Standardization marketing strategy is typically applied to discussion of global businesses and means to market a solution with uniform consistency throughout the marketing mix. This is an opposite approach to an adaptation strategy, under which multinational companies differentiate their product and adapt it to fit the unique needs of countries.
Specifics of Standardization
A major point about a standardization marketing strategy is that organizations can choose to standardize all aspects of the product experience, or they can standardize component of the product or marketing. Standardizing the whole product experience includes product uniformity, customer service, product support, marketing, pricing and distribution. This is a standardized marketing mix.
The overriding benefits of a standardized marketing strategy are consistency throughout the world and cost savings. Increased globalization of world businesses contributes to more similarities among international marketplaces. This has led some companies to realize the benefits of providing a consistent, and uniform product and marketing system around the world. Because these organizations are producing same products and reusing established marketing and distribution systems, they also get economies of scales benefits in production and buying.
An inherent disadvantage of a standardized marketing strategy emerges from its goal of offering uniformity. Selling the same products with the same message globally means little to no differentiation for local markets and their unique needs. Ideally, a standardized approach is based on research that unique needs are not relevant. However, companies open the door for competitors to enter the market and offer some type of standardized product, service, or unique marketing messages.
Even companies that desire to standardize may find it difficult to do so in lieu of global restrictions. Trade barriers and tariffs are common tools global governments use to force companies to adapt to local market needs and requirements. Many countries have varying expectations on delivery from external sources. Not all businesses benefit from a standardized approach to international marketing and business. Each organization must carefully weigh its offering, its options and its ability to standardize or adapt for business results.