Desarrollo de la propuesta de mejora Responsables: La investigadora.

(1975) which observed that 74% o f their firms standardised this aspect.

Based on these empirical findings and the conceptual factors as discussed the following proposition was put forward:

Proposition P 1-5

Within the distribution elements the “management o f the sales force “ is likely to he standardised to the lowest degree because o f the predominant dependence on different cultural expectations o f the sales personnel as well as due to differences in the market structures (Akaah, 1991, Baden Fuller and Stopford, 1988, Honeycutt and Ford, 1995, Hill et al, 1991, Meyer, 1978).

2.9 THE DEGREE OF PROMOTION STANDARDISATION

Companies use their promotion mix elements which include various aspects like advertising, personal selling or sales promotion with the aim to communicate with their various publics (Kotler, 1996). As Table 2.8 illustrates companies approach this issue with regard to the

Chapter Two: Marketinu Standardisation

degree of standardisation very differently. There are studies which found the promotion category to be the one which is standardised to the second highest degree compared to the other categories (e.g. Ozsomer et al, 1991, Sorenson and Wiechmann, 1975) but there are also studies which suggest that the potential for a high degree of promotion standardisation is rather limited (e.g. Chhabra, 1996, Shoham, 1996, Shao et al, 1992).

Nevertheless, authors like Meffert and Althans (1982) emphasise the need for companies to use the promotion elements to positively influence actual and potential customers in the home market as well as in overseas markets. They argue that the standardisation of the promotion mix elements can lead to a reduction in (production) costs especially with regard to advertising (e.g. Elinder, 1961, Fatt, 1967).

But in addition to a decrease in development costs of promotion campaigns a standardisation of promotion elements offers the chance to build a more homogeneous perception of the brand on a world-wide basis (e.g. Blackwell et al, 1991, Levitt, 1983, ). This can have another positive effect in terms of a decrease of irritation of the consumers which might be otherwise produced through frontier-crossing promotion messages with a different focus (Müller and Kommeier,

1996).

Tietz and Zentes (1980; page 399) summarise the potential advantages o f standardised promotion elements as

Chapter Two: Marketinn Standardisation • reduction of the overall costs

• regional/global use of successful advertising ideas • development of an uniform corporate image • more efficient utilisation o f the promotion budget • opportunity to use cross-border media

These potential advantages o f this approach probably are the reason why the standardisation of the promotion elements has attracted such a large amount of research interest, (e.g. Althans, 1982, Elinder, 1961, Fatt, 1967, Harris, 1994, Hite and Fraser, 1988, Kanso, 1992, Kaynak, 1989, Landwehr, 1988, Peebles et al, 1977, Roostal, 1963, Steffens, 1982, Theis, 1994, Tostmann, 1985, Whitelock et al, 1995, Zandpour et al., 1994).

However, several authors stress that there are also a number o f aspects which limit the use of a standardised approach (e.g. Boddewyn et al, 1986, Britt, 1974, Onkvisit and Shaw, 1987, Raaij, 1997, Shao et al., 1992, Whitelock and Chung, 1989). Authors like Bolz, 1992, Chhabra (1996), Kreutzer (1991), Meffert (1991) and Hensmann (1989) emphasise differences with regard to the media structure which exist within regions such as Europe which limit a standardised approach towards promotion elements. Other authors strengthen this notion by stressing that the specific retail structures of country markets as well as different legal restrictions have an important impact on the degree o f standardisation with regard to sales promotion activities (e.g. Müllerand Kornmeier, 1995, Walters, 1986).

Chapter Two: Marketing Standardisation

Taking into account the potential benefits as well as the barriers it does not surprise that the findings are mixed as Table 2.6 and Table 2.7 show. With regard to the standardisation o f promotion Shoham (1995) found that the scope of complete promotion standardisation varied from 60% (Schuster and Bodkin, 1987) to just 13% (Boddewyn et al, 1986) while the range o f complete standardisation of specific promotion elements varied from 43-71 %. Within these extremes the findings of Chhabra (1996) suggest a medium degree of standardisation of 48%, the same level of standardisation was found by Weinrauch and Rao (1974). Based on these findings the following proposition is suggested for testing in the process o f this study:

Proposition P 1-6

The promotion category will be standardised to a medium to high degree but lower than the product category acknowledging that several advantages can be achieved by a promotion standardisation (Althans, 1982, Beutelmeyer and Miihlbacher, 1986, Boh, 1992, \ f tiller and Kornmeier, 1996, Ozsmer et al, 1991).

Within the promotion category the international as well as German findings all suggest that the promotion element which is standardised to the highest degree is the advertising message. Table 2.6 illustrates this for the studies of Akaah (1991), Ozsmer et al (1991) and Sorenson and Wiechmann (1975). Table 2.7 supports this notion with regard to the findings of Althans (1982), Bolz (1992) and Beutelmeyer

Chapter Two: Marketing Standardisation

and Miihlbacher (1986). However, the level of standardisation varies considerably between the studies though.

The highest degree of advertising standardisation was found in the studies of Beutelmeyer and Miihlbacher (1986) who reported 75% which is similar to the findings of Sorenson and Wiechmann (1975) who observed 71%. Althans (1982) found that 65% standardised their message while the lowest degree was found by Bolz (1992) who saw only 32% of German companies to standardise their advertising message but even this low level was higher than the other promotion elements measured in his studies (e.g. sales promotion: 16%). Based on these findings proposition P 1-7 was formulated to be confirmed with regard to the German companies of this study:

Proposition P 1-7

Within the promotion elements the “advertising message“ will be standardised to the highest degree (Akaah, 1991, Bolz, 1992, Beutelmeyer and Miihlbacher, 1986, Kreutzer, 1989, Ozsmer et al, 1991, Sorenson and Wiechmann, 1975, Theis, 1994).

Nevertheless, as stated above one has to be aware of the limitations of the findings as presented in Table 2.6, Table 2.7 and Table 2.8: The underlying surveys were not consistent and varied in important aspects such as their scope or the choice of industry. As also indicated one must be rather careful with an evaluation of the degree of marketing standardisation based on single aspects of product, price.

Chapter Two: Marketing Standardisation

promotion and distribution elements as it can be misleading in the sense that it might neglect the overall marketing standardisation strategy of the firms (e.g. Bolz, 1992, Kreutzer, 1989). An evaluation of the degree of the marketing process is even more difficult because studies which explored this aspect empirically are hardly existing so far. There is not only a predominance towards conceptual studies in this area but also towards German studies which tend to place more emphasis on this issue than the international literature (e.g. Bolz,

1992, Becker, 1991, Kreutzer, 1989, Meffert, 1986).

2.10 POTENTIAL BENEFITS OF MARKETING