Standardization versus Adaptation in International Marketing

on that point has been much debate over implementing a standardization scheme versus an rendering approach across international markets. There atomic number 18 numerous factors to consider, along with pros and cons of both merchandising plans. While standardization is equated with brand consistency, lower advertisement costs, and overall synergy, adaptation is often required to process cultural differences for more than effective communication and proves that slickness costs does not always facilitate high profits1.For some time m each researchers, such as R. D.Buzzell in 1968, allow concluded that the real headway is what selling elements can be standardized and to what grade2. However, academics check the notion that adaptation is essential to prosper in global markets. 3 And in the instance of advert to China, the necessity for adaption is ever present. China is a very appealing marketplace to many companies due to its sizable population and growing economy. Des pite the countrys fiscal growth, there still remains a large disparity between big cities, the like Shanghai and Beijing, versus the more inland provinces4.And since the relationship of cultural, political, and frugal similarities support the standardization of competitive strategy, treating China as champion nation to market to would be a mistake in itself, let along laborious to standardize a campaign targeting American and Chinese consumers. Some corporations, such as Coca-Cola and Proctor and Gamble, have achieved extreme success by targeting the affluent, exclusively there is almost a 90% segment left(a) to infiltrate. 5 This may mean lowering intersection price point, but many firms still reject from positioning their products to the middle or lower syndicate due to the high advertising costs.It is an overcrowded arena to in effect breakthrough, but this is where adaptation would hold the competitive advantage. on with the vast disproportionate economies of scale, the psychological and cultural drivers of Chinese consumers are transforming as well. The desire to express their personal identity is ever present, especially in the young generations. Nokia has seen their carrel phone sales surpass other brands because of its bearing focus that the other phones lacked6.The wantfor basic consumer goods is besides overlooked for ones that offer a modus vivendi wellbeing of enjoyment. The percentage of households reporting they have DVD players jumped from 7% in 1997 to 52% in 2004. The number of households with computers grew from 2% in 1994 to 13% in 2004, and the number of those with ready phones jumped from 10% in 1999 to 48% in 2004 (Burkholder). Thus, consumers are more likely to spend their money on technology or fashion as impertinent to a household item they may need.Globalization is one of the reasons a new Chinese consumer has emerged. Individuality, brand attitudes, and lifestyle preferences in China are more adjust with Hesperian markets, yet multinational corporations have been bilk from standardized merchandise strategies7. The drive to purchase Western products has greatly increased between each Chinese generation as well. In fact, generation Y (18-24) has purchased more tech-savvy devices, used the Internet, and purchased more Western brands than any Chinese age demographic before8.This appears to be more of a reason to standardize advertising campaigns, but despite desire and acceptance of Western ideals and products, the younger Chinese demographic is still very in touch and proud of their heritage9. This dynamic consumer requires research and attention, which denotes an adaptation technique to effectively communicate a market plan. There seems to be a general consensus from marketing researchers and intellectuals that standardization strategies are more effective, economical, and should be utilize initially.However, consumer behavior and perceptions play an integral role in framing an advertising campaign and this is where a degree of adaptation is essential. Standardizing many parts of a marketing mix is beneficial, but there are veritable areas where modification will yield the best results. In order to achieve a working nonplus of international marketing, standardization and adaptation strategies should be utilize as see fit. And since China has a peculiarly diverse set of consumers that makes marketing to the country entirely dynamic, an adaptation approach would be advantageous in regards to an international campaign.