Standardization and adaptation in multinationals corporations

Case study on Samsung's marketing mix strategy

  • Patricia Akemi Ishigai FGV-EAESP
  • Luis Henrique Pereira FGV-EAESP
  • Claudia Maria Simões Scavroni FGV-EAESP

Resumo

International marketing is the process of planning and conducting transactions across borders to create exchanges that satisfy the objectives of individuals and organizations (Czinkota & Ronkainen, 2006). The standardization approach understands markets as homogeneous and defend that the key to succeed is the ability of the company to standardize goods and services (Buzzell, 1968). On the other hand, the Adaptation Method highlights the difficulties in using a standardized approach and support the tailoring to fit in the unique dimensions of international markets (Thrassou & Vrontis, 2006). We illustrate these conceptual arguments through a case study of the Samsung mobile business, profiling its marketing mix strategy in four different countries: Brazil, China, France, and United States, and comparing it to the headquarters in South Korea. The methodology used multiple sources of data, both primary and secondary to guarantee its value and authenticity. The study concludes that Samsung applies both strategies: standardizing its core competencies and characteristics and adapting non-core characteristics to fit the cultural and economic aspects of different countries. Promotion is the marketing mix element more adapted while placement and pricing have the same overall strategy across countries. Product concept and name is standardized while some characteristics as color may be adapted to fit cultural preferences. This conclusion is aligned with the literature and contribute to the International Marketing and Standardization and Adaptation field, as it brings a practical and applied study on a well-known company.

Referências

Bartlett, C. A. and S. Ghoshal, Managing Across Borders: The Transnational Solution. Boston: Harvard Business School Press, 1989.

Borden, N. (1991). The concept of the marketing mix. Reprinted in R.J. Dolan, Strategic Marketing Management. Boston: Harvard Business School Press.

Buzzell, R. (1968). Can you standardize multinational marketing? Harvard Business Review, 46, pp. 102-13.

Cadogan, J. W. (2012). International marketing, strategic orientations and business success. International Marketing Review, 29(4), 340-348.

Cateora, P. (1990). International Marketing (7th ed.). Boston: Irwin.

Creswell, J., & Creswell, J. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Thousand Oaks: SAGE Publications, Inc.

Czinkota, M., & Ronkainen, I. (2006). International marketing (8th ed.). Mason: Thompson Higher Education.

Daniels, J., Radebaugh, L., & Sullivan, D. (2002). Globalization and business. New Jersey: Prentice Hall, Upper Saddle River.

Dolan, R., & Simon, H. (1996). Power pricing: How managing price transforms the bottom line. New York: Free Press.

Douglas, S., & Craig, C. (1986). Global marketing Myopia. Journal of Marketing Management, 2(2), 155-169. doi:10.1080/0267257x.1986.9964008

Douglas, S., & Wind, Y. (1987). The myth of globalization. Columbia Journal of World Business, Winter, 19-29.

Euromonitor. (2020). Portable consumer electronics: Mobile Phone. Retrieved from Portal Euromonitor: https://www.portal.euromonitor.com/portal/search/category

Firoz, N., & Ramin, T. (2004). Understanding cultural variables is critical to success in international business. International Journal of Management, 21, 307-324.

Ghauri, P., & Cateora, P. (2009). International marketing. Edinburgh Business School.

Ghemawat, P. (2018). Redefining global strategy: Crossing borders in a world where differences still matter. Boston: Harvard Business Review Press.

Glaser, B. G., & Strauss, A. (1967). The Discovery of grounded theory: Strategies for qualitative research. New York: Aldine Publishing.

Gross, T., Turner, E., & Cederholm, L. (1987). Building teams for global operations. Management Review (Jun), 32-36.

Hofstede Insights. (n.d). Country comparison. Retrieved Jan 18, 2020, from Geert Hofstede: https://www.hofstede-insights.com/country-comparison/brazil,china,france,the-usa/

Hofstede, G., & Minkov, M. (2010). Cultures and organizations: Software of the mind (revised and expanded 3rd ed.). New York: McGraw-Hill USA.

IMF. (2020a). Data Mapper. Retrieved from IMF: https://www.imf.org/external/datamapper/
NGDPD@WEO/KOR/BRA/CHN/FRA/USA?year=2019

IMF. (2020b). Gross domestic product: An economy’s all. Retrieved from IMF: https://www.imf.org/external/pubs/ft/fandd/basics/gdp.htm

Levitt, T. (1960). Marketing Myopia. Harvard Business Review, 138-149.

Levitt, T. (1983). The globalization of markets. Harvard Business Review, May-Jun, 92-102.

Martinez, M. (2007). A globalização da indústria aeronáutica: o caso da Embraer. Brasília: Instituto de Relações Internacionais da Universidade de Brasília.

Mccann, P. (2008). Globalization and economic geography: The world is curved, not flat. Cambridge Journal of Regions, Economy and Society, 1(3), 351-370.

Ministry of Foreign Affairs. (2020). Republic of Korea. Retrieved from MOFA: http://www.mofa.go.kr/eng/index.do

Moon, H. (2005). The new organization of global firms: From transnational solution to dynamic globalization. International J. of Performability Engineering, 1, 131- 143.

