Question

1. When firms choose to standardize a product worldwide, what assumptions are they making about external and internal situations? Name and briefly describe five (5) assumptions these firms make. Make sure your answers are clearly differentiated and complete.

Answer 1

SOLUTION :

Product standardization refers to the process of maintaining uniformity of products and services sold in different markets or in other words setting identical characteristics for a particular good or a service.

For an example, if a particular company comes up with the decision of standardizing the product then the product is being manufactured using the same materials, same processes and even sold under the same name.

Brand Names

The marketing of products sold internationally may be standardized to keep a uniform image among the varying markets. For example, the Coca-Cola Company uses global standardization in marketing by keeping the appearance of the product relatively unchanged between different markets. The company uses the same design theme even when different languages are presented on the products.

Franchises

For example, many fast-food franchises have detailed processes documented to make sure that a burger is prepared in the same manner, regardless of which establishment in its franchise a consumer visits.

Product Standards

Certain production and manufacturing businesses adhere to agency standards to ensure all products of the same category are created to the same specifications between different facilities or companies.