No full-text available
To read the full-text of this research,
you can request a copy directly from the author.
Multinational Product Planning: Strategic Alternatives
Abstract
Formulating an explicit product strategy for international expansion is one of the major untapped opportunities facing headquarters executives of multinational companies. This article identifies strategic alternatives and shows how to select the most effective strategy given any particular product-company-market mix.
... Buzzell (1968), in his pioneering piece on marketing standardization, expressed the importance of profitability in assessing the suitability of standardization. Other authors also have stressed the importance of economic payoff in decisions about standardizingglobal marketing practice (Jain 1989;Keegan 1969;Wind 1986). Hence, long-term economic payoff is considered to be a critical element on which the decision to standardize should be based. ...
... The primary element that encourages standardization of marketing across markets is the associated cost savings. These savings include economies of scale in research and development (Buzzell 1968;Keegan 1969;Terpstra 1987), purchasing (Douglas and Wind 1987), production (Douglas and Wind 1987;Keegan 1969), and marketing (Buzzell 1968;Green, Cunningham, and Cunningham 1975;Keegan 1969;Onkvisit and Shaw 1987;Terpstra 1987), the possibility of rationalizing intemational production (Carapellotti and Samiee 1984), and operating via exports (Terpstra 1987). Also, implicit in many economies and advantages favoring a standardized program is easier implementation and management of a single (or a group of related) program(s). ...
... The primary element that encourages standardization of marketing across markets is the associated cost savings. These savings include economies of scale in research and development (Buzzell 1968;Keegan 1969;Terpstra 1987), purchasing (Douglas and Wind 1987), production (Douglas and Wind 1987;Keegan 1969), and marketing (Buzzell 1968;Green, Cunningham, and Cunningham 1975;Keegan 1969;Onkvisit and Shaw 1987;Terpstra 1987), the possibility of rationalizing intemational production (Carapellotti and Samiee 1984), and operating via exports (Terpstra 1987). Also, implicit in many economies and advantages favoring a standardized program is easier implementation and management of a single (or a group of related) program(s). ...
The authors address a key controversy in the marketing literature about the suitability of global standardization. An empirical investigation of the differences between firms that emphasize global standardization and others that use less standardization was conducted within the global industry context. The results indicate that market coverage and capacity utilization are important considerations for firms emphasizing global standardization. Emphasis on specialty products and the development of high priced products for market niches are also of some importance to these firms. However, in the critical area of performance, no difference is observed between firms stressing global standardization and others.
... Cultural differences influence consumer acculturation which, in tum, affects acceptance of standardized products (Schiffman, Dillon, and Ngumah 1981). Hence, where a product is culturally compatible with the society, it is likely to be more suitable for standardization (Britt 1974;Keegan 1969). ...
... In the final analysis, the decision on standardization should be based on economic payoff, which includes financial performance, competitive advantage, and other aspects. Concern for financial performance, in the context of standardization, has been expressed for a long time (Buzzell 1968;Keegan 1969). In recent years, Hout, Porter, and Rudden (1982), Rutenberg (1982), Levitt (1983), and Henzler and Rall (1986) have emphasized the scale effects that transcend national boundaries and provide cost advantages to companies selling to the world market. ...
... In addition to financial performance and competitive advantage, Walters (1986) recommends standardization for coherent international image, rapid diffusion of products and ideas internationally, and greater central coordination and control. Clearly, the topic of performance criteria in the realm of marketing program standardization has not been thoroughly examined and warrants new investigation (Buzzell 1968;Chase 1984;Hamel and Prahalad 1985;Hout, Porter, and Rudden 1982;Huszagh, Fox, and Day 1986;Keegan 1969;Levitt 1983;Rutenberg 1982). ...
Two aspects of international marketing strategy standardization are process and program standardization. A framework for determining marketing program standardization is introduced. Factors affecting program standardization are examined critically. In an attempt to establish a research agenda on the standardization issue, the author develops research propositions for each factor.
... Beginning in the late 1960s, researchers recognized differences in international markets that required, or invited, marketing adaptation. These researchers explicitly recognized that some adaptations were mandatory and some were discretionary (e.g., Hill and Still 1984;Kacker 1972Kacker , 1975Keegan 1969;Sorenson and Wiechmann 1975). Kacker (1975, p. 64) distinguishes between "mandatory or externally-imposed adaptation and voluntary or self-imposed adaptation." ...
... Notably, in one of the earliest publications, Keegan (1969) recognized both the distinction between types of adaptation and the necessity of "product-market fit." The immediate subsequent literature distinguished between types of adaptations while ignoring the concept of strategic fit; in contrast, more recent literature has focused on the role of strategic fit while ignoring differing types of adaptation. ...
... We suggest that some of the conflicting results in the literature may be explained by the conflation of mandatory versus discretionary adaptations in extant operationalizations. Although early researchers conceptually recognized the difference between mandatory and discretionary adaptation (Hill and Still 1984;Kacker 1972;Keegan 1969), this seems to have been largely overlooked since the 1980s. Discretionary adaptations are the only type of adaptation that involves choice with respect to how to compete in a market. ...
Marketing adaptation strategy has been characterized as a strategic imperative in markets with protectionist and nationalist sentiments, which underscores the need to better understand the effects of adaptation strategy. However, empirical investigations of international marketing strategy have considered mandatory and discretionary adaptations as equivalent. Discretionary adaptations, unlike mandatory adaptations, involve choice; thus, they are more relevant to the selection of an international marketing strategy. This article focuses on the direct and conditional effects of discretionary adaptation on export performance. Analyzing data from 203 U.S. small and medium-sized enterprises, the authors find a positive effect of discretionary adaptation on export performance as well as moderating effects of (1) a market characteristic (psychic distance), (2) a firm characteristic (international experience), and (3) a product characteristic (product positional advantage). The implications suggest that adaptation strategy may be more advantageous than previously thought, and that researchers should focus on discretionary adaptations when investigating the choice of a relatively standardized versus adapted international marketing strategy.
... With world markets becoming increasingly similar, a standardized approach to sourcing, production, marketing and other functions is both feasible and desirable (Samiee & Roth, 1989). Only after analysis of the product/market fit and of company capabilities can the best strategy be chosen (Keegan, 1969). This paper reviews the history and background of global product standardization, and provides a framework for future research on the topic. ...
