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The difference between standardization and differentiation of goods

Differentiating Goods

International Marketing

The difference between standardization and differentiation of goods

International market is vast opportunity which comp-rises of several factors. These factors are crucial for the maintenance of businesses competitiveness of the services and goods being shipped by a business. In marketing a product or services, the marketing team gets the privileges of collecting relevant data from its market aim for which quite important is products and service improvements that permit the maintenances of high competitiveness in the international market segments. Within the international market segments, there numerous kinds of products which are exposed to the consumers to makes choices of own dreams. The wide types perhaps easily confuse the consumers which leads mistaken alternatives of products by the customers. However, to avoids such kind of unrealized confusion which are largely in the international marketplaces, business organizations and manufacturers gets partcipates in each one of the two activities to set-up uniqueness with their products that is easily distinguishable from other products of the challengers products.

The words standardization and differentiation have tremendous meanings with respect to the fields where they are really being applied. The terms are most misused in when are used in reference to products in marketing field. The word product differentiation which is normal known as differentiation can be used in marketing to refer the process of distinguishing the differences of a product from others. That is aimed at rendering it more attractive while the manufacturer or manufacturers are targeting a specific market. It is widely used in the current worlds over for many reasons. The procedure of differentiation consists of the discovering the other competitors products and also other products from the same firm. It is therefore a very vital process that differentiates the product from competition products and further the products made by the particular company. Simply y, product differentiation is an activity of detailing the variations that prevails between products and services. Generally the product differentiation process is completed in away that by the end of action, there is a unique aspect of the product. In addition, marketing campaign results must show the sense of value to the potential buyers. To be able to undertake product differentiation, there are several options which may activates this are such things like distinctions in quality. That one is obviously accompanied by a relative change prices. Others happen from the many differences in functional features and a design which might be having triggers the consumers to the products. This requires execution of essentials characteristics and qualities of goods. (Leonidou, 1997):

On the other side, standardization of product is the way for increasing commonality of a product in the supply chain management. Standardization specializes in the use of the common products or functions to gratify the heterogeneous needs of these consumers. Hence, it is the one which enables the coming up with of an excessively robust product through the use of the solid process which allows the higher access of the product by the consumer. This is checked out through increased output. A standardized product does not need to get all the characteristics of the other products the potential buyers require. However, research demonstrates that standardization often ends up with advanced efficiency. The standardization of products is thus the permitting the high output hence companies calls for the advantages of economy of range. Additionally it is targeted at simplifies the process of production by enabling a firm to concentrate on producing particular products that are on higher demands on the market places. The procedure of standardizations is thus different from the procedure of product differentiation in the fact that standardization is principally setting up a commonness of the merchandise in the marketplaces thus making the consumers to purchase more of it than any other commodities as well as reducing the cost of the companys productions costs through large product production. (Waheeduzzaman, 2005)

Discussion on whether the products of international firm in United kingdoms are standardized products or differentiate product

Sony Company

Sony Company which is one of the major companies in the United Kingdom produces a numbers of digital systems. The large amounts of items are allocated from the uk to all other areas of the world. These products include radios, tv sets, computers, Dvd and blu-ray players, video tutorial cassettes players, walkman radio camera as well as notebook computers, digital image printers and so many more others. The company as an international firm needs to have its products either standardized or differentiated to get better contests in the international trades. Sony products are definitely more available in the market. The products of the Sony Company are wide found in the marketplaces. Although there are a great many other fighting products of others companies, the products are incredibly much uniquely produced. However there are some of the merchandise which hardly ever are distinguished from other products of others. From the business analysis, the business is said to have substantial boosts in the sales of differentiated products through the year of 1998. This was from its differentiations of its product of television

The company devotes its much work on technology advancement to create quality products. Its ahs several launched ground breaking products which may have been of the first kind for quite some time. Such products on the marketplace places have been embraced by the consumers with high gestures. Furthermore it is depicted from many consumers resources information that the business produces quality products that happen to be durable than any others. Thus, the products from such a corporation has generated cooperative romance of the consumers and the firm through the development of new devices

Through the operations in the production, Sony has experienced several troubles in advertising its products due some factors holds in some of these products. Hence, the price is so high and the profit margin is low. Sony has generated many factories throughout Europe, the U. S. and Japan implementing local developing point and circulation channel which is making their products to be common in the marketplaces. Nevertheless, with the development of global creation, there are several disadvantages of the mode of production. The merchandise cost of creation in the various countries are assorted hence productions of differencing products is quite saturated in orders to decreases this cost. For example, the work force in the United kingdoms is more expensive than others countries like in those countries based in the Asians continents. With this varying kind of productions bases, the company has been faced with some difficulties due to imitations from other organizations producing similar goods. (Leonidou, 1997)

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The Sony Company is seen as a company in the view that it considers technology as core factors to its productions. The majority of its products aren't produced to come conspicuously inn the external view which military make sure they are be differentiated products. However, the management of the products is highly produced with the currents based technologies depending on the markets demands. Typically the wide varieties of products in the outlets and many market places make the company receive high earnings on sales. This implies generally it is the robustness of the merchandise which is increasing the business income.

