What is the issue of global vs adapted products for the international marketer?
A recurring debate exists relative to product planning and focuses on the question of standardized products marketed worldwide versus differentiated products adapted or even redesigned for each culturally unique market. Those with a strong production and unit cost orientation advocate standardization and others, perhaps more culturally sensitive, propose the policy of a different product for each market.
The issue cannot be resolved with a simple either/or decision. Cost revenue analyses need to be done and decisions made in the hard, cold lights of profitability. There is no question that significant cost savings can be realized from having standardized products, packages, brand names, and promotional messages but this makes sense only if there is adequate demand for the standardized products: costs must be balanced with demand. On the other hand, if the cost of an individualized product when evaluated against price/demand characteristics within a market exceeds potential profit, then it is ridiculous not to consider other alternatives including not marketing the product at all.
To differentiate for the sake of differentiation is no solution, and realistic business practice requires a company to strive for uniformity in its marketing mix whenever and wherever possible. Economies of production, better planning, more effective control, and better use of creative managerial personnel are all advantages of standardization.
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Product Decisions for International Markets
- What influences the market resistance towards a new product?
- What are the marketing objectives of using the product life cycle?
- What are the three major components of a product?
- How are products adapted physically and culturally in foreign markets?
- What are the steps to deciding on a product line when going international?
- What are the different promotional/product strategies available to an international marketer?
- How can different stages of the life cycle of a product influence the standardization/adaptation decision?
- What is the difference between a product and a brand?