... He sounded a cautionary tone when commenting on barriers to standardization, and emphasized the need for greater experimentation when evaluating opportunities for greater uniformity. Important articles by Buzzell (1968) and Keegan (1969) widened the standardization discussion to embrace other elements of the marketing mix (Walters, 1986). Buzzell (1968) addresses benefits and barriers to standardization policy. ...
... Buzzell (1968) addresses benefits and barriers to standardization policy. Keegan (1969) considers product and communications policies and strategic alternatives. Buzzell (1968) and Keegan (1969) are both cautious regarding the viability of standardization policies, but argue that opportunities to standardize should not be ignored, but instead evaluated in terms of their financial cost/benefit. ...
The need to maximize long-term profits is causing companies to globalize markets for their products, and evaluate the role that global product standardization plays in the achievement of strategic cost advantage. The literature proposes a number of factors to be associated with global product standardization. In this paper, the background of global product standardization is reviewed, and the factors associated with global product standardization are identified. This paper also presents a model showing the relationships between these factors and the dimensions of global product standardization, and provides suggestions for future research on the topic.
... Kotler (1986) de, her durumda standardizasyonun uygulanmayacağını bazı pazar koşullarında adaptasyon kararlarının etkili olabileceğini savunmaktadır. Adaptasyon ve standardizasyon yaklaşımlarının uyum içinde birlikte kullanılmasını savunan Keegan (1969) da uluslararası pazarlama faaliyetlerinde ürün-reklam stratejilerinde bazı unsurların etkisiyle değişikliklerin olabileceğini vurgulamaktadır (Sümer, 2011:80). Ayrıca Keegan (1969) ürün açısından uygulanabilecek stratejilerin koşullara göre hangi stratejinin olabileceğini gösterdiği çalışma Tablo 1' de gösterilmektedir. ...
... Adaptasyon ve standardizasyon yaklaşımlarının uyum içinde birlikte kullanılmasını savunan Keegan (1969) da uluslararası pazarlama faaliyetlerinde ürün-reklam stratejilerinde bazı unsurların etkisiyle değişikliklerin olabileceğini vurgulamaktadır (Sümer, 2011:80). Ayrıca Keegan (1969) ürün açısından uygulanabilecek stratejilerin koşullara göre hangi stratejinin olabileceğini gösterdiği çalışma Tablo 1' de gösterilmektedir. Tablo 1' de de görüldüğü gibi Keegan' a göre ürünün aynı fonksiyonları ve aynı kullanım koşulları altında standardizasyon stratejilerinin kullanılabileceği, ihtiyaçların tatmini veya ürün fonksiyonları aynı olsa dahi kullanım koşulları farklı olduğunda adaptasyon stratejilerinin kullanılabileceğini savunmaktadır. ...
Uluslararası pazarlamanın da etkisiyle işletmelerin ürün ve markaları da önem
kazanmaktadır. İşletmelerin küresel pazarlarda rekabet edebilmesi ve ayakta kalabilmesi için tüketici istek ve ihtiyaçlarına yönelik ürünlerle markalaşma çabaları
bir zorunluluk haline gelmektedir. Bu nedenle uluslararası pazarlamada ürün ve
marka kararları işletmeler açısından hayati öneme sahip bir konuma gelmektedir.
... Standardizasyon yaklaşımı, tüketici tercihlerinin küresel ölçekte homojenleştirilmesi amacı taşıdığı için ilgili yıllarda özellikle reklam ve ürün stratejilerine bağlı çalışmaların yoğunlukta olduğu fakat diğer pazarlama çabalarının da standartlaşma eğiliminde incelendiği görülür (Keegan, 1969;McGuinness ve Little, 1981;Levitt, 1984;Jain, 1989;Walters ve Toyne, 1989). Bu açıdan Keegan (1969), ürün ve iletişim çabalarının standartlaşmasından (tek ürün-mesaj) adaptasyonuna (farklılaştırılmış ürün-mesaj) kadar, şirketlerin seçebilecekleri beş strateji belirler ve bu stratejilerin şirketler tarafından maliyet durumları ile pazar koşullarına bağlı tercih edilmesi gerektiğini önerir. ...
... Standardizasyon yaklaşımı, tüketici tercihlerinin küresel ölçekte homojenleştirilmesi amacı taşıdığı için ilgili yıllarda özellikle reklam ve ürün stratejilerine bağlı çalışmaların yoğunlukta olduğu fakat diğer pazarlama çabalarının da standartlaşma eğiliminde incelendiği görülür (Keegan, 1969;McGuinness ve Little, 1981;Levitt, 1984;Jain, 1989;Walters ve Toyne, 1989). Bu açıdan Keegan (1969), ürün ve iletişim çabalarının standartlaşmasından (tek ürün-mesaj) adaptasyonuna (farklılaştırılmış ürün-mesaj) kadar, şirketlerin seçebilecekleri beş strateji belirler ve bu stratejilerin şirketler tarafından maliyet durumları ile pazar koşullarına bağlı tercih edilmesi gerektiğini önerir. Levitt için (1984Levitt için ( [1983: 18) "küresel şirket, sanki tüm dünya (veya büyük bölgeleri) tek bir varlıkmış gibi kararlı bir istikrarladüşük nispi maliyetle çalışan ve her yerde aynı şeyleri aynı şekilde satan" şirkettir. ...
