For each section, responses from formal institutions and representatives of communities of practice were compared and contrasted. This paper investigates the effect of product adaptation on performance of exporters in Thailand. A pair of jeans that's popular in America might not sell at all in a Muslim country. Companies that operate in international markets must take into account local differences in language, culture, legal and regulatory requirements and distribution channels. The results indicate that adaptation is greatest for distribution, followed by price, promotion, and product. Product adaptation is the process by which a company adjusts and improves upon a product to make it more appealing to the target market. Factors That Influence Product Adaptation According to Warren J. Keegan and Mark C. Green, authors of "Global Marketing," product adaptation is one of the five international product and promotion strategies that organizations may use to enter global markets. Some companies, such as those in the nut and bolt industry, are successfully using standardized products because most countries have similar quality standards and legal requirements for these goods. Foreign brands that are planning to enter the Danish market must comply with these laws. Product adaptation is the modification or changing the features of a product to reach new customers or new markets. ©2000-2020 ITHAKA. It may also include manufacturing a new product with basis of customizations of a product already in existence. The research The three factors that have a major impact in the marketing environment are given below − Global factors. Consider the following aspects, as well: American skincare brands, for example, may need to use different ingredients in the creams and lotions sold in the Middle East where the climate is hot and humid. The results of the study are presented under separate sections for factors which discourage and factors which encourage adaptation to climate change. It is the process of modifying products for different countries and regions or designing new products for foreign markets. The cost of petroleum products, along with a country’s infrastructure, for example, may mandate the need to develop products with a greater level of energy efficiency. Andra Picincu is a digital marketing consultant with over 10 years of experience. Current and former clients include The HOTH, Bisnode Sverige, Nutracelle, CLICK - The Coffee Lover's Protein Drink, InstaCuppa, Marketgoo, GoHarvey, Internet Brands, and more. Factors such as topography, humidity, and energy costs can affect the performance of a product or even define its use in a foreign market. being regarded, given the dependent factors at a given time on a given market. Red Bull sells its world-famous beverage in golden cans in China where gold symbolizes happiness and wealth. Chinese and most East Asian people are shorter in size while Europeans and Germans are generally taller. Furthermore, companies must be attentive since the need for degree of adaptation can change periodically. Her goal is to help businesses understand and reach their target audience in new, creative ways. The Journal of Marketing Theory and Practice is devoted to the publication of peer-reviewed articles addressing substantive, managerial issues in marketing. Since there are many potential factors influencing the appropriateness of such a strategy, it is difficult to say when it is best relative to a standardization approach.In international marketing, adaptation is an essential … Organizations worldwide use this approach for marketing purposes and legal compliance. Marketers often find the need for some changes to be obvious while other changes may require in-depth analysis of societal customs and cultures, the local economy, technological sophistication of people living in the country, customers’ purchasing power, and purchase behavior. Understand the factors and adaptations that impact LED efficiency (MAGAZINE) Alexander Wilm examines the factors that impact the efficiency of LED-based solid-state lighting systems, and considers product development options that balance application requirements and optimum efficiency. 3. Results indicate that product design adaptation strategy was positively associated with performance; furthermore, paradoxically, the relationship between product adaptation and performance was stronger for firms that had lower levels of market orientation, though it was firms with larger market orientation that had an overall higher level of product adaptation and performance. The important factors affecting productions efficiency in buffaloes is environment and productivity has direct correlation with heat stress particularly in tropical countries like India. This strategy is more expensive and time-consuming than product standardization but yields better results. option. much research on export marketing has focused on factors that drive the relationship between product adaptation and firm performance (e.g., Menguc 1997). Due to above factors, a product would require changes-to be made in the product offered in another market. 2. Over the past decade, she has turned her passion for marketing and writing into a successful business with an international audience. therefore need to carefully analyse the implications and implement adaptations and diversifications. The purpose of this study was to assess the factors influencing climate change adaptations among tea farmers in Chebut catchment area in Nandi Central District. Unlike other marketing journals that may be more focused on specific methodological approaches, deal with theoretical issues without regard to application, or represent various subfields of marketing, JMTP is positioned as a general marketing journal affording a quality outlet for more managerially-oriented research across the scope of the field. Product revision factors− Maintainability, Flexibility, Testability. All Rights Reserved. The downside is that you may encounter legal problems and fail to penetrate new markets. Access supplemental materials and multimedia. Efficient and profitable swine production depends upon an understanding of the concepts of