While maintaining a standardized branding approach, they adapt their marketing and product line to specific markets where necessary. Companies that operate globally also standardize their advertising, maintaining a uniform design theme across the different markets as a way of reinforcing its brand image among its global audience. The same design theme and color scheme are applied even when the product packaging is presented in a different language. IKEA uses a standardized supply chain, sourcing its materials globally to maintain quality while achieving economies of scale. The store layouts, too, are almost universally similar, providing a consistent customer experience. The standardization strategy, in this case, extends beyond the product to advertising and brand messaging, creating a cohesive brand image worldwide.
For example, a large business, such as a car manufacturer, can produce a big quantity of the same parts using a global supply chain and integrate these inputs into a small range of products. J.P. Walti – Vice-President of Marketing, Creative, and Web J.P. Walti is Vice-President of Marketing, Creative, and Web at RingCentral, an AI-powered communications software provider. All of this important research will not only form the basis of your marketing plan, but your future approach to marketing in general.
Who sets global standards?
ISO is a network of the national standards bodies (NSBs) of some 164 countries (in 2012), with one member per country. Among other activities, ISO's Central Secretariat in Geneva, Switzerland, coordinates the organization and development of International Standards.
As you roll out your global standardization strategy, keep track of relevant key metrics. Depending on what your top priorities are and what teams are involved, your key metrics will likely vary. Ideally, your processes and global management platforms will leverage AI and machine translation effectively, efficiently, and scalably. Automation helps eliminate any manual and repetitive steps you and your teams may be facing and allows your linguists to translate content faster and more accurately. Getting time back enables you to think more strategically about your business instead of worrying about the quality of your translations or broken workflows. Working with dedicated subject matter linguists, identifying SEO keywords, and building out brand style guides and term bases help ensure an accurate and cohesive global brand strategy.
- This complexity grows as the number of respective target markets grows, requiring the organization to tackle standardization efforts on many fronts in different languages and cultures.
- Standardization is ideal for corporations with reasonable variation across their product lines.
- A lack of standardization can easily create confusion and misalignment among both your customers and global teams.
- With a higher level of global brand consistency, recognition is enhanced and brands build customer trust, thereby making it easier for the company to enter new markets.
- The strategy of globalization lies in the fact that a single volume of products is sold according to a standard marketing program.
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It allows them to benefit from economies of scale by producing a standardized product that can be sold across all the different markets without making any changes. It keeps production costs down while allowing businesses to keep a cohesive brand image and ensure quality. Global standardization means applying the same or similar offerings and processes across different markets, regardless of the local variations.
What is an example of a global standard?
International or global standards are agreements on common technical approaches that are used world-wide. Typical examples are: Internet standards — HTTP, SMTP, HTML, XML, etc. SI units of measure.
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The strategy can be applied to facilitate entry into the international market and increase brand popularity; it is helpful if a company desires to save on marketing. A linguistic resource guide or glossary is essential to making sure that your messaging and brand are aligned across all global markets. Across blog posts, websites, product content, and more, maximized linguistic assets ensure your content is localization-friendly and help your translators to work efficiently and focus on the essentials. Learn about both, as well as how you can plan an effective global marketing strategy. Localization and translation are cornerstones of a strong global standardization effort.
How to create a global standardization strategy?
Sensitive electronics must meet specific technological specifications and production occurs according to very nuanced processes. Understanding these trade-offs is crucial for businesses aiming to make a global impact while maintaining a competitive edge. Most people ignore products in languages that they don’t speak, so give yourself the best chance of success by avoiding these 5 common mistakes in global expansion. Standardization ensures that the core brand values and message are consistently communicated across all markets, helping to build a strong, recognizable brand identity. The easier it is to leverage opportunities in a new market, the less altering of a product, including the packaging and marketing message.
Form dedicated cross-functional teams
The rationality of the standardization strategy is substantiated by the assertion that the latest means of communication form the unity of tastes in all cultures. It results in a global market with identical demand for goods of good quality and reliability at reasonable prices. Consider performing a deep dive into the region’s commonly used phrases, technology preferences, regulations, and more. Context is everything — and understanding cultural and regional differences is paramount to building a personalized customer experience.
- Or if you’d like to a Lilt specialist to get started on implementing a global standardization strategy for your organization, contact us.
- Last but not least, cost savings are a significant benefit of global standardization.
- One example of standardization is the Generally Accepted Accounting Principles (GAAP) that companies must follow when preparing or reporting their annual financial statements.
- Evaluating your past wins and losses will help you build a more effective and confident strategy.
- And since localization can oftentimes be a complex process involving many teams and requests, it’s extremely important to have all your content, products, and services go to market in a unified way.
If a standardization project is on the horizon for your organization, learn more about smart, accurate translation with Smartling. Whether you’re looking for a beach house in Carmel, CA, or a flat in London, the booking systems, policies, and customer service network underlying each booking are standardized. Go beyond tactical localization with tailored, strategic solutions that resonate locally and drive growth globally. One example of standardization is the Generally Accepted Accounting Principles (GAAP) that companies must follow when preparing or reporting their annual financial statements.
Global standardization often stumbles upon the varied and complex regulatory landscapes of different markets. Companies adopting a global standardization strategy may face intense competition from local businesses that are more attuned to the needs of the domestic market. Last but not least, cost savings are a significant benefit of global standardization. By eliminating the need for multiple product versions or marketing strategies, companies can substantially reduce costs.
This can help you achieve economies of scale, reduce costs, simplify management, enhance quality, strengthen your brand image, and leverage your core competencies. For example, you might benefit from standardizing your product design, production methods, supply chain, technology, quality standards, corporate values, or mission statement. Local adaptation means tailoring your offerings and processes to the specific needs, tastes, and expectations of the customers and stakeholders in the target market. This can help you gain a competitive edge, increase customer satisfaction and loyalty, global standardization is an approach of and comply with local regulations and norms. In order to effectively connect and engage with your target audience, you’ll need to communicate in their language.
What is the standardized approach?
The term standardized approach (or standardised approach) refers to a set of credit risk measurement techniques proposed under Basel II, which sets capital adequacy rules for banking institutions.