Standartization or Customization of Marketing in a Globalized World: Case Study

The following master thesis is devoted to customisation or standardisation of marketing in a globalised world on the example of German multinational company, BMW Group. The globalisation of economy has transformed customer’s awareness of products and services and therefore international marketing environment. In this respect, contemporary companies encounter the issue of standardising or adapting their international marketing program across markets. On the one hand, standardisation, in the condition of homogeneous markets, brings cost benefits and simplified administration through economies of scale. On the other hand, adaptation, treating markets individually, satisfies various host market’s needs. However decision on either standardisation or adaptation should not be a dichotomous one. The matter is that heterogeneity among different markets, accompanied by companies’ incentives to satisfy the local requirements, do not allow full standardisation and huge costs resulted from adaptation with the firms’ desire to experience advantages of standardisation, do not admit extensive customisation. Therefore both concepts do not substitute, but co-exist with each other, implying a certain degree of standardised and adapted tactics. The case of BMW Group demonstrates this extent in its international marketing strategy, where product and promotion deserve high adaptation level in key markets as well as price addresses high degree of customisation on all markets of BMW presence and place is perceived to be the most standardised among all.