Essays on Standardization Process, Diversification Strategy, Price-Based Competition Assignment

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The paper "Standardization Process, Diversification Strategy, Price-Based Competition  " is an outstanding example of a marketing assignment.   Standardization is the process whereby an organization ensures its processes and methods are identical. Adaptation on the other side is ensuring that the methods applied by the company like pricing and promotions can adapt the changes in the global environment (Susan et al 2008). Adaptation occurs when an organization designs a marketing strategy which can adapt to the market environment. The advantages of standardization include the following; Standardization helps to ensure there is the consistency of products and processes and also the methods applied by the company.

This helps to reduce management issues because when the processes and products are identical, it is easier to manage them unlike when there is a variety of products. Standardization further helps to cut down the costs incurred by the organization (Susan et al 2008). Costs incurred by the organization can be reduced by using the existing strategies and distribution methods. The company can be able to enjoy economies of scale through quantity buying. Therefore, an organization can cut down costs. Maintenance costs can also be low due to reduced variety thus the maintenance system can be uniform. Further, standardization improves the management of the processes and operations of the company.

Through variety reduction, employees will have expert knowledge hence they will improve their operations. This will help to improve the performance of an organization. The disadvantage of standardization is that it leads to lack of uniqueness. This is especially when an organization builds a customer base and serves a specific market. The likelihood is that an organization can lose initial customers. It also leads to a lack of responsiveness.

When an organization expands into a foreign market, the cultures can be different and also the tastes. In order for the company to effectively enter into the new market, it should not have standardized operations to adapt to the new global environment. Question 2 Price based competition is when organizations scramble for customers through pricing. Products are charged at a low price with the aim of attracting and maintaining customers. There are various factors which lead to price-based competition in the product life cycle. The first factor is market share.

A company can decide to increase its market share by pricing its products at a lower price than its competitors. This strategy will attract and maintain customers hence increase its market share. Therefore, the need to improve market share can lead to competitive pricing. At the growth stage of the product life cycle, there is high competition thus competitive pricing can be appropriate. Each organization aims at improving its performance and the profits also. In order to perform well in the market, an organization should price its products at a lower price than the competitors although it should not be too low to make losses.

This will improve company sales. At the introduction stage of the product life cycle, the products are priced competitively with the aim of attracting customers. The product cannot be priced like other products which have already established in the market. In this regard, competitive pricing is applicable as a way of promoting products.

References

Source

Susan, P. Douglas, C & Samuel, C 2008, reassessing global marketing strategy, Emerald publishing group

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