The importance of Standardization in International marketing

Introduction

When dealing with international marketing one of the main element points to consider is if the product or marketing mixture should be standardized or adapted to each local market. The question is one of the very most debated in the international marketing literature by authors such as Levitt, Usunier and Hollensen. The focal point of this newspaper is the problem of standardization versus adaptation in the global marketing. As the first the theoretical perspectives are reviewed, in relation to Levitt's controversial and far controversial article from 1983 ' The Globalization of Markets', accompanied by an overview of the criticism against Levitt and the theory of standardization. The situations of two global companies McDonalds and Ikea receive and finally conclusions and additional reading.

Teoretiske koncepter - standadisering versus adaption

According to Levitt - the most radical of the proponents of standardization thinking - there is a lot in favour of a standardization strategy. In Theodore Levitt's article from 1983, where he discusses the globalization of marketplaces and the standardization of products and development processes, Levitt explained, "Only global companies will achieve long-term success by concentrating on what everyone would like rather than fretting about the details of what everyone believes they like" (Levitt, 1983). In his publication from 1995 The Globalization of Market segments in Global Marketing Management. Circumstances and Readings (Levitt, 1995) Levitt argues, first, that markets converge so that a follow consumer choices worldwide becoming more more consistent. A worldwide demand design emerges that can be satisfied through a global and standardized supply. Second, a standardization of products and marketing has an opportunity to achieve economies of level in development and lower costs. This contributes to good deal of the merchandise thus freeing resources to product development. Standardization means that you refrain from accommodating local preferences, and instead focus on developing the key qualities of the merchandise. Whatever the preferences in confirmed time might be for a local custom product, consumers will wrap up preferring the global, standardized products, for their basic quality and cheap price. If companies want to succeed in the global competition, they should assume that the needs throughout the world are quite simply alike.

The critics of standardisation in global marketing and production mean that cultural, political, and financial differences in different countries demand an adaption to local markets XXXXX (Boddewyn, Soehl and Picard 1986; Hill and Still 1984; Quelch and Hoff 1986; Sorenson and Wiechmann 1975; Wind flow 1986). XXXXX The thought of standardisation can be an oversimplification of simple fact. There are modifications between different countries in terms of consumer needs, purchasing power, commercial infrastructure, culture and customs, regulations, and technological progress. These factors are still to different from country to country so it is necessary to change the online marketing strategy for every single market (Terpstra & Sarathy, 2000) (Standardization versus version of international online marketing strategy: an integrative examination of the empirical research)).

Common to the authors, highlighting the limitations of standardization strategy is that they indicate the cultural variations as one of the key barriers to a standardization strategy. The key concept that is used to spell it out the importance of culture in marketing strategy is "cultural bind. " This shows that products can become more or less linked with the ethnicities they consumed, which the amount of ethnical bonding determines if they can be standardized or not. Food and clothing should therefore be firmly culture-bound products, that are difficult to standardize, while professional goods are definitely more "culture free", and therefore much easier to standardize. In between you place the buyer durables, which are more "culture free" eg food but more culture bound than industrial goods XXXXX (Usunier 1993). XXXXX Tjek hvad Usinier skriver

Authors like Usunier (Usunier, 1997) argue against Levitts theory by commenting on the cultural aspects Tjek hvad Usinier skriver as one of the central elements that make standardization unrealistic. The cultural differences between marketplaces are weighted more intensely than the proponents of globalization expresses particular in connection with marketing communication. The differences between marketplaces outweigh the similarities. Both products and consumers should be seen and understood in their cultural framework (Mooij, Marieke, 1998). The thought of one global theme for the business's marketing communication is tempting, but may create a risk to ethnical and linguistic dissimilarities between the markets analyzed. Several brands have different image to different markets. For instance Honda means consistency and quality in the U. S. as the Japanese market, where these properties are considered self-evident, they see Honda as a manifestation of speed, youngsters and energy (Aaker and Joachimsthaler, 1999). A sales discussion would not automatically have the same charm in all markets, simply because the text is translated in to the language market.

