Standardization and Adaptation of International Marketing Mix Activities: A Case Study

Outline

• Abstract
• Keywords
• 1. Introduction
• 2. Definition of International Marketing
• 3. International Marketing Mix
• 4. Research Design
• 4.1. Methodology and Sampling
• 4.2. Data Collection
• 4.3. Data Analysis
• 5. Results
• 5.1. Swot Analysis of Furniture Industry in Turkey
• 5.2. the Position of International Marketing Department
• 5.3. Internationalization Process
• 5.4. International Marketing Mix Activities
• 5.4.1. Product
• 5.4.2. Price
• 5.4.3. Place
• 5.4.4. Promotion
• 6. Discussion and Conclusion
• References

Conclusions

This study attempted to offer a contribution to the international marketing literature by examining marketing mix activities in an international firm context. Previous researches in marketing literature have noted the international marketing mix activities. Most of those studies examined the marketing mix activities with theoretic arguments (Grönroos, 1994) and focused on standardization or adaptation of the marketing mix strategy (Lariomo and Kontkanen, 2008). In general, these researches mentioned that while place, promotion and price are more adaptable elements, product is the hardest element to adapt (Onkvisit and Shaw, 2009). This study discovered that (1) place and price elements are more adapted, (2) the promotion element is standardized and (3) product element are both standardized and adapted in international marketing mix activities by adapting a more wholistic view. Also, we stated that the firm applies Cavusgil Model which is the last model examining from behavioral aspect of internationalization process (Çavuşgil, 1980; Andersen, 1992). As such, the firm decided to internationalization with proactive triggers such as managerial urge, exclusive information, home government assistance, economies of scale (Kandasaami 2004). In particular, we examined marketing mix activities which include product, price, place and promotion activities. First, while previous literature confirmed that product is the most frequently standardized (Onkvisit and Shaw, 2009; Doole and Lowe, 2008), we found that product concept, colour and packet are adapted, brand name and label are standardized. Specifically, we showed that the main causes of adaptation are cultural differences, customer preferences and market characteristics, but on the other hand, the main causes of standardization are to provide brand recognition and equity. Previous researches confirmed these findings (Nguyen, 2011). We also added that distributive costs have impact on adaptation of product concept. To reduce distributive costs, firm do not send some products (e.g. armchair…) to distant countries. When these findings are associated with the results of SWOT analysis, we can assert that product variety supports the product adaptation, and reduces the risk of imitation and copying, and the branding failures are tried to prevent with the standardization in the brand name and label. Second, we demonstrated that price element of marketing mix is adapted element (Boddewyn and Grosse, 1995). Here, it is seen that the pricing policy is competition based pricing because the competition is very strict, and the differences between competitive products are very little (Hinterhuber, 2008). In this sense, product differentiation can be advised for firms. Indeed, in the light of information in the SWOT analysis, the threat produced by brands doing low-cost and large-scale production in third world countries is remarkable. Third, we showed that place element of marketing mix is adapted element (Onkvisit and Shaw, 2009). In this study, we also demonstrated that the reasons are nature of market, product standards and law legislation, which is consistent with case study of Nguyen (2011). Also, it can be said that the geographical position – as a strong aspect of the industry- facilitates the adaptation of the place element. Finally, although previous studies showed the promotion element is more adapted than other elements (Vrontis, 2003; Siraliova and Angelis, 2006), we mentioned that promotion element of marketing mix is the most standardized element. In fact, the firm sent the advertisements that it uses in home market to the abroad. However, it leads to some disadvantages. Such that, the firm can fail to satisfy customers, to decide advertising message, to choose the advertisement agency, to control the advertising cost (Doole and Lowe, 2008).

However, there are some methodological limitations in this study. Specifically, the generalizability of sampling is a limitation of this study. The study was conducted in a specific national context, Turkish firm in general and Istanbul district in particular. It is important to note that the readers should be cautious when generalizing the results to different cultural context. In this regard, a Turkish sample involving Istanbul district, like that of any culturally bound research, be it a major industrialized city in the U.S., Europe or Asia, etc., imposes some constraints on the interpretation, and application of the results.

The study was done in-depth interview only with 5 international marketing managers who work in an international firm. The results should be confirmed with a reliable survey, more samples and different sector firms. Also degree of standardization vs. adaptation of marketing mix activities empirically should be examined