Table of Contents

1. RESEARCH QUESTION .................................................................................................. 2

1.1. Internationalization...................................................................................................... 2
1.2. Standardization versus adaptation ............................................................................... 2
2. RESEARCH OBJECTIVE ................................................................................................. 2
2.1. Internationalization...................................................................................................... 2
2.2. Standardization versus adaptation ............................................................................... 2
3. JUSTIFICATION OF THE PROBLEM ............................................................................ 2
3.1. Internationalization...................................................................................................... 2
3.2. Standardization versus adaptation ............................................................................... 3
4. LITERATURE REVIEW ................................................................................................... 3
4.1. Internationalization...................................................................................................... 3
4.2. Standardization versus adaptation ............................................................................... 3
5. MODEL DISCUSSION ..................................................................................................... 4
5.1. Internationalization...................................................................................................... 4
5.2. Standardization versus adaptation ............................................................................... 4
6. ANALYSIS ........................................................................................................................ 5
6.1. Internationalization...................................................................................................... 5
6.2. Standardization versus adaptation ............................................................................... 5
7. REFERENCES ................................................................................................................... 5
7.1. Internationalization...................................................................................................... 5
7.2. Standardization versus adaptation ............................................................................... 6
 Implications of globalization on firm’s internationalization and debate of adaptation
versus standardization in global market

1. RESEARCH QUESTION
1.1. Internationalization
How traditional theories for internationalization are not adequate for new technological,
economic and social conditions?; What are the major challenges and dilemmas faced in
internationalization process of new ventures?

1.2. Standardization versus adaptation

Why international firm needs to consider adaptation and standardization in marketing mix
activities in foreign markets?

2. RESEARCH OBJECTIVE
2.1. Internationalization
 To explore major challenges faced by International New-Ventures
 To explain dillemmas faced in modern internationalization processes
 Understanding the usability of internationalization process theories
 Directions and methods that can be used to deal with the dillemmas pertaining to
internationalization
 Learning about the limitations of internationalization process theories

2.2. Standardization versus adaptation

 Understanding international marketing mix
 Need for standardization or adaptation in marketing mix
 To explain causes for standardization or adaptation
 Leaning about the complications in international market
 To explore which strategy helps in achieving maximum profitability and organizational
goals and objectives

3. JUSTIFICATION OF THE PROBLEM

3.1. Internationalization
The empirical research from many years ago supports the internationalization process theories
but new studies cast a doubt on their ability to be applied in the modern era of
internationalization mainly due to emergence of International New-Ventures.
 3.2. Standardization versus adaptation
Complexity of maketing mix in international market as compared to domestic market due to
factors such as difference in consumers tastes, wants and needs, national culture, technological
and economic level, market structures, political stability, rules and regulations, government
policy and several other factors can make a firm ineffective and counterproductive in the
foreign market.

4. LITERATURE REVIEW
4.1. Internationalization
Some of the existing theories for internationalization are Uppsala model and innovation
models of internationalization. First model refers to small and medium enterprises and their
stages of exporting. The second model is Roger’s diffusion of innovation which also moves
from one stage to another stage (Andersen 1993). The most popular internationalization theory
is explained by Uppsala model which originates from University of Uppsala, Sweden. It states
that internationalization depends on experience and the knowledge of the firms about foreign
marketing (Johanson and Wiedersheim-Paul 1975). Knowledge about the foreign markets has
been found to increase efficiency and decrease uncertainity in operation in the foreign markets
(Johanson and Vahlne 1977).

Both theories were developed in 1970s that describe internationalization as slow and step by
step process. But now technological advancements and change in worldwide communication
and increased accessibility to foreign markets calls for new internationalization process
theories (Johanson and Vahlne 1977). Electronic industry has indicated that
internationalization has become a must for all types of business including small and new
(Burrill and Almassey 1993).

The organizations that are founded internationally which are called International New-
Ventures (INVs) do not adhere to Uppsala or the innovation model theory and these firms are
due to high rate of international networking of firms (Johanson and Vahlne 1977). INVs need
cross-border alliances to achieve their business goals and objectives (Coviello and Munro
1992). INVs have to bare opportunity costs in terms of country entered, mode of entry and
degree to which their business is dependent on the foreign market (Shrader 1996).

4.2. Standardization versus adaptation

International marketing refers to activities that are performed in markets other than the
domestic market (Codita 2011). It refers to exchange of products and services across domestic
boundaries to satisfy human wants and needs (Jain 1999). Main objective of international
marketing is to describe, explain and manage marketing practices across national borders
(Toyne 1989). It can also refer to the concept of performing business in more than one nation
to earn profits and fulfill organizational goals and objectives (Ghauri and Cateora 2009: 7).

