Audio Definition (1:50)
What is Standardized Global Marketing?
Standardized global marketing is a global marketing strategy that uses the same basic marketing strategy and mix across all international markets.
Companies that do business outside of the United States may engage in two types of marketing programs, a standard global marketing strategy or an adapted global marketing strategy. An adapted marketing strategy adjusts the marketing strategy and mix to the local target markets; a standardized global marketing strategy uses the same approach across all international markets.
Some firms believe that because technology makes the global market much smaller, consumer needs are becoming similar. Thus, a global marketing strategy results in greater brand power and reduced costs from economies of scale.
However, a standardized global marketing strategy is not an an-all-or-nothing strategy. Most international marketers believe that firms should think globally but act locally. There should be a balance between standardization and adaptation.
For example, IKEA furniture is an international brand of Swedish furniture that depends on economies of scale to keep prices down. While the organization mass produces their furniture and distributes products globally, they make small market adaptations to their international target markets.
One market adaptation example includes IKEA’s initial entry into the US market. They produced beds that were too small for US consumers. After losing business and considering leaving the US market altogether, they decided to adapt their beds to the target consumer and make king-sized beds. The idea took off and led the company to success in the US. IKEA did not sacrifice their brand or global strategy but instead made small adaptations to succeed.« Back to Glossary Index