The Important Factors of Product Standardization and Adaption in Organizations

          One of the most difficult decisions that foreign marketers must make is whether to standardize the product or change existing products. And this decision may have ramifications for the firm in terms of costs, finance, manufacturing, organizational structure, procurement, marketing mix, and so on. And the decision on which to choose is based on one's attitude toward various cultures. So, in this essay, we'll go over these two topics in depth so that you may get a better understanding of them.

Product Standardization

          Product standardization is the practice of ensuring uniformity of products and services supplied in multiple markets, or specifying same qualities for a certain good or service.

          For example, if a corporation decides to standardize a product, the product will be created using the same materials, go through the same processes, and be marketed under the same name.

          There are certain guidelines to be followed in the process of standardizing a product, and these guidelines should be followed by the company that wishes to standardize the product. The guidelines will be applicable to one organization or industry, and they will be conformed at the national or international level.

For sectors that use standardized products, there are various instances.

·         Industry of pistons

·         Industry of nuts and bolts

Let us now discuss the effects of standardization.

          Standardization fosters uniformity among products and services, which results in benefits. This benefits not only the firm, but also the customers.

The Advantage of Product Standardization

To the corporation

          Cost savings - With standardization, an identical product is manufactured utilizing the same materials, techniques, and other factors, allowing supplies to be acquired in large amounts and resulting in cost savings. At the same time, there will be less wastes in terms of material utilization, lowering costs.

          Production efficiency - When the product we are now creating is uniformed, the manufacturing process becomes efficient as a result of enabling variables like as mass production, labor specialization, and automation of manufacturing processes.

          Brand that is well-established and well-fortified – When the same product is available in many markets, it aids the organization in establishing and strengthening its brand.

          Raised production - When product differences are decreased, the company's production can easily be increased.

To the general public

          Customers may choose the exact thing they want - When the disparities between items are decreased, customers are less likely to be confused about which product or service to purchase. So that they can make an informed decision on which goods to buy.

          Can receive a high-quality product – Consumers can acquire a relatively high-quality product when products are standardized.

          Better living standards — Consumers' living standards gradually improve as they are able to consume high-quality products at lower prices. However, there are instances where product uniformity has a detrimental impact.

Product Standardization's Downsides

          Stagnation — When a company produces a consistent product for a long time, it will eventually find itself in the same position in the industry. This is bad for a company since competitors can take advantage of it. As a result, they must make adjustments to the items as the environment changes while attempting to standardize them.

          Failures in communication - As time passes, consumer demand may vary, and in such cases, enterprises will continue to strive to maintain consistency while ignoring the changes in consumer need. This will have a negative impact on the organizations' ability to survive.

          Consumers have fewer options - Because the product is standardized, consumers do not have a wide range of options.

Product Adaptation

          Multinational corporations are the most common users of this method (MNCs). The process of altering current products in order to target each market is referred to as product adaptation. An entity can utilize a variety of product adaptation tactics, including product, target market, package and design, ingredients, language, culture, religion, and so on. That means that, in terms of target markets, packaging and design, ingredients, languages, culture, and so on, businesses must devise new ways to cater to various markets in a way that meets the demands and desires of customers.

          For example, the way the Red Bull product is sold in China and North America is different. Because the Red Bull label, which is sold in North America, is red and silver, the red bull representing action and the silver background representing youth spirituality and spirit. In China, the label is red and gold, with the red color representing good fortune and the gold color representing riches and happiness.

Product adaptation can be divided into two categories

          Mandatory Adaption - Adapting items to a certain country's local standards so that the corporation can conduct legal and physical operations in that country. For example, in the United Kingdom, left-hand driving is permitted.

          Local non-mandatory adaptation — Adapting a product with the goal of providing customers with the opportunity to consume a higher-quality product that is not required by law.

          There are a number of causes for this type of product adaptation. The following is a list of them.

·         Cultural considerations

·         Factors affecting usage

·         Consumer purchasing power disparities

·         Technical proficiency in the area

·         Policies governing local taxes

·         Effects of various market entry strategies

·         Legal requirements

·         Tariffs are a type of tax.

·         Technical requirements

·         The weather

Final Thoughts

          Both standardization and product adaptation have their own set of benefits and drawbacks. When we adopt a plan as managers, we must always make sure that the bad impacts are minimized and the favorable impacts are maximized.

Describe the principle elements of the product. Give example

          The essential DNA of a product is its ideals. They're the core ideals that guide the product team's every action, decision, and move.

          Every decision can be compared to the product principles, much like a North Star metric. This ensures that it adheres to the principles that the product team is attempting to uphold and preserve.

