Standardisation Vs Customisation

normalisation Vs CustomisationA great spherewideisation has been observed in the international descent receivable to regional economic integration, advances in transportation, communication, applied science and liberalization of worldwide trade policies (Czinkota Ronkainen, 2004 Keegan, 1999). With the maturement international business, international trade has become more than complex and diverse, (Terpstra, 2000 Cateora Ghauri, 2006) surroundings that is uncontrollable, unpredictable resulting uncertainty in business environment. International business is non only sending goods and services to unknown foodstuff just now as come up as to regard with discordent youngs that make international merchandising more complex, in p nontextual mattericular geographical borders, different political systems, business regulations, currency conversions and pagan variety (Keegan, 2002 Geri Ian, 2009). Convincing cases put up be put forward for some(prenominal)(prenomin al) a normalisation or customisation admittance to world(prenominal) marketing practice. These arguments argon keenly explored drawing from showcases of coca plant- the skinnys international marketing programme to reveal keystone points. This report discusses the contemporary issue facing by the planetary companies in marketing their point of intersections.Part One add global Marketing Standardisation Vs CustomisationGlobal versus local anesthetic marketing dodge have been a major debate in cross-national business development over decades for global strike outmarks (Levitt, 1983 Solber, 2002). The issue here is if the companies should follow a standardized marketing program to different consumer groups in different countries or a customised one by adapting their system according to the emergencys and habits of the specific country. The explanation for this confusion can be supported with two variables, aw beness of local market condition at the home office and the le vel of headquarters influence in decision do of local marketing. This dilemma of standardising and customised marketing is in general due to key operators same cost, ethical issues, legal restrictions, media, socialization, and markets. For example taking the wind beverage companion Coca- skunk (2003) into consideration it global shake Life tastes good has been backed merely after 2 years after its plunk. Now the companies ad headquarters operates according to the local market need rather than the draft true at central headquarters. In addition to this it is also argues that product form is also a key accompanimentor in reservation advertising decisions (Summerfield, 2002). Kay (2002), professorship of Toronto consulting firm The Glasgow Group in similar fashion says technology and clothing brands tend to fit well with standard marketing but forage and beverage products face difficulties with cultural mismatch, category development, brand nominate and local econom y. A nonher example for customized marketing is McDonalds, a food chain, which customises its marketing strategy as well as products according to the needs and culture of the countries. The products launched in each country differ according to the cultural requirements and habits, economic development and affordability of the targeted class.This is considered to be issue because of the complexity created by the issue in the decision making subroutine of international managers. As the main occasion of the advertising is to influence the comp anys customers in selling their products, it is essential for the company to set if their advertising campaigns be influencing its customers globally in all regions. Thinking from a strategic point of view boldnesss marketing with a exchangeable marketing strategy implies offering standard product at standard damage through standard scattering system, supported by similar forwardingal programmes in different counties, with different mar ket requirement and in some cases completely opposite markets, this supports customising approach. On the former(a) hand Cohanim (2002), Vice president of marketing and communication of IBM (Past), says IBM looks at the globe as a wiz market and IBM try to operate as a wholeness global market, the company supports this by stating the solutions for their industry, customers, products and services ar similar for all countries in which they are operational.Critical AnalysisGlobal Marketing is the strategy involving the intravenous feeding Ps of marketing i.e. Product, Price, Place and Promotion to deal with the markets according to the geographical and cultural adaptation. Complete Standardisation marketing strategy is to offer equal product line and features at identical equipment casualtys through identical distribution channels endorsed by identical promotional programs. The other extreme of this would be Complete Customisation marketing strategy to develop distinct tailored products, pricing, promotion and distribution policies with no specific standard elements (Imad, Naresh 1995). Many writers have endorsed standardisation instead of customisation for international marketing (Britt, 1974 Clark, 1975 Obrien, 1986). This argument is pleasing as it can be estimated an outstanding sales for a standard global product. Levitt (1983) in his Globalization of Markets states that If a company forces costs and prices down and pushes pure tone and reliability up epoch controling reasonable concern for suitability customers volition prefer its world-standardized products. Also the cost factor, which can be reduced by single marketing strategy when moved to low-cost market, helps the governing body to discover the quality of the product (Walter, 1986 Yip, 1989). It is also observed that most of the international marketing campaigns are showing attention towards the standardised approach of advertising (Varder, 1992). Some researches conveyed that industr ial products lend themselves more easily to standardisation than consumer products (Hite and Fraser, 1988) still, product categories cant be considered as great factor in standardising international marketing (Saimee Roth, 1992). In US, EU markets it is found that businesses with standardised products are well established and net income the favour of create a standard image of their products (Bharadwrj et al, 1993 Rosen et al, 1989). The other important factor that encourages standardisation is reduce in unit cost, this gain a competitive advantage for the global companies who can easily penetrate into the price sensitive markets and drive the small competitors out of market. Walliser Usunier (1998, p. 530), in their review article, argue