About Adaptation Strategy and Standardization Strategy

1. Management and Administrative Sciences Review www.absronline.org/masr
ISSN: 2308-1368
Volume: 2, Issue: 4, Pages: 353-359 (2013)
© 2013 Academy of Business & Scientific Research
*Corresponding author: Akmal Hussainl,
Faculty of Management Sciences, International Islamic University Islamabad,
Islamabad, Pakistan.
E-Mail: akmal_11@hotmail.com
353
 Research Paper
International Marketing Strategy: Standardization versus Adaptation
Akmal Hussain1* and Shahbaz Khan2
1. Faculty of Management Sciences, International Islamic University Islamabad, Pakistan.
2. Department of Management Sciences, The Islamic University of Bahawalpur, Pakistan.
The debate on the standardization and adaptation of marketing strategy is not new, but
the researchers not yet came to an agreement that which strategy is better to serve the
international market. The aim of this research paper is to evaluate the previous researches
and evaluate that which international marketing strategy is better. After the extensive
research on the topic authors find out that standardization strategy is used to achieve the
economies of scale and it is used when the target market has the similar needs and wants.
While on the other hand adaptation strategy is appropriate when the consumers have a
different needs, wants and preferences and when there is a significant difference in the
socio economic conditions of the target market. The key to succeed in the international
market is to use the mix of standardization and adaptation strategy and try to create the
balance between the two.
Keywords: International marketing; Globalization; Standardization; Adaptation;
Marketing Strategy; Marketing mix;
INTRODUCTION
In last few decades competition has been increased
at the international level due to the liberalization
of the trade policy, ease in monetary exchange
process and rise in the regional economic
cooperation and advancement in the means of
transportation and communication (Czinkota &
Ronkainen 2001; Keegan 1999). In such highly
dynamic and vibrant business environment it is
very difficult for the businesses to operate
internationally. According to Kotler (2009),
nowadays, global corporations face difficult
decisions regarding what marketing strategy to
adopt. A basic question arises what should be the
marketing strategy of the company when they go
global, whether they standardized their processes
or adapt their marketing strategy according to the
environment. Standardization versus adaptation of
marketing strategy at the international level is a
vital area of research for both the academicians
and for the practitioners. According to the
(Wierenga, Pruyn and Waarts, (1996) in the field of
marketing the concept of standardization and
adaptation or customization is intensively debated
usually in the American context. In the past
researches in the field of international marketing
extensively research the issue of standardization
and adaptation. In the view of Vignali and Vrontis
(1999) the discussion on the topic starts in early
1960, when Elinder (1961) write an article on global
advertising. In the earlier the standardized
advertising was at the heart of the issue (Kanso
and Kitchen, 2004). In the view of the earlier
researchers there should be a single or
standardized advertising campaign for the entire

2. Standardization versus Adaptation Research Paper
354
world. Then this debate move forward from a
standardized advertising campaign to the
standardized promotional mix and now the debate
encompasses the entire marketing mix (Schultz
and Kitchen, 2000; Kanso and Kitchen, 2004;
Kitchen and de Pelsmacker, 2004).
There is a difference of opinion among the
researchers on employing the standardization or
adaptation strategy at the international level. The
advocates of standardization strategy at the global
level propose that, markets in the international
level are homogenous and global in nature and
they believe that it is necessary for the continued
existence and growth at the global level, depends
on firm‟s ability to standardize their goods and
services (Fatt, 1967; Buzzell, 1968; Levitt, 1983; Yip,
1996). The bases of the arguments of the
supporters of standardization are that needs and
wants of the consumer do not vary significantly at
the international level. In their view the world is
becoming progressively more homogenous in
relation to the requirements of the customers and
environmental factors despite of their regional and
geographic location.
While on the other end supporters of adaption
says that it is very difficult to use the
standardization approach across the globe and
thus they support the adaptation approach to
efficiently and effectively fulfill the requirements
of the international markets (Kashani (1989;
Thrassou and Vrontis, 2006). The foundation
behind the advocates of the adapatition is that
there are significant differences in the countries
and even between the different regions of the same
country (Papavassiliou and Stathakopoulos, 1997).
Solberg (2002) suggests that the standardization
and adaptation is one of the key issues for the
international brand management is to create the
balance (trade-off) between the benefits achieved
by the standardization through economies of scale
and the cultural prerequisite of adaptation.
Although the issue of standardization and
adaptation is extensively researched but the
researchers are not yet came into the conclusion
that what approach is best to serve the global
marketplace. The aim of this research paper is to
investigate through the review of the prior
researches to evaluate the both approaches of
international marketing and find out that what
approach is best and why. The aim of this paper is
also to investigate that what marketing strategy
has positive relationship with the firm‟s
performance at the international level. This
theoretical research paper is divided into the 3
section; first section is consisting of the
introduction of the study. Second section of the
study will involves the literature review and the
formation of conceptual framework, whilst the last
and third section of the study will involves the
discussion and conclusion.
LITERATURE REVIEW
According to Bennet (2008) strategy can be defined
as “the actions managers take to attain the goals of
the firm”. Selection of the appropriate marketing
strategy at the national level as well as at the
international level is key to success. Hill (2002)
further argues that, Firms which compete at the
global stage usually face two kinds of competitive
pressures. 1) Pressure for cost reduction and 2)
pressure to be locally responsiveness. In this
section the authors will review the standardization
and adaptation of marketing strategy and their
advantages and disadvantages and what are the
factors that motivate firms to standardize or adapt
their marketing strategy.
Standardization
Standardization can be defined in different ways
but Medina and Duffy (1998), define it as, “the
process of extending and effectively applying
domestic target-market-dictated product standards
tangible and/or intangible attributes – to markets
in foreign environments”(p,229). While the
globalization is defined by Cherunilam (2009) as
“the process of integration of economics across the
world through cross border flow of factors,
products and information”.
According to Cavusgil et al., 1993, the global
market is becoming homogeneous in nature and
the homogenization of the international markets
allows the firms to adapt the standardization
strategy across the globe. There are number of
advocates of the standardization but among them
Levitt is one of the most strong advocates of
standardization. According to Levitt (1983) the

