Regional integration has made the business world easy as well as complex too. It provides a wider scope to spread the wings of the business which cause the competition for the local market. The small businesses when do not get the desired result in the home country , they decides to spread it wings out of the union territory of the country to enhance the revenue and market share. All these factors have made it essential to decide about international marketing strategy. There are many factors which help in the organization to adopt the proper international marketing strategy because international business is not just selling and buying good from one country to another it also deals with the so many other issues such as culture, geographical border, political factor, business regulations and currency exchange which vary from country to country.
Standardised Marketing Strategy
It is a international marketing strategy that uses the same set of marketing mix for all its company of the globe. This means applying a marketing strategy for the business which is same for all the branches of the company ignoring the fact that the business is present in different parts of the world. In simple form it can be called as a uniformed marketing. On of the best example would be Coca-Cola which sell its product globally and have adopted the standardized marketing strategy. Who thinks the whole globe as a single market and apply the similar marketing mix for its product. As the world has become smaller than before because of the advanced technology, it has became very essential to think globally especially for the multi national companies.
Advantages of standardized marketing strategy
It reduces marketing cost
It facilitate centerlised control over the market
Promotes efficiency in Research and Development
Results in economies of scale in production
Reflects the trend towards a single global market place
Disadvantages of standardized marketing strategy
Ignores difference condition of product use
Ignores local differences
Do not consider the differences in buyers behavior
Customized Marketing Strategy
This approach is totally different from the standardized approach where the business assume the whole market as different from each other. It applies different marketing mix for the every market. The company analyze the taste references and needs of the customer at each geographical area and design its product, packaging, advertising, branding according to the geographical cultural and political differences to meet the needs of each of its customer in foreign market. The biggest advantage of this approach is customer satisfaction. The example for this can be McDonald's which tries to make product according to the taste and preferences of the local market.
Advantages of customized marketing strategy
Acknowledge of local and legal differences
Concentrate on the cultural differences
Promotes local marketing initiative
Disadvantages of customized marketing strategy
Increase the marketing cost
Create inefficiency in research and development
Reduce economy's of scale of production
Ignores the trends towards a single global market place.
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