This document discusses product strategies for international marketing. It defines a product as both tangible and intangible elements that create a "bundle of utilities." New product development involves generating ideas, screening, analyzing feasibility, developing the product, test marketing, and commercialization. Market segmentation involves dividing the market into distinct groups based on factors like geography, demographics, or behaviors. Product positioning aims to occupy an appealing space in consumers' minds in relation to competitors. For products entering new foreign markets, adoption depends on the relative advantage, compatibility, ability to try, observability, complexity, and price of the product.

1. INTERNATIONAL MARKETING
CHAPTER 10
PRODUCT STRATEGIES
BY
RISHABH SINHA
321

2. CONTENTS
 WHAT IS A PRODUCT
 NEW PRODUCT DEVELOPMENT
 MARKET SEGMENTATION
 PRODUCT POSITIONING
 PRODUCTADOPTION

3. PURPOSE :
 How the meaning of the product changes in
International Context
 Necessities of segmentation and positioning
 Adaption Fundas

4. WHAT IS A PRODUCT?
Shoes
Clothes
Machines
Commodities
Something which can be seen and touched !!
Is it only that ?????

5.  Obviously there is a factor of –
“INTANGIBILITY” in I.M.

6. In narrow sense, the definition of product is
“ something tangible that can be described in
terms of physical attributes-shape, colour,
c.o.m.p.o.n.e.n.t.s. , dimensionsetc “

7. That definition is misleading !!!
PRODUCT =TANGIBLE
PLUS INTANGIBLE

8. - AMERICAN MOVIES DISTRIBUTED
WORLDWIDE
- ENGINEERING SERVICES
- BUSINESS CONSULTING SERVICES

9. Eg:- “KLOCKNER GROUP OF GERMANY”
‘It says that it packages turnkey projects in US
and exports to Latin American andThird
world countries’

10. TANGIBILE FACTOR :
Heavy inputs of U.S. equipements
INTANGIBLE FACTOR:
Management Expertise by Klockner Co.

11.  Hence, we form a new definition of product:
“bundle of utilities or satisfaction”
Mercedes-Benz cars

12.  IMPLICATION : Product as a total offering

13. Eg:- BERETTA SHOTGUNS
Secondary function >>>>> Primary function

15.  THE FINALVERDICT:
…………..Product should be viewed as an
offering derived from the 4 P’s and not just
the first ‘P’…………..

16. NEW PRODUCT DEVELOPEMENT
1.) GENERATIONOF NEW PRODUCT IDEAS
Can originate from Sales person, employees,
competitors, governments, marketing
research firms, customers etc…

17. 2.) SCREENING OFTHE IDEAS
IDEAS  ACKNOWLEDGED
REVIEWEDFEASIBILITY TEST
SUITABLE PRESENT ITTO POTENTIAL
USERSADVERTISMENTSELICIT
CANDID REACTIONS

18. Eg:- KAO CORPORATION.
a.) truly useful to society, now and even In future
b.) make use of KAO’s own creative technology.
c.)superior to competitors, in both price and
feature
d.) stand exhaustive tests at all times
e.)it should deliver its own message at all times of
distribution.

19. 3.) BUSINESSANALYSIS
Eg:- XEROX

20. 4.) PRODUCT DEVELOPMENT
Lab and technical tests/ manufacturing pilot
models
Engineers are expected to receive direct
feedbacks from customer.
Eg:- GOLDSTARCO.

21. 5.)TEST MARKETING
To determine potential marketing problems
and optimal marketing mix
Eg:- Anheuser Busch

22. Eg:- Cola’s Ambasa Whiteman

23. 6.) FULL SCALE COMMERCIALIZATION

24. LEARNINGS:
--NOTALL SUCCEED BUT FAIL.
--WHENTO RETREAT /LAUNCH
--MARKETING COMMUNICATION CHANNELS

25. MARKET SEGMENTATION
To cater to the needs of a society !!!

26. Overemphasized termGeo-graphic
segmentation
Our fault = ‘we all assume that by going abroad
geo-graphical segmentation has been
achieved’

27. Eg:-
I am selling a type of food product to nation 2
from nation 1 , what if the food is utilized only
in eastern part of nation 2, hence
geographical segmentation has been proven
wrong !!

28. We need to understand the society of
that Nation
URBAN / RURAL

29. Eg:- what AMERICAN EXPRESS did to
JAPANESE CUSTOMERS !!!
LUXURY GOLDYEN CARD
&
LUXURY GREENYEN CARD

30. REASON BEHIND MARKET SEGMENTATION
HETEROGENEITY/HOMOGENEITY
VERTICAL ( HOMOGENEIOUS WITHIN A
COUNTRY)
HORIZONTAL( HOMOGENEIOUSACROSS
COUNTRIES)

31. Hassan and Katsanis
Global market segment
( either country groups/ consumer groups )

32. PRODUCT POSITIONING
A Marketing strategy that attempts to occupy
an appealing space in the consumers mind
+ In relation to the spaces occupied by other
competitive products

33. Eg:-
POLAROID’SONE FILM
Positioned for ‘AMATEUR USE’ and not
‘PROFESSIONAL’
MARKET : USA ( and not EUROPE)

34. Eg:-
PERRIER –A FRENCH SPARKLING MINERAL
WATER

35. Eg:-
Mercedes-Benz BMW
(WEALTHY) ( RACY APPEAL)

36. How to really find the apt position?
 perceived position and ideal position

37. 1.) FOCUS GROUPS / ALTERNATIVES

38. 2.) PERCEPTUALAND PREFERENCE MAPPING
(MDS)

39. ‘TO BE CAREFULWHILE POSITIONING ABROAD’
MAZDA- ATTEMPTEDTO SELL IT AS AN
ECONOMYCAR , BUTWAS A PERFORMANCE
CAR DUETO IT’S ROTARY-ENGINE.

40. BRANDSWITH MULTIPLE POSITIONINGS !!!
TOOTHPASTE
BREATH
FRESHNER
PLAGUE
REMOVAL

41. What if the product is wrongly positioned?
“REPOSITIONING”

42. Eg:-
BEECHAM’S RIBENA BRAND
FROM MID-AGED CHILDREN
TO
ADULTS/TODDLERS

43. Eg:-
CANADA DRY
A MIXER
TO
STANDALONE

44. Eg:-
VOLVO

45. INITIAL SITUATION:
1.) ECONOMY
2.) DURABILITY
3.) SAFETY
SPORTIER IMAGE
( FUN-TO-DRIVE ELEMENTS)

46. PRODUCT
ADOPTION

47. BREAKING INTO A
FOREIGN MARKET…..

49. RELATIVEADVANTAGE
COMPATIBLE
TRIABILITY / DIVISIBILITY FACTOR
OBSERVATION( EXPOSURE)
COMPLEXITY
PRICE