3. Manag. Adm. Sci. Rev.
ISSN: 2308-1368
Volume: 2, Issue: 4, Pages: 353-359
Akmal Hussain & Shahbaz Khan
standardization strategy emerges due to the
advancement in technology and communication
and due to changes in consumer taste and
preference and they became homogeneous
increased global competition is another reason for
standardization. According to Levitt (1983), “a
successful global marketing strategy consists of
having a common brand name, packaging, and
communication”. For example, Levitt (1983) in his
landmark paper suggests that standardization of
the marketing mix and the design of a single
strategy for the whole global marketplace help in
achieving economies of scale in the production
process.
Moreover, standardization has number of positive
effects on the performance of the firms as it helps
the firms in the achievement of the economies of
scales. It helps them to faster learning experience
which helps them to reduce the inventory cost, this
not only save cost but also helps firms to get
competitive advantage over the competitors.
Furthermore, standardization of the products will
enhance the chances for product innovation as
firm can apportion more of its resources to build
and develop the product portfolio rather than
allocating resources to adapting it to different
marketplace (Kotabe, 1990). Whitelock (1987)
suggests that standardization will leads to the
attentiveness of the technical research work, as the
process is standardized so less staff training is
required. According to Bennet (2008), firm which
employ standardization strategy will develop a
single product for all the markets in all the regions
and this kind of universal product will be suitable
where;
1) As the basic need is same so the product will
better satisfy the needs in international market
2) After sale services can be standardized
3)Ther e are large markets which exist across the
world so cultural adaptation is not required
4) Universal product has a strong international
brand image
Adaptation
Customization is also interchangeably referred as
adaptation. According to Douglus and Wind
(1987), adaptation and customization are two
opposite terms. Medina and Duffy (1998) define
adaptation as “the mandatory modification of
domestic target market- dictated product
standards – tangible and/or intangible attributes –
as to make the product suitable to foreign
environmental conditions”. On the contrary
customization is defined by Medina and Duffy
(1998) as “the discretionary modification of
domestic target-market-dictated product standards
– tangible and intangible attributes – as to make it
economically and culturally suitable to foreign
customers”. The basic difference between the two
terms is that one is mandatory while the other is
discretionary. According to Kotler and Armstrong
(2008) “An international marketing strategy for
adjusting the marketing mix elements to each
international target market, bearing more cost but
hoping for large market share and return”. Kotler
and Armstrong (2008) write in their book most
marketer suggests that companies should adapt
the following policy, “Think globally but act
locally”. Companies must have to seek a tradeoff
between the standardization and adaptation.
Although both influence, either directly or
indirectly, a firm‟s international business
operations, the adaptation affects mostly the
tangible (or physical) attributes of a strategy
because it focuses on environmental conditions of
various markets. Customization on the other hand
is mostly affected by such factors as cultures and
therefore has a deeper impact than adaptation, on
the intangible (or non-physical) attributes of
products (Medina and Duffy, 1998).
According to Bennet (2008), firms which operates
internationally have to made a basic/key decision
whether to go in the foreign markets with the
firm‟s current product or made necessary changes
in the products according to the requirements of
the foreign market, product adaptation will be
suitable in the case where,
1) There is a significant differences in consumer
needs and wants
2) Competition is intense, which force them to
differentiate their products

