1 Introduction
Within the course International Marketing, the third project deals with academic research in international marketing and internationalisation. We have chosen to focus on the inter-national dimension of standardisation versus adaptation in service marketing.
We will mainly discuss four typologies of services by McLoughlin & Fitzsimmons (1996), Lovelock (1983), Välikangas & Lehtinen (1990), and Clark & Rajaratnam (1999) and their implications for the standardisation versus adaptation trade-off. However, we will first give an overview about earlier research done within this field.
Some services were international in scope long before the term “scientific management” was ever invented or the first marketing course was taught. Shipping was an essential in-gredient in opening up early trade routes, with banking and insurance following and then facilitating them. In time, large companies emerged to operate international marine freight and passenger services, developing a network of agents in different ports to represent them. As more and more organisations offer services in foreign markets - often around the world - and as international trade in services increases, important questions are being raised concerning the design and implementation of international service marketing strategies. Research on internationalisation of services has been more limited than for manufactured goods and has tended to focus on methods of entry into foreign markets (see Vandermerwe & Chadwick, 1989; Johansson, 1990; Ikechi & Sivakumar, 1998). But there are other issues, as well; international strategies, scale and diversity, etc. Not all services are the same. Globalisation has different implications for different types of services and is affected by the nature of the process involved in creating and delivering a given service. (Lovelock, 1999) Grönroos (1999) also noted that most of the literature on internationalisation, international marketing and export strategies is geared to the needs of the manufacturing sector. However, it is a fact that international marketing of services is becoming a considerable part of total service marketing. Hence, it is not only of interest for service companies, but also for manufacturing companies. [...]
Table of Contents
- 1 Introduction
- 2 Academic Research
- 2.1 Back Room vs. Front Room
- 2.2 People-, Possession- and Information-processing Services
- 2.3 Generic, Specialised and Customised Services
- 2.4 Contact-, Vehicle-, Asset-, and Object-based Services
- 3 Analysis
- 4 Conclusion
Objectives and Key Themes
This paper examines the complexities of international marketing in service firms, specifically focusing on the standardization versus adaptation strategies. The authors analyze existing academic research on international service marketing and explore various service typologies to understand the implications for a global approach versus localized adaptation.
- Standardization vs. Adaptation in International Service Marketing
- Typologies of Services and their implications for International Marketing Strategies
- The Role of Customer Contact in Service Globalization
- Impact of Culture and Language on International Service Delivery
- The Influence of Technology on Global Service Provision
Chapter Summaries
1 Introduction: This introductory chapter sets the stage for the paper by outlining its focus on the international dimension of standardization versus adaptation in service marketing. It briefly touches upon previous research in the field, highlighting the limited research on service internationalization compared to manufactured goods. The chapter emphasizes the growing importance of international service marketing and the need to understand the complexities of balancing global strategies with local adaptations. It also points out the significant amount of studies (34) that discuss a global versus adaptive approach, most of which focus only on a single element of the marketing mix, which limits their usefulness according to Van Mesdag (2000).
2 Academic Research: This chapter delves into the fundamental differences between services and products, establishing a framework for understanding the unique challenges of international service marketing. It highlights the characteristics that distinguish services (intangibility, heterogeneity, simultaneity of production and consumption, customer participation, etc.) from products, laying the groundwork for analyzing the implications of these differences for internationalization strategies. The chapter serves as a critical foundation for the subsequent analysis of service typologies and their suitability for standardization or adaptation.
2.1 Back Room vs. Front Room: This section examines the impact of customer contact on the internationalization of services. It differentiates between "back room" operations (routine tasks with minimal customer interaction) and "front room" operations (direct customer interaction). The authors argue that while back-room operations are more easily standardized and globalized (often outsourced to lower-cost locations), front-room operations require significant cultural adaptation due to the importance of communication and understanding customer needs. The role of technology in facilitating globalization is also discussed, particularly in the context of outsourcing and reducing geographical constraints. The example of McDonald’s is used to illustrate a successful standardization strategy for routine services.
2.2 People-, Possession- and Information-processing Services: This section explores Lovelock's (1983) typology of services, categorizing them into people-processing, possession-processing, and information-processing services. Each category's unique characteristics and implications for internationalization are examined. The discussion emphasizes the geographic constraints of people-processing services, requiring a local presence for physical interaction with customers. Possession-processing services are similarly discussed, considering the technological advancements that allow for remote service delivery in certain instances. This section provides a more nuanced understanding of the diverse nature of services and how this diversity impacts the standardization vs. adaptation decision.
Keywords
International marketing, service firms, standardization, adaptation, service typologies, globalization, customer contact, cultural adaptation, internationalization strategies, global vs. local, service delivery.
Frequently Asked Questions: A Comprehensive Language Preview on International Service Marketing
What is the main topic of this paper?
This paper examines the complexities of international marketing in service firms, specifically focusing on the standardization versus adaptation strategies. It analyzes existing academic research and explores various service typologies to understand the implications of a global approach versus localized adaptation.
What are the key themes explored in this paper?
The key themes include: Standardization vs. Adaptation in International Service Marketing; Typologies of Services and their implications for International Marketing Strategies; The Role of Customer Contact in Service Globalization; Impact of Culture and Language on International Service Delivery; and The Influence of Technology on Global Service Provision.
What are the different chapters covered in this preview?
The preview includes summaries of the following chapters: Chapter 1: Introduction; Chapter 2: Academic Research (including sections 2.1 Back Room vs. Front Room and 2.2 People-, Possession- and Information-processing Services); Chapter 3: Analysis; and Chapter 4: Conclusion. Note that Chapter 3 and 4 are only mentioned in the Table of Contents.
What is the significance of the "Back Room vs. Front Room" distinction?
This section highlights the impact of customer contact on service internationalization. "Back room" operations (minimal customer interaction) are easier to standardize and globalize, often outsourced. "Front room" operations (direct customer interaction) require cultural adaptation due to communication and understanding customer needs. Technology's role in facilitating globalization, especially in outsourcing, is also discussed.
How does Lovelock's (1983) service typology contribute to the analysis?
Lovelock's typology categorizes services into people-processing, possession-processing, and information-processing services. The analysis examines each category's unique characteristics and implications for internationalization, highlighting geographic constraints (people-processing) and the role of technology in remote service delivery (possession-processing).
What are the limitations of previous research highlighted in the paper?
The introduction points out that a significant number of studies (34) discuss a global versus adaptive approach, but most focus only on a single element of the marketing mix, limiting their usefulness according to Van Mesdag (2000).
What are the key takeaways from the introduction chapter?
The introduction sets the stage by outlining the focus on the international dimension of standardization versus adaptation in service marketing. It highlights the limited research on service internationalization compared to manufactured goods and emphasizes the growing importance of understanding the complexities of balancing global strategies with local adaptations.
What are the key words associated with this paper?
Key words include: International marketing, service firms, standardization, adaptation, service typologies, globalization, customer contact, cultural adaptation, internationalization strategies, global vs. local, service delivery.
- Quote paper
- Christian Wolf (Author), Sofie Hildingsson (Author), Patrick van der Honing (Author), 2002, Standardisation vs. Adaptation - International Marketing in Service Firms, Munich, GRIN Verlag, https://www.grin.com/document/2767
