Standardization in International Marketing Strategy Is Doomed to Failure: Literature Review and Methodological Critique

International marketing or business is uniquely different from the local market because the product price, place and promotion is vastly different from what is been offered to local customers (Johansson, 2000) With the emergence of the information technology, cross border marketing has never been a distant dream. However, it has never been easier even for giant multinational companies to face challenges that come in international business. The biggest challenge comes from the culture which varies from country to country.

Today, firms have to deal with a global marketplace; marketers have no other choice. Participation in global marketing has begun to shift from a mere “option” to an imperative. The world is becoming more homogeneous. Distinctions between national markets

The article is divided into four parts. First part focuses on the traditional perspective on international marketing strategies focusing on the dichotomy between standardization and adaptation. The second part examines key assumptions underlying the philosophy of global standardization. The third part focuses on the constraints to implementation of global standardization. The last part of the article concludes on the bases of its review that a more general approach is suitable which incorporates various degrees of standardization or adaptation strategies. It is an important article as it concludes that an effective global marketing strategy does not guarantee the marketing of standardized products and global brands worldwide. It might work for some companies but cannot work for all.

1. To what extent is a global approach to international marketing appropriate to firms in the Asia-Pacific?

In the business industry, if businesses want to export their goods and services to other countries, they must become familiar with and adopt international and global strategies. Consequently, there are three types of international and global business strategies. The first type is international, which entails conducting a significant amount of activities outside the home country, yet its focus remains on the home market (Fung, 2014). The second type is multinational, which consists of operating in multiple countries, yet the headquarters is in its home country, not to mention that the competitive advantage will vary by country (Fung, 2014). The third and final type is global, which is when the organization treats the whole world as one market and one source of supply, not to mention, that its competitive advantage is contingent of common brands, standardized products, and global scale production (Fung,

In today’s world most of the companies depend on its global strategies as it plays a crucial role to succeed in the throat-cutting competition between the companies.

The definition of the concept of standardization in business is hugely dependent on the nature of business activity under consideration (Roach 2007). Although the concept is easily defined in the marketing context, since it is defined in terms of the 4Ps (product, price, place and promotion), the concept is more complex when used in the context of the product choices. A multinational corporation would be forced to make a decision on whether to adopt complete standardization, which involves creation of completely new product for each geographical market or complete

The importance of international marketing increased in the last years in a context in which market saturation and competition broke out within different branches. The analysis of foreign markets became more important for enterprises, because of the increasing internationalization of the business activity. While at the beginning of the internationalization, standardization and differentiation just considered domestic markets, today market segmentation is taken on global extent because of intensified individualisation of behaviour 's demand of the consumers. It can happen, that consumers of different countries due to increased mobility, assimilation of demographic structure and better communication and information technologies, show more

First, I will identify and research with a successful global business strategy and provide basic background information. Of every single built up companies that have figured out how to bear the numerous difficulties time conveys to their way, one emerges: McDonald 's. To start with, with an establishment plan of action that permits its franchisee-individuals, administration and shareholders to share the dangers and prizes from the revelation and misuse of new business opportunities McDonald 's model has turned into the standard for other establishment associations. Second, by adjustment and advancement, thinking of crisp items and administrations to address the needs of a various purchaser market as molded by demographic, monetary and nearby elements around the globe.

With respect to product, standardized marketing differs from its opposite extreme concentrated marketing as products are introduced to a foreign country without any change*. Although the strategy is

Now, let us move on to another important marketing activity, market research. Some elements can probably be standardized. For example, the sample to population ratio can be controlled globally. The information to be collected for each product category can also be

Internationalization has become predominant in enhancing the businesses along with the economic growth of the country. In today’s world of globalization, all organisations focusing on pursuing their identity in international market. American Marketing Association (AMA) stated International market as “The multi-national process of planning and executing the conception, price, promotion and distribution of ideal goods and services to create exchanges that satisfy the individual organizational objectives.” Over 200 nation-states in the world, not all have the profit potential for the international expansion hence entering the international market at the right time with the right strategy along with absolute examination of variables for instance transaction cost (Hill et.al 1990), culture (Kogut B and Nath R, 1988) and environment is essential for all-small, medium and multinational organisations.

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.

2.If an organization decides to expand its operating activities to another country, it will have to revise its strategies. When a company is targeting local market, its strategy is different as it targets all its

Levitt,1983 mentioned for the first time in his article in the Harvard business review about standardized marketing strategy. He stressed that companies who want to explore internationally should develop standardized products and market them internationally with standard prices, quality and advertising. He referred standardization as building the global brand and product. But the Mooji,1998 argues