Standardization versus adaptation in international marketing assignment

By differentiating, this Standardization Versus Adaptation in International Marketing By artistry The polytechnic approach will set up global subsidiaries, and each will have its own marketing objectives, as well as policies and procedures, apart from the parent company, such as hiring, marketing, production, human resource, finance, and discounts. The logic behind polytechnics is, When in Rome, do as the Romans do… Let the Romans do it their way. Therefore, the parent company steps aside, and lets its global offices make decisions that reflect the local practices.

Geocentric Model The geocentric orientation is a fusion of ethnocentric and polytechnic orientations, it s understood that there are similarities and differences in cultures worldwide; thus, this is more of a balanced approach to take in marketing strategies, for it is a compromise and balance between the two orientations extremes of polytechnic and ethnocentric. Geocentric orientation is defined as a business attitude of global similarities between two markets and cultures.

The export department conducts marketing, and employees are typically nationals. R is not developed in foreign countries, but domestically; products are not modified extensively, and calculation for prices is the same as in the home market, with distribution costs added in. Distribution and promotional strategies are similar as the home country, as much as possible, and operations are conducted room the home office, with a strong dependence on export intermediaries. In comparison, the geocentric approach views the entire world as a possible market, knowing no boundaries.

Employees are from other countries, standardized product lines are developed for global markets, and pricing is determined based on local markets. Promotional campaigns and products are developed globally, and are in harmony with the company image. Channels of distribution are developed as well. The polytechnic approach establishes subsidiaries in foreign markets that operate independent from the parent company. This approach creates its own marketing plans and objectives, as well as R, which are governed on a country-to-country terms.

Howard Permute postulated that companies who start their Journey begin with an ethnocentric orientation, but imperceptibly procure a polytechnic perspective, but ever time endeavor to consummate a high level of geocentricism. Cultural Differences and Model Choice The differences in culture can shed light as to which orientation a company should choose in international markets. For cultural differences abide, whether its values, languages, beliefs, behaviors, or external factors, each culture has its own unique characteristics.

When companies make a choice to extend its marketing of products internationally, a strategic choice has to be made, whether to standardize its marketing mix, and use a single marketing strategy in all its global markets, as a “ one size fits all”, or to adapt its strategies and marketing mix to tailor to unique cultural dimensions. Cultural differences do affect which model orientation to use for marketing strategies. On one hand, people are seeing global markets as becoming more homogeneous, and progressively more global, hence, the key to success is a company’s appetites to standardize.

Competition or consumer preference steers differentiation in prices, whereas, lowering transportation expenditures, or better communication, steers price standardization. Promotions can be standardized or adapted, depending on the situation. Some companies standardize promotions to cut costs. However, consumers from different cultures have unique cultural identities, thus adaptation is needed. These cultural differences are language, laws, and availability of media outlets, economic, social, and political systems, and religion. These differences should be addressed for the promotional strategy.

To employ adaptation or standardization, for distribution channels, also has to be assessed when marketing cross culturally. This branch of the marketing mix is considered more adaptive, and looks at several factors, including culture, consumer, and product. Adaptation is more involved when there are differences in distribution framework, purchasing habits, and expendable income, as well as sales volume, or a quotidian product line. There is an extent of adaptation and standardization of distribution channels intention upon which country the company is located.