Standardization and Adaptation Strategies in International Marketing

This report examines the critical issues international companies face in global marketing, focusing on the balance between standardization and adaptation strategies. It identifies four key areas: product, pricing, distribution, and communication, detailing the challenges within each. For product issues, cultural analysis and understanding local consumer behavior are emphasized. Pricing challenges, including government intervention and currency fluctuation, require deep market research and monitoring of trading conditions. Distribution issues, such as supply chain management and regulatory compliance, can be mitigated through diverse sales strategies and just-in-time inventory management. Effective communication strategies are vital for maintaining control over business partnerships and understanding international customer needs, achievable through various media channels and a structured communication process. The report concludes that understanding country-specific rules, culture, and consumer behaviors is essential for improving brand image and success in international markets, recommending tools like PESTLE analysis for comprehensive market assessment. Desklib offers this assignment solution along with numerous other study resources for students.

Standardization/Adaptation
of International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
Standardization and Adaption of International Marketing..............................................................3
Issues in IM might faces by international companies..................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
International marketing (IM) is a process of planning and executing the pricing,
promotion and distribution strategies for company's goods, services and ideas at international
level. The main aim of these strategies is to reach large market and satisfy individual and
organizational objectives. This report will investigate and evaluate the issues that international
companies may face and how they can deal with the same. This report basically evaluate the
international marketing issues such as product, pricing, distribution and communication
strategies which affect companies operates in international market. Lastly, the report will
analysis and evaluate all this issues using the support of secondary resources such as Literature
Review on consumer behaviour and IM. This report will the International Companies to identify
the factors which may affect their ideas and goods in both positive and negative way.
Standardization and Adaption of International Marketing
Issues in IM might faces by international companies
According to American Marketing Association (AMA), IM is a planning process which
need to be adopted by all companies that want to operate internationally. In order to expand the
business in international market, the companies need to express and launch its ideas and products
to consumers. While IM research, the companies basically faces various issues which need to be
solved in order to improve companies brand image and reputation. The central issues that
international companies may face and ways they adapt to resolve it is as follows:
Product Issues:
This is an issue which involve the decision regarding the products or product line need to
be offered in a particular country market. This decision must be based on the culture and
behaviour of that specific local customers. As per the opinion of Author, the international
product strategy is a part of IM mix which helps the international companies to attract more and
more customers. In order to solve this issue, the international companies need to understand the
culture and behaviour of that specific country market. For this, they can adopt PESTLE analysis,
cultural analysis and International Product Life Cycle model. This helps the companies to
understand the taste, preferences and demand of the customers of each country and offered the
products and services to satisfy them. However, the author, also states that the product line of
international companies must be as per local responsiveness and if (not) than proper promotion

strategy they can use to spread products and brand awareness. The impact of which the
customers able to identify whether the products are beneficial to them or not. For example, in
order to launch shaver in Indian market, the Gillette company has spent lots of time and
resources in understanding customer needs. Now, the company's Gillette shaving products has
one of the highly demand-able and usable product in India.
Pricing Issues:
According to the opinion of Cateora and et.al. (2020), the price of the products and
services of the companies are one of the factor which affect the customers more. In case, if
companies offer some products in any country which are already available in that country market
but usually at high price than customers will never buy such product at high price. This will
further result into heavy loss to companies. The issues that international companies faces are
government intervention, greater market diversity, price escalation in exporting etc. The foreign
exchange is also one of the major issues in international price strategy. So, in order to deal and
minimize this issues the international companies can invest in deep international market
research. In contrast to above views, the Rana, Salwan and Anand (2017), also states that the
company also need to monitor the terms and conditions related to trading and their products
quality and each country market conditions. It is because this help them to understand the value
of their products in that market and the customers are able to pay high price or not. Along with
that the international companies also need to make sure that their products price and quality is as
per the countries local market place and competitions.
Distribution Issues:
The distribution of products and services to ultimate customers at international level is
one of the major issues which required special attention. The Westjohn and Magnusson (2017),
has defined the four issues related to global distribution that international companies may face is
supply chain management, currency fluctuation, preservation of intellectual property and
compliance with international regulation and standards. These issues are generally very high that
it affects the companies whole brand reputations when the customers do not receive their goods
on time. Thus, in order to solve this issue, it is advisable to the international companies that they
have to use the direct sale, sale through retailer, wholesaler, agent etc. strategies along with the
online delivery to customers doorstep.

The JACQUOT (2021), also states that the companies can also adopt the Just-in-time
inventory management systems to identify the needs and requirements of stocks at every branch
and stores. For adoption of marketing tactics the companies can also hire marketing experts as
they have knowledge of tools and statistic analysis. For example, Tesco company operates
internationally in around 13 countries and is also one of the leading company which uses both
online and offline method of distribution. This company basically has thousands of stores and
supermarket in UK as well as all around the world and for identifying the availability of
inventory they use Just-in-time inventory management.
Communication Strategies Issues:
As per the opinion of the Rao-Nicholson and Khan (2017), the communication strategy of
the company helps them to interact with its local as well as international customers. It basically
helps the company to interact with its business partners in case of licensing and franchising etc.
If the international companies not able to manage a strong and effective communication with its
partners, customers, agents etc. than it may cause loss of control over business. For example, In
case of franchising, if the companies do not interact continuously with its franchisee, than the
chances of losing the control over the business of franchisor will increase such as McDonald.
That's why it is recommendable to international companies that they have to determine the extent
of their worldwide standardization and then select effective media and communication channel.
The channel should be face-to-face, advertising, personal selling, social media marketing,
sales promotion etc. This will help the companies to understand the issues faces by their internal
stakeholders along with the needs and demand of international customers. However, the Song
(2021), suggest that the companies can also solve this issue by adopting the international
communication process by specifying sender, receiver, encoding and decoding function. The
mass media is one of the best way with the help of which international companies can contact
with large number of receivers and understand their preferences. It is also helpful for companies
in selecting their target audience in each country market and providing correct awarness message
of their products and services.

CONCLUSION
The report has concluded the various international marketing issues that international
companies faces while providing and offering their ideas. This report has concluded four central
issues such as product, pricing, distribution and communication strategies. Further, while
specifying issues, the report has also concluded the solutions to the companies in order to solve
and deal with the problem. The report has also stated that the companies in order to improve its
brand image in the international market first need to understand that particular country rules,
culture and consumer behaviours. For this, the company can adopt various marketing tools and
analysis factors such as PESTLE.

REFERENCES
Books and journals
Cateora, P. R. and et.al., 2020. International marketing. McGraw-Hill Education.
Rana, S., Salwan, P. and Anand, A., 2017. IMRPs and advancing international marketing
education. Journal of International Business Education., 12(Special Issue). pp.267-290.
Westjohn, S. A. and Magnusson, P., 2017. Export performance: a focus on discretionary
adaptation. Journal of International Marketing. 25(4). pp.70-88.
JACQUOT, S., 2021. ARTICLE VI RETHINKING STANDARDIZATION VERSUS
ADAPTATION OF INTERNATIONAL MARKETING STRATEGIES: POST-
PANDEMIC VIEWS. Post-COVID-19 Perspectives on International Business, p.123.
Rao-Nicholson, R. and Khan, Z., 2017. Standardization versus adaptation of global marketing
strategies in emerging market cross-border acquisitions. International Marketing
Review.
Song, J., 2021. Global Standardization and Local Adaptation of Marketing---A Critical Review
of the Literature. Journal of Business Administration Research. 4(2).
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