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International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
International Product Decisions
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International Product Decisions

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Product decisions in International Marketing management includes market segment decision, positioning and communication decisions. The term product decision includes product strategy, product planning …

Product decisions in International Marketing management includes market segment decision, positioning and communication decisions. The term product decision includes product strategy, product planning and product management.

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  • 1. Chapter 9International Product Decisions International Marketing Chapter-9 International Product Decision
  • 2. ObjectivesWhat are the important product decisions inIM managementWhat is the definition of product and whatare the components of productWhat is product mixWhat stages constitute the life cycle of aproductWhat are the types of new products andwhat are their opportunities International Marketing Chapter-9 International Product Decision
  • 3. What is brandingWhat are the functions and importance ofpackaging and labelingWhat is business environmentWhat are the product strategiesWhat are product-communicationstrategiesWhat is the difference betweenglobalization and localization International Marketing Chapter-9 International Product Decision
  • 4. Introduction Product strategy involves the managerial decisions about the product mix and the positioning and communication Product planning is used in a broad sense, involves not only the product strategy described above but also the product development measures International Marketing Chapter-9 International Product Decision
  • 5. Product management refers to themanagerial decisions pertaining toproduct development and the productstrategies through the different stagesof the product life cycle International Marketing Chapter-9 International Product Decision
  • 6. Product Decision1. Market segment decision2. Product mix decision3. Product specifications4. Positioning and communications decisions International Marketing Chapter-9 International Product Decision
  • 7. Product Philip Kotler defines a product as anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need, includes physical objects, services, persons, places, organizations and ideas. International Marketing Chapter-9 International Product Decision
  • 8. Components And Levels ofProduct1. Core product2. Tangible product3. Augmented product International Marketing Chapter-9 International Product Decision
  • 9. Core Product Core product refers to the core benefit the consumer derives from the product. In some cases the basic physical product remains the same, the core product differs between markets because the purpose for which product is used is different in these different markets. This is called modification of product design, positioning and communication strategies. International Marketing Chapter-9 International Product Decision
  • 10. Tangible Product Tangible product is the actual form with all its attributes, in which the product is offered to the consumer. It has certain characteristics like a quality level, features, styling, a brand name and packaging. International Marketing Chapter-9 International Product Decision
  • 11. Augmented Product Augmented product refers to certain additional services or benefits offered with the product such as installation, delivery and credit facilities, after sales service and warranty. Product augmentation may not be very important in a seller’s market but they are very important in the competitive markets whichInternational Marketing market are buyer’s Chapter-9 International Product Decision
  • 12. Product Mix The product mix is the full list of all the products offered for sale by a company. The product mix has certain width, depth and consistency. The width refers to the number of different product lines in the product mix. International Marketing Chapter-9 International Product Decision
  • 13. The depth refers to the average no. ofitems offered by the company withineach product line.The consistency refers to the extent towhich the various product lines areclosely related in end use, productionrequirements, distribution channels, orin some other ways. International Marketing Chapter-9 International Product Decision
  • 14. Product Life Cycle1. Introduction2. Growth3. Maturity4. decline International Marketing Chapter-9 International Product Decision
  • 15. Introduction1. Low sales because it generally takes some time for a new product to get wide acceptance by consumers and it also takes time to expand the marketing of the product2. High costs per unit because of the low sales and high promotional expenditure3. Absence of or low competition if the product is entirely new.4. Loss or negligible profits because of low sales and high costs. Marketing International Chapter-9 International Product Decision
  • 16. Growth1. Fast growth in sales because of increasing consumer acceptance and expansion of marketing2. Growing profits because of growing sales and fall in the incidence of fixed production cost and marketing cost per unit.3. Increasing competition4. Market segmentation and the introduction of different versions of the product. International Marketing Chapter-9 International Product Decision
  • 17. Maturity1. Saturation of sales2. Intense competition3. Falling profits because of high promotional expenditure and falling margins. International Marketing Chapter-9 International Product Decision
  • 18. Decline Entry of new products which compete with the product Decline in sales Decline in profits: profits may even become negative Exit of some of the firms International Marketing Chapter-9 International Product Decision
  • 19. PLC And InternationalMarketing International marketing may enable a firm to alter the shape of the PLC. It is also a fact that in several cases technologies/products are introduced in developing countries when they have become obsolete in the advanced countries. There is often a time leg between countries in the adoption and diffusion of technologies. International Marketing Chapter-9 International Product Decision
  • 20. New Product Development1. Innovative product2. Significantly modified product3. Copy of the existing product International Marketing Chapter-9 International Product Decision
