Customization-Standardization Debate

This report discusses the debate between customization and standardization of marketing strategies in global business. It explores the definitions of standardization and customization, their relevance in global business, and the benefits they offer. The report also examines the influence of market selection approach and concludes that customization marketing strategy is the best practice in the current international business environment.

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................3
Definition of standardisation.......................................................................................................3
Relevance of standardisation in global business.........................................................................3
Innovation in product...............................................................................................................3
Benefit of the customers..........................................................................................................4
Avoidance of cost of adaptation..............................................................................................4
Definition of customisation.........................................................................................................5
Relevance in global business.......................................................................................................5
Brand loyalty...........................................................................................................................6
High customer retention..........................................................................................................6
Better customer experience......................................................................................................6
Influence on the market selection approach................................................................................7
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................8

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Introduction
The advent of globalisation changes the spectrum of business to a great extent where the
business organisations are always kept checking their focus with the change in the business
environment and customer demands. As per the research of Kehoe, Midrigan and Pastorino
(2018) it can be stated that the regional economic integration, transportation advancement,
development in communication and technology all these factors are supplied enough exposure to
the current international business. Due to these factors international businesses is also
transformed itself radically and incorporate a number of new and relevant concepts that were not
followed in the erstwhile business paradigm (Vinichenko et al. 2016). For instance, quality of
service, concerning the demands and specification of the customers and changing nature of
business with change in geography are newly incorporated into the business approach and
referred as the sustainability factors in competitive market. Henceforth, a pertinent debate arises
in the name of marketing strategy of the multinational companies. There are two distinct
practices like standardisation and customisation that are solely based on the difference in
geographical type and market trends.
Based on this understanding, this report is going to highlight the standardisation versus
customisation debate where the business firms are looking forward to implement strategies that
are generally followed by rest of the companies or they may emphasize on the customisation of
marketing strategy based on the local market trends..

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Discussion
Definition of standardisation
As opined by Rao-Nicholson and Khan (2017) standardisation of marketing strategy is
resembled with the practice of establishing a unitary process of marketing strategy for different
ranges of customers. The major purpose of standardisation of marketing perspective is that the
process intends to develop a same sort of demands among the customers through influence and
convince them to buy that particular product. As a result of that it is obvious that huge pressure is
imposed on the demands and decision making of the customers so that they will compel to buy
that particular product. Therefore, brand value and awareness among the customers is played
pivotal role in implementing and executing standardise marketing strategy.
Relevance of standardisation in global business
Standardisation in global business is not a new phenomenon rather business companies
are practicing these trend for a long time. The basic principle of the standardisation practice is to
set a unitary marketing strategy that fits the global market (Liu et al. 2016). As a result of that
the company is no longer think about the local culture and market trend. For instance, in case of
the penetration of Coca Cola in global market, the beverages giant offers the same product to
different customers across the world. There are certainly a number of advantages that
standardisation of products follow in terms of innovation in product, benefit of the customer and
avoidance in cost of adaptation.
Innovation in product
According to the research of Ding and Keh (2016) the availability of skills and basic
resources will increase the chances of innovation in business organisations. However, there is

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also a unitary standard that the companies have to follow in order to harness a good relationship
between the product development and the skills of the employees. As a matter of fact, the
innovation also suits standard of the market and usher more profitability in the process of
product development. In this regard, Hollensen (2016) opined that standardisation provides the
companies guidance to maximise their revenue generation and also build up a controlled
development for sustainable business practice. For example, Tesla tries to develop its own image
in the global market by providing the same product and experience to the global customers
through innovation and skills.
Benefit of the customers
Standardisation of product has a long range of benefits for the customers. As per the
article of Bretschneider and Parker (2016) it can be derived that customers would like to prefer a
clear perception regarding the product so that while purchasing it, they will not get confused.
Standardisation restricts the number of available products. As a result of that customers can
easily pick up their desired product and share the same experience. For instance, Apple would
like to provide the same experience to its global customers. Therefore, all the Apple products
have its own brand value and it becomes easier for the dedicated customers of Apple to select the
specific one from its range of products.
Avoidance of cost of adaptation
Continuous fluctuation in the market is a very difficult situation for the business
organisations to survive and sustain business. For the small and medium scale enterprises, the
situation is very difficult because they have to go through a long range of products and
continuous changing process so that it can cope with the market trend (Shin, Kim and Hwang
2015). The consequence is fatal because the adaptation process costs huge. On the contrary,

