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Explore how multi-national firm adapt to local market conditions and how this influences their marketing mix. Evolution of Standardisation and Adaptation in International Marketing •Standardisation expanded from advertising to the promotional mix and now encompasses the entire marketing mix.
•Standardisation was focused on minimising the cost while increasing export.
•Changes however occurred in thinking because of economic changes. ARGUMENT FOR STANDARDISATION •View market as increasingly homogeneous and global
•Consumer needs do not vary significantly across markets or nations
•It provides for economies of scale in production and marketing terms
•Brand consistency with mobile consumers ARGUMENT FOR ADAPTATION •There are differences between countries even between regions of the same country.
•Key differences arise on climate, taste, law, race, topography, occupation, disposable income, taxation, nationalism, local labour cost, literacy and levels of education.
•Supporters of adaptation view that customizing/altering the marketing strategies in foreign market because of the government rules, market development, legal issues, competition etc. Chung (2007) argued that culture has no main effect on product, price, place and process, but rather on promotional efforts. We disagree on the basis that, in Saudi Arabia for instance the promotion of jeans (product) to women is strongly discouraged. Although this stance overlaps with tenets of their religious beliefs. Supporters of global standardisation argue that consumers live in a globalised world in which nation-states are not the major determinants of marketing activities. This argument implies that marketing practitioners have the freedom to do what they like with either little or no government regulation of the profession. However this is a sharp contrast to Cateora et al (1999) report that ‘all nations have laws regulating marketing activities; in promotion, product development, pricing and channels of distribution. Conclusion Global uniformity and image, economies of scale, consistency with customers, easier planning and control, and stock cost reduction are the important reasons pulling the multinational companies towards global standardization. On the other hand culture, market development, competition, laws, economic differences, sociological considerations and the differences in the customer perceptions have highlighted the need for companies to adapt their marketing tactics. (Vrontis, 2003) "Both the approaches appear to be sensible, logical and coherent, highlighting the advantages and benefits that a multinational company could gain by using either approach. It is only when one focuses on the extreme position of either that they often become impractical and incoherent. Standarisation and Adaptation are considered to be the two polarised positions. In reality of marketing both processes are likely to coexist, even within the same company, product line or brand (Kitchen,2003; Vrontis, 2003; Soufani, 2006)". CATEORA, P.R. & GRAHAM, J.L.,1999. International marketing. 10th. Pennsylvania State University: Irwin/McGraw-Hill.
RYANS JR., J.K. ( 1 ), GRIFFITH, D.A.(.2.). and WHITE, D.S.(.3.)., 2003. Standardization/adaptation of international marketing strategy: Necessary conditions for the advancement of knowledge. International Marketing Review, 20(6), pp. 588-603+579+581+583.
SOUFANI, K.(.1.)., VRONTIS, D.(.2.). and POUTZIOURIS, P.(.3.)., 2006. Private equity for small firms: A conceptual model of adaptation versus standardisation strategy. International Journal of Entrepreneurship and Small Business, 3(3-4), pp. 498-515.
VRONTIS, D., 2003. Integrating Adaptation and Standardisation in International Marketing: The AdaptStand Modelling Process. Journal of Marketing Management, 19(3), pp. 283-305. Levitt (1983) argued that standardisation of the marketing mix and the creation of a single strategy for the entire global market, offers economies of scale in production and marketing and moreover is consistent with what he described as the ‘mobile consumer’ We vs the Author Backhaus et al (2007) also claim that different advertisement from different countries might create confusion amongst customers. We argue that the country for which the advert was created will appreciate the message unless the same advertisement is introduced in another country or those so called ‘travel consumers’ enter that the country in question. For example a statement such as ‘the finest in Canada’ will be judged misleading unless there is absolute evidence to prove. In Austria, premium offers re not allowed because it will result in discriminatory treatment of buyers. The laws in Puerto Rico requires that the rules for any promotion to be printed in English and Spanish. Global Standardisation Vs International Adaptation