Seminar 6: International Marketing

Standardisation and Adaptation

29/04/2024
Today

• How the communication process works?

• What is selective perception?
• Standardise or adapt?
• Drivers of standardisation and adaptation
• Formative assignment preperation
Activity1(15 minutes): Ingroups of 3, review the
communication process & the following selected lecture
slides on perception
Perception

MacMillan dictionary
1. The ability to notice something by seeing, hearing, smelling
2. The ability to understand and make good judgments about
something

Cambridge dictionary
1. The ability to see, hear, or become aware of something through the
senses
2. The way in which something is regarded, understood, or
interpreted.
 What is selective perception

• People selectively perceive what they expect and hope to see

Cognitive factors:
• Prior belief
• Expectations
Motivational factors
• Hope
• Desire
• Emotional attachments
Mechanisms of selective perception
 What is selective perception

• People selectively perceive what they expect and hope to see

Cognitive factors:
• Prior belief
• Expectations
Motivational factors
• Hope
• Desire
• Emotional attachments
LEGO Let’s build
Jacobs coffee – Brings us closer
How the communication process works
Communication noise
Communication noise
Branding: the consumer perspective

Brands help customers reduce risk:

• Performance risk
- doesn’t do what it says it will do
• Social risk
- what others think of our choice
• Self-image risk
- how we see ourselves
The more difficult the situation that consumers face the
more likely it is that brand advantages will be evident
The International Communications Process
(Cateora et al 2013 p.479
Activity 2. Understanding Communication in Marketing
(20 mins)
a) In Groups of 3, Review the slides discussing the communication
process and selective perception, focusing on LEGO and Jacobs
Coffee adverts as case studies for emotional and experiential
marketing.
b) Task: Discuss how the international communication process
functions and pinpoint examples of communication noise leading to
marketing inefficacies, particularly those stemming from cultural
misinterpretations. Each group must present one specific example
of cultural misunderstanding.
c) Class Discussion: Share group findings, emphasising the crucial role
of effective communication and identifying potential cross-cultural
barriers.
Standardise?
How companies do it? – McDonald’s
How companies do it? – Coca-Cola
How companies do it? - HSBC
How companies do it? - HSBC
Standardise or Adapt?

• Academics and practitioners sometimes in harmony, sometimes

disagree
• Three points of view: adapt, standardise or ‘contingency’
• Academics have generally recommended adaptations
• Practitioners have wavered
(Wang & Yang, 2011)
Arguments for Standardisation

• Markets becoming more homogeneous

• International consumer segments

• More firms globalising, industry sectors

standardising

• Cost/benefit analysis of adaptation may be

unfavourable

• Key issue is avoiding unnecessary adaptation

Adapted from Gillespie & Hennessey, (2016)

Adaptation – the Benefits

• The ultimate objective of the firm is not cost reduction but long-
term profitability through higher sales accrued from a better
exploitation of the different consumer needs across countries

(Theodosiou & Leonidou, 2003)

Arguments for Adaptation
• Cultural factors – colour, taste, smell, style etc.

• Usage factors – when, how, why

• Product acceptability and ethical issues

• Legal standards – e.g. electric plugs

• Product liability – legal position in each country

• Climate

• Infrastructure
Henkel

Different names and colours – same products!

Some problematic Names
Oreas in China – example of product
adaptation
Activity 3: The Standardization vs.
Adaptation Debate (35 mins)
• Working in your groups, outline the key concepts of
standardisation and adaptation within international marketing.
• Using available resources online, generate a list of
arguments for adaptation in international marketing.
Highlight differing viewpoints from academics and practitioners
on these strategies.
• Group Analysis & Discussion: Each group select one company
from McDonald's, Coca-Cola, HSBC, and Henkel. Visit the
chosen company’s websites in the UK and an Asian country to
observe examples of standardisation and adaptation
• Decide whether the company should pursue standardisation or
adaptation upon entering a new foreign market of your choice.
• Prepare a concise PPT presentation discussing recommended
marketing mix adjustments (product, price, promotion, place)
tailored to the new market, underpinned by arguments from
the seminar discussion.
• Group Presentation (10 mins): Selected groups showcase
their analyses, underscoring the advantages and obstacles
linked to their chosen strategy—standardisation or adaptation.
Presentations should offer concrete examples and rationale for
marketing mix decisions.
•
Activity 4(30 minutes) : Discuss in your
formative teams
What is an organisation of your choice?
What is the new foreign market that you suggest for the organisation?
You will be presenting your findings on Thursday(Friday).
Task:
Discuss the organisation’s marketing-mix: product, price, promotions,
distribution.
When entering the new foreign market… Which elements of the
marketing mix should the organisation standardise and which should
they adapt? What are your recommendations? Justify your
arguments.
Session takeaways

Please reflect on 1-3 key points

that you are going to take away
from this session.
Thank you for your attention 
Any Questions?
Seminar preparation for the next session
On Thursday(Friday) morning, the 18th(19th) of April, you will
present a justification for your country's choice. Don’t forget to
submit your presentations to the Dropbox by 17th April at 11 pm (1
person from the team)

FORMATIVE ASSESSMENT 1 –
GROUP PRESENTATIONS