  • 21. Steps In New ProductDevelopment1. Idea generation2. Evaluation and selection3. Concept testing4. Business analysis5. Product development6. Market testing7. commercialization International Marketing Chapter-9 International Product Decision
  • 22. BrandingA brand is a name, term, sign, symbol, ordesign or a combination of them, intended toidentify the goods or services of one seller orgroup of sellers and to differentiate them fromthose of others.The part of the brand which can be vocalized-the utterable-is known as the brand name.The part of the brand that is given legalprotection for exclusive use by a seller is knownas the trade mark. International Marketing Chapter-9 International Product Decision
  • 23. Branding Decisions1. To brand or not to brand2. Manufacturer’s brand or private brand3. Same brands or different brands International Marketing Chapter-9 International Product Decision
  • 24. Global Brands1. It makes market entry easy- for example, Pepsi is well known in India even before it came to India2. It reduces the promotional expenditure as the brand is well known.3. It helps to generate good sales since the very beginning. International Marketing Chapter-9 International Product Decision
  • 25. Branding Problems InInternational Marketing1. It is very difficult for a small firm to promote its brand in foreign markets because of the heavy cost of brand promotion.2. Established foreign importers and distributors discourage use of exporter brand because they prefer to sell the products under their own brand name.3. The cultural and other factors make branding decision complicated in IM. International Marketing Chapter-9 International Product Decision
  • 26. 4. One problem faced by some multinational companies when they wanted to market their products in some countries is that they found that their world renowned brands had been registered in these countries by somebody else with the result that these firms had to pay fee to the registered holders of these brands in these countries for permission to use these brands.5. In some countries, there are restrictions on use of foreign brands International Marketing Chapter-9 International Product Decision
  • 27. Scope For Use Of Indian Brands1. Indian brand names may be used when niche marketing strategy is employed.2. Indian brand names may be used when the export is made to foreign firms who do not have their own brands or when goods are sold by distributors who do not have their own brand names.3. After gaining credibility and gaining experience in export business by being suppliers to foreign firms, the Indian exporter may start selling under its own brand name. Chapter-9 International Product International Marketing Decision
  • 28. 4. An Indian firm may buy a foreign brand or take over a foreign firm with established brand name.5. The Indian firms having reputation in foreign countries may promote their brands in the foreign markets.6. Indian companies may also use mixed brands.7. Several firms may jointly promote a common brand-consortium approach.8. Promotion of a logo by export promotion agencies and permission to use this logo along with the brands of firms who will strictly adhere to the quality and other norms. International Marketing Chapter-9 International Product Decision
  • 29. Packaging And LabelingThis terms are distinct in the marketing parlance.In export marketing, packaging, includingpacking, is a factor which demands very carefulattention.Packaging in IM is a much more serious problemthan in domestic marketing because of thevarying physical conditions and situations thecargo is exposed to and subjected to; differencein the tastes, preferences and practices;differences and International Marketing peculiarities in packaging Chapter-9 International Productrequirements and regulations.Decision
  • 30. Functions And Importance OfPackaging Functions1. Protection2. Preservation3. Presentation Importance1. Self service2. Consumer affuence3. Integrated marketing concept International Marketing Chapter-9 International Product Decision
  • 31. Factors Influencing PackagingDecision1. Physical characteristics2. Physio-chemical characteristics3. Economy4. Convenience5. Miscellaneous factors International Marketing Chapter-9 International Product Decision
  • 32. Special Consideration in IM Regulations in the foreign countries Buyer’s specification Socio-cultural factors Retailing characteristics Environmental factors Disposability International Marketing Chapter-9 International Product Decision
  • 33. Importance And RequirementOf Export Packaging1. It should be capable of withstanding the hazards of handling and transport.2. It should be easy to handle.3. It should be amenable to quick examination of contents.4. It should be easy to identify5. It should be adequately marked. International Marketing Chapter-9 International Product Decision
  • 34. 6. Unless it is necessary, contents shall not be disclosed7. It should be easy to dispose of8. Packaging must conform to the buyer’s specifications. International Marketing Chapter-9 International Product Decision
  • 35. Business EnvironmentBusiness environment is a very importantfactor which influences the marketing mixstrategySome times a company may find theintroduction of a better material a problembecause of certain peculiar convictions of theconsumers.There are many instances of nationalregulations prohibiting the marketing ofcertain products. International Marketing Chapter-9 International Product Decision
  • 36. Product Communication Strategies In IM product and communication strategies are usually considered together because the need satisfaction, purpose of product use or usage occasion and the product communication are rather inseparable.1. Straight extension2. Product extension, communications adaptation strategy3. Product adaptation, communications extension strategy4. Dual adaptation5. Product invention International Marketing Chapter-9 International Product Decision
  • 37. Developments tend to favourGlobalization1. Technological advance2. Travel and communication3. Product image4. International standards International Marketing Chapter-9 International Product Decision
  • 38. Summary Product decisions in IM management includes; market segment decision, product specifications and positioning and communication decisions. All the categories of products enjoy the opportunities of copying, product modification and innovation. The term product decision include product strategy, product planning and product management. International Marketing Chapter-9 International Product Decision

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