Other theorists XXXXX Robertson, Roland (1992), Globalization: Social Theory and Global Culture, London: Sage. XXXXX Robertson, Roland (1995), 'Glocalization: Time-Space and Homogeneity-Heterogeneity', M. Featherstone, S. Lash & R. Robertson, eds, Global Modernities, London: Sage, 25-44. XXXXX has tried to move beyond this dichotomous issue - a counterpart to the controversy that is conveyed in marketing literature on standardized or personalized wine advertising (see Wind flow & Douglas 'comment XXXXX Blowing wind, Yoram and Susan P. Douglas (1988), ' The Myth of Globalization ', Columbia Journal of World Business, Vol 12 (Winter). XXXXX to Levite thesis). Here it is suggested that you speak about 'glocalisation' since both homogenizing (globalizing) and heterogeniserende (localising) processes can be an essential part of globalization. Robertson emphasizes this when he sees the neighborhood (and location) as a fundamental rather than a conflicting part of globalization.

Thus in one sense, such as Levitt argues a homogenization of demand - but it is a demand for distinctions rather than corresponding to uniform, standardized European products. Levite blunder is to own considered culture as something that is present independently of the market, an "exterior factor", whose results (special preferences, etc. ) could and would be defeat by so-called objective product qualities. Rather, it shows above that culture is something that is demanded and also quite definitely created the market. In the following we will therefore argue that culture is not such a market exterior factor, but something that is reflexive. Which means that culture is not something that can be overlooked - as though it experienced an unchanging essence

Critical assessment

XXXXXXX Contingency Theory: from Product and Advertising adaption in Export Ventures XXXXXXX

Levite argumentation that companies can gain competitive advantages by exploiting economies of range XXXXX Levitt, Theodore (1983), "The Globalization of Markets', Harvard Business Review (May-June), 92-102. pp 92]. XXXXX On the main one hand it is true that globalization contributes to new market conditions, where such is impossible for companies to sit down international market development overlooked, though they only operate domestically. On the other hand, it has exhibited how local companies can force their global rivals accurately by emphasizing their local roots. The actual fact that the neighborhood should be considered a quality in itself, completely forgotten by Levitt XXXXX Ger, Gјliz and Russell W. Belk (1996), 'I'd Prefer to Choose the World a Coke: Consumption-scapes of the' Less Affluent World "', Journal of Consumer Policy, 19 (3), 1-34. XXXXX

The usual discussion for standardization continues to be out on that brands and products have a defined meaning which influences the client when he / she meets these products or brands. But as so aptly shown, is even Coca-Cola (king of global brands) importance universe subject to local interpretations. And Coca-Cola's management has said this can be a multi-local rather than global product XXXXXAskegaard, Soren & Fabian Csaba (2001), 'The Good, the Bad and the Jolly: Flavor, Image and Symbolic Amount of resistance To The Coca-Colonization of New Zealand ', S. Brown & A. Patterson, eds, Imagining Marketing, London: Routledge, 124-140. . XXXXX also exhibit assertion that Coca-Cola is "welcomed by alle XXXXX 'Levitt, Theodore (1983), " The Globalization of Markets', Harvard Business Review (May-June), 92-102. pp 93, a XXXXX oversight of the global on Coca-Cola are both preference for and amount of resistance to brand as expressed through the concept of 'Coca-Colonization' which conceals the actual fact that the American / western lifestyle brand represents, not welcomed by everyone.

Neither or

Stadardisation and adaption are two extremes in marketing. In his article Kellogg's - internationalisation versus globalisation of the marketing mixture (2001) Claudio Vignali cites Terpstra, V. and Sarathy, R. (1994) for writing that when adopting a "completely" localized online marketing strategy only coincidental similarities are present. Completely standardised marketing is equivalent in all markets. Neither extreme i used. Approaching are a few examples of how two multinational companies employed in or have used the global market. The samples are extracted from international journals, and each of them gives an perception into situations that underpins the complexity in a global marketing manoeuvre. The two conditions chosen are, respectively, McDonalds and IKEA. These conditions are particularly interesting since it has two large companies whose basic notion is tight strategy management and standardizing for obtaining economies of scale in marketing, sales and development. These information provide types of how, despite their overall standardization strategy, they have had to have to adjust to local market segments to be succesfull.

