Adaptions also demand the use of different marketing and selling strategies in the foreign market. Environmental factors are external conditions beyond the con trol of the firm. Product adaptation means that the firm adapts the product to the local markets. 5 Things Emotionally Intelligent People Do & Don’t Do. An example is McDonald’s vegetarian burgers in India. Furthermore, the average product requires at least four to five adaptations out of a set of eleven marketing elements: labeling, packaging, materials, colors, name, product features, advertising themes, media, execution, price, and sales promotion. What is Export Sales Contract (ESC)? If you have any doubts, please let me know, PRODUCT STANDARDIZATION V/S ADAPTATION AND FACTORS. And this decision can make impacts on the organization in terms of the Research and development expenses, finance, production, organization structure, procurement, marketing mix etc. Climate Conditions and Physical Environment. What is General Agreement on Trade in Services (GATS) ? Master of Commerce – M.Com First Year Solved Assignments for July 2019 and January 2020 Admission Cycles, M.COM First Year Tutor Marked Solved Assignment, IBO – 02 International Marketing Management Solved Assignment for 2019-20. Because the label of the Red bull which is being sold in North America consist of red and silver for which the red bull stands for action and the silver background stands for the youth spirituality and spirit. This product adaption refers to the process of modifying the existing products in order to reach to each market. What is product standardization and adaptation? Climatic Conditions and Physical Environment: Product decisions are also influenced by climatic conditions and physical environment of foreign countries. Under standardization, providing a single strategy for the international market, along with standardizing the marketing mix components, can enable constancy with customers … – Benefits, Pros and Cons. Product standardization has certain advantages in comparison to the alternative of adaptation and customization. Adaptation involves offering different product versions to meet the specific needs of each of its different global markets. Abstract- Study of the transformation of marketing solutions in the process of internationalization of a company acknowledge that the structure of marketing strategy in international markets is an evolutionary process and companies face a particular Atom Pros and cons of AVOD (Advertising Based Video On-Demand) Monetization. Previous researches confirmed these findings (Nguyen, 2011). A standardized concept is used by _______An adapted concept is used by ______, Here, just add competitor both side...but if you are getting confused related to the difference between the two..you can visit this video where it explained properly...https://www.youtube.com/watch?v=Hg7iU5LfxvI. Why Invest in Life Insurance? The tension between Standardization orientation of multinational companies and the necessity of localized adaptation has been identified as an enduring theme in the internationalization of human resource ... and that each has a complex of factors that effect their interaction Differences in … There are several product adaption strategies that an entity can use such as. Whereas, Course. 14- Figure 1 Environmental factors influencing the balance between standardization and adaptation 3. Factors of Standardization and Adaption : Post Comments 41-50 ), DOMESTIC,FOREIGN AND GLOBAL ENVIRONMENT & INFLUENCE ON INTERNATIONAL BUSINESS, COMPONENTS OF CHEMICAL GOODS & RESPONSIBILITIES ASSOCIATED, COMPOSITION & ROLE OF WTO IN AGRICULTURAL EXPORTS. under which each of them is suitable. For an example, if a particular company comes up with the decision of standardizing the product then the product is being manufactured using the same materials, same processes and even sold under the same name. Stage of Market Development. Differences in the conditions of use of the product. They both represent a way of selling products overseas. This strategy is more expensive and time-consuming than product standardization but yields better results. Availability of infrastructure support facilities such as transportation, communication etc. What is to follow entirely depends upon the business, industry and target market, in some industries standardization is more suitable where mass production is required, needs of customers do not vary significantly and same product is required worldwide, in some industries adaptation is best to follow where customer’s need are variable is geography and diversification is required to have … Product innovation: The availability of a basic template to work with increases the possibility of innovation. They include social, economic, and political factors, which are dynamic, interactive, and culturally contin gent and often affect marketing strategy. In the process o… This is a strategy mostly used by Multi-National Companies(MNCs). Physical environment consists of hot or cold climate, plains or hilly areas, living environment in home etc. Furthermore, this research presents the factors that influence the company to adapt its marketing mix while maintain its standardisation strategy. Following are the important factors which necessitate adaptation: Differences in the consumer tastes, consuming habits etc. Implementation of international market expansion strategy involves strategic-level decision making in relation to global branding strategies, the choice of market entry strategies such as wholly-owned subsidiaries, exporting, licensing, or forming joint-ventures, as well as, deciding on the level of standardisation or adaptati… The reasons for this may be as under: Due to above factors, a product would require changes-to be made in the product offered in another market. I have a doubt in the last table showing factors favouring standardization and adaptation. Discuss the Role of Trade in Services in Economic Development. Summary of thesis Title: Standardizing or adapting the marketing mix across culture Authors: Ingrid Bernier and Elise Meyer Supervisor: Jean-Charles Languilaire Level: Bachelor Thesis in Business Administration, Marketing Key words: Culture, international marketing, marketing strategies, standardization and adaptation Purpose: Compare two strategies, standardization and adaptation, to … However, a product may have huge potential for export in one market yet the same product offered in another market may draw a blank. General Agreement on Trade in Services(GATS) refers to a multilateral treaty containing rules, disciplines and commitments for progressive ... Trade in services has increased in importance over the last two decades with the advent of globalization. In the process of standardizing a product, there are certain guidelines to be used and such guidelines should be followed by the company who is willing to standardize the product and the guidelines will be applicable to one organization or to one industry and will be conformed in the national level or international level. Yes, it is correct because product adaptation means making modifications in the product according to the needs and desire of consumer of that particular market. At the same time when the shampoo of Dove is being sold the Dove company use different packaging to reach different markets. Specifically, we showed that the main causes of adaptation are cultural differences, customer preferences and market characteristics, but on the other hand, the main causes of standardization are to provide brand recognition and equity. Assignment #2 - Balance between Standardization & Adaptation. Simon Fraser University. © 2020 Owlgen India. The first method under question is the standardization standpoint (suggested by Jain, 1989; Levitt, 1983). It is the process of modifying products for different countries and regions or designing new products for foreign markets. Climate Conditions and Physical Environment. The important factors that influence the exporting firm decision in favor of product standardization and adaptations: Customer Orientation: The most important factor influencing the exporting firm’s decision in favor of product standardization and adaptation is customer orientation i.e., customer’s response to the product. Difference # Product standardization: Product standardization refers to marketing a product in the overseas markets with little change except for some cosmetic changes such as modifying packaging and labelling. Standardization involves offering a common product on a worldwide basis. It involves the customization of strategies for different regions, based upon assorted factors. To begin with, standardization has several advantages, which include the following: the uniformity of the product in the globe as well as the cost savings from having identical products. Kotler suggests that all eleven factors should be evaluated before standardization is considered. Visit the channel...IGNOU eapathshala if you are facing any difficulty in understanding some concepts. ( And the decision as to which to choose depending on the attitudes towards the different cultures. For example, the safety of a certain brand of lighters can be a debatable issue, as what is unsafe for a consumer may be completely practical for another. Customer Orientation. Customer orientation encompasses following elements: The implications of customer orientation for product design would be as under: Also Read | The Ways to Show Intelligence of Intelligent People Without Saying Anything. Discuss the major issues involved in settlement of international trade disputes. 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