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Product planning chapter 11

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  • 1. CHAPTER 11 Product Planning
  • 2. Special Topics International issues Public Policy issues Intellectual Property issues
  • 3. International Issues Product design for international markets Management of global product development
  • 4. Product Design for International Five main strategies  Straight extension – no change to the product  Communication adaptation – same product, only change the promotion aspects (color, language, name) – read examples page 206!  Product adaptation – adapting a product to meet local conditions  Dual adaptation – altering both communication and product  Product invention – new product for the local market
  • 5. International Considerations Different culture and language Lens of company’s culture may alter their view Five themes to consider  Time – perception differs across cultures  Space – personal space, being alone or in groups  Things – belongings, gifts  Friendships – personal relationships  Agreements – the way contracts are executed
  • 6. Global Teams A quarter of new product development teams are global in nature Language or physical location challenges Generation of trust among team members
  • 7. Public Policy Issues Product liability Environmental concerns Product/service performance Morality Other public policy issues
  • 8. Product Liability Vulnerability of the company to litigation due to risks that the product contains  Product design  Manufacturing defects  Adequate instructions  After-use dangers Legal bases  Negligence - Strict liability  Warranty - Misrepresentation
  • 9. Environmental Concerns Raw materials and processes in manufacture of the product Disposal of products at the end of their life EU particularly aggressive in this area
  • 10. Product/Service Performance Assurance that a product will perform as specified Quality control and quality assurance programs Recall programs
  • 11. Morality “Sin” products – cigarettes, alcohol, guns Different cultures have different restrictions and biases regarding “sin” products and types of advertising for them
  • 12. Other Public Policy Issues Politics, economic conditions, and media Congressional hearings on HMO’s Shifting value of the dollar relative to other currencies Media coverage of specific products or categories may unfavorably raise awareness of potential problems
  • 13. Intellectual Property The knowledge of a company Can sometimes be protected by patent, trademark, or copyright Different standards in different countries Can’t patent a service
  • 14. Patents Seven categories that can be patented  An art or process or method of doing something  A machine  A manufactured product  A composition of matter  A new or useful improvement of the above  A new variety of plant  A design of a product – a particular pattern, form, or contour of a product Patent application has a petition, a specification, and an oath
  • 15. Trademark and Copyright A trademark is a unique design identifying that company from another, and lasts for 20 years (can be renewed) A copyright protects original works of authorship, and lasts for the author’s life plus 50 years