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Product Standardisation
Marketing Management (3B05BBA)
Kannur University
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PRODUCT STANDARDISATION
Meaning
Product standardization refers to the process of maintaining uniformity
of products and services sold in different markets or in other words setting
identical characteristics for a particular good or a service.
Generally, products with high technological intensity such as heavy
equipment’s, plants and machinery, microprocessors, hard disks, projectors
etc. are marketed as standardized products across the world.
The Uses of Product Standardization
Product standardization is useful for a number of reasons. By following certain guidelines for the production of goods and services goals such as innovation, cost reduction, and streamlined production system can be achieved.
Cost reduction: Product standardization reduces the cost of production. When a set of guidelines are being adhered to in order to produce identical goods or services, the cost of raw materials goes down. The raw materials being used for that particular product are the same. Instead of spending money on different raw materials, different packaging and different marketing techniques, standardization ensures that both production and maintenance costs are kept low.
Production efficiency: The production process becomes more efficient when the end goal is to maintain uniformity of products. Less effort is expended on production. It is easier to automate at least part of the production process. The same process is utilized in different organizations or industries to produce the same good or service. The lack of pressure to innovate the particular product with each iteration increases efficiency. The consumer does not expect the product to deteriorate, but they do not expect it to become radically different either. There is an established process, which streamlines production and makes it faster.
Establishment and strengthening of the brand: When a particular product is available across different markets, including the international sphere, in a consistent form with uniform features, it becomes a brand that the consumer base recognizes and trusts. Regardless of geographical location, the exact same good or service is delivered to the consumer, with no change in quality. This reinforces the branding of the product. The organization or industry of origin profits from the particular recognizable product being chosen by consumers who have used it in the past and wish to use it again based on its quality. If the consistency of quality is maintained, then the product will become an international brand.
Convenience for consumers: Product standardization is convenient for consumers when it comes to products like technology or construction materials or automobiles. There are certain product specifications according to which particular products are made. Adhering to the specifications ensures that consumers will be able to find a particular product to satisfy a particular need wherever they might be located. Standardizing technology maintains compatibility of technological devices across the globe. It improves efficiency. Certain materials used in construction such as tools are the same across international markets. It ensures that there is little chaos regarding these products.
Standard of quality: Standardizing of products ensures that all products are held to a certain standard of quality. The particular product must be uniform in every way. Therefore, it is easy to detect any failure in the process of production or marketing. Any inconsistency in the product will stand out. Consumers and inspectors can see any obvious failure of a particular iteration of a product to meet the previously established standard of quality. The existence of this standard ensures that the producer will seek to maintain it. Thus the producer is kept accountable and the quality of the product does not suffer.
Disadvantages of Product standardization
Stagnation – When the organization keeps producing a uniform product for a long time then it will cause the organization to remain in the same place in the industry. This is not good for an organization since the rivals can take advantages of this. So while trying to standardize the products they need to make changes to the products as the environment changes. Communication failures – As the time goes the demand of the consumers can be changed and in such situations, organizations will still try to maintain the consistency without looking at the changes of demand of the consumers. This will make bad consequences on the organizations’ survival. Less choices to consumers – Since the product is a standardized one, the consumers do not have a wide range of choices.
Product Standardisation
Course: Marketing Management (3B05BBA)
University: Kannur University