Concept of marketing mix has there been from around 1940s and consists of 4Ps i.e., product,
price, place and promotion (Goi 2009). The strategy of adaptation in marketing mix is
supported by different scholars while other scholars prefer standardization strategy for
marketing mix. The standardization or adaptation debate has become a major topic for research
nowadays (Larimo and Kontkanen 2008). International marketing mix includes analysis of
potential markets, planning of product and services as well as development in accordance with
consumers needs and wants, delivery of products or services to cater demand of the consumers
through convenient channels of distribution, selecting mode of advertising or other promotional
techniques such as direct selling and telemarketing, setting a reasonable price to cover costs as
well as making a profit, and providing customer services before sale as well as after-sale to
ensure satisfaction (Omar 2008). Main determinants of selecting a strategy, whether its is
standardization or adaptation, are regulations imposed by the government in foreign market,
difference between cultures, habits of the users, image of multi-national firms, nature of
market, chracteristics of consumers, chracteristics of the market, nature of the product,
custumers trust and loyalty, and political and/or legal constraints (Nguyen 2011).

5. MODEL DISCUSSION
5.1. Internationalization
The methodology for research used in this article is empirical/applied research and data based
on interviews, observations, sample surveys and case studies that correlates different factors to
form a consensus for achieving the objectives of this article.

5.2. Standardization versus adaptation

This research uses descriptive single holistic case study and purposive sampling method.
Sample is taken from 5 different international marketing managers of Turkish firms. One-on-
one interview with the managers was conducted for indepth information gathering. Content
analysis was used to derive inferences from the descriptive data.
6. ANALYSIS
6.1. Internationalization
There is a need for studying several different types of International New-Ventures (INVs) in a
large sample study to understand processes and relationships in international market. A
thorough study in which dimensions of INVs are covered will also help. Top management
influences the commitment of INVs to international business. Changes in internationalization
influences the understanding of INVs and inward & outward activities of a firm helps it with
foreign sales and foreign market share.

6.2. Standardization versus adaptation

For international markets, in most cases product from 4Ps of marketing mix is very hard to be
adapted so it is mostly standardized but elements of products such as brand name and label are
standardized whereas colour and packaging of the product are adapted. In most cases place and
prices are adapted from market to market or region to region. On the other hand promotion is
mostly standardized in international markets.The main reason for standardization of promotion
is to reduce high costs but it can lead to dissatisfaction of customers. Main reason for adaptation
is cultural difference, market chracteristics, and customer preferences but for standardization,
they are brand recognition and equity.

7. REFERENCES
7.1. Internationalization
Andersen, O., On the Internationalization Process of Firms: A Critical Analysis, Journal of
national Business Studies, 24, 2, 1993, pp. 209-231.

Burrill, G. S./Almassey, S. E., Electronics '93 The New Global Reality: Ernst & Young's Fourth
Annual Report on the Electronics Industry, San Francisco: Ernst & Young 1993.

Johanson, J./Vahlne, J.-E., The Internationalization Process of the Firm - A Model or

Knowledge Development and Increasing Foreign Market Commitments, Journal of
International Business Studies, 8, 1, 1977, pp. 23-32.

Johanson, J./Vahlne, J.-E., The Mechanism of Internationalization, International Marketing

Review, 7,4, 1990, pp. 11-24.

Johanson, J./Wiedersheim-Paul, F., The Internationalization of the Firm - Four Swedish Cases,
Journal of Management Studies, 12, 3, 1975, pp. 305-322.
Shrader, R., Influences on and Performance Implications of Internationalization by Publicly
Owned U.S. New Ventures: A Risk Taking Perspective, Unpublished Doctoral
Dissertation, Georgia State University 1996.

7.2. Standardization versus adaptation

Codita, R., (2011), International marketing standardization: A literature review, (In. Codita, R.,
Contingency Factors of Marketing-Mix Standardization, XXII, p.312).

Ghauri, P., and Cateora, P. (2011), International Marketing, Second Edition, Edinburgh
Business School, Great Britain.

Goi, C. L., (2009), A review of marketing mix: 4Ps or more?, International Journal of
Marketing Studies, 1(1), pp. 2-16.

Jain, S., (1999), International marketing management, Thomson South-Western.

Larimo, J., and Kontkanen, M., (2008), Standardization vs. adaptation of the marketing mix
strategy in some exports, 34th EIBA Annual Conference, Tallinn, Estonia.

Nguyen, L. T., (2011), Marketing mix across cultures: Standardization or adaptation, Lahti
University of Applied Sciences, Degree Program in International Business Thesis.

Omar, O., (2008), International Marketing, Palgrave Macmillan Publication.

Toyne B., (1989), International exchange: a foundation for theory building in international
business, Journal of International Business Studies.20(1), pp.1-17.