Standardization/Customization Debate in Global Marketing
tandardization / customization
Question 3, Week 3 * Summarize the standardization/customization debate in global marketing * Identify factors which promote standardization * Identify factors which promote customization * To what extent are consumers buying habits converging? * Illustrate your answer with examples of markets and brands based on your own research * Give full citation of sources in Harvard format ____________________________________________________________
_____________________ Standardization:
Achieving maximum productivity through standardization of service product and service design and delivery achieving global economy of scale and lowest unit cost which is an import tenet of economics (product or production orientation) Factors that promote standardization: * Globalisation and the enhancement of technology - lead to international trade, easy access to communicate and travel. (Standardization is assumed to be the best method as it could give a maximum profit) * Westernization and Americanization – domination of global favourite brands or products; McD, Starbucks, KFC. (It is assumed that public will accept global products) * Convergence of consumers buying habit Erik Elinder: 1965 ‘How International can European advertising be’ Journal of Marketing 29, 7-11 * Convergence of standards of living and improving technology – result in the standardization of advertising messages (using English as the language of European television and media) * Travel will create European consumers with similar habits Theodoe Levitt: 1983 ‘The Globalisation of Markets’ Harvard Business Review 83 (3), 92-102 * Technology brings a world culture - a converging commonality which has proletarianized communication, transport and travel * Modernity – the worlds’ needs and desires have irrevocably homogenised * Companies can offer products that are globally identical with respect to design,
Question 3, Week 3 * Summarize the standardization/customization debate in global marketing * Identify factors which promote standardization * Identify factors which promote customization * To what extent are consumers buying habits converging? * Illustrate your answer with examples of markets and brands based on your own research * Give full citation of sources in Harvard format ____________________________________________________________
_____________________ Standardization:
Achieving maximum productivity through standardization of service product and service design and delivery achieving global economy of scale and lowest unit cost which is an import tenet of economics (product or production orientation) Factors that promote standardization: * Globalisation and the enhancement of technology - lead to international trade, easy access to communicate and travel. (Standardization is assumed to be the best method as it could give a maximum profit) * Westernization and Americanization – domination of global favourite brands or products; McD, Starbucks, KFC. (It is assumed that public will accept global products) * Convergence of consumers buying habit Erik Elinder: 1965 ‘How International can European advertising be’ Journal of Marketing 29, 7-11 * Convergence of standards of living and improving technology – result in the standardization of advertising messages (using English as the language of European television and media) * Travel will create European consumers with similar habits Theodoe Levitt: 1983 ‘The Globalisation of Markets’ Harvard Business Review 83 (3), 92-102 * Technology brings a world culture - a converging commonality which has proletarianized communication, transport and travel * Modernity – the worlds’ needs and desires have irrevocably homogenised * Companies can offer products that are globally identical with respect to design,