International Marketing Strategy Standardisation V/S Adaptation
Significant role in Marketing Strategy
Marketing strategy is a plan to sell services or products in a way that renders long-term profitable growth for any organization. The road map for any brand, which leads the priorities and helps you to communicate high level of demand. Successful companies use marketing strategy to deliver their offerings to the customers to create more impact. Any culmination of activities, whether online or offline, that leads a business to move closer to its short term or long-term strategic sales goals. It's the knowledge of how to best analyze both the macro and micro aspects of a business, and carefully dissect all of those factors to raise company's best foot forward. It is suggested that marketing practitioners engage first an internal and external environmental analysis to investigate a company's organizational position and industrial barrier in a market.
A well-defined marketing strategy allows businesses to promote the USPs of their brand, features and benefits of their products and services. Businesses can be creative, strategic and planned methods to highlight of their brand and that interacts directly with the consumer makes them recall your brand as the offerings are better than their competitors. Elements of both approaches should be incorporated in order for multinational companies to succeed. The benefits of companies to not only standardize various marketing mix elements and marketing strategies, but also to come after adaptation where essential in order to satisfy apparent market needs. The company developed a low-cost packaging product and other options that allowed it to offer dramatically less expensive options. This flexibility not only opened a new market for the company, but also allowed it to develop brand loyalty that consumers could take with them when their income increased and they could afford higher-end products from the same manufacturer.
Effects on Customers Orientation Strategy
Customer orientation consists of a set of beliefs that the priorities of an organization are customer needs and satisfaction. Which involves permanent improvement in business processes and dynamic interaction between the company and its customers. The ultimate goal of a marketing strategy is to achieve and communicate a sustainable competitive advantage over the companies by understanding the needs of its consumers. Whether it's a print add design, mass customization, or a social media campaign, a marketing asset can be judged based on how effectively it communicates a company's core value proposition.
A marketing strategy is a business game plan for reaching prospective consumers and turning them into customers of their products or services. Marketing strategies should revolve around a company's value proposition. All the companies acknowledge that customers are the core of their activity, that customers are the company's most valuable asset. A company can survive only when it can retain its old customers and attract new ones. Therefore, the company should be structured and managed around the customer.
The businesses are granted with vast opportunities in terms of revenue maximisation through entering new markets. International market expansion strategy involves strategic-level decision making in relation to global branding strategies, the choice of market entry strategies such as exporting, licensing, forming joint-ventures, as well as, deciding on the level of standardisation or adaptation of products and service in the market. If there are political changes or new regulations that impact your company, your strategy must address them. If the composition of market segments changes or a market grows, your company's marketing strategy should note that as well and plan how you can best take advantage of the situation. Ensure that the company is consumer centric over the service and details of the product. Any effective marketing strategy must be scalable.
Influence of Standardization and Adaptation in Marketing
Adaptation strategy implies changing various aspects of products and services to a considerable extent in order to meet the needs of consumers in international markets . The advantages of meeting differences of local markets at various levels, and in this way achieving greater levels of customer satisfaction and it can be applied in order to address differences associated with each individual market. When the product adaptation strategy differences of specific markets can be addressed at product development stage, accommodating differences in customer wants and needs in an effective manner. The strategy of adaptation allows businesses to respond to changes in local marketplace in rapid manner. These changes may be political, economical, social or technological, relevant business processes may be subjected to modifications in order to eliminate or at least to minimise negative impacts of these changes.
Standardization can be specified as one of the most important critical success factors in the new market, as it has proved to increase performance through the reduced purchasing cost, lower inventory levels and improved supplier delivery performance. It can also improve common operational performance measures in production such as set up and holding costs, order quantity economies, inventory costs and production costs. The component that is used as replacement is often more expensive than at least some of the unique ones it replaces, but given a high budget level, there is always a cost reduction when standardizing, even the replacing component is much more expensive. The standardization of components is tightly connected to the standardization of the supplier base, which is dependent on the relations with the suppliers. In many cases it is more important to have a good relation to the supplier than the actual choice of supplier and concentrate their attention and resources on aspects of the business that demands. High level of effectiveness of monitoring the outcome of marketing communications also contributes to efficiency of standardisation strategy.
Impacts of Marketing in Future
The company that engage in international marketing operations faces a number of important strategic decisions. As multi domestic companies, these are competed in many local markets and attempted to meet the local market requirements as best they could. Globalization may occur in several parts of a firm's business and may require different responses whether it occurs at the customer, market, industry, or competitor level. The international marketing should ensure that all the strategies from companies confirm to the designed marketing policies, and has the capability of achieving the competitive advantages and they are aware of their strengths across the markets. It requires a new way of thinking about global marketing operations. Multinational companies should be simultaneously focused on the facets that need global standardization as well as on those demanding a local variation. They should engage market research and identify their customers' needs and acknowledge their problems.