Global Standardization Strategy
Clarke Ricks
School of Business, Liberty University
BUSI 690: Policy and Strategy in Global Competition
Dr. Hicks
April 6, 2021
Global Standardization Strategy
Global standardization is a marketing approach that uses standard marketing
strategies to promote products internationally. Companies and businesses that sell their
products and services to international audiences adopt global standardization. They must
set guidelines that are generally acceptable with how their firms operate across various
countries and cultures. The product or services should exhibit a high level of consistency and
create the same appeal globally to drive steady sales. Most companies that adopt global
standardization use standard methods to brand, package and distribute their products.
Why is global standardization important?
Due to evolving technology, trade barriers are noticeably decreasing. The digital
revolution has also made international communication more efficient, allowing businesses
to reach potential product consumers around the globe easily. Companies should develop
effective marketing strategies to enable them to tap into international markets and increase
their profits. Here are some reasons why global standardization is essential for businesses:
Economies of scale
Most companies achieve economies of scale by adopting global standardization.
Increased demand globally results in a need for production in large quantities. The
businesses minimize the cost of production since they spread it across a large number of
products. Buying product components in bulk is also cheaper. Generally, companies can
achieve low production costs and high profits with international expansion.
Product uniformity
When companies use global standardization, they ensure uniform manufacture of
products. Adherence to the respective company's guidelines and standards is vital to ensure
products maintain the same quality and specifications globally. Most renowned global
electronic companies have adopted the global standardization strategy. It has enabled them
to achieve product uniformity globally. The design, specifications and functions of their
products match all regions. Their employees also follow strict guidelines in customer service.
They also use more personalized communication approaches.
Reduced marketing costs
Through global standardization, businesses can employ a uniform marketing
framework that works effectively globally. The frameworks are standard because they
highlight uniformity in the benefits and other aspects of standardized products. The
company may adopt a local language, but the message remains unaltered. Therefore, they
can save on time and money since they do not need to develop customized marketing
strategies for each region. These marketing strategies are more effective where customers
across all nations and cultures use and understand the product the same way.
The nature of your products and services plays a central role in whether
standardized marketing makes sense. Products that have virtually universal appeal in all
countries and cultures make standardized marketing practical. If customers in each market
use your product and understand it in the same way, you can maintain the same central
messages that emphasize the distinct benefits of your products relative to competitors. For
example, the packaging may be presented in different languages to relate more to the
product for the different target audiences.
Improved quality standards
Laying out a standardized marketing strategy on products enables companies to
focus on improving their quality. The companies spend more time looking for ways to
enhance product delivery and relate to consumers all over the regions. Maintaining specific
quality standards also makes it easier to detect and correct any inconsistencies that may
arise during production.
Streamlined management
Global standardization of products makes it easier for the company to monitor,
control and coordinate any brand activities. This is because the companies apply uniformity
in advertising strategies and the products themselves.
Enhanced brand recognition
Consumers can recognize the uniformity of the brand across different countries.
Incorporating social media as a platform to market your products is the right way to get
noticed.
When to use global standardization strategies
Products may either be standardized or customized to suit specific consumers. When
multinational companies decide to go global, they are often concerned about creating a
global standardization strategy for their products. With a standardized approach, businesses
develop and market the same product. There is uniformity across all the markets.
Conversely, a localized system allows companies to customize their products depending on
the region. Below, we highlight the factors that determine when to use global
standardization strategies:
Nature of products
When products evoke the same feelings among people in different nations, there is
no need to localize. Standardization is useful when other consumers show consistency in
virtual appeal, usage and comprehension of a product.
Competition
Global standardization can work for companies whose products and services barely
face any competition in the local market. It is useful since there is no rivalry from local
brands offering tailor-made services for their local customers.
Geographic region
Small markets understand their local consumers better. Still, they welcome the idea
of a better quality marketing strategy than what they could create. They are more willing to
accept a standardized marketing strategy coming from a brand's headquarters.
Large markets are less willing to accept a standardization strategy since they have
strong management teams. Profits on large markets are higher compared to what small
markets register. For larger markets to take standardization strategies from brands, the
headquarters should highly feature their needs in the standardized campaigns. How to
create a global standardization strategy
Companies must understand some of the strategy's components before creating a
global standardization strategy for their products. They include:
A uniform brand
Uniformity in packaging
Identical products
Standardized methods of advertising
Synchronized sales campaigns
Similar pricing across regions
Concurrent product launches
For companies to achieve effective global standardization strategies, they should be
aware of the targets they are aiming to hit. Follow these steps to create a global
standardization strategy:
1. Settle on a specific service or product
Companies with multiple products or services should gauge which would sell more in
a global market. It is much easier for businesses that have a single product to create their
global standardization strategies.
2. Understand your market
Companies should have an in-depth understanding of their target markets before
they launch their global standardization strategy. Every region has different cultures.
Companies should seek to understand the behavior of people in a specific area. What kind
of marketing gets their attention, and what do they perceive as inappropriate? Businesses
should research how the target consumers will respond to their marketing approach.
3. Identify countries with business potential
Companies should identify countries where their products are more likely to be
successful. They might decide to launch their products a single region at a time or in
multiple countries at a go. Brands should understand the laws governing businesses, norms
and acceptable payment modes in the specific regions.
4. Be aware of competitors
For companies to make profits, they should understand their competitors and the
strategies they use. An effective global standardization strategy should attract more
customers than other international or local brands in the region.
5. Set your goals
Companies should set a list of specific and realistic goals to achieve by standardizing
their marketing approach. The company should have in mind a universal message it intends
to deliver to its clients when setting goals.
6. Ensure uniformity in branding
Companies should settle for branding signifiers to enable them to express their
standardized message effectively. The image, colors, sounds and logos used on the brand
should be consistent across the regions.
7. Create a marketing plan
When creating a marketing plan, businesses should ensure that their objectives and
goals align with the project. The marketing plan should entail strategies and techniques that
will make the goals attainable. For the global standardization strategy to work, its actions
should align with the specific region's efforts.
8. Ensure the approach is practical
Brands should recognize that what worked in their country may not be effective in a
foreign country. Respective companies should therefore take time to understand if their
products create the same appeal across regions. If consumers in all the target regions
understand the product's usage the same way, standardization strategy becomes viable.
9. Localize your messaging
Some standardization strategies have to adopt a degree of localization to relate
more with product consumers. There is a need to understand the cultural hurdles, language
and important events or holidays.
