Standardization & Adaptation

Halmstad University School of Business and Engineering Business and Marketing

Standardizing or Adapting the Marketing Mix across Culture
A case study: Agatha

Thesis in Marketing, 15 ECTS credits Final seminar: 25.05.2010 Authors : Elise MEYER (890511) Ingrid BERNIER (901218) Supervisor: Jean-Charles LANGUILAIRE Examiner: Roger STRÖM

Summary of thesis

Title: Standardizing or adapting the marketing mix across culture

Authors: Ingrid Bernier and Elise Meyer

Supervisor: Jean-Charles Languilaire

Level: Bachelor Thesis in Business Administration, Marketing

Key words: Culture, international marketing, marketing strategies, standardization and adaptation

Purpose: Compare two strategies, standardization and adaptation, to show how companies manage cultural differences.

Method: Our research method is a descriptive one. Then, we collect data from secondary sources such as the books, articles, journals and studies. Then, we judge essential to gather primary data to answer our purpose. In this way, we do one qualitative personal interview with the international marketing director of Agatha and one email interview with its communication director. Finally, the entire information is treated and selected according to the reliability and validity of data. Theoretical framework: Our theoretical framework is based on theory concerning in a first part, cultural differences with two cultural frameworks: Hofstede and Hall and in the second part, the comparison of two marketing strategies: adaptation versus standardization.

Conclusions: This thesis shows that cultural differences on international market affect the adaptation of the product, price and promotion. The distribution channels have, on the other hand, only been affected by social conditions. The results show that it has been a challenge for Agatha to find a balance between the degree of standardization and adaptation of the different elements of the marketing mix— a challenge that they have

References: 1 technology and material culture, social institutions, education, values and attitudes, aesthetics, religion are usually included in the concept of culture (Hollensen, 2001) 2.1.1 What is culture? In relation to international marketing, culture can be defined as “the sum total of learned beliefs, values and customs that serve to direct consumer behaviour in particular country market” (p.85) (Doole & Lowe, 2001) 4 colour, music, architecture or brand names in their product and communications strategies is sympathetic and acceptable to the local culture (Doole & Lowe, 2001). Figure 1: A cultural framework (Source: Doole & Lowe, 2001, p.66) When we define culture, it seems to be easy to identify, characterize and differentiate a culture from another one  Long-Term Orientation (LTO) versus Short Term Orientation: This cultural dimension has been criticized by Fang (2003), it is argued that there is a philosophical flaw inherent in 8 James Lee (1966) used the terms self-reference criterion (SRC) to characterize our unconscious reference to our own cultural values (Sources: Heenan & Perlmutter, 1979, p.18-19) 2.2 Standardization vs