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International product

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International product

  1. 1. International Product<br />2-Apr-2009<br />HeMANT BAMORIYA<br />
  2. 2. What is a Product?<br /><ul><li>Goods
  3. 3. Services
  4. 4. Experiences
  5. 5. Events
  6. 6. Persons
  7. 7. Places
  8. 8. Properties
  9. 9. Organizations
  10. 10. Information
  11. 11. Ideas</li></ul>2-Apr-2009<br />
  12. 12. Product Levels<br />2-Apr-2009<br />
  13. 13. Product Classifications<br />Services<br />Example: BCG, Amazon.com<br />Nondurable<br />Example: Coca Cola, Kellogg’s <br />Durable<br />Example: BMW, Apple iPhone<br />2-Apr-2009<br />
  14. 14. International Product<br />Standardizedproduct<br />Adapted product<br /><ul><li> Consistent image</li></ul> and message<br /><ul><li> Lower costs
  15. 15. Respond well to</li></ul> local needs<br /><ul><li> Obey local laws</li></ul>2-Apr-2009<br />
  16. 16. Dimensions of the International Product Mix<br />Product length<br /><ul><li>Total number of brands</li></ul>Product width<br /><ul><li>Total number of product lines</li></ul>Product depth<br /><ul><li>Total number of different offerings for a product category </li></ul>2-Apr-2009<br />
  17. 17. New Product Development<br />Complexity in international markets<br /><ul><li>Competitors can appropriate the product idea and deliver final product to the market more swiftly than the initial developer
  18. 18. International consumers might not respond as anticipated
  19. 19. Local government might impose restrictions on product
  20. 20. Techno infra of individual markets may be substandard and unable to support the product</li></ul>2-Apr-2009<br />
  21. 21. Product Ideas<br /><ul><li>Consumers
  22. 22. Competitive Analyses
  23. 23. Channel Members
  24. 24. Employees
  25. 25. Top Management
  26. 26. Inventors
  27. 27. Consultants
  28. 28. University Researchers</li></ul>2-Apr-2009<br />
  29. 29. Screening Ideas<br />Consider:<br /><ul><li>Fit with target consumers and the overall mission of the organization
  30. 30. The extent to which product offers unique benefits
  31. 31. The extent to which target market is large and/or is likely to grow
  32. 32. Fit between new product requirements and resources, skills, experience of the firm</li></ul>2-Apr-2009<br />?<br />
  33. 33. Developing and Evaluating Product Concepts<br /><ul><li>Develop detailed description of product
  34. 34. Ask consumers to evaluate and indicate willingness to buy
  35. 35. Use: Focus Group, Questionnaire
  36. 36. Be careful: Xerox 8:80 </li></ul>2-Apr-2009<br />
  37. 37. Product Business Analysis<br />Estimate:<br /><ul><li>Project costs
  38. 38. Return on investment
  39. 39. Cash flow
  40. 40. Fixed/variable costs</li></ul>2-Apr-2009<br />
  41. 41. Product Development<br />Create prototypes<br />Create brand identity and marketing mix<br />Coordinate strategy across international subsidiaries<br />2-Apr-2009<br />
  42. 42. Test Marketing<br /><ul><li>Involves testing new product performance in a limited area of a national or regional target market
  43. 43. Provides estimate of product performance in the respective country or region
  44. 44. Expensive
  45. 45. Time consuming
  46. 46. Open to competitive sabotage</li></ul>OK<br />TESTED<br />2-Apr-2009<br />
  47. 47. Product name<br /><ul><li>Consistent image
  48. 48. Linguistics
  49. 49. Respect culture(s)
  50. 50. Consider connotation
  51. 51. Obey local laws</li></ul>2-Apr-2009<br />
  52. 52. Launching Product Internationally<br />Timing of launch<br />Consumers and Countries<br />Marketing mix decisions<br /><ul><li>Product mix
  53. 53. Place
  54. 54. Price
  55. 55. Promotion</li></ul>2-Apr-2009<br />
  56. 56. Launching Product Internationally<br />Quality of launch<br /><ul><li>High service quality
  57. 57. On-time shipment
  58. 58. Appropriate product availability
  59. 59. Quality sales force and support
  60. 60. Quality and amount of promotion</li></ul>2-Apr-2009<br />
  61. 61. Degree of Product Newness<br /><ul><li>New product to existing market
  62. 62. New product to existing company
  63. 63. Modification of an existing company product