Çalışmanın amacı, neoklasik iktisadi görüşlere bağlanan ve küresel pazar sistemini karşılıklı çıkara bağlı “serbest piyasa” sistemi olarak gören ana akım KPS çalışmaları ile küresel piyasa sistemini UPE bakışla çözümleyen çalışmaların karşılaştırmalı bir okumasını yaparak, KPS’nin ekonomi-politik bir strateji olup olmadığını tartışmaktır. Bu amaca yönelik olarak çalışmanın ilk bölümünde, pazarlama disiplininde UPE araştırma çerçevesinin temellendirilmesi yapılır. Bu temellendirme aracılığıyla, pazarlamanın pozitivist karakterinin, neoklasik ayrımlardan ve Amerikan merkezli tasarımından kaynaklandığı vurgulanarak, pazarlamanın UPE çerçevesinde incelenmesine imkân veren araştırmaların bu tasarımı genişletme çabalarına değinilir. İkinci bölümde ana akım yazınının KPS’ne yönelik 1960’lı yıllardan itibaren gelişimi dört temel yaklaşım çerçevesinde açıklanır. Bu yaklaşımlar, standardizasyon (standardization), konfigürasyon-koordinasyon (configuration-coordination), entegrasyon (integration) ve ekosistem (eco-system) yaklaşımlarıdır. Nitekim KPS’nin 1960’lı yıllardan itibaren ana akım yazındaki gelişimi takip edildiğinde üç temel yönelimin (standardization, configuration-coordination, integration) ön plana çıktığı (Zou ve Çavuşgil, 2002), 2000’li yıllardan itibaren ise ekosistem (ecosystem) yaklaşımlarının bu gelişime eklemlendiği görülür (Williamson ve Meyer, 2012). Çalışmanın son bölümünde ise ana akım yazının açıkladığı dört yaklaşımın özellikle 2. Dünya savaşından sonra Amerikan merkezli sermayenin zorunlu genişleme eğilimine eşlik eden kültürel ve yapısal stratejiler oldukları vurgulanır. Nitekim UPE bakışla tarihsel/bağlamsal açıdan çözümlendiğinde, KPS’nin uluslararası güç elde etme mücadelesindeki uluslararası aktörlerin hâkimiyet (teknolojik, sermaye birikimi, ekolojik, vs.) arayışlarının ekonomi-politik bir aparatı olduğu anlaşılır.
... He also recognized that global markets were not ubiquitous or homogenous. Keegan (1969) takes a more balanced approach to the subject by exploring various iterations of strategies that seek to exploit the benefits of standardization, but recognize that modifications are needed to gain market acceptance. Most of the research seems to agree that the best strategy is one that maximizes standardization in order to derive the greatest benefit from economies of scale while achieving the highest levels of market acceptance, which in-turn drives firm revenue and profits (Keegan, 1969;Kotler, 1976;Loyka & Powers, 2003;Quelch & Hoff, 1986). ...
... Keegan (1969) takes a more balanced approach to the subject by exploring various iterations of strategies that seek to exploit the benefits of standardization, but recognize that modifications are needed to gain market acceptance. Most of the research seems to agree that the best strategy is one that maximizes standardization in order to derive the greatest benefit from economies of scale while achieving the highest levels of market acceptance, which in-turn drives firm revenue and profits (Keegan, 1969;Kotler, 1976;Loyka & Powers, 2003;Quelch & Hoff, 1986). ...
As a result of internationalization of multinational enterprises (MNEs), the use of expatriates as a collection of ambassadors for overseas operations are prevalent. Expatriation involves both risks and continuing benefits for MNEs. This research aims to critically examine these issues by exploring contributing success factors of Japanese expatriates from Japan-based MNEs in the United States (U.S.). This literature review explores the existing study and theory on expatriation in three parts by investigating 1) cultural learning process of expatriates, 2) the impact of national cultural differences on expatriation, and 3) organizational support for expatriates. In addition, research questions in each of three subcategories are discussed.
... Planning has long been recognized as a key means of attaining coordination (March and Simon 1958) and is a vital integrating device in a multinational (Schwendiman 1971). Naturally, the company's home office must playa central role in the development of globally integrated plans, and planning at this level has been studied under a variety of auspices (Channon 1976;Keegan 1972;Lorange 1976;Ringbakk 1974Ringbakk , 1976Steiner and Schollhammer 1975). ...
... In marketing, much of the research interest has focused on standardization of marketing strategies, with a largely headquarters-oriented perspective (Aylmer 1970;Buzzell 1968;Dunn 1964Dunn , 1966Dunn , 1976Elender 1961;Fatt 1967;Keegan 1969;Ryans and Donnelley 1969;Sorenson and Wiechmann 1975;Wiechmann 1974;Wind, Douglas and Perlmutter 1973). Effective coordination of plans, however, demands heavy involvement on the part of subsidiaries (Schwendiman 1971;Brandt and Hulbert 1977a). ...
This paper reviews the role of planning in the multinational firm and some of the contentious problems which arise. Based on a survey of multinational subsidiaries operating in Brazil, it describes and analyzes current planning practices, focusing primarily on the annual marketing plan. Recommendations for dealing with some of the more difficult problem areas are presented.
... In this context, Keegan singles out five international strategies (Figure 3.1.), complementing four conventional solutions (the two-component matrix of a product and the 2x2 type promotion) with the approach rooted in the theory of entrepreneurship (and currently in the international entrepreneurship view), which the creation of a new product and creating a new customer value is (Keegan 1969). The choice between adaptation and standardisation is determined by numerous factors. ...
... The choice between adaptation and standardisation is determined by numerous factors. While performing the conceptualisation of five strategic behaviours, Keegan (1969) distinguished two main determinants -the functions of the product and meeting customer needs, as well as the conditions of the product usage. The research conducted by Hite & Fraser (1988) proves that only 9% of firms take advantage of global standardisation, 37% apply local adaptation, and 54% -that is, the great majority of the studied businesses -in fact conduct a mixed strategy within the scope of the promotional message. ...
The paper discusses the relation of the size of the firm and its international strategy, especially the EPRG (ethnocentric, polycentric, regiocentric, geocentric) formula as one of the basic strategy typologies. The objective of this paper is to verify whether the size of internationalised firms from Poland plays any role in applying a particular international strategy. The article is based on V4 survey results conducted between October 2013 and February 2014 in different regions of Poland. Although it was a random sample of 190 firms, nevertheless the sampling is not representative. The research hypothesis to be tested states that the use of a geocentric strategy means more intensive internationalisation of firms measured by a higher level transnationality index (TNI). The Kruskal-Wallis one-way analysis of variance leads to significant results, that at least one of four samples (EPRG) is different from the other samples as far the TNI level is concerned. Firms applying the geocentric strategy have the highest median as well as lower and upper quartiles than firms applying the ethnocentric strategy.
... Public Relations adalah untuk meningkatkan kesuksesan suatu perusahaan maka harus menciptakan citra yang baik kepada masyarakat, dalam meningkatkan citra Moladin perlu ada yang diadaptasikan kepada kondisi-kondisi tertentu terhadap opini publik yang saling terhubung dan berpengaruh kepada perusahaan, kemudian tugas Public Relations memperbaikinya jika citra itu rusak (Keegan, 1969). Oleh sebab itu tugas sebagai Public Relations sangatlah penting untuk menjaga citra perusahaan, hal ini juga ditemukan serupa, berdasarkan hasil riset dapat diketahui masalah yang dihadapi, lalu tujuan ditetapkan ketika ditemukan masalah dari riset yang telah dilakukan tersebut. ...
