided into two parts. On the one hand, we will be analysing the marketing environment of the Chinese market by identifying major market opportunities. Also, the selection of a suitable target market for Cartier jewellery products will be made, and we will recommend which aspects of the product’s international marketing mix strategy would require adaptation. On the other hand, we will critically examine the notions of standardization and adaptation of the international marketing mix. 1. Market selection & Cultural Research and Impact on International Marketing Mix Strategy a. Market opportunities: In order to justify the choice of the Chinese market for Cartier jewellery products, 4 market opportunities will be identified. The first three ones will be dealing with socio/cultural aspects whereas the last one will be rather based on an economic aspect. With more than 1.3 billion of people, China has about 18 thousand billionaires, 440 thousand multimillionaires, and a fast rising middle class of around 250 millions who have high purchasing power and is also expected to be doubled in the next few years (Degen, 2009). Thus, it comes...
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...International Marketing Planning: Adaptation and Standardisation Professor Demetris Vrontis International Marketing Planning: Adaptation and Standardisation Professor Demetris Vrontis Dean, School of Business, University of Nicosia President, EuroMed Research Business Institute (EMRBI) Chairman, EuroMed Academy of Business (EMAB) Founding Editor, EuroMed Journal of Business (EMJB) 1 www.emrbi.com www.emeraldinsight.com/emjb.htm 2 International marketing planning (Vi.Mi.S.O.S.T.I.C.) Vi: vision - what is the desired future, principal goals and direction of our organisation? Mi: mission - what are the core corporate values? S: situation analysis - where are we now? O: objectives - where do we want to go? S: strategy - how do we get there - the broad direction? T: tactics - how do we get there - the details of strategies? I: implementation - what are the specific actions required to put the plan to work? C: control - how do we know we have arrived? 3 The screen versions of these slides have full details of copyright and acknowledgements 1 International Marketing Planning: Adaptation and Standardisation Professor Demetris Vrontis International marketing planning (Vi.Mi.S.O.S.T.I.C.) adaptation and standardisation Vi: vision Mi: mission S: situation analysis O: objectives S: strategy T: tactics (adaptation and standardisation) I: implementation C: control 4 International marketing planning International marketing planning can be defined as the...
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...Confirming Pages CONTENTS PREFACE xv PART 1 CHAPTER 1 GLOBAL MARKETING ENVIRONMENTS 1 Understanding Global Markets and Marketing 2 markets are becoming global 2 globalization: the world is becoming smaller 3 globalization and global marketing 4 Globalization: Opportunity or Threat? The Global Marketing Approach 6 6 global marketing and global markets 7 the cage distance framework 7 domestic and global marketing compared 8 Geographic or Spatial Distance 10 Psychic/Cultural Distance 12 The EPRG Framework 13 Developing Global Marketing Strategy 14 The Standardization versus Localization–Adaptation School 14 Levitt and the Globalization of Marketing 16 Standardization versus Mass Customization 17 Managing the Firm’s Value Chain 18 Global Value Chain Configuration 19 Integrating the Firm’s Competitive Strategy 20 Global Competition 20 a global marketing management framework Global Marketing Performance 22 Global Vision—The World Is My Oyster CASE 1-1 CASE 1-2 CHAPTER 2 21 23 A Tortuous Road Ahead for Proton of Malaysia 26 Dabur—Developing Values in an Emerging Economy Through Value Chain and Product Line 31 Assessing the Global Marketing Environment—The Global Economy and Technology 36 the global economy 37 Economic Growth and World Trade 37 Who Are the United States’ Major Customers? 38 High Tech Products Lead World Trade 40 Characteristics of High Technology Markets 42 Technology and Global...
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... 4 2. Introduction 4 3. Overview of Unilever and Nestle 4 3.1. Company Facts-Vision and Mission 5 3.2. Company Facts-Core Business Sectors 5 3.3. Company Facts- Business Strategy 5 4. Global branding 6 4.1. Standardization vs. regional adaptation 6 4.1.1. Language 6 4.1.2. Cultural differences 7 4.2. Advertisement 8 4.2.1. Religious issues 8 4.2.2. Comparative advertising 8 4.2.3. Innovation ...
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...importance o f sustainability issues, scant research has examined marketing strategy sustain ability issues in international settings. Although significant prior work has examined drivers and performance conse quences o f adaptation/standardization o f marketing strategies in international markets, researchers have yet to apply this avenue o f inquiry to sustainable marketing strategies. Building on contingency theory and the concept o f strategic fit, the authors develop a model o f drivers o f sustainable export marketing strategy adaptation and explore the circum stances under which such a strategy affects export performance. Using a sample o f U.K. exporters, they find that vari ous macro- and microenvironmental factors are responsible for sustainable export marketing strategy adaptation, which shapes the nature o f sustainable export marketing strategy fit and its export venture performance outcomes. The results indicate that sustainable export marketing strategy adaptation is the outcome o f the differences between home and export markets in terms o f economic and technological conditions, competitive intensity, customer characteristics, and stakeholder pressures. Moreover, the performance relevance o f sustainable export marketing strategy adaptation requires adequate fit with these macro- and microenvironmental factors. Keywords: sustainability, marketing strategy, export performance, contingency theory, strategic fit n recent years, sustainability issues have...
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...International marketing Introduction to Global Marketing (polycopié 1) fidéliser les clients : to build customer loyalty un ensemble de : a set of Définition d'un marché : A market is a set of actual and potential customers. Actual customer is the customer that the company already have. One product is design for one market. One product is design for a set of customers. Market are customers. The marketing process : 1 – Analysis => SWOT analysis - company strenghs & weaknesses (internal analysis) - market opportunities & threats (external analysis) 2 – Planification => setting goals => designing strategies 3 – Implementation => implementing Marketing mix strategies 4 Ps : Product, price, place, promotion 4 – Control => making sure strategies have delivered expected results Global marketing Global marketing is the coordination of marketing activities across various countries that satisfy customers needs. To go global : selling products on a worldwide basis. A) Why do firms go global ? Brand image : a set of mental representations that customers have about the brand. Survival and growth - limited growth in domestic markets eg (équivalent de exemple : exempli gracia en latin) : Nestlé - High growth potential in emerging markets emerging markets : have a fast growth eg China's growth rate around 8 %, BRICS Gaining increased competitiveness - Achieving economies...
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...Chapter 21 Summary/ Definitions Global industry is an industry in which the strategic positions of competitors in major geographic or national markets are fundamentally affected by their overall global positions. global firm is a firm that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors. Deciding Whether to Go Abroad ■ The company discovers that some foreign markets present higher profit opportunities than the domestic market. ■ The company needs a larger customer base to achieve economies of scale. ■ The company wants to reduce its dependence on any one market. ■ Global firms offering better products or lower prices can attack the company’s domestic market. The company might want to counterattack these competitors in their home markets. ■ The company’s customers are going abroad and require international servicing. The company must weigh several risks: ■ The company might not understand foreign customer preferences and fail to offer a competitively attractive product. ■ The company might not understand the foreign country’s business culture or know how to deal effectively with foreign nationals. ■ The company might underestimate foreign regulations and incur unexpected costs. ■ The company might realize that it lacks managers with international experience. ■ The foreign country might change its commercial laws...
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