What We (Don’t) Know About Marketing Standardization vs. Adaptation

by | Jan 4, 2023

Marketing Mix

The Standardization vs. Adaptation Dilemma

In today’s globalized business environment, companies of all sizes—from large multinational corporations to medium-sized enterprises and international start-ups—are increasingly generating significant shares of their revenues from markets beyond their home countries.

“Global market integration has moved questions about the standardization of marketing activities across different countries or regions to center stage for marketing theory and practice.”

Firms often consider standardizing their marketing programs and processes to increase overall efficiency and profitability. Standardization enables companies to capitalize on economies of scale in production, marketing, and R&D, shorten the time to market for new product innovations, and replicate successful products and practices across multiple markets. Despite these potential benefits, research findings on the impact of marketing standardization versus adaptation on performance remain inconclusive.

The fragmented picture that emerges from existing studies is largely due to the diverse conceptual and methodological approaches that underpin the research. This diversity makes it difficult to draw generalizable conclusions and provide reliable guidance to both international marketing researchers and practitioners.

Performance Consequences of International Marketing Strategies: A Systematic Review

To address this challenge, our research offers a systematic review of the existing literature, providing a clearer understanding of the performance consequences of marketing standardization and adaptation. Our review covers 68 studies published over the past three decades, focusing on the relationship between marketing standardization/adaptation and performance.

The review categorizes the existing research according to the type of marketing mix elements being standardized or adapted, the performance outcomes being measured, the contexts in which these strategies are implemented, and the theoretical frameworks that guide these studies.

Marketing standardization-adaptation-performance link

Figure: Marketing standardization-adaptation-performance link

A Bird’s Eye View on Three Decades of Research

The results reveal that much of the existing research lacks strong theoretical foundations, relying loosely on a few established theories. Additionally, the focus has predominantly been on multinational corporations and small- and medium-sized enterprises from high-income countries, particularly those producing consumer durables and industrial goods. The majority of studies have used survey data to estimate the impact of marketing strategies on product-market and accounting performance.

When Standardization and Adaptation Work

One of the central findings from the review is that the effectiveness of marketing standardization or adaptation is highly context-dependent. For example, standardization tends to be more effective for industrial products that provide functional benefits, while adaptation is often more successful for consumer products that fulfill emotional and symbolic needs. Furthermore, the success of these strategies is influenced by the market type—standardization may work better in high-income countries with well-developed infrastructures, whereas adaptation might be necessary in emerging markets where consumer preferences and regulatory environments vary widely.

Gaps and Future Research Directions

The systematic review also highlights several areas that warrant further research. There is a clear need for new, dynamic theoretical perspectives, such as dynamic capabilities theory, to better understand the relationship between marketing strategies and performance. Additionally, there are promising research opportunities in emerging markets, the digital services sector, individual marketing mix elements, and customer-related performance outcomes.

Strategic Implications for Practitioners

For practitioners, the findings offer guidance on how to approach the decision between marketing standardization and adaptation. Rather than treating these strategies as an either/or choice, companies should recognize that both approaches can be blended depending on the context. In some cases, a more standardized approach may be appropriate, while in others, adapting to local market conditions is essential. By carefully assessing the unique characteristics of each market, companies can develop a strategic balance that maximizes performance and meets the specific needs of their global consumer base.

Conclusion

As companies continue to expand their global footprint, the decision between marketing standardization and adaptation remains critical. This research underscores the importance of a balanced and context-sensitive approach, where companies align their strategies with local market conditions to achieve optimal performance. By leveraging the insights from this systematic review, businesses can better navigate the complexities of global marketing and drive success in diverse markets.

Disclosure: This blog post was created with partial assistance from AI tools.


Full reference: Mandler, Timo, Burcu Sezen, Jieke Chen, and Aysegül Özsomer (2021), “Performance consequences of marketing standardization/adaptation: A systematic literature review and future research agenda,” Journal of Business Research, 125, 416–435. https://doi.org/10.1016/j.jbusres.2020.12.023

Cite for: Marketing standardization/adaptation, international marketing strategy, systematic literature review, TCCM review protocol, journal selection criteria, performance outcomes, marketing standardization/adaptation-performance link (Figure 2), specific research gaps

Continue Reading? You May Also Like…

Three Decades of Loyalty Program Research

The Evolution and Future of Loyalty Programs: A Review Loyalty programs, which offer rewards to customers for their repeated engagement with a brand, have become a cornerstone of modern marketing strategies. These rewards can be both tangible, such...

What Internet Memes Tell Us About People’s Views on Environmental Issues

Environmental Issues and Internet Memes  Environmental issues have never been so present in our everyday lives, dominating public debate and involving NGOs, public authorities, companies, and citizens alike. While the mental health impacts of...

Interactivity and Customer Engagement on Sharing Economy Platforms

It Takes Two to Tango In recent years, sharing economy platforms have revolutionized how we access goods and services. From catching a ride with Uber to booking a vacation rental on Airbnb or finding a handyman on TaskRabbit, these digital...

Brand Origin: What Happens When Consumers Get It Wrong?

Country-of-Origin: What Happens When Consumers Get It Wrong? The country-of-origin effect is a well-established phenomenon in international marketing and consumer behavior research. Consumers often associate certain intrinsic qualities of a product...

Brand Globalness: More Than Just Geographical Reach

What Does "Global" Mean Anyway? Many multinational corporations have streamlined their brand portfolios, focusing on brands with significant global business potential. Traditionally, the concept of "brand globalness" has been linked to enhanced...

Resources for Marketing Researchers

Recommended Reading

Do you want to learn a new method or wish to refresh your knowledge about research theory? My curated reading list covers various topics related to academic writing and publishing, research design, and data analysis.

Scales

Are you looking for measurement scales for your next survey or experiment? Maybe you can find it in my personal scale repository. Chances are good if you are interested in branding or international marketing.

Data Sources

Are you looking for secondary data related to the phenomenon you are studying? I compiled various free and paid data sources that offer information about countries, firms, and brands.

Want to learn more about my courses and workshops?