The company produces are similar in many physical functional structures. A lot of the sonny radios have blacks and also most of the Sony camera products resemble the other Sony products as well in conditions of colors figures and standard designs. It has created clearers indications of no variations in the companies products. Although, the company has for along times tried out to adopt the differentiations of products process, this has not been adequately executed. The presidents once said 'differentiation of products is a center factors tom success in our companys compositeness he added that our products are facing huge imitations from others companies that are not cooperates relative in the countries and the world over. The flat Dvd movie players products are highly resemblances of the erosions model. Such similar products have given the company an added benefits on the marketing in the international trade. It really is claimed the Sony company loss 5 percent of the sales of this product globally due confusion of the consumers. The choices of all consumers is to acquisitions the one from the sonny but as the similarities in the performances of the merchandise of both companies concedes with one another, a few consumers confirms it difficulties in distinguishing the two products by manufactures models. This insufficient differentiation has assimilated Sonys potential revenue. That is makes a major reason for the prices of Sony's products to become more expensive than their competitors while the profit percentage is leaner than of these competition. (Waheeduzzaman, 2005)

In order for the business to strengthen the market, the business has strong predicated on its invention characteristics; hence Sony produces its services with brand names which will vary from the other products by code of indices. This new idea makes helps the business from looking for numerators brands whole maintaining the robustness of there products. In the manufacture of new brands, the sonny company models on a amounts of considerations that ought to be adhered to produces the merchandise. This is achieved through attracting the steps to be adopted while manufacturing their particulars product. It's the foundation requirements which are placed in place which books the manufacturers on the step to follow as to attain to the final product required. However, most final sonny products are in many ways not quiets different from those which were previously produced. (Tiger, 2000)

Based on the aforementioned disclosures of information, the sonny company produces are essentially standardized products. It is because the products are manufactured pursuing some little requirements. Furthermore the business offers engages on large productions of its produces. The makes the companys products to obtain exclusive commonness on the market. However, this is permitting the products to be distributed globally immediately. The high efficiency of the produces without much varying features makes the consumers to buyers more of the produces. The business strategy has allowed it to obtain their products to be confronted with some adverse conditions when several others companies produces similar or meticulously similar imitations of the products. The sonny companies seem to be to have a sort of rigidity on standardizations. This is depicted on the a few of the innovations. For instance, Sony's psp systems use their only now music credit cards which is not appropriate to any others musicals systems from its products or even from other company. This rigid is said to have some negative results on the market places. One of the reasons is the fact that the products are just relevant for use alone specific products, most consumers frequently prefers a versatile system hence their results into customers drain. (Levitt, 1993)

Reasons for Sony deciding to standardize its goods

The Sony Company had an array of reasons for standardizing its goods. As the company made a decision to standardize it goods there are numerous advantages that it could accrue from such standardization step. This helped the company in complex interworking with the other companies which are setup in the different parts of the continents. The business having similar methodology in the procedures of creation process, then there was increased coordination on the areas of productions with the other related companies on others part of the state governments. The company was also able to take away the problems of complying with the international requirements in which they have opened up its distributions centers. This has great advantages on the removal of delays in the syndication course. In addition to the above reason, the companys decision on the standardizations was a way of promoting the firm on the practice and knowledge. The standardized goods means used of particulars steps, hence the industry to concentrate more on a specific type of strategies. The particular types of techniques are upgraded with every new brand which company produces. The specialization on the brings about promotion on industry procedures as they become common deals for its products. (Leonidou, 1997)

When the business standardizes its products, it isn't easy for other competing companies to make use of similar standards as those other company. Such impossibilities help the company to possess basement on assessing its products with others on different kind of factors. These factors include sturdiness yet others. The compliance of certain criteria are therefore used to actions the companys authority in technology. The companys decisions can be justified on others factors which include the economical and advertisements advantages. The merchandise have satisfied requirements which meet many politics and financial requirements in the international trade needs. This allows the company to acquire its products broadly accepted in many countries. This provides the company with the chance of widening its market size. This further creates the area for better competitive implementations in the market places.

The company reduced its costs through integrating standards which can be applied to many areas. Product standardizations which achieve the mandatory set standards are often distributed in all parts of the market segments. The practices then enable the corporation not to incur deficits and costs from delayed distribution. This avoids the delayed distributions to get and warehouses in the various states. Finally, there are some risks which are involved on productions and distributions of commodities. The standardization of products eliminates considerably major dangers which might occurs to produced product. The Sony Company being an electronic supplier cleared the chance of substance explosions of some of the gizmos. This in converts gave the consumers certain assurance in some level removing the risk of on the consumers. The restoration of the consumers self-assurance was an integral factor on the improvement of the nice reputations in the marketplaces. This reputation on durables commodities has since that time been in been around. It has performed a major role in the repositioning of the business in the competitive product productions. (Levitt, 1993)


  • Leonidou, C. (1997): Product standardization or version: Bradford: Vol. 2, pg. 43
  • Levitt, T. (1993): The Globalization of Market segments: Harvard
  • Tiger, S. (2000): The human relationships between market-driven learning and new product success in export market segments: London: Vol. 19, pg. 476
  • Waheeduzzaman, A. (2005) Styles and Development in Standardization Adaptation Research: Journal of Global Marketing, Vol. 17:p25- 30
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