Abstrak PT Moladin Digital Indonesia adalah pelopor pertama kali aplikasi yang fokus menjual kendaraan sejak Tahun 2019 dan sudah menjual mobil baru atau bekas secara online. PT Moladin Digital Indonesia termasuk kategori e-commerce yang hanya khusus menjual kendaraan mobil dan motor lewat aplikasi. E-commerce adalah proses beli atau jual suatu produk menggunakan elektronik data melalui internet. Melihat tren penggunaan media sosial dan aplikasi mulai memiliki peran yang sangat penting di industri kendaraan, penelitian bertujuan untuk mengetahui Cyber Public Relations dalam meningkatkan kegiatan marketing PT Moladin Digital Indonesia. Konsep yang digunakan dalam penelitian ini adalah cara membangun engagement di media sosial yang dikemukakan oleh Jefkins, yaitu Cyber Public Relations, Marketing Public Relations dan New Media. Paradigma yang akan digunakan di dalam penelitian ini adalah paradigma konstruktivis dengan menggunakan pendekatan deskriptif kualitatif. Metode penelitian ini adalah studi kasus. Dengan sumber data diperoleh dari key informan adalah Bapak Arthur sebagai Area Manager Public Relations Moladin, lalu informan pendukung Ibu Ita sebagai Sales Manager. Dalam pengumpulan data, penelitian ini menggunakan teknik observasi partisipatif, wawancara mendalam, dan studi dokumentasi. Hasil dari pembahasan yang ada di dalam penelitian ini menunjukkan bahwa upaya yang telah diterapkan dalam meningkatkan kegiatan marketing PT Moladin Digital Indonesia dalam membangun kepercayaan dan menciptakan citra positif dengan adanya program Moladin Care dinilai berhasil karena dapat dilihat dari hasil pencapaian masyarakat dalam menggunakan jasa aplikasi Moladin. Kata kunci: Cyber Public Relations, Marketing Public Relations, Media sosial.
... In the past, a polycentric approach of organizing operations on a country-by-country basis was the modus operandi. Product adaptations were considered a necessary strategy to cater better to the different needs and wants of customers in various countries (Keegan 1969). ...
The author empirically examines the product policies of European and Japanese multinational firms in relation to product and process innovations. He also investigates linkages between corporate product policy and manufacturing strategy and their implications for product and process innovations in an era of global competition. These foreign multinational firms, in particular the Japanese firms, increasingly stress the simultaneous strategic importance of product and process innovations. Findings indicate that Levitt's argument for the development of a globally acceptable product has gained momentum among European and Japanese multinational firms that lead in product and process innovations. In a marketing context, it has become important for them to expand commonalities across national boundaries rather than focusing on customer differences based on nationalities. European and Japanese multinationals increasingly shape global competition and the findings afford managerial insights into their current product strategies.
... Keegan (1969) also takes a more balanced approach to the subject by exploring various iterations of strategies that seek to exploit the benefits of standardization but recognize that modifications are needed to gain market acceptance. Most of the research seems to agree that the best strategy is one that maximizes standardization in order to derive the greatest benefit from economies of scale, while achieving the highest levels of market acceptance, which in-turn drives firm revenue and profits (Keegan, 1969;Kotler, 1976;Levitt, 1983;Loyka & Powers, 2003;Quelch & Hoff, 1986). ...
This research study examines two concepts that initially appear contrary to each other. The history of research around product standardization is reviewed in order to understand the goals and value that it may provide to firms. While the history of modular design is not as well known in popular business discussion, its research history goes back as far as that for product standardization. The history of modular design is reviewed with the same goal, to understand the goals and value that it may provide to firms. The study illustrates the state of a company that attempted to position its products around the principles of standardization, while its chief competitor successfully repositioned its product platforms from the principle of hardware product standardization to one based on modular design.
... Global advertising can be defined as the standardization of advertising content, coordination of the development and execution of advertising campaigns, and the integration of such campaigns across countries (Zou and Volz 2010). More than four decades ago, Keegan (1969) had noted that when a product satisfied the same consumer need across countries, the same communications strategy could perhaps be used across these countries. However, the highly cited article by Levitt (1983), asserting the homogenization of consumer demands, is often claimed to be the starting point for researchers' interest in global marketing strategies, including global advertising. ...
Global advertising often uses cultural values to standardize globally advertised messages. However, this exploratory study investigates the possibility that rather than cultural values (and consumer wants), it is consumer needs that are strongly shared across countries. Therefore, it might be possible to replace cultural values with these shared consumer needs for the standardization of globally advertised messages. This study does not argue against the universality of the content or structure of values, but rather against the universality of the importance of values across countries. The means-end theory is used to link the relationships between consumer wants, needs, and values. Data collected from Indian and Chinese consumers of information technology education services were analyzed using the laddering technique to reveal hierarchical value maps for each of the two country samples. The results indicate that at the level of consumer wants, Indian consumers seek more tangible attributes while Chinese consumers seek more intangible ones. Also, at the level of cultural values, Chinese consumers associate more values with the service than their Indian counterparts. At the same time, within both groups of consumers the same set of consumer needs were strongly shared among consumers; these were the need for knowledge enhancement, the need for skill improvement, and the need for better employability. Therefore, the results suggest that if managers want to successfully standardize their global advertising, their message strategy could focus on consumer needs that are strongly shared across countries.
... Over time, various scholars have suggested strategies of how to develop a global innovation (e.g. Keegan 1969, Livingstone 1989, Takeuchi/Nonaka 1986. Based on our analysis we follow the approach suggested by Bartlett and Ghoshal (1990). ...
This article attempts to explain why countries lead the international diffusion of specific innovations.
It can often be observed that the global diffusion of innovations can be characterised by the competition of several innovation designs, each favoured by a different country, and that finally one becomes the globally dominant design. Lead markets are national or regional markets that are first to adopt a global dominant design of an innovation.
It is suggested that the demand side can play a decisive role for the international competitiveness of the companies of a country and not only their technological competencies.
This article presents a framework for country-specific factors on the market side that are responsible for the global success of innovations.