genetics, environment, herd health, management, and nutrition. Product standardisation means that the firm sells and advertises a standardized product in the international context. Factors which discourage adaptation to climate change 3.1.1. This strategy is known as product adaptation and plays a key role in branding. Consider your industry, budget and target market before making a decision. This process of change is known as product adaptation. Despite a large body of research, the relationship between product adaptation and performance continues to be murky (Cavusgil, Zou, and Naidu 1993; Samiee and Roth 1992) as some have found sup The product to be successful in other markets must be capable of the suitable changes in its design, color, size, taste, packaging etc. weather, special festivals, day of arrival in market? Uses and Advantages, Export.gov: Preparing Your Prduct for Product Adaption, Eur-Export: Standardisation or adaptation of a product. Standardization, on the other hand, is more efficient and ensures brand consistency. Although there is a prototype product, local adaptations are still made (Dana & Vignali, 1999). With this approach, you don't need to create new products or services, but to slightly change or improve the ones you already have. Out of 14 adaptation strategies, irrigation ranked first among farm adaptive measures, while crop insurance has ranked as least utilized. Both strategies have advantages and drawbacks. These areas interact with each other, and their net output determines the level of production and profitability (1). JSTOR is part of ITHAKA, a not-for-profit organization helping the academic community use digital technologies to preserve the scholarly record and to advance research and teaching in sustainable ways. Customer preferences and market trends vary from one country to the next. Both product and communication strategies need attention to fit the peculiar need of the market. A firm’s ability to respond to environmental challenges is a significant factor for its survival and success. Product adaptation may not be the most cost effective, but it has shown to affect product performance positively (Calantone et al., 2004). Your offering needs to meet the technical and regulatory standards of the host country while matching customer behavior, preferences and culture. Car manufacturers that enter foreign markets often modify the tires to adapt to the road conditions. Check out using a credit card or bank account with. Factors Affecting International Marketing Strategies: Pricing, ... price elasticity of demand, competition, nature of products and exchange rate fluctuations. Finally, of course the characteristics of the innovation belong to the factors influencing the adoption process. Journal of Marketing Theory and Practice Table 3 Factors affecting decisions to adapt products Market characteristics Product characteristics Company characteristics Government regulations Factors affecting sales, e.g. It focuses on an issue that has not been addressed in past research: Does market orientation moderate the relationship between product adaptation strategy and performance? Request Permissions. Most Americans and Europeans have never heard of it. The adaptations also include product descriptions, the ingredients, packing, line of products, and advertising campaigns. Google Books: International Marketing 4th Edition, Cleverism: Global Marketing - Strategies, Definition, Issues, Examples, Marketing91: What Is Product Standardization? The global factors that are outside of the control of individual organizations, but that can affect the way that businesses operate can be considered as the global factors affecting the international marketing environment. For terms and use, please refer to our Terms and Conditions Factors Affecting Product Adaptation. IThe following are the factors that favour product standardisation: Economies of scale in production: Where the product is manufactured at one plant, long production runs can give rise to considerable economies of scale (assuming that the decreasing costs per unit will prevail over the full extent of output required to satisfy export markets). These industry giants adapt their offerings to customers' needs, regardless of their cultural background. Factors affecting decisions to adapt products are listed in Table 3. Standardization and adaptation are strongly connected. 3.1. Product adaptation means that the firm adapts the product to the local markets. In the process o… There are various social factors affecting the acceptance and rejection of an identified product. Is the crop stored; if so where and by whom? Product adaptation allows companies to expand their reach and enter new markets – the above examples show exactly how it works. Although the standardisation of a product may work in some circumstances when developing a global strategy, it is not often an approach that companies use due to micro and macro environmental factors. Implementation of international market expansion strategy involves strategic-level decision making in relation to global branding strategies, the choice of market entry strategies such as wholly-owned subsidiaries, exporting, licensing, or forming joint-ventures, as well as, deciding on the level of standardisation or adaptati… Many factors affect a pigs requirement for specific nutrients, impacting subsequent performance. This item is part of JSTOR collection adaptation strategies. How you will implement this strategy depends on several factors, such as government regulations, customer preferences and purchasing power, competition, product features, profitability and more. As a business owner, you have two options: you can either adapt your goods and services to new markets or sell the same products in all markets. Building on two centuries' experience, Taylor & Francis has grown rapidlyover the last two decades to become a leading international academic publisher.The Group publishes over 800 journals and over 1,800 new books each year, coveringa wide variety of subject areas and incorporating the journal imprints of Routledge,Carfax, Spon Press, Psychology Press, Martin Dunitz, and Taylor & Francis.Taylor & Francis is fully