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Running header: Unit 1 Standardized and localized strategySTANDARDIZED AND LOCALIZED STRATEGYCLEMENT TAYGCC MARKETING MANAGEMENTDATE OF SUBMISSIONPROFFESSOR FRANCIS PIRON1
Unit 1 Standardized and localized strategyABSTACTThis paper looks at the standardized and localized strategy used by various corporations in the business world. The advantages and disadvantages of both strategies are discussed in depth through the paper as well as ethnocentric, polycentric, and geocentric orientations and the competitive advantage concept.Key terms; standardized strategy, localized strategy, ethnocentric, polycentric, and geocentric orientations.2
Unit 1 Standardized and localized strategyDQ 1. Explain the differences between a standardized and localized strategy. Which are theadvantages and the disadvantages of each one?Levitt is the one that introduced the globalization of markets, and he suggested that Companies have to carry their business like they are in a large market, and should ignore the boundaries which are regional or national (Levitt, 1983). The difference between standardization and localized strategyAccording to Viswanathan, Nanda; Dickson, Peter, standardization refers to the common market program. However the term standardization refers to the marketing program that is common and runs across all the nations, this means that it is characterized by the aspect of being global, wherethe Companies sell their products everywhere and the same way worldwide (Levitt, 1983).On the other hand localized strategy refers to the customization of products to fit the markets of aparticular geographical area. In this strategy the products being sold target specific characteristicsof the selected market (Quelch, 1986).One advantage of standardization is a uniform global image. This is illustrated by Coca-Cola which has same logo and bottle on their product worldwide they use same advertisement method worldwide. The second advantage, standardization leads to economies of scale due to massive