Global Marketing Strategies: Adaptation vs. Standardization in FMCG

This report delves into the core concepts of global marketing, emphasizing the strategic importance of adaptation versus standardization, particularly within the fast-moving consumer goods (FMCG) sector. It defines global marketing as the comprehensive process of planning, creating, placing, and promoting products in international markets, highlighting its advantages such as cost reduction, relationship building, and brand consistency. The report explores the role of exploratory, descriptive, and causal research in global marketing, and contrasts adaptation, which involves modifying organizational attributes to fit environmental conditions, with standardization, which applies uniform strategies globally. The report uses examples like Nike and Nokia to illustrate the effectiveness of both adaptation and standardization approaches, considering factors like brand image, target market, and business environment. It concludes by emphasizing that while standardization offers economies of scale, adaptation is crucial for addressing market-specific differences, ultimately recommending a strategic blend of both approaches for success in international marketing. The report also includes references to relevant academic sources.

Global Marketing

INTRODUCTION
Selling a product internationally is known as global marketing. But it is
more than selling a product globally. It is the process of planning, creating,
placing and promoting the product in the international market. Global
marketing is the export of goods and services into another country. The
advantages of global marketing are; lower marketing cost, helps to establish
relationship outside of the political area, consistency in brand image and so
on.

CONT..
 Exploratory research deals with
identifying the quality of the problem
and the related variables.
 Descriptive research, focus on the
statement of the variables in the problem
area. Consumer studies, market analysis,
product usage, sales, media research and
pricing analysis are its example.
 Casual research, specify the nature of
the functional relationship between two
or more changes in the problem model.

1.1 Significance of Adoption Vs Standardisation
■ Global marketing is the process of creating, planning, placing and
boosting the product in the international market.
■ Global marketing is the export of goods and services into another
country.
■ The advantages of global marketing are; lower marketing cost, helps to
establish relationship outside of the political area, consistency in brand
image and so on.

CONT..
■ Exploratory research deals with identifying the quality of the problem
and the related variables.
■ Descriptive research, focus on the statement of the variables in the
problem area. Consumer studies, market analysis, product usage, sales,
media research and pricing analysis are its example.
■ Casual research, specify the nature of the functional relationship between
two or more changes in the problem model.

CONT..
■ Adaptation is the change in the
structural, functional and
behavioral attributes of an
organization for survival and to
cope up with the existing
environmental conditions.
■ It allows individual to adapt to
different environmental
situations for survival.

Standardization as a cost saving strategy
■ It involves applying universal pricing, same promotional strategies and
the same range of products.
■ The mentioned strategy focuses on competitive advantages of the brand
and aids in developing significance brand image of the company
throughout the globe.

CONT..
■ Global image of the brand can be strengthen through standardisation to integrate
marketing communication strategy.
■ Nike has immensely benefited from standardization strategy. Such as it has build profit
maximization.
■ Factors such as brand image, product category, target market, business environment
and structural elements affect the degree of standardization in international marketing.
■ Large number of multinational business of different industry applied standardization
approach such as, Nike, Adidas, Apple, Johnson & Johnson, etc.

Effectiveness of Adaptation as customer-orientation
strategy
■ This strategy aims to change different features of the products and
services in different market with a motive fulfill the needs of consumers.
■ Adaptation has various advantages, one of the advantage is that they meet
the need of local market in significance manner and hence certainly aids
in boosting the overall customer satisfaction level.
■ Local customers appreciate design of the product, its functional benefits
and competences as it is in accordance to their needs.

CONT..
■ Company can also apply certain
element of marketing mix in
adaptation strategy. For instance,
Nokia, a worldwide
communication and information
company, concentrate on product
adaptation to a greater extent.

Standardization vs Adaptation in International
Marketing
■ At present to choose the right marketing strategy is one of the big
question for companies in different foreign market.
■ The companies have choice between a standardized and adoption of
international marketing strategies.
■ For the first company used to make choice of one marketing strategy and
with the few modifications in it in different countries.

CONT..
■ In order to follow the standardization marketing strategy companies, need
to assume that their customers in different countries have the same test and
desires.
■ Hence it can be said that there are many positive aspects which can support
this strategy.
■ As per the economies of scales, money can be easily saved basically in
preparation of advertisement.