that even though opportunities exist to standardize the strategic levels of international advertising, mainly on a regional basis, considerable adaptation of exceptional elements in international advertising campaign is inevitable.The standard isation or the customisation depends on the products and the printing of the consumers towards the product. Products like laptops, computers, televisions, cameras, watches, cosmetics, and clothing associated with fashion and status, etc are marketed on the basis of their world class recognition and hence a standard approach to campaign the products is used. A customised approach in such(prenominal) cases might not be preferred as they are advances in technology and thusly the consumer demands in such cases have universal acceptance of these global products (Yvette Reisinger, 2008). This kind of globalization leads to homogenization of consumer acceptance and adaptation of such goods. But products like food and beverages, services like banking and insurance solutions depend on the habits and tastes and needs and wants of the targeted ethnicity. For example, McDonalds recipes differ from each country it operates and are accustomed to the eating habits of the locals. The pricing of s uch products too is done by considering the spending ability of the targeted class. A standardised approach in such case would possibly result in a failure of the product in international markets. Yvette Reisinger (2008), in his defy describes the failure of the fast-food concept in France which is well admired in China. The Chinese consumers prefer faster service with low waiting clock where as the French consumers seek distinctiveness and identity of the service.The study thus implies that a standardised or a customised technique of marketing products might not be feasible in all cases and depending on the influencing factors thus, either of them or sometimes both of them might have to be considered. This is understood by a thorough research of the behaviour and adaptations of the countries while launching a product and depending on the mindset and acceptability of the consumers in those geographies (Salah Hassan, Erdener Kaynak, 1994). Philip Kotler in his Global Standardizatio n Courting Danger (1986) describes few such failures of products belonging to renowned brands due to non-customization. Philips initially failed to make profits in Japan due to larger size of the coffeemakers and later did well after reducing the size to accommodate Japanese kitchens. Mattels Barbie doll, a famous product introduced in foreign markets, could have made positive profits with its standard western features pass judgment by many countries with a lower price model. This could also be counter argued by having a culture specific meaning of dolls and the need to have their features invent a national look with would obviously clear up punter profits due to wide acceptance (Philip Kotler, 1986). Even though the Barbie sales were good with its western features in 60 countries, the sales in Japan have flourished only after the features of the doll were modified to reflect Japanese. This doesnt completely mean that Mattel has done well in those 60 other countries and leave s behind a dilemma that if there were customized features representing the nations, they could have done better.A priggish and complete understanding of these two strategies i.e. standardization and customization is necessary for global marketing and thus enables us to channelize the knowledge to leverage the opportunities in international markets. The idea is not to debate on which of the both is better but to investigate potentiality and research on which of the strategies suit the product (Philip Kotler, 1986). The possibility is that, by applying each of them independently could be successful or by a combination of both the strategies is to be decided while the promotional strategy for the product is universe designed. This could be realized by a primary market research in the geographies where the product is universe launched and the cultural, economic, political and infrastructural adaptations and limitations of the countries. This is quite necessary for successful marketin g and promotion to launch any product in the international markets and to be noticed and appreciated by the consumers of the product. A predetermined notion in this regard is grave and might in turn result in a disaster. Depending on the study conducted before the launch, it is then necessary to plan accordingly, the marketing strategy that needs to be implemented (Levitt, 1983). In international markets striking a balance between standardisation and customisation is vitally essential for the product to be successful globally (Amanda 2004). The element for success is an accurate assessment of market forces currently facing the specific brand and how to best take the advantage of this market environment. It is probably one of the reasons that Coca cola is the worlds most herculean brand as stated by Interbrands Global Brand scorecard in 2003, estimating its brand revalue at $70.45Bn(No. 1-0085).Part Two musical arrangement for ResearchCoca Cola, worlds largest manufacturer and di stributor of non-alcoholic beverages is the best example for the global marketing. We have considered degree centigrade due to its global recognition and also for its efforts to breathe a leader by dealing with the issues in standardisation and customisation strategies.The organisation currently operating in more than 200 countries with over 450 brands and a portfolio of more than 3000 beverage products worldwide, constantly competing with its international rivals as well as local players in the countries it is operating in, to revive its bewilder as a leader in the domain. The vast business structure of Coca Cola has led to prologue of innumerable marketing strategies and theories which have constantly been modified to maintain the brand as a global paramount. Achieving such a position all over the world is no cakewalk for any organisation and involves complex marketing strategies to deal with boundless problems encountering crosswise the world in different countries. A detailed analysis of different strategies and theories implemented by Coca Cola in executing its marketing plan across the world could help us to understand the concepts of standardisation and customisation better, and the advantages and disadvantages of both these theories.Issue and FactsFor any company that is endlessly growing it is vitally necessary that it does not contain geographical limitations and that is one theory that Coca Cola has excelled in. On July 29th when