Reasons for adopting standardization in International Marketing

Standardization disregards marked differences in markets. The following are the strong reasons for adopting standardization.

Why is standardization adopted in International Marketing?

1. Socializing forces prevailing worldwide are similar. They have fostered a homogenization of tastes, needs, and values in a significant segment of the population. This has resulted in a large global market with similar needs and wants. As a result, there is a worldwide demand for the same reasonably priced products of good quality and reliability.

Modern products usually fit into the lifestyles of urban consumers wherever they are. Studies identify that the needs of young urban professionals are similar to those of contemporaries in Singapore. This similarity can be found among significant segments of the global market. Families in New York need the same dishwashers as families in Paris. Families in Rome make similar demands on a washing machine as do families in Tokyo.

2. Product standardization leads to production economies. Economies of production, better planning, effective control and better use of creative managerial personnel are the advantages of standardization.

3. If cost is the only factor being considered in the foreign market, standardization helps reduce production costs. Obviously, minimizing production cost increases profits. Eg., Colgate Pomolive enjoys global market with standardized products.

4. There are other incentives for standardization which are available on global basis: lower unit design cost and easier monitoring of performance gain competitive advantage in international marketing. Thus, under the product extension strategy, the same product which is marketed domestically, is extended to foreign market.

Leave a Reply

Recent Posts

Related pages

level of urbanization definitionthe observing method in marketing researchimportance of environmental scanning in marketingdefinition of sundries in accountingcapital expenditure budgetingdisadvantages of irrdefine the term bankerrelevance of budgetingdisadvantages of variance analysisdupont calculationdecentralized purchasinghow to calculate profitability ratioinstallment purchase definitiondefinition payback periodcircuit breaker in stock market in indiafunctions of international monetary fundmercantile meaning in hindirbi central bankbenefits of tqm total quality managementdifferent types of filing systems for medical recordshow to calculate receivable turnoverdifference between factoring and discountingwhat are the advantages and disadvantages of franchisingaccounting tick markssystem entropy in misjudgemental sampling techniqueformula for standard costingdisadvantages of franchising for the franchisoradvantages of cartelscontract voidablemeaning of consumer movementwhat do you mean by redemption of debenturetqm approaches to quality managementautocrat defstandardization in international marketinginventory turnover times formulapatronage purchasevoid and voidable contractsdisadvantages and advantages of mixed economymemorandum defbailmentmanpower requirement approach in educational planningcentralization in organizationadvantage of a sole traderdefinition of moainstallment purchase definitionlein definitionconsumer durables examplesdoctrine of privity of contract exceptionsmarginal costing meaningmarginal costingconsumer buyer behaviour definition75000 inr to usdindustrial estates in pakistanturnover ratio formulawhat is opinion leadership in consumer behaviourone stage cluster samplingibrd functionssecuritized bondsmoa explanationbranding advantages and disadvantagesdematerialisation of securitiesmeaning of budgetary controlppt on indian stock marketpromotion stage joint stock companycharacteristics of negotiable instrumenttrade incotermsauthoritative leadership definitionpayback period formuladifference between a finance lease and an operating leasealphabetical filing guidelinesliquidity ratio acid testadvantages and disadvantages of duopoly