Product Decision

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Information about Product Decision
Business-Finance

Published on January 13, 2009

Author: aSGuest10409

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Global Marketing Product Decision : Global Marketing Product Decision Victoria Joyce Noel Judge Carla Magliocco Sharon Kilgannon Standardisation Vs Adaptation : In international markets, success depends on satisfying the market demands. The product or service must be suitable and acceptable for its purpose. According to Doole & Lowe (1999, p.296), “The main issue for a company about to commence marketing internationally, is to assess the suitability of the existing products for international markets.” Product policy abroad: firm must decide which aspects of a product need to be adapted and which can be standardised. Standardisation Vs Adaptation Standardisation Vs Adaptation : Standardisation policy: offering a uniform version of a product in all of its foreign markets. Adaptation policy: offering a product to targeted foreign consumers altered to specific tastes, preferences and needs. Adaptation can concern all the characteristics of the product. Decision between standardisation and adaptation is not mutually exclusive rather it is a matter of degree A certain degree of adaptation of a product is required in international markets. Standardisation Vs Adaptation Standardisation Vs Adaptation : Standardisation Vs Adaptation McDonalds example: Pork in India! Advantages to pursuing a standardised approach: cost economies, a consistent brand image and simplification of planning and control. Standardising a product can ultimately lead to failure. Main advantage of an adaptation policy is probability that sales and revenue will be increased due to appropriateness to the specific needs of the markets. The major drawback is the complex organisation and implementation issues of a product adaptation policy in all foreign markets. Ultimately, the individual company will decide Product Standards : Product Standards Global competition is fierce and companies are looking for new ways to differentiate themselves from competitors Using product standards as a means of differentiating their product offering In Europe and worldwide, the ISO 9000 certification is a mark of superior quality. Product Standards : Product Standards The ISO 9000 is awarded where products are produced using certified manufacturing procedures eliminating product quality variation. The ISO 9000 is seen as a global standard made up of five sub standards. Terpstra and Sarathy (1997) suggest, quality provides an edge; corporations should strive to obtain quality standards such as ISO 9000, as these product standards are increasingly being sought worldwide. Green Marketing : Green Marketing “Green marketing is a term used to identify concern with the environmental consequences of a variety of marketing activities” (Cateora & Graham, 2002). Consumers take environmental issues into concern when they buy, consume or dispose of products Green Marketing : Green Marketing Alliances provide 5 benefits to marketers They increase consumer confidence in green products and their claim They provide firms with access to environmental information - support and advice They give the marketer access to new markets - have an extensive support base They provide positive publicity and reduce public criticism They educate consumers about key environmental issues for the firm and its products - valuable sources of educational information and material. Product Development : Product Development Eleven Critical Success Factors Offers a unique, superior product – value to the customer A strong market orientation Incorporating international orientation in product The right organisational structure The support of top management Cooper (2002) Product Development : Product Development Leveraging core competencies Projects aimed attractive markets do better Focusing on a few projects Resources must be in place to implement the projected plan Speed at developing products High quality, disciplined and systematic new product process Cooper (2002) Slide 11: Key Authours Developing International Service Strategies : Developing International Service Strategies A service is an activity which has some element of intangibility associated with it which involves some interaction with customers or with property in their possession, and does not result in a transfer of ownership. A change in condition may occur and production of the service may or may not be closely associated with a physical product Characteristics: Intangibility, Inseparability, Perishability, Variability Pricing & Uniformity difficulties Developing International Service Strategies : Developing International Service Strategies Barriers to Global Markets Protectionism Restrictions on Transborder Data Flows Protection of Intellectual Property Cultural barriers and adaptation The Product Life - Cycle : The Product Life - Cycle Levels of the cycle Life cycles for different products of the firm Life cycles for different countries International product lifecycle Strategic Options Product improvements Repositioning of the product Increase the reach of the product to new users Promote more frequent use of the product Promote new uses of the product Branding Decisions : Branding Decisions Developing new products Degrees of product newness Brand vs. No brand Private label vs. Manufacturer’s own brand Co-branding vs. Ingredient branding Single brand vs. Multiple brands Local brand vs. Global brand Product Growth Strategies : Product Growth Strategies Acquisitions and divestments Product line diversification Joint ventures, licensing and wholly owned foreign operations Franchising Relatively fast and easy access to markets Fit between franchise concept and foreign market International issues in franchising Product & Service Positioning : Product & Service Positioning Positioning Strategies Attribute or benefit Quality vs. price Use/user of the product High-tech positioning High-touch positioning Hollenson - Attributes - Benefits Johansson & Thorelli - Perceptual Map Country of Origin Effect : Country of Origin Effect “…any influence that the country of manufacture, assembly, or design has on a consumers positive or negative perception of a product” (Cateora & Graham, 2002, p.369) Stereotypes – positive or negative Significant influence on product positioning Adapt positioning from country to country Market Entry : Market Entry Terpstra & Sarathy (1997) Global strategic variables Transaction specific variables Environmental variables Unrealised market potential Competitive audit Level of Government involvement Risk evaluation Conclusion : Conclusion International product decisions are wide-ranging and complex Extensive research needs to be undertaken before entering a new market R&D Management : R&D Management The Effectiveness of Centralised R&D Developing Global R&D Capability International Lead Markets and R&D Role of Foreign Subsidiaries in R&D Alternative Methods of Enhancing R&D Capabilities and Product Development Packaging : Packaging Transportation Concerns Climate Concerns Economic Concerns Cultural Factors Promotional Considerations Market Retailing Structure Labelling

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