Those adaptation decisions coalesce into an adaptation strategy that can influence the competitive position of the firm and, in turn, its performance in foreign markets. Caveats laws Some countries have laws that are very protective of their local traders and do not readily accept imports. Obviously, we're a little biased, but think the question allows for a response like this. Organisational factors relate to organisational culture, type of ownership, the degree of international experience and the share of revenue from international markets Theodosiou and Leonidou, 2003. Prior to doing anypromotion, you have to know your product, your competitors, andyour target market. What is spicy to your typical U. According to Vrontis et al.
Firms often adapt their market strategies when entering foreign markets, even in a global era where many brands and products like cola beverages and fast food outlets are nearly universally prevalent. Price modification - adjusting the size or quantity of the product to take into account the changed price. At the same time, the company uses adaptation through introducing Maharaja Mac in India, Mc Arabia in Middle East, and Mc Nuggets with chilli garlic sauce in China Schumpeter, 2011. Instead, they should embark on market research and determine their customers, their needs and wants. Example: The iPod was not the first mp3 player around, is not thecheapest, does not work the best and is not user serviceable atall. Electrical equipment, for example, may require adaptations to power supply, safety requirements and compliance with local regulations.
Capacity to pay - You should take a look at the customer and their ability to pay as well as the country itself. And the decision as to which to choose depending on the attitudes towards the different cultures. Below is an example link of an Google Certified Professional Of an Internet Marketing Company. Understanding those cultures first and learning how to best suit their needs — to speak their language both verbally and emotionally — is the foundation for a long-lasting partnership. That means in terms of target markets, packaging and designs, ingredients, languages, culture and etc the organizations need to come up with different ways so that they can cater different markets in a way where the customer needs and requirements are addressed. Many researchers agree that standardizing certain elements of the marketing mix and adapting others to different market conditions is necessary Vrontis and Thrassou, 2007. For an example, if a particular company comes up with the decision of standardizing the product then the product is being manufactured using the same materials, same processes and even sold under the same name.
Consumers in foreign markets have different tasks, attitudes, needs, wants, and desires. Marketing Management Consideration From a marketing management perspective, you have to weigh the long-term revenue, profit and customer-retention benefits and risks of each adaptation approach. Food containers are a good example of this, with manufacturers needing to provide bottles and boxes that will fit in the refrigerators and cabinets of consumers in a new market. Note on Color: Color in communication vehicles is significant, especially if the company is crossing cultural borders. However, occurrence of this scenario in real-life situation is difficult and it depends on a wide range of factors such as the nature of industry and product life cycle, research and development budget, the level of infrastructure in the local market, the level of competition and others. But there are situations where this product standardization gives negative results as well.
That mutation causes the organism to better survive and reproduce, and it passes on that trait to its offspring. In some cases, companies establish a set price for a good or service that is constant across the business. Moreover, according to the Conceptual Model of International Marketing Strategy the degree of standardisation or adaptation in new market has direct implication on sales, profits, market share, the levels of customer satisfaction, and composite performance. This is an easy way to publish, advertise your website and ideas. This product adaption refers to the process of modifying the existing products in order to reach to each market.
Building an efficient retail network is usually hard and long. In the process of standardizing a product, there are certain guidelines to be used and such guidelines should be followed by the company who is willing to standardize the product and the guidelines will be applicable to one organization or to one industry and will be conformed in the national level or international level. Supporter of the standardized approach argue that the global market has become homogenized therefore multinational companies can market their products and services the same all over the world. Choose a translation agency that understands the technical aspects of the product to ensure that product descriptions and operating instructions are accurate in local versions. The biggest problem was that Walmart, a uniquely powerful American enterprise, tried to impose its values around the world. On one hand, standardisation offers significant cost advantages, but it fails to address some of the differences associated with each individual market.
In this scenario, these small animals have found a way to evolve in a season to protect themselves from harsh weather conditions, preserving food and their environment. Whereas in China the label is in red and gold for which the red colour stands for good luck and the gold colour stands for wealth and happiness. They may be fairly immune to certain marketing strategies that are successful in the U. The last way is to get other people to promote your product. For example, animals that are camouflaged often have colorations or patterns that can assist them in blending in with their surroundings which can benefit them in the long run, and quite literally, when it comes to predators. Discriminatory Pricing Though the term itself sounds negative, discriminatory pricing is a fairly common adaptation strategy. Rationale behind standardisation practices relate to homogenisation of consumer wants and needs due to intensifying forces of globalisation Winer, 2009.
Different cultures assign meaning to colors, words and numbers very differently, for example. It may also prevent you from developing your business properly. If you decide on the standardization approach, you will not modify the products or change the marketing approach for foreign markets. There are several reasons for such product adaption. There may be restrictions or differences between your country and the foreign market about what can be sold and under what circumstances. Further more they argue that standardization will be successful when the homogeneity of customer response and the degree of similarity in economic freedom is high and competitive advantages are easily transferable.
In this case, adaptation is predestined. Knowing these will enable you to determine themost appropriate marketing plan. Intangible adaptation - modifying the product's intangible elements to the foreign market, such as brand name and positioning. This may mean that a manufacturer will have more success changing the name or color of a product while leaving its functional components unchanged. This is not good for an organization since the rivals can take advantages of this.