Hence the society can increase income and make their living standard better from employment. Market Information As the producers and trade associations publish information and messages about standardized goods in business bulletins, newspapers etc.
While it may be cheaper for a restaurant to buy its trademark hamburgers in bulk, if it expands into a new market where people buy chicken much more often, its standardization measures may make it slower to respond to market conditions and end up costing money.
A business that supplies a standardized product has a high potential for producing good quality products since the production operations concentrate on one product.
Adaptation occurs when any element of the marketing strategy is modified to achieve a competitive advantage when entering a foreign market.
Increase In Goodwill As standardized goods have certain quality, quantity and price; goodwill of the sellers of such goods increases. Disadvantages of standardization include: For instance, the coffee giant Starbucks in different parts of the world seems to offer a similar setting, products and services due to standardization of their franchise and outlets.
Standardization may also stifle creativity, particularly in product design. Customer service, advertising, distribution and product pricing must be driven by local market conditions to be successful.
More essays like this: Stifles creativity and response time is the disadvantage of the standardization. The business also has the opportunity to research on techniques to input on the product to increase its quality standards and improve the consumer base.
The goods which are not standardized, should be bought and sold by inspection. The advantages of this include: It ensures they protect their brands adequately since changes and differences in the offerings expose the brands to risks.
Using Facility Using method, instruction and composition of standardized goods are given; this makes the consumers feel easy to use.
This develops and expands market of any products. Protection Customers do not have to suffer cheating from seller with standardized goods. Loss of Responsiveness When a company expands into new markets, especially in foreign markets, standardization may work against the firm.
Disadvantages Since the product is the same wherever you buy it, it is wholly undifferentiated. Loss of Uniqueness If a company builds up 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.
Market Information Customers can get short description and information about standardized goods through advertisements, other buyers and different sources. Standardization has the potential to get a business into a rut.
Improved quality also the advantages of the standardization. As the products are not needed to be inspected, the customers even of far-off places send purchase order on the basis of standard, grade, size, measurement etc. The sellers do not have to bother about showing sample or giving description if they are graded.
While it may be cheaper for a restaurant to buy its trademark hamburgers in bulk, if it expands into a new market where people buy chicken much more often, its standardization measures may make it slower to respond to market conditions and end up costing money. Every buyer knows the quality, standard and price of the goods.
Stifles Creativity and Response Time Standardization has the potential to get a business into a rut. Local markets have local needs and tastes. Another disadvantage is the loss of responsiveness where when a company expands into a new market, there may be cultural differences which lead to different taste and likings of the market.
This leaves the obvious opportunity for a competitor to design a tailor-made, differentiated or branded product that meets the needs of local segments. If the goods are standardized and graded, the customers even living far from the seller or distributor can buy goods only by seeing sample, standard name.Advantages and disadvantages of using standard costs.
Five of the benefits that result from a business using a standard cost system are: Improved cost control. Q1. Discuss the advantages and disadvantages of standardization strategies and adaptation strategies in a global environment.
Standardization is the process by which a company makes it methods, especially its production processes, uniform/identical throughout its organization. A second advantage is that it can reduce costs by enabling all hotels in a chain to take advantage of economies of scale and negotiate lower prices from suppliers.
The main disadvantage to standardization is that it reduces the flexibility of a chain to cater for regional tastes and expectations.
The advantages / disadvantages of standardized international marketing Essay Sample Advantages Standardization is the process by which a company makes it methods, especially its production processes, uniform/identical throughout its organization.
We can examine the role, importance and advantages of standardization in marketing from the viewpoint of seller, customer and society. 1. Importance And Advantages Of Standardization From Consumers' Viewpoint Disadvantages Of Co-operative Store; Advantages Of Co-operative Stores; Operation Method Of Co-operative Store.
Standardization helps cut costs by eliminating duplicated effort and allows a company to take advantage of economies of scale when purchasing supplies. However, some advantages may be lost when a company decided to standardize its operations.Download