PRESENTATION ON

STANDARDIZATION V/S
ADAPTION

JOLLY SACHAN
M.COM
3rd SEM
INTERNATIONL MARKETING
 STANDARDIZATION
standardisationis the process of implementing and
developingtechnicalstandardsbasedontheconsensusofdifferent
parties that include firms, users, interest groups, standards
organizations and governments Standardization can help to
maximizecompatibility,interoperability,safety,repeatability,
orquality.Itcanalsofacilitatecommoditizationofformerlycustom
processes. Insocial sciences, includingeconomics, the idea
ofstandardizationis close to the solution for acoordination
problem, a situation in which all parties can realize mutual gains,
but only by making mutually consistent decisions. This view
includes the case of "spontaneous standardization processes", to
producedefactostandards.
 USAGE
Standardscanbe:
Standardswhichmeanstheyarefollowedbyinformalconventionordominantusage.
standardswhicharepartoflegallybindingcontracts,lawsorregulations.
Voluntarystandardswhicharepublishedandavailableforpeopletoconsiderforuse.
Theexistenceofapublishedstandarddoesnotnecessarilyimplythatitisusefulorcorrect.
Just because an item is stamped witha standard number does not,byitself, indicate that the
item is fit for any particular use. The people who use the item or service (engineers, trade
unions,etc.)orspecifyit(buildingcodes,government,industry,etc.)havetheresponsibilityto
considertheavailablestandards,specifythecorrectone,enforcecompliance,andusetheitem
correctly:validationandverification.Standardizationisimplementedgreatlywhencompanies
releasenewproductstomarket.Compatibilityisimportantforproductstobesuccessful;this
allowsconsumerstousetheirnewitemsalongwithwhattheyalreadyown.
Social science
Information exchange
Customer service
Supply and materials management
defense
 Advantages of standardization

Manufactures:
Rationalizedifferentvarietiesofproducts.
Decreasethevolumeofproductsinthestoreandalsothemanufacturercost.
Improvethemanagementanddesign.
Speedupthemanagementoforders.
Facilitatetheexportationandmarketingofproducts.
Simplifypurchasingmanagement.
Consumer:
Establishqualityandsafetyleveltotheserviceandproducts.
Informtothecharacteristicoftheproducts.
Makeeasierthecomparisonbetweenthedifferentoffers
Public service:
Simplifytheproductionoflegaltext.
Establishquality,environmentalandsafetypolicies.
Helptotheeconomicaldevelopment.
Facilitatethebusiness.
 ADAPTATION
Adaptationof product is a process or strategy
ofadaptingor tailoring an otherwise standardized
product or service offering to meet the needs and
preferences of a particularmarketor set of
consumers, where such markets and consumers are
typically examined and managed within
aninternational marketing.
 About Adaptation
Asabusinessentersanewmarket,itmustcopewithculturalanddemographicdifferencesin

thewayithandlesmarketing.Somebusinesseschooseastandardizationmodel,inwhichthe

business appeals to universal needs, wants or goals in its marketing. An alternative, the

adaptationmarketingstrategy,forgoesuniversalityinfavoroftailoringmarketingtoappealto

theculturalordemographicparticularsofcustomersinthenewmarket.

Typesare:

Brand adaptation

Product adaptation

New or Acquired Brands

Considerations
 Standardisation vs Adaptation
Modern businesses are granted with vast opportunities in terms of revenue
maximisation through entering new markets. Implementation of
international market expansion strategy involves strategic-level decision
makinginrelationtoglobalbrandingstrategies,thechoiceofmarketentry
strategies such as wholly-owned subsidiaries, exporting, licensing, or
formingjoint-ventures,aswellas,decidingonthelevelofstandardisation
oradaptationofproductsandserviceinnewmarkets.
Marketentrystrategies,brandingstrategiesandthelevelsofstandardisationor
adaptationofeachsingleelementofmarketingmixcanberightlyspecified
ascriticalsuccessfactorsdirectlyimpactingthesuccessofbusinessinthe
newmarket.
 Standardisation as a cost saving strategy

Standardisationinvolvesusingthesamerangeofproducts,thesamepricing,
promotional and location strategies (Gupta and Randhawa, 2008).
Rationale behind standardisation practices relate to homogenisation of
consumer wants and needs due to intensifying forces of globalisation
(Winer,2009).Standardisationcanfocusoncorecompetitiveadvantageof
thebrandanditallowsforaconsistentandstrongbrandtobedeveloped
acrossallmarkets(Donelly,2009).
according to the Conceptual Model of International Marketing Strategy the
degree of standardisation or adaptation in new market has direct
implication on sales, profits, market share, the levels of customer
satisfaction, and composite performance.When entering new market,
decisionsneedtobetakenbystrategiclevelmanagementabouttheextent
of standardisation in relation to each individual component of the
marketingmix.
Adaptation as an effective customer-orientation strategy

Adaptationstrategyimplieschangingvariousaspectsofproductsand
services to a considerable extent in order to meet the needs of
consumers in international markets taking into account their
differences(Chung,2009).Adaptationstrategyoffersadvantagesof
meeting differences of local markets at various levels, and in this
way achieving greater levels of customer satisfaction. When
pursuingproductadaptationstrategydifferencesofspecificmarkets
can be addressed at product development stage, accommodating
differencesincustomerwantsandneedsinaneffectivemanner.
Standardisation vs Adaptation
Standardisation vs Adaptation
THANK YOU