Standardization and customization strategies

Subject: Integrated Marketing Communication

Paper Model: APA

Paper Type: Assignment

Total Words: 1671

Document Outline

Assignment

Introduction
Advantages and disadvantages of standardization
Advantages and disadvantages of customization
International marketing
Factors in selection of marketing strategy
Example
Product type
Entry mode
Choice of destination
Aspect of local culture
Example
Host country’s economical condition
Company specifies
Conclusion
References

 


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Assignment
What is the relevance of the customisation-standardisation debate in international marketing strategy and how might this influence the market selection approach of both Small and Medium Sized enterprises (SME's) and large scale enterprises (LSE's)?

 

Introduction

Standardization and customization are two different concepts used in the market for attracting customers. These concepts are based on two different marketing strategies. Standardization refers to the adoption of marketing strategies and campaigns for appeasing everyone. It includes one size for all customers. Global marketing strategies include usage of same strategies in global market. Many organizations are using this approach in international market for attacking customers in low cost. Coca Cola is using standardization in distribution and packaging. This approach helps companies to market their products in same fashion to the global customers. It provides ability to cut costs.

On the other hand, customization refers to the adoption of marketing strategies as per the perspectives of customers. These organizations build products as per the demand of individual customers. Customization refers to the selection of those processes that provide goods and services according to the demand of customers. Customization is achieved by modifying, assembling and changing standard product as per the need of customers. (Cavusoglu, Cavusoglu, & Raghunathan, 2007) In this report, I compared these two marketing concepts. I also analyzed selection of marketing concepts for small and large size enterprises. For expanding business in global markets different factors are there that influence in the selection of the strategy. For the expansion of companies in international markets, some factors should be considered that what strategy might be adopted.

Standardization focused on many customers while customization focuses on specific customers. In standardization, data of customers needs is taken from the marketing research while in customization this data is achieved from specific customers. Each strategy has some advantages as well as disadvantages. Customization strategy is costly while standardization has lack of customer’s preferences. Different markets demand different products. Standardization does not fit well is different culture and different choices of customers.

Advantages and disadvantages of standardization

Standardization helped in enjoying economies of scale. It made a brand recognizable in the global market. It helped to reduce cost of the product. It provides easy access in the international market. This strategy is affordable for small enterprises. It is not effective in every market. Different countries or region demands different product with different marketing strategies. Using same strategy every time provides damages to the companies. (Kokemuller, 2015)

Advantages and disadvantages of customization

With the help of this strategy, customer’s satisfaction can be achieved by the companies. This strategy is effective in different cultural environments. This strategy is effective in highly competitive environment. It increases sales of the product. It is flexible strategy. Marketing is changed as per the preference of customers. This strategy is costly. Each country demand different product and it is costly to identify preferences to built products as per their preferences. This strategy cannot be affordable for small enterprises. However, large enterprises are using this strategy for gaining competitive advantage. Companies can compete in global markets with different customers easily.

International marketing

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