Standardization vs. adaptation of the marketing program for international markets: case study of Liko

Abstract: This thesis focuses on adaptation/standardization of the marketing program done by small and medium sized companies (SME) for international markets. To be able to answer this, four research questions were posed: (1) How are SMEs' standardization/adaptation of products to international markets influenced by various factors? (2) How are SMEs' standardization /adaptation of price to international markets influenced by various factors? (3) How are SMEs' standardization/adaptation of promotion to international markets influenced by various factors? (4) How are SMEs' standardization/adaptation of distribution channels to international markets influenced by various factors? The empirical work for this study consists of data collected from Liko, an international medium sized company in the industrial sector making medical technical equipment. The findings of the study indicate that a successful international SME is taking the initiative to adapt to customers in foreign markets since this can help the SME to concur market shares. The study also showed that a specialized product often require price adaptation in different international markets since customer demands differ, and when the product is specialized, it is important for the SME to have knowledge over both the market and the product area in order to set the right price. It is also important for the SME to have experience within the promotional area in order to be market leader and it should use tradeshows as a part of their promotion activity. This study also shows that a short distribution channel, and thereby short distribution time, leads to increased sales for the SME.