4. Standardization versus Adaptation Research Paper
356
3) To fulfill some necessary host country
requirements such as packaging, technical and
legal issues
4) These are also important reasons for product
modification/adaptation , climate, living
conditions, customer lifestyle, literacy and income
level of the consumer.
The basic argument in the support of adaptation is
that it involves the individual approach as it
allows the firm to understand the needs wants and
preferences of the each consumer. Supporters of
adaptation approach convincingly advocate that
there is a significant difference in culture,
economic situation, rules and regulation, political
system and the lifestyle of consumer and their
values and belief system across the world these
things must be considered for the success Cavusgil
et al., 1993). The use of Adaptation of marketing
strategy helps the firms to achieve the competitive
advantage. (Cavusgil et al., 1993). Moreover, in the
view of some researchers, the eventual goal of a
company should not be cost reduction through
standardization, but long-term profitability
through higher sales accrued from a better
utilization of the different consumer needs across
countries (Onkvist and Shaw, 1990; Rosen, 1990;
Whitelock and Pimblett, 1997; cited by Theodosiou
and Leonidou, 2003). Lemak and Arunthanes
(1997), opines that the advocates of
standardization does not have the conventional
wisdom of modern marketing. Despite many
arguments of increased consumer homogeneity, it
has been suggested that consumers are becoming
gradually more diverse and complex and do not
necessarily want to replace quality with price
(Douglas and Wind, 1987).
Product adaptation or modification strategy will
leads to increase in the sales volume of the firm in
foreign marketplace, by better satisfying the needs
and wants of the customers, by retaining the
existing customers by making the products up-to-
date and also by taking into consideration the
offerings of the competing firms.
There are also some negative impacts of product
modification or adaptation of marketing strategy
which are as follows;
a) Additional cost required for the promotional
activities
b) Duplication of the activities within the firm
c) Inexperience and limited knowledge about the
technical aspects of the different products and
know how regarding the marketing of the product
d) Extra resources will be required for the research
and development (Bennet, 2008)
In the following table the factors are highlighted
which encourage firms to use standardization
strategy or adaptation strategy at the international
level.
Standardization versus Adaptation
Factors encouraging
Standardization
Factors encouraging
Adaptation
Economies in product R
& D
Differing use conditions
Economies of scale in
production
Government and
regulatory influences
Economies in marketing Differing buyer
behavior patterns
Control of marketing
program
Local initiative and
motivation in
implementation
“shrinking” of the
world marketplace
Adherence to the
marketing concept
Source: Czinkota, Ronkainen, Moffett (2005)
DISCUSSION AND CONCLUSION
The aim of this paper was to determine that which
international marketing strategy (standardization
v/s adaptation) is appropriate for the firms which
operate internationally. The topic of
standardization and adaptation of international
marketing strategy is heavily/ extensively debated
in the past. Researchers are divided into two
schools of thoughts in the view of first school of
thought; standardization is the best solution to
serve the global marketplace, as the world
increasingly becoming more homogenous due to
the globalization. According to Levitt (1983),
standardization of international marketing
strategy means that performing the same

5. Manag. Adm. Sci. Rev.
ISSN: 2308-1368
Volume: 2, Issue: 4, Pages: 353-359
Akmal Hussain & Shahbaz Khan
marketing activities across the globe. Globalization
turned the world into a global village, one of the
main advocate/ supporter of standardization
Levitt (1983) argues that, advancement and
progress in the means of communication and
transportation “the world preference structure gets
pressed into homogenized commonality”. In their
view these are the bases for the standardization,
a) Changing world structure ( as due to globalization
world becoming more homogenous in terms of their
needs and wants)
b) Standardization helps in work specialization
c) Helps in ride down the experience curve
d) Standardization leads to the economies of scale
e) Economies in research and development ( Czinkota,
Ronkainen, Moffett, 2005)
f) Standardization gives the image of global brand
On the contrary there is another school of thought
who supports the view of adaptation strategy in
the international marketing strategy. The argues
that although globalization made its impact on the
world, but still there is a significant differences in
the cultural, political and socio economic condition
of the countries, these differences are not only
found across the countries but within the country.
In a country there are different sub cultures and
different economic conditions so the whole world
can‟t be effectively and efficiently served with a
single marketing strategy. According to Kotler
(1986), most of the international products fail in
the international market due to the lack of product
adaptation. Due to this reason Kotler and
Armstrong (2008), gives the concept of adapted
marketing mix “An international marketing
strategy for adjusting the marketing mix elements
to each international target market, bearing more
cost but hoping for large market share and return”.
These are the some of the reasons for the
adaptation of marketing strategy,
a) Better satisfy customers’ needs and wants
b) Leads to product differentiation
c) Helps in achieving competitive advantage
d) Legal and political conditions of the different
counties and etc
e) Adherence to the marketing concept
Both standardization and adaptation strategy have
their own advantages and disadvantages. Some of
the element of the marketing mix can be more
standardized as compared to others. As in the
view of one of the researcher product should be
standardized in order to achieve economies of
scale, brand name and brand message should also
be the same while these element of marketing mix
can be adapted such as packaging, pricing of the
product, sales promotion and distribution channel.
In short we can say that as it is also suggested by
Solberg (2002), that firms in order to get success in
the global market place create the balance between
the standardization and adaptation.
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