Summary of Critique on International Marketing Adaptation versus Standardization of Multinational Companies

This summary presents the different perspectives and dropping into the argument and discussing the way how companies tackles the standardization-adaptation issues and the external and internal factors that faces in market.

Multinational companies (companies that compete in more than one country), in their aim to develop their business practices, increase profitability and overcome any problems related with the saturation of existing markers, expand their operations to overseas markets. Within the field and literature of international marketing, when a company decides to begin marketing products abroad, a fundamental strategic decision is whether to use a standardized marketing mix (product, price, place, promotion, people, physical evidence, process management) and a single marketing strategy in all countries or whether to adjust the marketing mix and strategies to fit the unique dimensions of each local market. Some people see markets as becoming more similar and increasingly more global and believe that the key for survival is companies’ ability to standardize. Others point out the difficulties in using a standardized approach, and therefore support tailoring and market adaptation. However, literature quoting practical evidence suggests that companies make contingency choices, which relate to key determinants in each circumstance.


Managerially, due to increasingly global competitive and economic pressures more and more business is forced to globalise or adapt their international marketing strategy. As a result, managers are constraints to change the way in which they conduct their business and marketing strategy in order to compete effectively in the global marketplace. It would be therefore be useful to identify the environment and, in particular, the organisational factors that the MNC managers can leverage in order to improve their marketing strategy.

Standardization can be discussed under below tropic.



1. International standard

2. Design standard.

3. Marketing standard (7 Ps or 8Ps)

4. Organisational and managerial standard.


In any product or service, it’s basic characteristic should be standardized while adapting it’s features as per the situation and requirement of customer. Under this article we discussed marketing standard (7 Ps).

Also we have highlighted effect of laws towards adaptation. In Sri Lankan context, government imposed rules to display label in both language for imported food items, etc.

Next topic put into the forum is the trade-off between standardization and adaptation.

Presented group idea is trade-off is cost. But it is not only the cost, trade-off between possible economic benefits of a standardize approach, as well as the performance gains attained by adapting to the need of local market.

Multinational organization that is willing and able to think globally and act locally (Glocalisation) to meet the requirement of different nations and cultures. That is, standardised in strategic level and adapt at a tactical level. Best example if KFC. KFC strategically in business of Fried Chicken, but they have adapt their tactical level business by introducing “KFC Chicken Buriyani”.

This is all about marketer’s point of view; lets discuss a factors of customer point of view. Customers willing to have more tailor made product or services, rather than having standardised product. Even customers willing to pay premium price for such customized solution. Better example is Ritz Carlton, which provide customized service to their guest, but it’s price are very high.
This particular paper aims to investigate the practical complex relationship of the two extreme approaches (adaptation and standardization) and suggest methods and ways in determining the right level of integration. It seems that it will increase the understanding and knowledge of the integrated approach and develop models to guide multinational companies compete effectively and efficiently within the international marketing arena.

Hence, the objective of the paper is to increase understanding of the decision choices available to marketing directors and managers of multinational companies, in integrating both standardisation and adaptation strategy. Thus, the key question is: How does the international market internal and external and organisational factors impact on the outcomes of Multinational Company’s global standardisation and International adaptation strategy?.

This will be answered by applying the ‘AdaptStand Approach’, investigating and analysing the ways that a company currently performing based on a number of factors. (Culture, Economic, Technology/ Market infrastructure, Political environment, Socio-cultural factors, Competitive factor, Product characteristics, Organisational factors) aiming to achieve both customer satisfaction and organisation success.

As we look around us, all we seem to see in the wider marketing environment, is the confusion of change and the acceleration of uncertainty; a feeling currently intensified by the new millennium with all its promises and threats of epochal change. This confusion, change, and complexity are even greater within the international world-wide marketing environment. The conclusions are that the effect has a universal and diachronic existence, though its manifestation into actual consumer attitudes and preferences varies considerably. The dissimilarity of consumer behavior both between and within individual markets is a result of specific combinations of collective and personal parameters.