Full length research paper
Comparative analysis of marketing integration strategies in three different marketing environments Adeleke Adepoju*1 and A.L. Badmus2
Department of Economics and Business Studies Redeemer’s University, Redemption City Mowe Ogun State Nigeria 2 Department of Business AdministrationUniversity of Ilorin, Ilorin Accepted 17 August 2011
The paper presents the results of a study of comparative analysis of marketing integration strategies in three different marketing environments. It is observed that one of the fundamental challenges facing the multinational enterprise in the contemporary world is the decision to standardize marketing programs and practices or to tailor them according to the local conditions of the host country. A vigorous comparative methodology of matched samples at the level of statistical analysis was utilized for the study. Japanese, South Korean and Indian MNEs in Nigeria affiliates were matched on the basis of product mix, industry age, size, market served and other environmental variables to obtain certain conditions. The sample size consisted of 121 firms of Asian MNEs in Nigeria vis-a-vis 41 Japanese, 44 Indian and 36 South Korean affiliates in Nigeria. The sample was selected on the basis of products, market served and other environmental variables. The study therefore examines the marketing integration strategies in low risk environment of western Europe and USA, moderate risk environment such as south Korea, Japan and other emerging industrialized countries in Asia and high risk environment such as Nigeria and other developing countries in Africa and Latin America. The result of the study shows that the integration of product decision is uniform in the three market environments while that of price is less uniform and less high. The communication and distribution strategies vary from high integration USA to average integration (South Korea) and low integration (Nigeria) Keywords: Low, medium and high risk environments; Centralization of marketing; Multinational enterprises; Adaptation of products; Marketing Decisions; Integration of marketing organizations and environment; Standardization of marketing subsidiaries. INTRODUCTION The fundamental challenge facing the multinational enterprises in the contemporary world is the decision of whether to standardize marketing progrmmes and practices or to tailor it according to the local condition of the host country. A lot of factors seem to sway the likelihood that in some circumstances, standardized marketing practices might be successful than multi domestic one. One of these is the growing similarity in terms of consumer tastes, economic condition and environmental factors. Besides, the ever increasing size and scope of operations create further problem of effective control inso far as they operate in extremely complex settings and these complexities are brought about by multifaceted cultural milieu and differences in competitive structures. Several studies have shown that environmental conditions have significant influence on organizational factors. Burns and Stalker (1961); Woodward (1965); Lawrence and Lorseh (1967); Negondhi (1976); Duncan (1972); Dance (1969); Fourraker and Stopford (1968); Dance (1971) and Yousseff (1975). For instance, in uncertain environmental conditions, organizations have a tendency to adopt more flexible structures. They become decentralized, less formalized and less standardized. More importantly, differences in environmental conditions and degree of perceived risk have largely influenced the degree of standardized marketing practices within the context of multinational enterprises (MNEs).
*Corresponding Author Email: email@example.com
E. J. Bus. Manage. Econ.
The implication of this is that the degree...