What are advantages and disadvantages of product or service standardization?
In international marketing, the marketers are required to come up with a decision as to whether they are going to standardize the product or to modify the existing products which is one of the challenging decisions that they have to make. And this decision can make impacts on the organization in terms of the Research and development expenses, finance, production, organization structure, procurement, marketing mix etc. And the decision as to which to choose depending on the attitudes towards the different cultures. So in this article, we are going to cover these two concepts so that you can have an idea about the two concepts in depth. Show
Product standardizationProduct 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. 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. In the process of standardizing a product, there are certain guidelines to be used and such guidelines should be followed by the company who is willing to standardize the product and the guidelines will be applicable to one organization or to one industry and will be conformed in the national level or international level. There are several examples for industries that use standardized products.
Now let’s talk about the consequences of the standardization. Standardization promotes the uniformity among the products and services and hence yields the advantages. This does not give advantages only to the organization but also to the customers as well. Advantages of Product standardizationTo the organization
To the consumers
But there are situations where this product standardization gives negative results as well. Disadvantages of Product standardization
Product adaptionThis is a strategy mostly used by Multi-National Companies(MNCs). This product adaption refers to the process of modifying the existing products in order to reach to each market. There are several product adaption strategies that an entity can use such as product, target market, package and design, ingredients, language, culture, religion etc. That means in terms of target markets, packaging and designs, ingredients, languages, culture and etc the organizations need to come up with different ways so that they can cater different markets in a way where the customer needs and requirements are addressed. Eg: The way the Red bull product is being sold in China and North America are different from one another. Because the label of the Red bull which is being sold in North America consist of red and silver for which the red bull stands for action and the silver background stands for the youth spirituality and spirit. Whereas in China the label is in red and gold for which the red colour stands for good luck and the gold colour stands for wealth and happiness. North American red bull: Red is a symbol of action and courage Silver-symbol of maturity Blue-symbol of youth spirituality and peace Which of these is a disadvantage of product standardization?Loss of Uniqueness
If a company builds a customer base that values its unique niche products, or if the company serves a specialized market, standardizing its processes may mean it loses some of its former customers.
What are the advantages of standardized services?The standards ensure that goods or services produced in a specific industry come with consistent quality and are equivalent to other comparable products or services in the same industry. Standardization also helps in ensuring the safety, interoperability, and compatibility of goods produced.
What are the 6 advantages of standardization?Advantages of standardization. Rationalize different varieties of products.. Decrease the volume of products in the store and also the manufacturer cost.. Improve the management and design.. Speed up the management of orders.. Facilitate the exportation and marketing of products.. Simplify purchasing management.. Is standardization in business advantages or disadvantageous?Standardization assists with cost cutting by removing a duplicated effort and enables the organization to take advantage of the economies of scale when making purchases. It is important to note that standardization has got both advantages and disadvantages.
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