International Marketing in Germany – From a cultural perspective

Figure 2.4 Stages of Marketing Mix Standardization
 
Source: 
Dahringer, L. & Mühlbacher, H., 
International Marketing: A Global Perspective
, 
(1991), p. 39 
Standardized or Adapted Price 
When a company exists in more than one country, it needs to decide whether it should have 
the same pricing mix as in the home country or if it should apply adapted pricing mix. Most 
companies adjust their prices according to local pricing levels and costs, but there may be 
other reasons for adapted prices such as competitive factors, economic conditions, regulations 
and laws, development of the retailing and wholesaling system and differences in consumer 
perceptions and preferences. Other reasons can be due to different marketing objectives.
52
Recently, development that leads to changes such as the internet has occurred making 
standardized prices more desirable, where it is possible to buy products from other areas as 
well as compare prices. Beyond internet, the change to a single currency within EMU has 
made it more difficult to differentiate prices within the Euro-zone.
53
Standardized or Adapted Product 
In the product context, the company needs to decide whether to alter the product itself for 
different markets or to standardize the product. Being standardized means having a consistent 
image as well as lower manufacturing costs. It also decreases work with research and 
development, advertising and product design, since it only has to be done once. However, 
standardizations occur at the expense of adaptation. Consumers differ in their attitudes, 
cultures, and buying behavior and markets differ in their competition, economic conditions, 
physical environments and legal requirements, which means that companies sometimes have 
52
Kotler, P. et al., 
Principles of Marketing
(2005), p. 701 
53
Ibid, p. 238 

---

18 
to adapt their product offerings. For example, names, labels and colors can have different 
meanings or consumers may prefer different packages. Another example is that Europeans 
like functional, efficient, recyclable and understated boxes, in comparison to Japanese that 
have completely different values. There may also be a need of changing the label contents due 
to different information needs or difficulties understanding the used language.
54
Different 
markets can also have different preferences with regard to product size or durability.
55