International
Marketing
Week 4
Product Strategies for
International Markets
Dr Daniel Osei Yeboah
What is a Product
▪ A series of tangible & intangible benefits and features designed
for the use and enjoyment of customers in order to satisfy their
needs (Needham et al., 1994)
• Anything that can be offered to a market for attention,
acquisition, use or consumption that might satisfy a
want or need (Kotler et al., 1999)
Product Dimensions
▪ Generic dimensions – key benefits of a product in relation to
its function
▪ Sensual dimensions – features of a product that have effect
on the senses: colour, taste, smell, texture & design
▪ Extended dimensions – any extra benefit apart from generic &
sensual dimensions, e.g. Guarantees, installation, etc.
Product classification
.
Consumer products
Industrial products
Product classification
1. Consumer products – used by final consumer for
personal satisfaction
2. Industrial/organisational products – used by
organisations to satisfy industrial objectives
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Consumer Products
Categorisation 1:
▪ Durable goods – used over an extended period; long
lasting
▪ Nondurable goods – used within the short term; quickly
consumed, outdated or worn out
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Consumer Products
Categorisation 2:
1. Convenience products – low-value consumable
items bought regularly:
▪ Staples
▪ Impulse items
▪ Emergency items
The manufacturer usually does a promotion
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Consumer Products
Categorisation 2:
2. Shopping products – these are goods expected to last
longer than convenience products & require some careful
thought before purchase, e.g. Furniture, clothing, etc.
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Consumer Products
Categorisation 2:
3. Specialty products
▪ Products with unique qualities that consumers may
want to possess
▪ They usually have high prices, reputable brands
and are available at a few retail stores, e.g. Saloon
cars
▪ Consumers do information searches about such
products before purchase
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Consumer Products
Categorisation 2:
4. Unsought products
▪ These are products that consumers usually do not
think of acquiring unless prompted to do so
▪ These could be new unsought products or
regularly unsought products
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Types of Industrial Products
• Capital items
• Industrial products that aid in the
buyer’s production or operations
• Materials and parts
• Raw materials, manufactured materials
and parts
• Usually sold directly to industrial users
• Supplies and services
• Operating supplies, repair and
maintenance items, business services
Factors Influencing International Product
Decisions
▪ Cultural Differences
▪ Economic Factors
▪ Legal and Regulatory Factors
▪ Technological Differences
▪ Market Conditions
Two Major Strategies for Product Development
•Same product
Standardisation
globally
•Customising for
Adaptation
local markets
New Product Development
▪A new product may be a good, service, or idea that
is perceived by some potential customers as new
▪A new product is made possible through innovation
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New Product Development
▪An innovation is an idea, product, or technology that
has been developed & marketed to customers who
perceive it as new
▪An invention may or may not deliver benefits to
customers
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The New Product Development
Process
1. Idea generation
▪ Systematic search for new-product ideas
▪ There are internal & external sources of ideas
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The New Product Development
Process
1. Idea generation
Internal sources:
▪ Research & development
▪ Brainstorming sessions
▪ Sales force
▪ Suggestion scheme
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The New Product Development
Process
1. Idea generation
External sources:
▪ Customers
▪ Competitors
▪ Distributors, suppliers, etc.
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The New Product Development
Process
2. Idea screening
▪ It involves identifying ideas that would work out
and match the firm‘s objectives
▪ Factors to consider include:
o Whether the idea matches the firm‘s capabilities
o Value engineering would have to be considered
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The New Product Development
Process
2. Idea screening
▪ Factors to consider include:
o How well the product fits with other products in
the firm‘s portfolio & help build upon the firm‘s
strengths
o Assessment of the unique features of the idea to
identify competitive advantages
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The New Product Development
Process
3. Business analysis
▪ This is an evaluation of the attractiveness of the
idea
▪ Involves review of potential sales, costs, and profit
for the idea (product)
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The New Product Development
Process
4. Product development
▪ The product concept (idea) is converted into an
actual product (good or service)
▪ The R&D section requires marketing information
to develop a suitable design for a physical
product
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The New Product Development
Process
4. Product development
▪ Based on the design, product researchers
build a prototype
▪ In building the prototype, it is important to know
whether the product can be manufactured
efficiently
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The New Product Development Process
5. Test marketing
▪ The product & its marketing programme are
brought into more realistic market settings
▪ It involves testing the product in a consumer
market, which is thought to be typical of the
whole market
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The New Product Development Process
5. Test marketing
▪ Valuable information for fine tuning the product
could be obtained through test marketing as
potential consumers try the product & give
feedback
▪ A product may survive a test market or not
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The New Product Development Process
6. Commercialisation
▪ The introduction of the new product onto the market
▪ For a successful launch of the product, a good
marketing programme must be in place
▪ Decisions on when, where, how and to whom to
commercialise a product should be made
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Reasons for New Product Failure
Overestimation of market size
Poor design
Incorrect positioning
Wrong timing
Priced too high
Ineffective promotion
Management influence
High development costs
Competition
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Introduction to Branding
▪ • Definition of branding
▪ • Importance of branding in international marketing
▪ • Role of brand identity, equity, and perception
What is branding in international
marketing?
▪ The process of creating and managing a unique identity, image, and
perception of a product, service, or company across multiple
countries and cultures.
