Standardization vs.Adaptation of the Marketing Mix for Foreing Markets. Case Study of Casa Gandia Blascp

Abstract

This thesis studies how SMEs either standardize or adapt their promotion mix elements to foreign markets when doing business abroad. To be able to find an answer to this, three research questions are proposed: (1) How do SMEs promote their products in their home country (using the different promotion tools)? (2) How (in which situations and why) do the firms standardize or adapt these promotional activities to foreign countries? (3) What challenges do the small firms face when doing business in foreign markets?

The empirical work for this research study consists of one case study where data is collected from Casa Gandia Blasco, an international small family business in the luxury sector making outdoor furniture. The findings of the study indicate the importance of using various promotional tools when selling and doing business abroad. In this case study, the firm standardizes its promotional activities to acquire a global image. The products are standard and therefore, the company believes that there is no need for cultural adjustment. The study also shows the importance of developing strong networks relations with distributors and customers by participating in different events and tradeshows. Additional, the opening of showrooms is also very important for the company. Finally, SMEs need to fully understand both the marketplace and the product región, to become competitive.