How to Identify Your Product's Core Values

          In their pursuit to build exceptional products, product teams make dozens of decisions every day. However, no decision is taken in a vacuum. Instead, the specifics of the problem are addressed in the context of how it fits into the overall picture of the product.

          A few factors influence the overall picture: business strategy, market dynamics, and product principles. While the first two factors are frequently influenced by external circumstances, the team's established product principles are driven by the team itself.

Who is it intended for?

          Product guidelines are intended for product teams. They're the compass that keeps the team on track to achieve the goals they've set for themselves.

          The purpose or rationale for decisions is likely to be questioned or require further explanation. Product teams should be able to justify any step by pointing to a specific product principle (or two). If they can't, there's a good reason to rethink if this is the appropriate decision.

Why Product Principle useful?

          Product principles ensure that the same underlying ideals are upheld. They're also a terrific technique to diffuse team squabbles and disagreements. It's not simple to get everyone on the same page, especially when things are moving quickly and expanding.

What Constitutes a Product Principle's Major Components?

          For a product to be functional and beneficial, it must contain some of these ingredients:

Specificity

          Vague phrases and confusing platitudes have no place in product principles. People require norms and boundaries, not yet another justification for disagreement and ambiguity. Helpful product principles abandon generic tag lines in favor of focusing on the specifics of their offering.

Prioritization of tasks

          Product teams must constantly prioritize, and a product principle should assist them in this task. What is most important should be stated clearly in the principles. Options can now be ranked based on this information. Items that do not contribute to the progression of one of the key product priorities can be put on hold in order to make room for those that do.

Concise

          Product concepts should not be so long that they need to be documented separately. Their strength is in their ability to serve as a constant quick reference and level setter (not a detailed philosophical treatise). There should be no more than a handful of them, and they should be made up of simple words and brief sentences. They grow ungainly and impractical for their intended purpose if they are any larger.

          Relevant Product teams do not operate in a static environment, so product principles should be revisited and revised as appropriate. These changes may occur as a result of product maturation, shifting corporate priorities, or new consumer and competition data. At the same time, these principles should not change so frequently that they lose their significance. An update should be a once-in-a-while activity, not a frequent occurrence.

          Employees should be able to relate to Emotional Product principles on an emotional level. It should motivate, excite, and commit people to the organization's mission and goals. These concepts change labor from a job to a calling, and a product from "that thing I work on every day" to "that thing I'm enthusiastic about" when applied correctly.

Product Principles Examples

·         Gusto is the Italian word for desire.

          Gusto is a payroll and employee benefits management tool for small businesses. They organized a business retreat and invited ideas from employees to come up with their product principles. They whittled it down to five things they would tell a new employee on their first day at the conclusion of the day:

·         Show your users how much you care about them.

·         Have a strong opinion. Create a future that you are passionate about.

·         Do only the things that are truly worth doing properly.

·         We're Sherpas, and we're here to help. Ascertain that the crew arrives at their destination.

·         Pay attention. Great ideas can strike at any time.

Pay.com is a website that allows you to make payments

          To drive its decision-making, this e-wallet startup settled on three product principles: 

·         We are not a financial institution. We disrupt banking.

·         It's crucial to have a sense of safety and privacy.

·         Because merchants are the first point of contact for our customers, our items must "wow" them.

          They put their beliefs into practice. They had to choose between making it easy for consumers to view their CVC number and requiring an extra step to reveal it at one time. They chose the latter alternative because of their second premise. Because security is a guiding principle of the product, they prioritized it over simplicity.

Five Major Product Strategies Available to Global Market[2]

          Because of the internet's widespread use, even tiny enterprises may now reach customers all over the world. Large corporations frequently have offices in other nations where they sell their products. Domestic rivalry might arise if a company chooses not to expand globally.

          A strong global marketing plan takes all countries from all corners of the globe into account and organizes their marketing efforts accordingly. You can divide regions like North America, Latin America, Europe, and the Middle East, for example.

          A global marketing plan nearly always includes numerous elements, in addition to its breakdown by country or region: (1) standardized advertising messages; (5) synchronized pricing; (6) coordinated product introductions; and (7) harmonizing sales campaigns

          These two global marketing methods are the most well-known among organizations growing internationally:

·         For firms expanding abroad, creating a consistent brand that customers recognize is a top priority. When Google launched a self-censored search engine in China, it learned the hard way. As a result, there was a significant backlash against Google from customers.

·         As if there were no borders to the market. Because of the spread of digital platforms, brands are unable to use various methods in each country. In some ways, the internet forces businesses to have a more or less cohesive marketing strategy.