McDonalds is the world's largest fast-food restaurant string. It offers more than 30, 000 restaurants in over 100 countries. McDonald's Firm is the world's major vendor of hamburgers and other fast foods. Although typically an American operation, and among the best known American symbols, the majority of income from activities beyond your USA. In its 2000 gross annual report XXXXXXXX, areas that 62 percent of the annual earnings is assigned to procedures outside America. This gives a fascinating situation for a corporation that has built his empire from doing all the meals produced - the same way. Hamburgers are exactly the same size, the same amount of pickles are put on each bun, and milkshakes are assessed with extreme accuracy.

McDonald's business design is actually the same no matter which country it would go to, but there are local differences, the company must face. The situation of McDonald's is defined in this article "McDonalds: "Think global, act local" - the marketing combine (Vignali XXXXXXXX). McDonald's expand internationally but altering local communities. McDonalds is standardised in large range, but they have allso designed to the neighborhood markets because of spiritual laws and culture. In Israel the burger is kosher tradition Big Macs, cheese and meats are served separately. In India they serve veggie McNuggets and mutton-based Maharaja Mac (Big Mac) as Hindus do not eat meat. Muslims do not eat pork and McDonalds has been rewarded with a halal certificate that advocates total absence of pork on the restaurants. In its 2000 annual report is based on three elements: A) Adding restaurants, B) Improve income and earnings existing restaurants, and C) to improve international success in a culturally sensitive way. Therefore that a McDonald's beginning in a overseas country does more than simply change its menus. It adapts its operating manual for the capability of the neighborhood franchisee. Quote from survey: Maximizing sales and profits at existing restaurants will be done through better management, reinvestment, product development and refinement of effective marketing and lower development and operating costs. Much better international profitability will be recognized as economies of level are achieved in various marketplaces, and since it is covered by the global infrastructure. . . . . .

Another case of any mainly standardised company is IKEA. In this article ''A standardized method of the globe? IKEA in China'', ( Johannson, U. and Thelander, A. , 2009), the authors give an insight into the issues IKEA has had with global marketing in an instance description with their launch and marketing in China. IKEA has effectively standardized all marketing and roll out in large parts of the globe, but China was a special obstacle as the standardising notion was not possible to effectuate due to the market, and specifically, cultural.

IKEA extended to China in 1998. The main goal group are women, because these were considered those who make decisions at home. IKEA thinks its center customer to be around 30 years old. This target group

are the era born under the main one child policy and they're believed to be impulsive, easy to impact, very public and committed to leading international consumer brands. Generally in most countries image of IKEA is a company with low prices. In China the contrary is true. The primary strategy has gone to reduce prices and make the IKEA in China for the reduced cost principle (roughly) as known in the rest of the world. IKEA stores in China are nearer to town than stores in other parts of the world where they are usually located well outside city centres. In China, consumers have less access to vehicles and the shops have to be near public carry routes. Nevertheless, IKEA built 700 auto parking spaces under a shop in Shanghai in expectation of this shopping habits would change. Another troubles for IKEA was that in China there isn't a "DO-IT-YOURSELF" culture. In addition China's consumers are using the store as interpersonal venues. To them it is just a pleasant environment and a totally not the same as other fixtures stores in China where there is no need agreement to feel and touch the merchandise. People in Shanghai shop may be seen obviously sleeping in beds and on sofas and read a publication with their feet on the desks. Rather than talk about the problem, IKEA staff hopes these same people will later give back as customers.

While IKEA is often regarded as a model for standardization among suppliers, it is clear that it has had to make significant changes in China. Provides an attractive and unconventional product was never only will be adequate. IKEA cases that the "worst type of" is currently getting proven in China, and this experience will stand it in good

Instead, as it expands into other culturally-different markets.

