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International Management > Standardisation vs. Differentiation > Flashcards

Standardisation vs. Differentiation Flashcards

1
Q

What are major decisions in an international marketing process?

A
  1. ) Market choices
    • -> whether to internationalise
    • -> which markets to enter
  2. ) Strategic decisions
    • -> how to enter
    • -> how to grow/exit
  3. ) Tactical
    • -> how to integrate the international marketing plan
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2
Q

What are some strategies in regards to global integration and local responsiveness?
Characterise them and give industry examples

A

1.) Global standardisation strategy
–> Low local responsiveness/high pressure for cost
reduction
(Ex. Civil aircraft/institutional banks)

2.) International strategy
–> low local responsiveness/ low pressure for cost
reduction
(Products that opportunistic firms sell to foreign
consumers)

3.) Transnational strategy
–> high local responsiveness/high pressure for cost
reduction
(Consumer electronics)

4.) Localisation (multi domestic) strategy
–> high local responsiveness/ low pressure for cost
reduction
(Health care/food processing)

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3
Q

Define Standardisation.

What is a benefit/a drawback of standardisation?

A

Belief that removal of trade barriers and growth of global cultural values leads to single economic system (global products/uniform marketing proccesses)

Benefit -> Economies of scale and scope

Drawnack -> single global economic system not realistic

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4
Q

Define Differentiation.

What is a benefit/ a drawback of differentiation?

A

Geographic segmentation according to cultural clusters and social groups

Benefit -> differentiation according to legal and cultural
barriers

Drawback -> very expensive

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5
Q

What are the degree of standardisation and differentiation dependent on?

A
  1. ) Program structure
  2. ) Target groups structure
  3. ) Object program
  4. ) Target groups specific positioning
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6
Q

What are Strategic Business Units & Strategic Business Areas in regard to program structure?

A

SBU
–> organisational units that mostly consist of multiple
SBAs
(Example - SBUs Henkel: Home care and Personal care)

SBA
–> can be clearly differentiated from each other
according to customer needs
(Examples - SBAs Henkel within SBU Personal care: Schwarzkopf & Fa)

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7
Q

How can SBUs/SBAs be analysed?

A

Can be analysed according to BCG Matrix

  • > Poor Dogs
  • > Questionmarks
  • > Stars
  • > Cash cows
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8
Q

Target Groups Program - How can markets be segmented?

A

Markets can be segmented according to Personal characteristics or Behavioural characteristics

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9
Q

Name the possibilities of segmenting according to personal and behavioural characteristics

A

Personal Characteristics

  • Geographic
  • Demographic
  • Psychographic (lifestyle/values…)
  • Sociographic (income/purchasing power…)

Behavioural Characteristics
- Information Behaviour (media usage/communication
behaviour)
- Buying Behaviour (store- &brand loyalty/- choice)
- Usage Behaviour (intensity/time/type)
- After Buying Behaviour (complaining behaviour)

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10
Q

What are some commonly used international segmenting approaches?

A

Segmenting by:

  • Geography
  • Global segment (Personal/Behavioural)
  • Multiple criteria
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11
Q

What are aims of standardisation within the distribution process?

Name a company that has standardised distribution

A

Aims:
- achieving economies of scale in logistics
- reduction of complexity in distribution network by
cooperating with same partners around the world

Example –> Apple

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12
Q

What is the aim of differentiation within the distribution process and when is this especially necessary?

Name an example for differentiation in distribution

A

Aim:
- adjust to local selling systems

–> necessary if national distribution system consistent of
close networks between manufacturers,
transportation firms, etc…

Example: Japan –> closed distribution networks making
market penetration for foreign companies
nearly impossible

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13
Q

What are different types of configurating product programs?

Name an example

A
  • horizontal configuration (width)
    • -> number of car models (product program)
  • vertical configuration (depth)
    –> number of different configurations of one car within
    the product program
    –> Example: BMW
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14
Q

On what 3 levels can an object (product/service) be configurated?

A
  1. ) Core Value
  2. ) Basic attributes (pricing/branding/packaging)
  3. ) Additional characteristics (guaranteeing/delivery terms)
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15
Q

What are the aims of product standardisation?

In what scenario ist product standardisation preferred to differentiation?

A

Aims:

  • higher economies of scale
  • higher ROI

–> preferred when customers want identical products
from world famous brands (Dior shoes)

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16
Q

What is the aim of product differentiation?