... Since then, the scope of the discussion has expanded to include the entire marketing program (Buzzell, 1968) and marketing process (Sorenson and Wiechmann, 1975). Among the elements of the marketing program, the product and advertising variables have received most of the research attention in the literature (Hill and Still, 1984;Jain, 1989;Keegan, 1969;Levitt, 1983;Mc Guinness and Little, 1981;Walters and Toyne, 1989). Standardization has been conceptualized in different ways. ...
The development of marketing strategies optimally adjusted to export markets has been a vitally important topic for both managers and academics for about 5 decades. However, there is no agreement in the literature about which elements integrate marketing strategy and which components of domestic strategies should be adapted to export markets. The purpose of this study is to develop a new scale-STRATADAPT. Results from a sample of 100 exporting firms support a 4-dimensional scale -product, promotion, price and distribution strategies - of 30 items. The scale presents evidence of composite reliability as well as discriminate and homological validity. Findings reveal that all 4 dimensions of marketing strategy adaptation are positively associated with the amount of the firm's financial resources allocated to export activity.
... 2. Should a company extend its marketing mix (the four Ps of marketing), or should it adjust it to suit the local markets? This question has sparked significant debate and research on what is labeled the "standardization versus localization debate" (Jain 1989;Keegan 1969;Levitt 1983) and ultimately in a compromise called "glocal" marketing ("Think global, Act local"), first suggested by Honda Motors (Quelch and Hoff 1986). Most recently, Schilke, Reinmann, and Thomas (2009) have empirically concluded that several organizational factors moderate whether standardization is positively correlated with performance. ...
The core idea of this article is that five key characteristics-market heterogeneity, sociopolitical governance, chronic shortage of resources, unbranded competition, and inadequate infrastructure-of emerging markets are radically different from the traditional industrialized capitalist society, and they will require us to rethink the core assumptions of marketing, such as market orientation, market segmentation, and differential advantage. To accommodate these characteristics, we must rethink the marketing perspective (e.g., from differential advantage to market aggregation and standardization) and the core guiding strategy concepts (e.g., from market orientation to market development). Similarly, we must rethink issues of public policy (e.g., from compliance and crisis driven to purpose driven) and the marketing practice (e.g., from glocalization to fusion marketing).
... Given the central role of product policy in firm strategy, this lack of guidance in the marketing literature is problematic. One solution, originally proposed in Keegan's (1969) classic article, would be to simply acknowledge that consumer acceptance of global versus local products depends on the specific product-market-company mix. Although in the extreme this may be true, it offers little guidance to international companies. ...
The authors examine antecedents of consumer innovativeness in a cross-national context. They propose a framework that distinguishes individual difference variables and national cultural variables. Two types of individual difference variables are considered: personal values and consumer-context-specific dispositions. The authors develop hypotheses pertaining to the main effects of the variables and their interactions and test them on data collected from 3283 consumers in 11 countries of the European Union. The empirical results are broadly supportive of the hypotheses. The cross-national data used in this study provide a strong test of the generalizability of the findings.
... According to Porter [41], international marketing activities are the downstream value chain activities that need to be performed close to the market. Adaptive marketing is, therefore, necessary for multinationals in most industries in order to enhance their competitive positions for global business expansion [11,15,20,26,44]. Adaptive marketing, then, poses a challenge: How can marketing managers effectively adapt a firm's marketing activities to different national markets? ...
Despite the globalization of markets, necessary adaptations are still considered a factor critical to a firm's success in international markets. The authors use the PIMS database to examine factors that affect the success of a firm's market expansion in different national markets. The results suggest that a firm should focus on different marketing and technological factors to achieve success in different national markets.
... Given the central role of product policy in firm strategy, this lack of guidance in the marketing literature is problematic. One solution, originally proposed in Keegan's (1969) classic article, would be to simply acknowledge that consumer acceptance of global versus local products depends on the specific product-market-company mix. Although in the extreme this may be true, it offers little guidance to international companies. ...
In this article, the authors introduce attitude toward global products (AGP) and attitude toward local products (ALP) as generalized attitudinal constructs and address the four issues these constructs raise: (1) How are AGP and ALP related to each other? (2) What is the motivational structure underlying AGP and ALP? (3) Is the proposed theory culturally circumscribed, or does it generalize across countries? and (4) What are the managerially relevant implications of these consumer attitudes? To answer these questions, the authors propose and empirically test an integrated structure for AGP and ALP and their antecedents, organized around the powerful motivational concept of values. They test their theory using a unique data set involving 13,000 respondents from 28 countries in the Americas, Asia, and Europe, thus allowing for a global investigation of a global issue. The study findings provide managers with strategic direction on how to market their products in a globalized world.
... It is regarded as axiomatic that the determination to use a rational or emotional appeal depends on the product or service being marketed. Generally, it is assumed that emotional appeals are better suited for low-involvement products, while rational appeals are considered more appropriate for high-involvement products (Keegan, 1969;Krugman, 1965;Petty et al., 1983). This generalization, however, is derived from advertising research in western cultures. ...
This study examines differences in informational strategies by product categories in Japanese and American television advertisements. Overall findings suggest that American advertisements are perhaps more informative than Japanese advertisements, based on the western standard. However, only by examining the qualitative and quantitative nature of the advertisement - within respective idiosyncratic cultural contexts - could valid results be derived. Hence what is informative to one culture may not be necessarily deemed as relevant to another culture.
The researchers examined the effect of marketing mix adaptation on productivity in international markets: a study of nestle food Nigeria. The study was born out of the fact that offering standard products in all territories can lead to failure if the product does not meet local market standards, requirement or regulations. The main objective was to ascertain the interplay of marketing mix adaptation and productivity in international markets. The researcher adopted survey design. Primary source of data was the main source of data collection. The sample was 180 employees. Structured questionnaire was used to get data from the field. Simple linear regression was used to analyse the data gotten from the field. The result revealed a significant relationship between the independent variables and the dependent variable. The researchers concluded that marketing mix adaptation proxies leads to a good productivity in Nestle food Nigeria and further recommended that Nestle food Nigeria should perfectly embrace the proxies of marketing mix adaption in order to boost productivity also that Pricing adaption should be paid a special attention as many consumers are sensitive to price.
Purpose
The purpose of this study is to investigate an understudied topic—new product strategy in international markets. Specifically, this study aims to address the crucial role played by organizational characteristics and market characteristics in determining a firm's decision of adopting either a waterfall or a sprinkler product strategy for international markets.
