Product adaptation definition. 5 Major Product Communication Strategies Used In International Marketing 2019-01-19

Product Adaption

Though evolution, in this case, may be thought of as an “arms race,” animals may also adapt to their environment in a process known as adaptive radiation, as the so-called Darwin's finches in the Galápagos have done. In these cases, a business can opt to alter or even develop products to incorporate specific needs or cultural practices. Packaging, advertising, and labeling requirements can all vary between markets. Some colors may be offensive or unattractive to certain cultures, for example. Further more they argue that standardization will be successful when the homogeneity of customer response and the degree of similarity in economic freedom is high and competitive advantages are easily transferable.

What is product adoption process? definition and meaning

These differences between the foreign and home market drive companies to market the same product using customized advertising campaigns. Keegan has identified five major product communication strategies, international marketers can chose from to convey the message to customers in different foreign markets. New or Acquired Brands In some cases, a business can find it more productive to create a new brand or acquire an existing brand instead of revamping the existing marketing. . In an international company, for example, the extension strategy reflects an ethnocentric orientation and the assumption that all markets are alike.

Product Adaptation: Definition & Examples

Adaptation is also important for companies that want to introduce new products but do not have the funds or resources to develop completely new items. When Slim-Fast was first launched in Germany, its ads used a local celebrity. On the other hand, local adaptation gives you the best chance at success in penetrating a foreign market because your strategy is adapted to be responsive to local needs and cultural idiosyncrasies. According to the model, the degree of standardisation or adaptation is impacted by antecedent factors which have external and internal characteristics. It has been able to leverage the inherent features of the products and capitalize on its Australian heritage to differentiate itself and become an international success using the dual product and communication extension strategy. Adaptation marketing strategies can also fail to overcome customer loyalty to established local brands. In 2003, McDonald's introduced the McArabia, a flatbread sandwich, to its restaurants in the Middle East.

Adaptation Marketing Strategy

This flexibility not only opened a new market for the company, but also allowed it to develop brand loyalty that consumers could take with them when their income increased and they could afford higher-end products from the same manufacturer. In the process of standardizing a product, there are certain guidelines to be used and such guidelines should be followed by the company who is willing to standardize the product and the guidelines will be applicable to one organization or to one industry and will be conformed in the national level or international level. For example, some brand names may sound like profane or obscene words in a foreign tongue. This same process of natural selection, in which the organisms best adapted to their environment tend to survive and transmit their genetic characteristics in increasing numbers to succeeding generations while those less adapted tend to be eliminated, also favors the fastest gazelles. However, the high cost related to adaptation may limit the use of the adaptation approach Vrontis, 2005. Customer Research You must base your adaptation strategy on research into customer needs. Commonality in products results in higher productivity due to higher demand, having an impact on economies of scales which lowers the total cost.

Adaptation

Levitt 1983 argues that companies that are managed well have moved away from customizing items to offering globally standardized products that are advanced, functional, reliable and low priced. It will also involve modifications to the marketing of the product. According to Vrontis et al. If a company enjoys strong brand identity and a strong reputation, choosing a standardized approach might work to its benefit. Businesses may choose to apply adaptation strategy towards certain elements of marketing mix more than other elements Mitchell et al.

Product Standardization vs. Product Adaptation

The Management Dictionary covers over 7000 business concepts from 6 categories. Product adaptation is the process of modifying an existing product so it is suitable for different customers or markets. There are several product adaption strategies that an entity can use such as product, target market, package and design, ingredients, language, , religion etc. On the other hand, supporters of the adaptation approach emphasize the apparent dissimilarities between the markets of different countries, especially those for consumer goods, and prefer using international differentiated marketing programs. On the down side, there may be significant differences in desires between cultures and physical environments, For example, software sold in the U. Strategic Option 3: Product Adaptation — Communications Extension: Alternatively, firms might adapt their product but market it using a standardized communications strategy.

Product Adaptation: Definition & Examples

This strategy is basically product-driven rather than market-driven. Finally, a market may exist abroad for a product which has no analogue at home. Other companies prefer to adapt their strategy to the local marketplace. Some firms will simply adopt the same product or communication strategy used in their home market. These errors are primarily explained by a lack of understanding of how Standardization and Adaptation play in international markets. As pointed out, adaptation involves modifying a product so as to meet the local requirements and customs. Likewise, a multinational company utilizes the adaptation strategy because of its polycentric orientation and the assumptionthat all markets are different.

What Is Product Standardization?

The SnakeLight proved to be major hit around the world. Also, small companies with few resources typically prefer it. Low speed of implementation of adaptation strategy in practice marks one of the main disadvantages of this strategy Poulis and Poulis, 2013. Some phones have built-in radio antennas for areas where radio is the main source of entertainment. For example, Finnish cell phone maker Nokia customizes its cell phones for every major market. Invention - Usually redesigning of an original product at a lower level of complexity.

Product Adaptation: Definition & Examples

Satisfy the heterogeneous needs of the buyer. For example, Japanese consumers tend to prefer certain kinds of packaging, leading many U. Others seek to consciously develop uniform products that are acceptable in all markets. A company is then faced with the task of determining the required type of product modification. Although it retains the economies of scale in manufacturing, the firm sacrifices potential savings on the advertising front. Selling large quantities of the same, non-adapted product and buying components in bulk can reduce the cost-per-unit.