In what scenarios is differentiation preferred?

A

Aim:
- increase product’s value for customers in different
markets

–> preferred when:
- Products adapted to needs of local customers (ex.
higher income country wants higher quality)

- Products adapted to legal, economic and socio-
  cultural factors (ex. McDonald's focus on chicken 
  products in china, because more popular than beef)
17
Q

What are the differences between international brands and local brands in reality?

A

International brands

  • higher economies of scale
  • larger adverstising budgets
  • unique brand image across countries

Local brands

  • better response to local needs
  • closer relationship to customers
  • higher flexibility in pricing
18
Q

What are 4 different international brand strategies in dependence of the brand exterior and the Brand core (basic identity)?

Name industry examples

A

1.) Identical (standardised) branding and brand core in all
countries (ex. Marlboro/Coca Cola)

2.) Differentiated brand core but identical branding in all
countries (ex. Honda/Nestle)

3.) Identical brand core in all countries and differentiated
branding (ex. Langnese - Germany)

4.) Differentiated brand core and branding (ex. Ariel/Tide
washing powder)

19
Q

What are the characteristics of a Multinational Branding Strategy?

A
  • has a country specific concept

- branding policy adapted to local conditions

20
Q

What are the objectives of a Multinational Branding Strategy?

A
  • optimal market exploitation
  • increased national image
  • flexibility
21
Q

What are the characteristics of a Global Branding Strategy?

A
  • standardised brand concept

- branding policy is internationally consistent

22
Q

What are the objectives of a Global Branding Strategy?

A
  • Synergies in communication and production

- internationally consistent brand image

23
Q

What are the aims of standarised pricing?

A

Aims:
- avoid re-imports (ex. importing cars from US that were
exported there, just because it is cheaper)

  • avoid uncertainty/frustration among customers
24
Q

Why is it reasonable to differentiate prices?

A

Reasonable to charge differenct prices according to:

  • willingness to pay
  • different tax rates
  • exchange rates
25
Q

What are 4 different possibilities of communication in relation to target groups specific positioning?

A
  1. ) Same product/same means of promotion
  2. ) Adapted product/same means of promotion
  3. ) Same product/different means of promotion
  4. ) Adapted product/different means of promotion
26
Q

What are different types of advertising styles and where are they used?

A
  • Structure (Germany/Austria)
  • Aesthetics/Entertainment/Emotions (France/Brazil)
  • Drama/Metaphors (India)
  • Play with words (China)
  • Symbolism (Singapore)
  • Humour (Denmark/Sweden)
  • Personal (US/NED)
27
Q

What are the 4 elements of advertising styles?

A
  • Appeal (through motives/values)
  • Communication style (direct/indirect)
  • Advertising form (drama/entertainment)
  • Execution (ex. what were they wearing)
28
Q

What are reasons for standardising communication and what might a problem of doing this be?

A
  • reduction of promotion costs (increase economies of
    scale/scope)
  • Possible profits from “media spill-over” effects
  • increased brand recognition

PROBLEM: promotion messages might be misunderstood in different languages

29
Q

What are the aims of differentiating communication and what might a problem be?

A 
Aims:
  - adaptation of communication factors to country-
    specific conditions (culture, economy, legal)

PROBLEM: High costs of promotion and limited economies of scope

30
Q

What is a possible solution to the standardisation vs. differentiation question? Explain what it is

A

BTO -> Built to order

  • Product is created according to customer’s specific
    requirements
  • Avoidance of wasting resources due to over
    segmentation of markets

Examples: Car manufacturers who allow you to configurate your own car

31
Q

What specific factors is the choice of the correct approach between standardisation and differentiation dependent on?

A

1.) Nature of product
2.) Minimum efficiency scale (output required to min. costs
and max. EO scale)
3.) Ability to adapt product with ease
4.) Legal/economic/cultural barriers

32
Q

Name cases in which companies would tend to standardisation!

A
  • When wanting to reduce complexity or gain time
    advantage
  • Gives the possibility to create “best in class” product
  • When company only has “one face” to customer
33
Q

Name reasons why a company would tend towards differentiation!

A
  • consideration of local requirements
  • able to rapidly adapt to changes
  • consideration of interdivisional differences (success
    factors of wine and coca cola might be different)

International Management (7 decks)

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