Design/methodology/approach
The empirical analysis was conducted using survey data collected from a sample of 171 Korean small and medium enterprises (SMEs). This study uses logistic regression analysis to test the relationships among organizational characteristics, market characteristics and a firm's international product strategy.
Findings
The empirical results suggest that firm characteristics, such as higher degree of internationalization, lead the firms to choose the sprinkler strategy. Moreover, this research finds that a firm's choice between the waterfall and the sprinkler strategy varies depending on market characteristics such as competitive intensity and market turbulence. The findings indicate that the sprinkler strategy is more optimal for use when firms operate under a high level of competitive intensity, whereas a waterfall strategy is more suitable for firms that encounter a high level of market turbulence in targeted foreign markets.
Originality/value
This research contributes to the international marketing literature by exploring the impact of organizational characteristics and market characteristics on a firm's new product strategy in international markets.
This study examined the impact of specific firm characteristics, environmental characteristics and marketing mix strategy on export marketing performance. Data were gathered using a structured questionnaire from firms engaged in leather and leather related products, textile and garment exporting companies operating in Ethiopia. Although a total of 278 questionnaires were distributed to a sample of exporter from leather and textile sectors 253 questionnaires were returned at the end of the data collection process, which gave the response rate of 91 per cent. Correlation, regression and path analysis were used to analyse the data. Firm characteristics, Industry characteristics, Export market characteristics, and Product adaptation influence Export performance significantly at 95% confidence interval with a sig. level of 0.000, 0.000, 0.029, and 0.001 respectively. The variable firm characteristics significantly affect export performance and partially mediated by product adaption. When the mediator variable removed from the model its direct value dropped from 0.31 to 0.18 and the direct effect is still significant after mediator enters the model. Product characteristics, export market characteristics and industry characteristics significantly affect export market performance.
To standardize or to customize? This question has always been the dilemma of numerous companies that decide to operate beyond the national boundary. This sensitive and ambiguous issue has caught the attention of several marketers and scholars resulting in emergence of different school of thoughts. The standardization school of thought attributed the world as a homogeneous place, hence advocating standardization of the elements of the marketing-mix strategy to yield numerous advantages to both the consumer and the marketer. Contradicting the standardization school of thought, the believers of adaptation approach argued that the world is a heterogeneous place and MNCs need to adapt the differences in the market environment in order to appeal to its target market in the host country, hence customization of marketing-mix strategy is imperative. Further, what has amplified the dilemma is the degree of adaptation or standardization required. Is it necessary to customize or standardize all the elements of marketing- mix (product, price, place and promotion)? The purpose of this study is to draw an insight into the level of standardization or customization of various elements of marketing mix of Fast Moving Consumer Goods (FMCG) MNCs in the UAE. The results of the study indicated that the FMCG MNCs operating in UAE have adapted a mixed approach to the marketing-mix strategy wherein they standardize critical elements of the marketing-mix and customize the rest in order to respond to the host country differences.
Purpose
Providing B2B marketing with insights into the nascently explored generalized social exchange dimension paying it forward. Marketing is an ongoing exchange relationship of particular significance in the B2B context, where exchanges often are indirect. Therefore, understanding the generalized exchange mechanism paying it forward is important in order to derive value from it, both as a manager of marketing teams (intra-firm) and as a participant in inter-firm exchange relationships.
Methodology/Approach
By reviewing extant research, this conceptual paper provides a synthesis of paying it forward exchange, how it occurs and can be encouraged in the inter- and intra-firm B2B marketing contexts and proposes a researchable and practically applicable framework, as well as a series of researchable propositions.
Findings
Founded on the understanding that paying it forward is an extra-role behavior (i.e., not defined by a job description or contract) that occurs both within and between firms, this work presents a conceptual framework as well as a series of researchable propositions with regard to the benefits that can be derived from paying it forward behavior. The framework proposes four different modes (peer, partner, affiliation, and alliance) under which marketers can facilitate or participate in the paying it forward type of exchange. The dimensions of the framework are relational interdependence and the intra-and inter-firm settings. These different modes emerge naturally based on the type of interaction. Depending on the circumstances, an individual could operate in any of the four modes, however depending on mode they operate in there are different key considerations to focus on.
Originality/value
Makes contributions to literature by providing a synthesis of the generalized social exchange dimension paying it forward, drawing conclusions, and developing a comprehensive framework and researchable propositions for marketing related intra- and inter-firm paying it forward exchange behavior. Academics and practitioners benefit from understanding the value paying it forward may provide and improve the role marketers play in both facilitating and participating in this type of exchange, yet to date this behavior has received scant attention.
Practical implications
Provides practitioners a synthesis of paying it forward exchange and outlines why and how it is relevant in a B2B marketing context, how it can be encouraged and what managers need to know to make use of its advantages and avoid its pitfalls.
On the basis of social exchange theory and the resource-dependence model, a structural model of interfirm adaptation is formulated. The model accounts for mutual adaptation as a consequence of trust-building as well as for unilateral adaptation due to imbalanced dependence between the parties. The view that interfirm adaptations are elements in a social exchange process is supported.
One of the most controversial issues in international advertising is the applicability of international advertising standardization. The issue has created a lively debate over the past fifteen years because of the lack of sound empirical evidence. The purpose of this study was to examine the applicability of this advertising approach by investigating the homogeneity assumption made by those encouraging the use of standardization. American and foreign consumers were shown identical ads, and comparison of their responses to these ads were made. The findings indicated that the responses to these ads varied from group to group. Therefore, a standardized ad may be an effective way of providing necessary information internationally, and the conclusion of the present acceptance of standardization seems to be unsupported and premature.
In the information and communication technology (ICT) industry the pressure to globalize an already international business is great. The industry consists of a range of different companies from manufacturers to service providers, but the focus in this research is on manufacturers of ICT equipment including network infrastructure systems, terminals and personal computers. International companies in particular in these sectors need a well-planned global strategy to be able to leverage their potential fully. The companies have to decide about global market participation, global product and marketing strategies, and the global location of activities as well as global competitive moves. In the ICT field, effective product and marketing strategies are especially important.
