Distinguish between Standardization and Adaptation.
Difference between Standardization and Adaptation.
Standardization means the offering of identical product lines at identical prices through identical distribution systems supported by identical promotional programs in several different countries. The theme of standardization is one product, one message worldwide. This strategy has been successfully employed by Pepsi. At the other extreme, adaptation means the offering of different product versions to suit the foreign market conditions under adaptation the product is modified to suit the foreign market conditions.
The product will serve the same function in foreign markets under different use conditions. This strategy is called for when differences exist in the environmental conditions of use and in the function which a product serves.
Following are the important factors which necessitate adaptation:
- Differences in the consumer tastes, consuming habits etc.
- Differences in the conditions of use of the product.
- Differences in the use facility characteristics.
- Differences in the purpose of use or need satisfaction.
- Differences in the cultural environment.
- Differences in the natural environment like geo-physical characteristics, weather/ climate conditions etc.
- Differences in the regulatory environment.
- Differences in the income levels and standard of living.
- Differences in the competitive environment.