Companies marketing their products in international market are faced with the decision of whether to standardize their product or adapt their product offerings. Product standardization means marketing a product in international market with some or little changes except for some cosmetic changes such as modifying labeling and packaging as per the countries regulation. The products with high technological intensity such as heavy equipment, microprocessor, plant and machinery, hard disks, projectors, etc are marketed as standardized products in the international market.
Companies prefer product standardization because a global product image is developed, with a product they can cater to the global consumers moving across countries, and for the cost saving in terms of economies of scale in production. Product standardization helps the companies in developing a Global Brand and economy in designing and monitoring various components of marketing mix. Major factors favoring product standardization include high level of technology intensity, formidable adaptation costs, convergence of customer needs worldwide, and country of origin impact.
The marketing of products sold internationally may be standardized to keep a uniform image among the various markets. For example, COCA-COLA Company uses global standardization in marketing by keeping the appearance of the product relatively unchanged between different markets.
Author: Prof. Nupur Rawal, Assistant Professor – Unitedworld School of Business (UWSB), Karnavati University
Disclaimer: The opinions / views expressed in this article are solely of the author in his / her individual capacity. They do not purport to reflect the opinions and/or views of the College and/or University or its members.