Nguyen, L. (2011). Marketing mix across cultures: Standardization or adaptation. Lahti University of Applied Sciences, Degree Program in International Business Thesis.

Papavassiliou, N., & Stathakopoulos, V. (1997). Standardization versus adaptation of international advertising strategies: towards a framewokr. European Journal of Marketing, 31(7), 504-527.

Quelch, J., & Hoff, E. (1986). Customizing global marketing. Harvard Business Review, May-Jun, 59-68.

Riesenbeck, H., & Freeling, A. (1991). How global are global brands? The McKinsey Quarterly, 4, 3-18.

Samsung BR. (2020). Samsung Brasil: Celulares & Tablets: TV & Áudio: Eletrodomésticos: Outros.
Retrieved 03 04, 2020, from Samsumg: https://www.samsung.com/br/

Samsung CN. (2020). 三星手机: 电视: 笔记本 显示器 固态硬盘: 冰箱 洗衣机等产品官网.
Retrieved 03 04, 2020, from Samsung: https://www.samsung.com/cn/

Samsung FR. (2020). Samsung France: Téléphones Portables: Electroménager: TV.
Retrieved 03 04, 2020, from Samsung: https://www.samsung.com/fr/

Samsung HQ. (2020). About Samsung. Retrieved 03 2020, from https://www.samsung.com/us/aboutsamsung/home/

Samsung KR. (2020). 모바일: TV: 가전: IT. Retrieved 03 04, 2020, from Samsung:
https://www.samsung.com/us/

Samsung US. (2020). Mobile: TV: Home Electronics: Home Appliances: Samsung US.
Retrieved 03 2020, from https://www.samsung.com/us/

Samsungbrasil. (2020). (@samsungbrasil) • Instagram Photos and Videos.
Retrieved 03 2020, from https://www.instagram.com/samsungbrasil/

Samsungfrance. (2020). (@samsungfrance) Instagram Profile • 1,137 Photos and Videos.
Retrieved 03 2020, from https://www.instagram.com/samsungfrance/

Samsungkorea. (2020). (@samsungkorea) Instagram Profile. Retrieved 03 2020, from https://www.instagram.com/samsungkorea/

SamsungMobile. (2020). Samsung Mobile. Retrieved 03 2020, from https://www.youtube.com/user/SamsungMobile
SamsungMobileBrasil. (2020). Samsung Brasil.
Retrieved 03 2020, from https://www.youtube.com/user/SamsungMobileBrasil

SamsungMobileFrance. (2020). Samsung France. Retrieved 03 2020, from https://www.youtube.com/user/SamsungMobileFrance

SamsungMobileKorea. (2020). Samsung Korea 삼성전자. Retrieved 03 2020, from https://www.youtube.com/user/SamsungMobileKorea

Samsungmobileusa. (2020). (@samsungmobileusa) • Instagram Photos and Videos. Retrieved
03 2020, from https://www.instagram.com/samsungmobileusa/

SamsungMobileUSA. (2020). Samsung US. Retrieved 03 2020, from https://www.youtube.com/user/samsungmobileusa

Samsungus. (2020). (@samsungus) • Instagram photos and videos. Retrieved 03 2020, from https://www.instagram.com/samsungus/

Solberg, C. A. (2002). The perennial issue of adaptation or standardization of international marketing communication: Organizational contingencies and performance. Journal of International Marketing, 10(3), 1-21.

Stake, R. E. 1995. The art of case study research. Sage: Thousand Oaks, CA.

Stake, R. E. 2010. Qualitative Research: Studying How Things Work, Guilford Press, NY

Thrassou, A., & Vrontis, D. (2006). A small services firm marketing communications model for SME-dominated environments. J. of Marketing Communications, 12(3), 183 - 202.

Time and Date. (2020). https://www.timeanddate.com/worldclock/distance.html. Retrieved 03 2020.

Venables, A. (2006). Shifts in economic geography and their causes. Federal Reserve Bank of kansas City Economic Review, 91(4), 61-85.

Vernon, R., & Wells, L. (1966). International trade and international investment in the product life cycle. Quarterly Journal of Economics, 81(2), 190-207.

Vrontis, D. (2003). Integrating adaptation and standardization in international marketing: The AdaptStand modeling process. Journal of Marketing Management, 19(3/4), 283-305.

Vrontis, D., Thrassou, A., & Lamprianou, I. (2009). International marketing adaptation versus standardization of multinational companies. International Marketing Review, 26(4/5), 477-500.

Yoo, B., Donthu, N., & Lee, S. (2000). An Examination of Selected Marketing Mix Elements and Brand Equity. Journal of the Academy of Marketing Science, 28, 195-211
Publicado
2021-04-27
Como Citar
ISHIGAI, Patricia Akemi; PEREIRA, Luis Henrique; SCAVRONI, Claudia Maria Simões. Standardization and adaptation in multinationals corporations. International Journal of Business Marketing, [S.l.], v. 6, n. 1, p. 77-99, abr. 2021. ISSN 2447-7451. Disponível em: <http://www.ijbmkt.org/index.php/ijbmkt/article/view/193>. Acesso em: 02 dez. 2021.
Seção
Artigos