the company announced its second quarter results, a get in profit of 43% has been observed due to abroad harvest-home even though it suffered enervated domestic volume (Source 1 NY times). Since the time Coca Cola has started its global expansion, it has either become a leading beverage brand in countries worldwide or it tried to accept the topmost beverage seller of that country. A recent such deal that Coca Cola tried to make is in China (Source 2 NY times), which unfortunately couldnt be completed due to governm ent restrictions. Reportedly, Coca Cola tried to acquire a Chinese juice maker Huiyuan in the $2.5Billion deal (Source 3 CBS News). The company has ensured an equal market spread across the world and that is how it still made wonderful in violate of the weak economy back home in the United States, by its overseas markets (Source 4 Barrons). Recently in the month of June, it has announced the release of jet Tea Coca Cola in Japan, which they claim is good for health and beauty (Source 5 WBST). The range of products that the brand releases in different countries differs with the local adaptations, tastes and needs of the hatful. The marketing strategies and ad campaigns too differ depending of the mindsets and interests of mess. In the Asian Countries of India and Pakistan, the caption goes as Jo Chaho Ho Jaye Coca Cola Enjoy, by which the brand is recognized in those countries. Most of the captions and marketing plans of Coca Cola are such that they seem to the people to identif y and relate themselves with the brand(Ref 25, 25). The Colalife campaign is other example of Cokes strategy to support the social cause for the Third realness countries by supplying social products like Vitamin A tablets in their crates for people who direly need them (Source 6 PFSK). In Spain, Coca-Cola withdrew its 2-liter bottle after discovering that few local refrigerators had large enough compartments (Philip Kotler, 1986). The evidences of such a global leading brand in following the strategy of customization and adaptation regionally in spite of maintaining its international brand image makes it one of the worlds most powerful brands. literary works Issue AnalysisThe Coca Cola Company mission is to hit the roof their business by understanding the trends and forces that will help them to sustain by creating value and making difference (Coca Cola Mission Statement). In the regale of achieving this mission, they believe that consumer demand drives everything they do but al so brand Coca Cola will always be the core of their business(Ref 27). The focus on market is by get into the market to listen, observe and learn what their consumers, customers and partners need. They handle to create a brand image that would inspire creativity, passion, optimism and fun (Coca Cola Mission Statement). The point here is to observe the possibilities of sustainability, which is a key factor in a global market. One should always understand the fact that to be Global, one needs to be local. With a history of more than hundred years, the company has created a brand value for itself for its core business by the name Coca Cola or Coke and thus, is astray recognized by it. The idea now is to sustain its global model by constantly endeavoring new and innovative products that best suit the markets of the countries it is operating in. The theories of standardization and customization have been utilized constantly by this firm to maintain its core brand value as well as makin g the people feel it as local with its adaptive and customized brands and marketing. The emotional society that they make with consumers while providing them with product quality and variety builds brand value and drives preference for their beverage products.The issue is, to maintain such an emotional soldering with their customers, they need to listen to their customers and respond to them according to the needs. Various ethnicities have heterogeneous habits and thus different tastes. The proper control of top management and their formulation to listen to their business customers worldwide and executing marketing plans through proper research and analysis is one the main reasons that Coca Cola is an example for its business model and marketing strategies. They have dealt with the issue of varying needs of their customers by launching products that resemble the countrys ethnic habits and taste. A standardized approach in this case could prove dangerous as, if the product is not pleasurable by the people, no matter how best the marketing plan is and how well it was received in the home country or for that matter any other country, if people of one particular country dont like the product, it will result in a disaster in that nation thus forcing the company to withdraw its operation due to such failure. A proper method would be to deal with their local necessity and concurrently fire the core brand to achieve standardization. This way, even though customized products are being offered to the people, the core brand value is always promoted. The Coca Cola Company, with its vex in serving the world for more than a century, has excelled in the art of global marketing by customizing its products according to needs and also by maintaining the core brand Coca Cola or simply Coke across the world.ConclusionThe Coca Cola Company, in their 2008 annual review, mentions that We are just getting started. The reason is because currently they are selling 570 cardinal servings per year which makes it 18,000 servings per second. Estimates show that over the next 12 years the nation worldwide would grow by more than 800 million people. In addition, 1 billion new people would enter the middle class world and nearly 900 million people will have migrated to urban centers. That heart and soul more consumers with more money who have ability to purchase the ready-to-drink beverages to din business. In an attempt to understand and test the product sustainability, the company continuously launches new products with intense marketing campaigns in different countries. Depending on the consumer repartee and market survival, it either retains the sale of product or withdraws it from the market. In this process of satisfying their customer needs, Coca Cola is constantly gaining experience and is getting ready for its future targets by getting closer to its customers utilizing the theories of customization and standardization simultaneously and managing th eir effects intelligently to eliminate any negative effects and addicting people with its adaptive fondnessRead more http//www.oxbridgewriters.com/essays/marketing/global-marketing.phpixzz2Bwx0DLy9