INTERNATIONAL MARKETING

CHAPTER 10

PRODUCT STRATEGIES BY RISHABH SINHA 321

CONTENTS

WHAT IS A PRODUCT

NEW PRODUCT DEVELOPMENT

MARKET SEGMENTATION

PRODUCT POSITIONING

PRODUCT ADOPTION

PURPOSE :

How the meaning of the product changes in International Context

Necessities of segmentation and positioning

Adaption Fundas

WHAT IS A PRODUCT?

ShoesClothesMachinesCommoditiesSomething which can be seen and

touched !!

Is it only that ?????

Obviously there is a factor of –

“INTANGIBILITY” in I.M.

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. ,

dimensions etc “

That definition is misleading !!!

PRODUCT = TANGIBLE PLUS

INTANGIBLE

- AMERICAN MOVIES DISTRIBUTED WORLDWIDE

- ENGINEERING SERVICES

- BUSINESS CONSULTING SERVICES

Eg:- “KLOCKNER GROUP OF GERMANY”

‘It says that it packages turnkey projects in US and exports to Latin American and Third world countries’

TANGIBILE FACTOR :

Heavy inputs of U.S. equipements

INTANGIBLE FACTOR:

Management Expertise by Klockner Co.

Hence, we form a new definition of product:

“bundle of utilities or satisfaction”

Mercedes-Benz cars

IMPLICATION : Product as a total offering

Eg:- BERETTA SHOTGUNS

Secondary function >>>>> Primary function

THE FINAL VERDICT:

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

NEW PRODUCT DEVELOPEMENT1.) GENERATION OF NEW PRODUCT

IDEAS

Can originate from Sales person, employees, competitors, governments, marketing research firms, customers etc…

2.) SCREENING OF THE IDEAS

IDEAS ACKNOWLEDGED REVIEWEDFEASIBILITY TEST

SUITABLE PRESENT IT TO POTENTIAL USERS ADVERTISMENTSELICIT CANDID REACTIONS

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

featured.) stand exhaustive tests at all timese.)it should deliver its own message at all

times of distribution.

3.) BUSINESS ANALYSIS

Eg:- XEROX

4.) PRODUCT DEVELOPMENT

Lab and technical tests/ manufacturing pilot models

Engineers are expected to receive direct feedbacks from customer.

Eg:- GOLDSTAR CO.

5.) TEST MARKETING

To determine potential marketing problems and optimal marketing mix

Eg:- Anheuser Busch

Eg:- Cola’s Ambasa Whiteman

6.) FULL SCALE COMMERCIALIZATION

LEARNINGS:

--NOT ALL SUCCEED BUT FAIL.--WHEN TO RETREAT /LAUNCH--MARKETING COMMUNICATION

CHANNELS

MARKET SEGMENTATION

To cater to the needs of a society !!!

Overemphasized termGeo-graphic segmentation

Our fault = ‘we all assume that by going abroad geo-graphical segmentation has been achieved’

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 !!

We need to understand the society of

that Nation

URBAN / RURAL

Eg:- what AMERICAN EXPRESS did to JAPANESE CUSTOMERS !!!

LUXURY GOLD YEN CARD

&

LUXURY GREEN YEN CARD

REASON BEHIND MARKET SEGMENTATION

HETEROGENEITY/HOMOGENEITY

VERTICAL ( HOMOGENEIOUS WITHIN A COUNTRY)

HORIZONTAL( HOMOGENEIOUS ACROSS COUNTRIES)

Hassan and Katsanis

Global market segment

( either country groups/ consumer groups )

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

Eg:-

POLAROID’S ONE FILM

Positioned for ‘AMATEUR USE’ and not ‘PROFESSIONAL’

MARKET : USA ( and not EUROPE)

Eg:-

PERRIER –A FRENCH SPARKLING MINERAL WATER

Eg:-Mercedes-Benz BMW

( WEALTHY)

( RACY APPEAL)

How to really find the apt position?

perceived position and ideal position

1.) FOCUS GROUPS / ALTERNATIVES

2.) PERCEPTUAL AND PREFERENCE MAPPING

(MDS)

‘TO BE CAREFUL WHILE POSITIONING ABROAD’

MAZDA- ATTEMPTED TO SELL IT AS AN ECONOMY CAR , BUT WAS A PERFORMANCE CAR DUE TO IT’S ROTARY-ENGINE.

BRANDS WITH MULTIPLE POSITIONINGS !!!

TOOTHPASTE

BREATH FRESHNER

PLAGUE REMOVAL

What if the product is wrongly positioned?

“REPOSITIONING”

Eg:-

BEECHAM’S RIBENA BRAND

FROM MID-AGED CHILDREN

TO

ADULTS/TODDLERS

Eg:-

CANADA DRY

A MIXER

TO

STAND ALONE

Eg:-

VOLVO

INITIAL SITUATION:1.) ECONOMY2.) DURABILITY 3.) SAFETY

SPORTIER IMAGE

( FUN-TO-DRIVE ELEMENTS)

PRODUCT ADOPTION

BREAKING INTO A

FOREIGN MARKET…..

RELATIVE ADVANTAGE

COMPATIBLE

TRIABILITY / DIVISIBILITY FACTOR

OBSERVATION( EXPOSURE)

COMPLEXITY

PRICE