  64. 64. New item in an existing product line
  65. 65. New line
  66. 66. Innovation</li></ul>2-Apr-2009<br />
  67. 67. <ul><li>Product Factors
  68. 68. Relative advantage, compared to competitive products
  69. 69. Compatibility with the needs of the consumers
  70. 70. Observability, or communicability to other consumers
  71. 71. Trialability – the ability of consumers to experience the product with only minimal effort
  72. 72. Country Factors – </li></ul> The country may be a <br /><ul><li>Lead country – wealthy industrialized country where the product is adopted first
  73. 73. Lag country – developing country that adopts the product later</li></ul>Product Diffusion Internationally<br />2-Apr-2009<br />
  74. 74. Product Diffusion Internationally<br /><ul><li>Innovators
  75. 75. Risk takers who can afford to pay a higher price during the introduction stage (2.5% of the total market)
  76. 76. Primarily consumers in developed countries
  77. 77. Early adopters
  78. 78. Consumers who purchase the product early in the lifecycle stage and who tend to be opinion leaders in their community
  79. 79. (13.5% of the total market)
  80. 80. Primarily consumers in developed countries</li></ul>2-Apr-2009<br />
  81. 81. <ul><li>Early majority
  82. 82. Consumers who enjoy status of being among the first to purchase a popular product (34% of the total market)
  83. 83. Consumers are primarily from developed countries
  84. 84. Late majority
  85. 85. Consumers who adopt popular products when the risk associated with them is minimal (34% of the total market)
  86. 86. Consumers are from both developed and developing countries
  87. 87. Laggards
  88. 88. The last consumers to adopt a product; they are risk averse and conservative in their spending (16% of the total population)
  89. 89. Consumers are primarily from developing countries</li></ul>Product Diffusion Internationally<br />2-Apr-2009<br />
  90. 90. The International Product Life Cycle<br />Introduction <br />and Growth <br />Stages<br />Early <br />Maturity<br />Late<br />Maturity<br />Decline<br />MNC Moves<br />Production to<br />Developing<br />Country; Begins<br />Importing to<br />Home Country<br />Developing Country<br />Markets Remain Viable Target Markets for<br />MNC; MNC Home<br />Country Market Is<br />Diminishing<br />Developing<br />Country <br />Competitor<br />Exports Product <br />To MNC Home<br />Country; <br />Competes<br />with MNC <br />Imports<br />MNC Manufactures<br />Product in Developed<br />Countries; Exports to<br />Developing Countries<br />Sales<br />Time<br />2-Apr-2009<br />
  91. 91. International Product Life Cycle, continued<br />The Product Introduction Stage<br /><ul><li>Products are developed and marketed in developed countries</li></ul>2-Apr-2009<br />
  92. 92. International Product Life Cycle, continued<br />The Growth Stage<br /><ul><li>Increasing competition and rapid product adoption
  93. 93. Marketed primarily in developed countries
  94. 94. Product is exported to developing countries</li></ul>2-Apr-2009<br />
  95. 95. International Product Life Cycle, continued<br />The Maturity Stage<br /><ul><li>Product is adopted by most target consumers
  96. 96. Sales are leveling off
  97. 97. Profits decline due to intense competition
  98. 98. Manufacturing operations move to developing countries to take advantage of cheap labor
  99. 99. New competitors: firms from developing countries</li></ul>2-Apr-2009<br />
  100. 100. International Product Life Cycle, continued<br />The Decline Stage<br /><ul><li>Products are rapidly losing ground to new technologies and product alternatives
  101. 101. Decrease in sales and profits
  102. 102. Product lifecycle is extended through sales to consumers in developing countries</li></ul>2-Apr-2009<br />
  103. 103. References<br />www.ezinearticles.com, “Developing A New Product : When To Consider Domestic Vs International Marketing”<br />www.wikipedia.org<br />Subhash Jain, International Marketing, Asian Books Private Limited, South Western Thomson Learning, 6th Edition<br />2-Apr-2009<br />
  104. 104. Thank You!<br />2-Apr-2009<br />

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