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Standardization vs Adaptation

In: Business and Management

Submitted By kaley015
Words 2002
Pages 9
When an organisation decides to expand its activities into regional or international markets, it have to make a decision into which strategy to implement either in standardizing or adapting the marketing mix. According to Ang and Massingham (2007) a company’s choice to standardize or to adapt its approaches is essential, since it influences the organization's approach to business and the way in which they compete. It is also important in international business since it drives the Multinational Company’s ability to reduce cost or respond to local market demands (Bartlett and Ghoshal, 1998).

According to Walters (1986) standardization is the implementation of a similar or uniform marketing programme or process across national borders. The standardization strategy indicates the use of a unique market or the homogenization of international products. In few cases standardisation have a 100% uniformity as many organisations have different levels of standardisation and standardise segments of the marketing mix. Levitt (1983) states that the “Global competitor will seek constantly to standardize his offering everywhere… He will never assume that the customer is a king who knows his own wishes.” However, standardisation should not be looked at from only the point of the marketing mix but also the management of an organisation. Sorenson and Weichmann (1975) stated “the intellectual method for approaching a marketing problem, for analysing that problem, and for synthesizing information in order to arrive at a decision, can absolutely be standardized on an international basis." This belief have been supported by many other studies for example, regarding the promotion of multinationals Dunn (1976) suggest “"the methodology of planning is one area where standardization seems to work." Several advantages of standardisation is developed by Carpano and Chrisman (1995), Walters...

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differences
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different
markets,
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KFC,
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was
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for
the
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