Standardization means setting standards of quality. It assures the consumers that the goods are pure and uniform in quality and performance. It determines the standards with respect to quality, utility, size, form, colour, etc., of the product to be produced. It also helps in maximizing compatibility, interoperability, safety, repeatability, or quality. According to Tousley, Clark and Clark, “Standardization is the general term which included the establishment of standard of products, the inspection of products in order to determine the standards to which they confirm and where necessary, the sorting of product into lots confirming to established standards.
In practice, many standard forms are used by marketers for their products such as ISO, ISI, AG Mark, Quality Mark, etc.
Importance of Standardization
- Increase in demand: As there is uniformity in size, form, quality and utility of all products of a firm, the customers rely upon these products. It increases the sale of standardized goods.
- Uniformity in quality: With standardized goods, there is homogeneity and consistency in quality. Thus, a consumer can buy a product without much hesitation and risk as the quality of product will not change over a period of time that leads to better goodwill of an organization.
- Expansion of market: There is large-scale production of standard goods which results in many types of savings in production, distribution, advertising and sales promotion because of these the manufacturer is in a position to produce best quality goods at minimum cost and attracts the number of customers.
- Helpful in selling: In the modern marketing activities, the marketing of standard goods and services is very easy. The consumers can easily identify and rely on these products. Hence, it becomes easy for the retailers and wholesalers to sell the standard goods or services.
- Increases risk bearing capacity: As the standards of products are determined keeping in view the habits, tastes, nature and attitudes of consumers, it reduces the risk of selling standard goods and services among the consumers.
- Availability of finance: On the basis of standard goods, the finance facility can be easily available to the business firm. Because these financial institutions prefer to give finance to those firms that have sound business in the market and have proper planning to execute their plans.
- No need for inspection: There is no need for inspecting the quality of a product as the size, quality and utility of all the products in a lot are uniform in all respects and the consumers are convinced with it.
- Other Advantages of standardization: It includes stability in the cost of production and distribution, helpful in the physical distribution of goods, helpful in the expansion of product mix, helpful in packaging, helpful in advertising and sales promotion programmes, helpful in controlling the production and distribution, etc.