Product standardization strategy. Product Standardization Strategy 2019-02-03

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The Disadvantages of a Standardization Business

product standardization strategy

The famous coffee brand is in its maturity stage. Consumers also look for images matching their own demographic attributes in the products. Convergence of customer needs worldwide: Customers in diverse country markets increasingly exhibit convergence of their needs and preferences, resulting into growing psychographic market segments across the borders. If a company enjoys strong brand identity and a strong reputation, choosing a standardized approach might work to its benefit. Instead of maintaining a reputation as a value-oriented provider, you might be viewed as the maker of cheap or unreliable products in the wake of product failures. This includes malls, airports and local neighborhoods.

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The Disadvantages of a Standardization Business

product standardization strategy

Therefore, firms need to carry out product adaptation tailored to specific marketing needs. Continuous education and training in a constantly changing workplace is a necessity, not a luxury. While the company is often found internationally, not all countries equally accept its products and its cultural ties. It involves the willingness of the vendor to provide two or more services at a basic rate. In international marketing, the marketers are required to come up with a decision as to whether they are going to standardize the product or to modify the existing products which is one of the challenging decisions that they have to make. In the recent past, the company has.

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Product Adaptation versus Standardization

product standardization strategy

Globalizing means homogenizing on a worldwide scale. There are several examples for industries that use standardized products. The major factors influencing product adaptation are: Government regulations: A firm needs to adapt its products to various markets in order to comply with government regulations. As pointed out, adaptation involves modifying a product so as to meet the local requirements and customs. Product adaptation tends to become a reactive response to the market. If the answer is yes, this is called global standardization. It also helps improve communication and performance.

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Product Standardization and Adaptation: Differences

product standardization strategy

Standardization, however, poses a number of disadvantages. The condition of product use is a significant reason for operational problems of highly sophisticated electronic gadgets in low-income countries that have robust conditions of use. This is due to the great innovative ideas that have prevailed in the company. When a product has basically the same appeal all over the world, global standardization is a useful tool. Well, if a customer in the United States uses a product one way, and a customer in Japan uses the product the same way, a company can utilize global standardization. Customers looking for top quality or a superior service experience often prefer to pay whatever it takes to get the best product or service possible. The organization should ensure that it has a strong management team, recruit and retain employees with the require experience, have appropriate technical skills, and intellectual capital.

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Advantage & Disadvantages of Standardisation and Adaptation Strategies Essay

product standardization strategy

Besides, using standard specifications facilitates product compatibility internationally. It facilitates gaining market share iv. Further more they argue that standardization will be successful when the homogeneity of customer response and the degree of similarity in economic freedom is high and competitive advantages are easily transferable. You can take advantage of product standardization savings by selling different quantities in different marketing channels; Think about direct local marketing, as with a pizza stand at a college, or indirect marketing, such as by advertising pizza-party catering on college social media sites. The difference emanates from the competitive strategies that each company implements in order to accrue the present benefits and restrain any threats from harming their performances Ibis World.


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Advantage & Disadvantages of Standardisation and Adaptation Strategies Essay

product standardization strategy

Would the same marketing approach that grabbed your attention work for others around the world? Researchers have described Starbucks as among the top companies by different researchers. These authors believe that standardization and adaptation is not an all-or nothing proposition, instead it is a matter of degree. This study takes an abductive research approach using a number of transdisciplinary theoretical. One company that is a well-known advocate of global standardization is Coca-Cola. Retrieved November 12, 2013, from 13 Soufani, K. So that the materials can be purchased in bulk quantities and this will lead to have discounts in purchasing.

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Leveraging Product Standardization for Health System Efficiency

product standardization strategy

It helps improve the management and design with less customization needed, enabling interchangeability of components, and provides practical application of expert knowledge enhancing operability and improves performance. 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. Sales boomed with the advent of Polaroid instant photography as this allowed Arab men to photograph their wives and daughters in the privacy of their homes without the need of strangers handling the film in a processing lab. Selling one unified product lacks uniqueness. How does the process of strategic migration transpire? On the other hand, supporters of the adaptation approach emphasize the apparent dissimilarities between the markets of different countries, especially those for consumer goods, and prefer using international differentiated marketing programs. They can be listed as follows. With standardization, however, the products are neither modified nor are the marketing approach changed.

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Global Marketing Strategy

product standardization strategy

Retrieved November 12, 2013, from 8 Levitt, T. That means in terms of target markets, packaging and designs, ingredients, languages, culture and etc the organizations need to come up with different ways so that they can cater different markets in a way where the customer needs and requirements are addressed. This is not good for an organization since the rivals can take advantages of this. This process is intended to help shoppers make up their minds more easily and create informed decisions. Download file to see previous pages The rise of multinationals such as Starbucks came with the advent of globalization, where trade restrictions were eliminated. Product standardization is the homogenization of items available to consumers that reduces the variety of products that fall under similar descriptors. This limits your ability to target these particular customers, but the bigger pool of value-oriented buyers you serve may help you overcome that.

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