Analyzing the Degree of Adaptation vs. Standardization of the Marketing Mix Elements in the Foreign Sales by Organizations

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ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.

DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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ABSTRACT

This research will focus on the topic Adaptation vs. Standardization of the Marketing Mix Elements in the Foreign Sales by Organizations. The two main companies which have been taken as case study in this research are P&G and Philips. The researcher will focus on both of these companies' strategies. The main research questions addressed in this research are what are the factors that influence P&G and Philips to implement the adaptation strategy or standardization strategy and explain the difference between these strategies? What are the changes these companies have been made in their marketing mix for increasing their international products sales? The researcher used the mixed research method and in particular the interview and questionnaire. Questionnaire was filled by the employees and interviews were taken from the marketing heads of both the companies.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background1

Adaptation Strategy and Standardization Strategy1

The Marketing Mix3

Background of the organizations3

Philips3

Procter & Gamble (P &G)4

Problem statement5

Significance6

Justification6

Research Aims and Objectives8

Aims8

Objectives8

Research Questions8

Gantt chart9

CHAPTER 2: LITERATURE REVIEW10

Marketing Strategy10

Characteristic10

Strategic Options10

Definition of Market Orientation13

Antecedents to Market Orientation15

International marketing and global marketing18

Adaptation strategy19

Standardization strategy21

Standardisation and Adaptation within International Marketing Context22

Global Standardisation or International Adaptation23

Global standardisation school24

International adaptation school25

Adapted standardisation school27

The Marketing Mix29

Characteristic29

Types29

CHAPTER 3: METHODOLOGY33

Introduction33

Research Design33

Research Method and Design Appropriateness34

Mixed Methodology34

Mixed method studies34

Secondary Research Methods34

Primary Research Methods35

Quantitative and Qualitative Research Methods36

Target Population and Sample Size38

Instrument38

Literature Search38

CHAPTER 4: DISCUSSION40

Factors that determine standardization/adaptation decisions of international marketing strategy40

The link between standardization/adaptation decisions of international marketing strategy and company performance42

Company performance as an outcome of standardization/ adaptation decisions of international marketing strategy44

Company performance as an antecedent of standardization/adaptation decisions of international marketing strategy45

The link between the generic strategies and standardization/ adaptation decisions of international marketing strategy and company performance46

Consequences of Market Orientation48

Innovativeness Consequences49

Services using a mail survey50

Employee Consequences50

Customer Consequences51

Financial Consequences51

Questionnaire analysis52

Interview63

CHAPTER 5: CONCLUSION65

REFERENCES68

CHAPTER 1: INTRODUCTION

Background

Adaptation Strategy and Standardization Strategy

The adaptation strategy can be defined as tailoring the product or service according to the different needs and conditions in each market. The companies choose this strategy because the markets of two or more countries behave totally different from each others. For example, legal differences, taste preference difference etc (Terpsta Sarathy 2007, 160).

The implementation of the standardization strategy is based on the idea that markets tend to be homogenized by the pressure of technology, communications and transport. The standardization strategy is to consider that the market is global for the product (Shaw Richter, 2009, ...