Standardization Versus Adaptation in International Marketing

2213 WordsAug 28, 20139 Pages
Standardization versus Adaptation in International Marketing Introduction The most challenging decision that a company may face in internationalization is the degree of standardization or adaptation in its operations. The question of standardization or adaptation affects all avenues of a business’ operations, such as R&D, finance, production, organizational structure, procurement, and the marketing mix. Whether a company chooses to standardize or adapt its operations depends on its attitudes toward different cultures. These attitudes are defined by three orientations toward foreign culture: ethnocentric, polycentric, and geocentric. Ethnocentric Model Ethnocentrism has a socio-psychological dynamic that is broadly used to describe…show more content…
This approach creates its own marketing plans and objectives, as well as R&D, which are governed on a country-to-country terms. Product lines are separate, and are developed in each country, and domestic products are modified to adhere to local needs. The promotion and pricing strategies are determined by each subsidiary. The sales staff is composed of nationals, and the modes of distribution are those that are ordinarily used in each country. Product vs. Service Influence over Model Choice The Geocentric orientation should be integrated in all companies who are expanding operations globally. This strategy is the most culturally adept in international marketplaces, and provides the greatest benefits in comparison to other orientations in marketing products/services overseas. The internationalization of services is influenced more by a geocentric (adaptation) approach in its marketing strategies. For example, both the services and the service provider needs to undergo adaptation because in selling services world wide, a service provider needs to know cultural characteristics such as local habits, tastes, and preferences. However, adapting services (intangible), as opposed to a product (tangible) is a lot more challenging. For instance, in Japan, persuading consumers to utilize credit cards was nearly impossible, but after years of different marketing approaches (adapting), they finally accepted
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