▪ Involves developing a consistent message, logo, colour scheme, tone,
and overall brand experience that resonates with diverse global
audiences while adapting to local markets when necessary.
Role of Branding in International Marketing
▪ Builds brand recognition
▪ Establishes trust and credibility
▪ Supports global expansion
▪ Enhances customer loyalty
▪ Helps in marketing and advertising
▪ Increases business value
▪ Facilitates product line extensions
Global Branding Strategies
▪ Standardisation (Global Consistency)
oMaintaining a uniform brand identity, message, and marketing
approach across all countries.
▪ Adaptation Strategy (Localization or Customization)
Tailoring branding, marketing, and product offerings to suit local
cultures, preferences, and consumer behaviour
▪ Glocalization Strategy (Hybrid Approach)
▪ A mix of standardization and adaptation
Global Branding Strategies
Standardisation Maintaining a uniform brand identity, message,
and marketing approach across all countries.
(Global Consistency)
Adaptation Strategy Tailoring branding, marketing, and product
(Localization or offerings to suit local cultures, preferences,
and consumer behaviour
Customization)
Glocalization Strategy The brand maintains a global identity but adjusts
elements like messaging, packaging, or
(Hybrid Approach) advertising to fit local markets.
Challenges in Global Branding
▪ Cultural differences and sensitivities
▪ Translation and brand name issues
▪ Differing legal and trademark regulations
▪ Brand perception variations across regions
Strategies for Successful Global Branding
▪ Strong brand identity and positioning
▪ Balancing standardisation and localisation
▪ Effective global marketing campaigns
▪ Leveraging digital and social media
Measuring Global Brand Success
▪ Brand equity and recognition
▪ Customer perception and loyalty
▪ Market share and financial performance
Introduction to Packaging and Labeling
▪ • Definition and importance of packaging and labeling
▪ • Role in international marketing
▪ • Impact on consumer perception and purchasing decisions
What is Packaging and Labeling
▪ The activities of designing and producing the container or wrapper for
a product to protect it and facilitate its handling, storage, and
marketing (AMA).
▪ Packaging is the science, art and technology of enclosing or protecting
products for distribution, storage, sale, and use (Shekhar &
Raveendran, 2016).
▪ The process of design, evaluation, and production of packages.
Functions of Packaging in International
Markets
▪ Protection and preservation of products
▪ Convenience and ease of use
▪ Communication and branding
▪ Compliance with regulations
▪ Ease of transportation
▪ Visual appeal to consumers across markets
Key Factors Influencing International
Packaging
▪ Cultural preferences and symbolism
▪ Legal and regulatory requirements
▪ Environmental concerns and sustainability
▪ Cost and material availability
▪ Language and translation considerations
▪ Product information and ingredient disclosures
▪ Health and safety warnings
▪ Certifications and compliance marks
Challenges in International Packaging and
Labeling
▪ Adapting to diverse legal frameworks
▪ Managing costs of different packaging formats
▪ Addressing counterfeit and fraud risks
▪ Ensuring sustainability and environmental compliance
Strategies for Effective International
Packaging and Labeling
▪ Conduct thorough market research
▪ Comply with local and international regulations
▪ Balance branding consistency with cultural adaptation
▪ Invest in smart and sustainable packaging solutions
Product Audit
▪ This is a thorough evaluation of products an
organisation offers
▪ It enables an organisation to know which products
to phase out or to modify, etc.
▪ It specifies volume of sales, turnover, profits, etc.
▪ The product life cycle and porfolio analysis are
tools for product audit
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The product life cycle (PLC)
▪It is the course of a product‘s sales and profits
over its lifetime (Kotler et al., 2018)
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Stages in the PLC
1. Introduction stage
▪ involves launch of a product onto the market
▪ Sales volume is usually low
▪ Profits are usually non-existent because of heavy
expenses of introducing the product
▪ Marketers design packages that would create demand
for the product
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Stages in the PLC
2. Growth stage
▪ Rapid acceptance of the product
▪ Increasing profits; profit per unit sold reaches a
maximum
▪ Towards the end of this stage, competitors enter the
market which reduces growth rate
▪ Maintaining competitive advantage should be a concern
of the marketer
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Stages in the PLC
3. Maturity
▪ There is a slowdown in sales growth; there is
product acceptance by most potential buyers
▪ Profits stabilise
▪ There is intense competition
▪ New firms may enter the market
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Stages in the PLC
4. Decline
▪ Product becomes ‚old‘ and sales begin to fall
▪ This may be a result of introduction of a new
or improved product onto the market
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Product Life-Cycle
Strategies
Sales and profits over the product’s life from inception to decline 48
Injecting life into the PLC
1. Change or modify the product
2. Alter distribution patterns
3. Change prices to reflect competitive activities
4. Run a promotional campaign
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Product Portfolio
▪This reflects the collection of products produced or
offered by a firm
▪In managing a portfolio to develop profitable growth, a
firm should keep the pareto principle of 20/80
▪Concentrate on a few manageable strengths
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Portfolio Analysis – the BCG Matrix
A firm‘s portfolio is analysed on two main dimensions:
▪Market growth rate: measure of market
attractiveness
▪Relative market share: measure of the firm
strength in the market
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The BCG Matrix
Stars Question
Marks
High
Growth Rate
Low Cash Cows Dogs
High Low
Relative Market Share
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THANK YOU
Questions and Answers