committed to the publication and dissemination of scholarly information of the highest quality, and today this remains the primary goal. Legal, economic, political, technological and climatic requirements of a country market often dictate some level of localization or adaptation. Reviewed by: Michelle Seidel, B.Sc., LL.B., MBA, Container ship and tag boat in the harbour image by Carabay from. For example, Denmark has strict requirements regarding food supplements – manufacturers are not allowed to use certain words on the labels or claim that their products are better than those of other companies. This model classifies all software requirements into 11 software quality factors. II Abstract Title: Product Adaptation to Different Markets through Technology Innovation Authors: Angela Musimiire & Maka Chakhnashvili Supervisor: Hans Sjögren Background and Aim: Markets are getting increasingly complex, competitive and changing. Factors favouring product adaptation IThe following are the factors that favour product adaptation/differentiation: Maximisation of profits is usually the primary motivation for going to the expense of modifying a product and is in direct contrast to the policy of … Some products catch on immediately (e.g., rollerblades), whereas others take a … adaptation needs and responses of developing countries to climate change and how the work of the UNFCCC can help catalyse more work on adaptation in these countries. Compared to product adaptation, a one-size-fits-all strategy is less expensive and easier to implement. Major factors influencing product adaptation by marketer’s own choices in the international market are as under: ADVERTISEMENTS: Consumer demographics: Product modifications are required to suit the physical attributes of the target consumers. 1. KFC, for instance, doesn't add pork or beef to the products sold in India. Adaptations in International Marketing. Traditionally, product adaptation has been taken to mean modifying in-house products but it also involves taking points from a competitor’s product. In her daily life, Ms. Picincu provides digital marketing consulting and copywriting services. KFC's DaDong Duck burger is all the rage in China. Product transition factors− Portability, Reusability, Interoperability. I've highlighted some of the motivating factors for adaptation. Modern businesses are granted with vast opportunities in terms of revenue maximisation through entering new markets. Factor in the advantages and disadvantages of adaptation in international marketing. Product packaging matters too. All these factors are derived from the cultural background of those specific markets. Characteristics of the Innovation Affect Rate of Adoption . JSTOR®, the JSTOR logo, JPASS®, Artstor®, Reveal Digital™ and ITHAKA® are registered trademarks of ITHAKA. Select the purchase Product standardization refers to the process of maintaining uniformity of products and services sold in different markets or in other words setting identical characteristics for a particular good or a service. This chapter also highlights the need to plan and implement adaptation in the context of sustainable development and integrate adaptation into policy at all levels. IKEA's furnishings and decorations look different in Japan than in the U.S or Sweden. She holds a BA in Marketing and International Business and a BA in Psychology. The subject of marketing strategy and marketing mix element adaptation versus standardization has been the subject of much marketing research and debate. Product adaptation - communications adaptation. Read your article online and download the PDF from your email or your account. According to Warren J. Keegan and Mark C. Green, authors of "Global Marketing," product adaptation is one of the five international product and promotion strategies that organizations may use to enter global markets. The logit model explained that out of eight factors surveyed, age, education, family size, farm size, family income, and involvement in cooperatives were significantly related to self-reported adaptation. It makes it easier to increase your market share, achieve legal compliance and meet customers' needs. However, with the emergence of homogeneous (identical) markets worldwide, it is still a question of whether MNCs will or will not intermix both the standardization strategies and adaptation product strategies. Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Academia.edu is a platform for academics to share research papers. To that effect it would perhaps be more The 11 factors are grouped into three categories – product operation, product revision, and product transition factors. She works closely with small businesses and large organizations alike to help them grow and increase brand awareness. Product adaptation is vital for companies that export their goods to foreign nations as it enables them to meet the foreign laws and re… Successful brands like Coca Cola, Starbucks, McDonald's and KFC have more in common than just a brilliant marketing strategy and original products. Product adaptation is essential for companies that plan to expand their operations globally. © 2010 Taylor & Francis, Ltd. For an example, if a particular company comes up with the decision of standardizing the product then the product is being manufactured using the same materials, same processes and even sold under the same name. Product operation factors− Correctness, Reliability, Efficiency, Integrity, Usability. Factors affecting adaptation • The market(s) that have been targeted • The products and its characteristics • Company characteristics (resources and policy) • The majority of the products have to be modified for the international marketplace • Mandatory versus discretionary adaption That's why popular brands are constantly adapting their goods and services to new markets. In the context of developing, enhancing, and disseminating marketing knowledge, JMTP publishes both conceptual and empirical work, so long as the work provides strong implications for the managerial practice of marketing. McDonald's menu, for example, varies depending on the location. Phattarawan Tantong, Kiran Karande, Anil Nair and Anusorn Singhapakdi.