Critical Analysis of Standardization and Adaptation in International Marketing

2462 WordsJul 10, 201810 Pages
⦁ Introduction: In internationalization, the most challenging decision faced by the company to choose between standardization and adaptation in its operations, products or services. It has been one of the important and most popular research topics since 1960s to understand whether standardization is better or adaptation for marketing mix in international marketing. The increasing role of international expansion of business across the borders has also increased the focus of companies towards the international marketing strategies. It is also a biggest challenge for companies to better understand the different needs and choice of customers due to the huge differences among the cultures from various nationalities. This leads to the dilemma in…show more content…
The least level of adaptation occurs in product attributes such as quality, design, features and characteristics. Comparing the products related elements with pricing related elements, adaptation is more used in pricing approach. The key reason for such differences occurs due to the variation among countries in marketing objective, inflation rate, purchasing power parity, cost structure, government control and competitive policies. Pricing adjustments are somehow centered around different areas namely retail prices versus margin, whole price versus margin, pricing method versus strategies, sales versus payment terms and end user pricing versus margin. On the other hand, promotion related elements have slightly above average level adaptation. Amongst the marketing mix elements, promotional elements seem to be more adaptive and even personal selling is more adaptive than advertisement. The key reason of the same is identified by Vrontis, Thrassou and Lamprianou (2009) and stated there are few factors responsible for it such as differences in media
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