Im Rahmen der Einführung ist bereits auf die Interdependenzen zwischen den Strategien und Grundorientierungen der internationalen Marktbearbeitung und der Markterfassung eingegangen worden. Gegenstand dieses Kapitels ist es, die Grundorientierungen und Strategietypen und den damit jeweils verbundenen Grad der Marktabdeckung bzw. die Art der Marktbearbeitung (Grad der Standardisierung/Differenzierung) zu erörtern und die Interdependenzen in bezug auf die Markterfassung konkreter herauszuarbeiten. Dazu wird zunächst auf die Klassifizierung von Wettbewerbsstrategien nach Porter eingegangen, bevor die Marktbearbeitungsstrategien auf Basis der internationalen Grundorientierung nach Perlmutter herangezogen werden.
Die Internationalisierung des Wettbewerbs ist ein vieldiskutiertes Thema der zeitgenössischen Forschung auf dem Gebiet des Managements. Obwohl sich das Marketing durchaus mit internationalen Aspekten beschäftigt hat, wurde die Rolle des Marketing im Rahmen des internationalen Wettbewerbs eher als begrenzt angesehen. Der Schwerpunkt der Forschung auf dem Gebiet des internationalen Marketing galt seit langem dem Unterschied zwischen den Marketingaktivitäten für nationale und internationale Märkte. In jüngster Zeit ist eine Kontroverse darüber entbrannt, ob die Märkte nun tatsächlich Globalisierungstendenzen aufweisen und ob sich die Anforderungen an ein Produkt wirklich weltweit vereinheitlichen. Im Zuge dieser Debatte und in der allgemeinen Literatur zum Thema wird jedoch der wesentlich weitgefächerteren Rolle des Marketing im Rahmen einer internationalen Unternehmensstrategie nur wenig Aufmerksamkeit gewidmet.
A model of marketing strategy for American Export Trading Companies is developed utilizing the unique antitrust benefits allowed trading companies under the Export Trading Company Act of 1982. The model includes various strategic areas such as the ability to allocate prices, markets and customers. The Japanese Trading Companies are used as a basis for an overall development of strategy for the American Export Trading Companies and the unique benefits of the 1982 act are included in developing an overall strategy for export marketing that is unique to the American Trading Companies.
Companies go abroad to interact with the most demanding customers, the best suppliers and the leading research environments so they can learn how to compete in new markets for their technologies. Corporate R&D is increasing rapidly in countries outside the domestic market especially for customization of technologies to suit local market conditions. There is an ongoing transition from an internal knowledge base to increasingly open and globally distributed knowledge networks. The benefits of global designs include influencing consumer preferences, establishing global brands and dominant designs, anticipating emergent segments, leveraging existing knowledge, and improving firm performance. As a result, global product designs are being increasingly sought by companies. With the increasing speed of innovation, the world scale of many new technologies and the ability to acquire and to apply knowledge quickly in uncertain environments is an essential characteristic of a firm’s success.
Using the structure-conduct-performance paradigm along with Porters international factor conditions, the authors propose and empirically test a conceptual framework to explain the antecedents and consequences of a firm's brand-name standardization/adaptation strategy. Survey research and structural equation modeling results show that firms adapt (vary) their brand names when market structure factors measured by competitive, buyer, and distribution intensity increase. Furthermore, the authors find that the more standardized the brand name worldwide, the higher are the firm's cost savings and the higher is the product's sales volume as perceived by marketing executives.
A structured framework is proposed for analysing inventions, focusing on the sources of information utilized in their development
These sources involve internal versus external origins, as well as domestic versus international origins
Analysis of forty inventions revealed five invention approaches, suggesting that society's inventions emerge through diverse means, with varying motivations, market impacts, and pathologies.
Purpose
The question of whether a business should pursue a marketing strategy that is standardised across national markets or adapted to individual markets has long troubled practicing managers and academics. The purpose of this study is to examine such marketing mix standardisation in the Baltic states.
Design/methodology/approach
This cross‐sectional study employs a survey of management responses from multinational companies active in the Baltic states to capture their marketing strategies. Another survey is used to capture customer perceptions of the degree of marketing mix standardisation.
Findings
This research supports the idea of marketing standardisation across the Baltic countries, but it also points at particular areas for adaptation.
Research limitations/implications
The three Baltic countries present an interesting case due to close geographical location, shared history and economic development, alongside differences in consumer behaviour caused by independent national development. This makes for unique market conditions when it comes to marketing standardization in the region.
Practical implications
The research results support multinational firms in their pursuit of the right balance between adaptation and standardisation in their marketing mix.
Originality/value
This study contributes to research in the areas of international marketing strategy and marketing standardisation.
Purpose
A highly interesting research problem relates to how international information and communication technology (ICT) manufacturers from small and open economies (SMOPECs) can meet the huge globalization challenge of developing products and managing them during global expansion. In particular, how do product strategies change when these companies move from international to global and why?
Design/methodology/approach
A theoretical framework and propositions are constructed, which are then examined in a multiple case study of Finnish ICT manufacturers.
Findings
The results confirm that the globalizing internationals, i.e. companies that first internationalize after the domestic period and then globalize their operations outside the domestic continent, develop towards standardized product strategy alternatives, wider product assortment and advanced product categories.
Research limitations/implications
This study contribute by providing a deeper understanding of the impact of the explanatory factors on global product strategies and their development of globalizing internationals in the Finnish ICT equipment manufacturing field. Also, the study results are expected to be most relevant for companies originating from SMOPEC countries.
Practical implications
This study describes in detail the product strategy dimensions and standardization alternatives for globalizing international ICT companies and impacting factors for managers to consider when planning their global expansion and product strategies.
Originality/value
Little research has been done on the evolution from the international to the global stage. This research is in fact among the first studies studying globalizing internationals and their products strategies. An understanding of the evolution of products strategies and the reasons for this development will contribute to the international marketing field.
In response to certain important gaps identified in the global marketing literature, the focus of this inquiry is an investigation of the pricing strategies followed by manufacturing subsidiaries of multinational corporations. Specifically, the authors attempt to identify the factors that play an important role in determining the degree of international pricing strategy standardization. The findings suggest that the extent to which multinationals standardize their international pricing strategies depends on the level of similarity between home and host countries in terms of customer characteristics, legal environment, economic conditions, and stage of the product life cycle, The authors highlight implications of the findings for business practitioners and discuss future research directions along with the limitations of the study.