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standardise market trend reduces the inconsistency and help the business companies to have the
chance of making progress (Hollensen 2016). For example, the success of Starbucks in global
market is a perfect instance for its brand value.
Definition of customisation
As far as the customisation of marketing strategy is concerned, it can be stated that the
company has to depend on the local market for making any final decision. The customisation
practice of marketing strategy is a new concept and it focuses on the process of delivering an
effective thrust on the interests of the local market customers. Therefore, Ng et al. (2015)
advocated that the role of the customisation marketing strategy is to facilitate a good focus on the
local market condition and adapting strategy in accordance with the local market. As a result of
that the company gets different strategies for different market.
Relevance in global business
Customisation or personalisation of marketing is a new trend in the global business
practice and the practice has a pragmatic and rational approach for dealing with the demands of
the customers. As per the Hofstede model of culture dimension, culture and demand of the local
market is highly pertinent for the business organisations in order to facilitate extensive market
capitalisation (Laitinen and Suvas 2016). The customisation of marketing leads to different
strategies and conception that a multinational business entity perceives and this perception varies
in accordance with the demand and trend in different markets (Hollensen 2016). The
customisation of market leaves a great deal of positive impact on the international business. The
advantages are as follows,

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Brand loyalty
As opined by Wong and Wei (2018) the less tangible benefits of personalisation help to
create a brand loyalty for the business organisation because the organisation is trying to develop
its product in reference to the demands and trend of the targeted customers. It is important to
note that brand loyalty is much desired practice to survive in the competitive international
market. Henceforth, it becomes an important aspect for the business organisations to create a
strong brand loyalty so that it will provide a strategic advantage in the long term sustainability in
business. For instances, Samsung tries to put focus on personalisation marketing strategy.
Therefore, focusing on the specific market demand it develops mobile phones accordingly.
High customer retention
Customer retention is one of the most important aspects to survive in the competitive
international business environment. One of the major principles of customer retention is to focus
on the customer satisfaction. Recommendations from the customer feedbacks are played a
crucial role in the process of delivering a good customer relationship practice that the business
entities are followed in course of integrating the customers with the organisational development
program (Hollensen 2016). For instance, Watercare in New Zealand is willing to do business
with the help of local community of Auckland and initiates a customer engagement program
extensively.
Better customer experience
Customers in recent times are highly aware of the business activities of the multinational
companies. Therefore, a personalisation marketing strategy is highly relevant in the context of
establishing better customer service facility. Companies are trying to establish strong brand
awareness with the help of facilitating effective customer experience practice (Kalantari and

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Johnson 2018). Sustainability and corporate governance practice are included into the process
where the business operatives engaging local communities. For instance, McDonalds offers
financial aids for the literacy program in Africa and Latin America as a strategy to penetrate into
the market more strategically.
Influence on the market selection approach
The debate between standardisation and customisation of marketing practice leads to
further speculation into the efficacy of both the marketing strategy. An example into this debate
can explain the efficacy of both the practice. Despite of having enormous profitability in the
international market, Starbucks failed to encapsulate the Australian market. One of the major
factors was its lack of understanding of the customer and trend of the Australian coffee market.
Coca Cola also realises that it is not enough to convince the global customers to buy Coca Cola
drinks by following a standardised market approach. Product diversification is also incorporated
into the business strategy of Coca Cola.
Conclusion
The above discussion is trying to put emphasis on the debate over standardisation and
customisation of marketing strategy. On the basis of the discussion, it can be stated that
standardisation is no longer an effective approach for the multinational companies and more
specific insights of different markets compels the international business organisations to follow
customised or personalised marketing strategy. Therefore, it can be concluded that customisation
marketing strategy is the best practice in current international business environment.

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Reference
Bretschneider, S. and Parker, M., 2016. Organization formalization, sector and social media:
Does increased standardization of policy broaden and deepen social media use in
organizations?. Government Information Quarterly, 33(4), pp.614-628.
Ding, Y. and Keh, H.T., 2016. A re-examination of service standardization versus customization
from the consumer’s perspective. Journal of Services Marketing, 30(1), pp.16-28.
Hollensen, S. 2016. Global Marketing Always Learning. 7th ed. Pearson Education, pp.1-872.
Kalantari, H.D. and Johnson, L., 2018. Australian customer willingness to pay and wait for
mass-customised products. Asia Pacific Journal of Marketing and Logistics, 30(1), pp.106-120.
Kehoe, P.J., Midrigan, V. and Pastorino, E., 2018. Evolution of modern business cycle models:
Accounting for the great recession. Journal of Economic Perspectives, 32(3), pp.141-66.
Laitinen, E.K. and Suvas, A., 2016. Financial distress prediction in an international context:
Moderating effects of Hofstede’s original cultural dimensions. Journal of Behavioral and
Experimental Finance, 9, pp.98-118.
Liu, S., Perry, P., Moore, C. and Warnaby, G., 2016. The standardization-localization dilemma
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Business Research, 69(1), pp.357-364.
Ng, I., Scharf, K., Pogrebna, G. and Maull, R., 2015. Contextual variety, Internet-of-Things and
the choice of tailoring over platform: Mass customisation strategy in supply chain
management. International Journal of Production Economics, 159, pp.76-87.

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Rao-Nicholson, R. and Khan, Z., 2017. Standardization versus adaptation of global marketing
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Shin, D.H., Kim, H. and Hwang, J., 2015. Standardization revisited: A critical literature review
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