INTERNATIONAL MARKETING
( MS-213 ) By
DR. LOKESH JINDAL
Overview
Basic Concepts Product Positioning Product Saturation Levels Product Design Considerations Attitudes Towards Country of Origin Geographic Expansion New Products in Global Marketing Summary
Learning Objectives
Know the differences between local, national, international & global brands Learn alternatives for positioning global brands Appreciate the importance of saturation levels Be aware of design considerations and attitudes toward country of origin Know why development of new products are keys to survival and global growth
Basic Concept of Products
Products can be defined as a collection of physical, psychological and symbolic attributes that can collectively yield satisfaction, or benefit, to a buyer or user. Products can be classified into consumer & industrial goods Products can be classified by the way they are purchased or their life-span
Local, National, International and Global Products
Local products are offered in a portion of a national market National products are offered in a single national Market International products are offered in multinational, regional markets Global products are offered in the global market. They are international and multi-regional
Global Brand
A symbol about which customer have beliefs & perceptions Same name or same meaning in another language Similar image & position Guided by same strategic principles Marketing mix may vary from country to country
Positioning of Products and Services
Attribute or Benefit Quality/Price Use/User High-Tech Positioning High-Touch Positioning
Product Saturation Levels in Global Markets
Many factors determine a product`s market potential Product saturation level increases as national income per capita increases The presence or absence of a particular companion product can be significant
Product and Service Design Considerations
Preferences Costs Laws and Regulations Compatibility Labeling and instructions
Attitude towards the Country of Origin
Stereotyped attitudes toward foreign products & services can favor or hinder marketing efforts If the quality is perceived to be low
Foreign origin of the product can be changed Foreign identification of the product can be continued & consumer attitudes towards the product can be changed
In some market segments foreign products have a substantial advantage because they are foreign
Geographic Expansion-Strategic Alternatives
Different Strategy 2: Product Extension, Communications Adaptation Example: Motorbikes Strategy 4: Dual Adaptation Example: Greeting Cards
Communications
Strategy 1: Dual Expansion Example: Applications Software
Strategy 3: Product Adaptation, Communication Extension Example: Electrical products
Same Same
Product
Different edlich
Global Product Planning: Strategic Alternatives for Expanding into Global Markets
Strategy 1: Product/Communication Extension or Dual Extension
Company sells exactly the same product or service with the same advertising as used in the home country Company assumes that all markets are alike Does not work in all markets Often used because it saves costs
Strategy 2: Product Extension, Communications Adaptation
If the product serves different needs in various countries, only marketing communication may have to be adapted Adaptation can happen by design or accident Cheap implementation because product does not change Example: Motor scooters
Strategy 3: Product Adaptation, Communication Extension
Product is adapted to the new market, but basic home market communication strategy remains unchanged Product is adapted to the environment and the preferences of the consumers in the new market Example: Electrical Products
Strategy 4: Product/Communication Adaptation or Dual Adaptation
Using Dual Adaptation the company must adapt the product or service as well as the marketing communication to the foreign market Example: Greeting Cards
Strategy 5: Product Invention
Demanding but potentially rewarding strategy for reaching mass markets in LDCs Product quality is essential but must be supported with imaginative, value-creating advertising & marketing communication
How to Choose a Strategy
3 Stages Cave Dweller primary motivation is to dispose of excess capacity Nave Nationalist Sees adaptation as the only alternative Globally Sensitive- Evaluated across countries with some standardization & some differentiation
New Products and Services in Global Marketing (1)
New to consumer & company ( Product or service innovation) New to consumer but not new to company (Product/service or line extension) Not new to consumer but new to company (New product or service duplication)
New Products and Services in Global Marketing (2)
New-product development process
Permanent identification of new-product ideas Screening of these ideas and identification of candidates for further investigation Stringent investigation and analysis of the selected newproduct ideas Organisation of sufficient resources
The international new-product department Testing new products & services in national markets
Summary
Product and services are the most important elements of the marketing program Important factors: preferences, costs, laws and regulations, and compatibility Five strategic alternatives for geographic expansion:
Product/communication extension, product extension/communications adaptation, product adaptation/communications extension, dual adaptation and product invention
THANK YOU
