International promotion campaigns: standardization vs customization

Thèmes abordés

Standardization, customization, International promotion, campaigns

Résumé du document

In the last few decades, competition has increased at international level due to the liberalization of trade policy. In such highly dynamic and vibrant business environment, it's very difficult to operate internationally. Nowadays, global corporations face difficult decisions regarding what marketing to adopt. A basic question arises what should be the marketing strategy of the company when they go global, whether they standardized their processes or adapt their marketing strategy according to the environment. Indeed, we have two visions on employing the standardization or the customization. According to some research, the bases of the arguments of the supporters of standardization are that needs and wants of the customer do not vary significantly at their international level.

Thus, in their view the world is becoming progressively more homogenous in relation to requirements of the customers and environmental factors despite of their regional and geographical location. While, the supporters of customization strategy thinks that it is very difficult to use standardization approach across the globe. Their arguments are based on the fact that there are significant differences in the countries and even between the different regions of the same countries. On the second part of our analysis, we are going first to give global definition of both strategies and then we will illustrate our view by giving example.

Extraits

[...] That permits to make economies of scale and when you have limited resource it's the best option when you budget is limited. If we have as target multinational customer all around the world, make one advert is more easily than realize adapting advertising for each country. It's a precious save time, this is practical when we launch a product simultaneously in several countries. The standardization gives a strong branding image and avoids confusion. This strategy is perfect for industrial product such as Apple Product (Example of Apple). [...]

[...] Some research are revealed that standardization strategy is used to achieve the economies of scale and it is used when the target market has the similar needs and wants. While on the other hand customization strategy is appropriate when the consumers have a different needs, wants and preference and where there is a significant difference in the socio economic conditions of the target. To conclude, they to succeed in the international market and precisely in international promotion campaigns, is to use the mix of standardization and customization strategy and try to create the balance between the two. [...]

[...] The main problem of the standardization, it doesn't take into consideration cultural differences, purchasing power. (Example of failure standardization: Esso advertising, a tiger in your tank” in Thailand, where the tiger is not symbol of strength) Customization or adaptation: Definition: The customization of the advertising campaign consists in adapting its various components in the characteristics for every country. The company makes a specific advertising campaign to every aimed market. The positioning adopted on these markets can be different from that used on the domestic market. [...]

[...] (example of adaptation; Superflat first love de Takashi Murakami for Louis Vuitton. Adapted standardization strategy It is an intermediate strategy between the adaptation and the standardization. The notion of adaptation makes a reference concerning marketing aspect of product (formula of the product, the brand, the packaging). The adapted standardization allows satisfying the local requirements of the consumers. The adaptations are often little expensive and minor and allow to give the illusion which the product was specially to develop for the concerned market. [...]

[...] Indeed, we have two visions on employing the standardization or the customization. According to some research, the bases of the arguments of the supporters of standardization are that needs and wants of the customer do not vary significantly at their international level. Thus, in their view the world is becoming progressively more homogenous in relation to requirements of the customers and environmental factors despite of their regional and geographical location. While, the supporters of customization strategy thinks that it is very difficult to use standardization approach across the globe. [...]