Purpose
Knowledge‐based services range from accounting, engineering, and management consulting to educational services. This paper seeks to explore the nature of management education services and to discuss how business schools can employ cross‐cultural product‐market strategies to enter and serve foreign markets with programs that match the needs of the targeted markets.
Design/methodology/approach
A framework is presented for delivering management education services across borders. Hofstede's cultural dimensions are integrated in recognizing the cultural characteristics of a target country and differing learning styles of students in making market entry decisions and the pedagogical styles that might apply to specific target markets.
Findings
In seeking new globally diverse markets, providers of knowledge‐intensive services such as management education must craft marketing strategies that recognize consumer demand and consumption characteristics as well as service design and delivery options that fit market needs.
Research limitations/implications
Global expansion of management education services and the strategic and tactical considerations that are introduced in the framework can provide a fertile field for empirical research.
Practical implications
The paper develops cross‐cultural “product‐market” strategies that business schools can consider in serving international markets, with product defined as the curriculum, instructional style, and all of the ancillary services that constitute the educational service experience. Generalizability of the findings to other knowledge‐based services is also discussed.
Originality/value
The conceptual framework recognizes a dominant theme in international business, suggesting that internationalization potential depends on service industry characteristics and on specific host country internationalization drivers.
Examines empirically the standardization of international marketing strategy from the perspective of Colombian exporting firms. Also investigates standardization of the finer aspects of the marketing mix variables than previous studies have addressed. In addition, links marketing standardization to Colombian firms’ export intensity. Suggests that Colombian firms appear to pursue different degrees of standardization with respect to different dimensions of their international marketing strategy. Also suggests that there are several relationships between marketing standardization and Colombian firms’ export intensity, and the nature and strength of each relationship depends on the specific dimension of marketing standardization being examined. Discusses the implications of these findings for research and management.
Contends that adapting consumer products to foreign market tastes is one of the more difficult challenges facing international marketers; the stakes are high, with even minor cultural mistakes resulting in lost sales and corporate embarrassment. Chronicles how one company in the global greeting card industry developed its international marketing strategy. Uses a Delphi panel of company managers to identify key factors in the product adaptation process. Draws on corporate expertise to pinpoint key similarities and differences between the US home market and prospective foreign markets. Concludes that where there were major similarities, prospects were deemed good for global standardized strategies. Where there was great diversity among key indicators, a multinational country-by-country approach was followed.
This paper argues that meanings
given to “standardization” and “globalization” might have created some confusion and precipitated
potentially misleading research results in the literature. The paper discusses the basic
assumptions underlying the marketing function as a necessary point of departure to build a sounder
theory around these concepts. Findings confirm the lack of formal definitions of these concepts in
the marketing and management literatures. The authors “redefine” the concepts of globalization,
standardization, adaptation and customization with the help of the AMA’s and Webster’s
dictionaries. The new conceptualization is applied to a brand strategy framework. Preliminary
results show that standardization and globalization may be at opposite ends of an evolutionary
brand strategy process, whereas adaptation and customization are intermediary stages. The paper
discusses the findings and suggests future research possibilities.
Marketing adaptation has been considered a factor critical to a
firm's success in international markets. In order to know how companies
can effectively adapt their marketing activities to international
markets, one has to go beyond marketing function to understand the
development of a firm's experience curve advantage. Presents a framework
for a firm to improve its adaptive abilities in developing appropriate
marketing strategies for global expansion. Strategic managers should
manage the process of investing organizational slacks in order to
enhance adaptive ability. Globally-oriented Taiwanese PC firms were
studied to examine the relationship between a firm's adaptive ability
and its performance. Indicates that companies can improve performance by
enhancing their adaptive abilities in the areas of technology, marketing
mix and finance. Suggests further research.
Focuses on the issue of product standardization versus adaptation, with special reference to the practices of Japanese multinational companies (MNCs) operating in the Middle East. Reveals that the degree of adaptation of Japanese goods is generally moderate, with labelling, packaging and internal features attracting most alterations. Product adaptations were more profound among firms producing consumer goods, as well as those having a long presence in the Arab market. Also suggests that the impact of factors affecting the standardization/ adaptation decision differed according to the specific product aspect, with demographic and political-legal forces being the most influential overall. With respect to future product strategy, participant firms stated that they would proceed more or less as at present, the only exception being some additional adaptations as regards external characteristics of the product.
Purpose
The purpose of this paper is to demonstrate the rationale and method for studying product adaptation in rural markets.
Design/methodology/approach
The paper takes the form of an exploratory design that includes; review of literature, pilot study, and survey method.
Findings
Findings of the study are contrary to the general understanding that rural is perceived very differently and hence operationalised differently by different organisation. However, results indicate that contingency theory holds true in case of product adaptation in rural markets also. With the increase in executives' representation of rurality, product adaptation degree also increased.
Originality/value
This is probably the first academic study on product adaptation in rural markets to the best of our knowledge. The study attempted to contextualise product adaptation construct from international marketing to rural marketing domain.
Analyses the four main components of Kellogg’s marketing mix (product, price, place and promotion) and assesses the extent to which Kellogg’s has globalised or internationalised its approach in these areas. Increased competition in existing markets meant that Kellogg’s needed to look towards new markets and new products.
International advertising standardization/adaptation has been a dominant area in the international marketing literature. In this chapter, we explore the evolution of thought related to international advertising standardization/adaptation beginning in the 1920s. Through a stage theory historical analysis, we decompose thought in international advertising standardization/adaptation into three unique stages: (1) practitioner evolution, (2) scholarly initiation and (3) conceptual and empirical refinement. Given this approach, we contend that the factors considered in earlier stages were necessary for later development. Further and more importantly, we argue that, for the evolution of thought in relation to international advertising standardization/adaptation to evolve, researchers must begin to engage in a number of acts central to building a unified foundation. We propose a series of issues that need to be addressed in order to advance our understanding of international advertising standardization/adaptation.
Purpose
– This paper aims to report research on the relationship among market, industry, and company factors and the level of global product standardization.
Design/methodology/approach
– The study is based on a survey of executive level managers in US‐based companies that market products both domestically and internationally.
Findings
– Significant relationships were found between specific market, industry, and company factors and global product standardization.
Originality/value
– The results of the research can be used both to understand and to manage global products in light of the market, industry, and company factors that influence their existence.
ResearchGate has not been able to resolve any references for this publication.