IKEA will claim that they have adapted, while remaining true to its business concept. But its experience also implies that there are limits to what lengths a business can go with standardization, and how far along this street consumers are inclined to be studied.

Standardization versus version of international marketing strategy: an integrative examination of the study empirisk To get over the above mentioned polarization, another group of research workers offer a contingency point of view on the standardization / version debate. In their view: (a) standardization or adaptation should not be viewed in isolation from one another, but as two ends of the same continuum, where in fact the degree of corporate and business marketing strategy standardization / adaptation can vary between them (b) the decision to standardize or adapt online marketing strategy is personalized to the precise situation which should be the result of a thorough analysis and examination of relevant contingency factors prevailing in a specific market at a given time and (c) the appropriateness of the chosen degree of strategy standardization / adaptation shall be assessed based on its effect on company performance in international markets (Quelch & Hoff, 1986; Onkvisit & Shaw, 1987, Jain, 1989; Cavusgil & Zou, 1994). Therefore, the challenge for the international company is to know what specific components of the strategy is possible or desirable to standardize or modify the conditions under which and to what amount.

Snik snak fra De danske bёger

Konklusion og videre lsning

Konklutionen I From what scope should a consumei goods

multinational corporation

vary its marketing

from country to countryl

Konklusion

Should marketers try to standardize their products and marketing and sales communications so as to minimize the costs of doing business internationally? Or should they change their products and messages depending on the market where they would like to operate?

XXXXXInternational markedskommunikation

XXXXXStandardization/Adaptation of Marketing Alternatives in Companies Working in Foreign Marketplaces: An Integrated ApproachXXXXXX

I denne artikel har vi prёveterinary at efterkomme opfordringen til at komme ud at »pjaske rundt pҐ overfladen af sёen, nҐr det drejer sig om at studere relationen mellem marketing og kultur [11]. Inden for marketing er indstillingen til kultur, mҐske ikke overraskende, dybt forankret i den vestlige modernismes tendens til at »ndre forskel til essens [20: 80]. Imidlertid minder »skaberne (etnoskaber, teknoskaber osv. ) os om, at kultur praktiseres og konstitueres ud fra praksis [1]; [12]; [20: 81]. Endvidere bliver vi mindet om marketings rolle som et globalt system, der frembringer forskellige identitetsrum: livsstil, kultur, subkultur, etnicitet, hybridisering, kreolisering osv. I lyset af dette bliver markedsfёrte varer til materielle manifestationer af ideen om kultur, af »det kulturelle ideoskab, som vist ved eksemplet med belizisk madkultur [36]. Dette bёr ikke lede os til at forveksle vsentliggёrelse med vsen. Det er ikke, fordi mange forbrugere enten sёger efter eller har en opfattelse af deres egen faste kulturelle identitet, at vi som forskere kan konkludere, at en sҐdan eksisterer, og markedsanalytikere har hidtil vret tilbёjelige til at ignorere de indviklede forhold, der glder inden for kulturelle udviklingsprocesser.

»SҐ lnge kulturel mangfoldighed bliver forstҐet som en mangfoldighed af kulturer, kan kulturstuderende kun se televisionrkulturel kommunikation og tv setrkulturel sammenligning som et af deres centrale problemer [6: xlv]. For et marketing- og forbrugerforskningsmiljё, der interesserer sig for den kulturelle dimension i international marketing, betyder dette, at komparativ analyse ikke lngere er det mest indlysende mҐl for forskningsaktiviteter, men snarere et udgangspunkt. Kultur, snarere end en forklarende struktur af vsentlige trk, bliver et paradigme, pҐ basis af hvilket marketingpraktikeres og forbrugeres praksis og tilgang fҐr betydning for forskerne. Kultur er ikke et studieobjekt, men et nёdvendigt perspektiv for at fҐ indsigt i det menneskelige samfunds struktur og forandringsprocesser.

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