Components of a Product PDF

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Components of a Product Marketing: The activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. Global Marketing: The scope of activities outside the home market. CORE PRODUCT ACTUAL/EXPECTED PRODUCT AUGMENTED PRODUCT

Sheraton example, If you go to a hotel you expect the same customer benefits such as a bed, food etc. It’s also about the PRODUCT and the MESSAGE. For example, Coca Cola has the same product and same message everywhere in the world. Mc Donald has different products but the same message everywhere in the world.

Wrigley’s has same product but different message. It’s sold in America as a replacement for smoking. In the UK its promoted for after meal for fresh breathe. Slim fast has different message and different products abroad. Different flavours and different ingredients. Promoted differently as well, for example celebrity vs normal citizens. Alternatively, you can make a product that is specifically for the international market. Product benefits – Elements the consumers perceive as meeting their needs and providing satisfaction through performance and image Product attributes – Closely related to core product features such as specs, styling, branding and packaging. Marketing support services – Additional elements to the core product which contribute to providing satisfaction and include delivery and after sales service. Factors affecting the development of an International product portfolio

 Balance between standardisation and adaption owing to (culture, usage and legal): Towards standardisation – Many global companies want to achieve standardisation as it is the easiest and quickest open for them. In reality, all products must be adapted to some extent. The issue is to figure out the extent in which to do this. Even the most global companies achieve only partial standardisation. For example, Coca cola alter their segments such as Diet and caffeine free coca cola and alter sweetness to national tastes. Mc Donald’s also alter in menus for different countries and local tastes. In reality, there is cost benefit analysis for whether to standardise or adapt. In general, the case is that adaptation leads to greater costs. However, only if the needs and tastes identified are significantly different and can justify the extra cost involved. The disadvantage is that market opportunities maybe lost when standardising and it may be almost impossible to take into account every

requirement of the local market. Standardisation means that it is really easy to replicate by smaller firms and this can make it difficult for customers to differentiate between competing products. In order for firms to overcome this, firms decide to have augmented products and in order to attract the customer. For example, Automobiles are all very similar and car dealers often choose to have things such as warranties, delivery and a after sales strategy in order to differentiate their product. In some cases, standardisation may not be fully possible because of environmental constraints either through mandatory legislation because of such reasons as differences in legal or safety requirements. Product appeal can be increased in particular markets by addressing cultural, usage and legal factors. Cultural factors – Some products are culturally sensitive and some are valued the same all around the world. For example, products such as computers may be the same all around the world. People expect the same performance if they were to buy a laptop abroad or is their home country. However, products such as food are culturally sensitive as they meet local tastes and normally have a historical or religious significance. For example, McDonalds in Saudi Arabia have McArabia. Consumers are becoming more knowledgeable about products hence they want to have a full buying experience in order to be fully satisfied. Usage factors – People tend to use products and services differently even though they may be the same. For example, in America Wrigley’s chewing gum is used in order for people to stop smoking whereas in the UK it may be used as something to have after a meal for fresher breathe. Honda also saw this as an example when their motorbikes they were selling in US often broke down because they were using for long distances. Honda drivers in Japan were using for short distances so then they developed larger bikes for better performance. Legal factors – The standardisation can significantly vary by legislation. For example, pharmaceutical companies experience problems introducing products because individual governments have different standards of public health.  Product acceptability

Consumers are becoming more selective of all the elements in the augmented products. Manufacturer must take responsibility for controlling pre and postpurchasing servicing and warranties. Consumers have different perceptions about value and satisfaction so the view will vary country to country. The product usage may not fit with the culture and environment of the country or may not be acceptable for its intended use.  Shortening product life cycles The increasing pace of technology means that technical lead in a product will not be held for very long. This means that products are becoming shorter and newer products are being introduced more quickly.  Market entry methods The pressure to exploit new technology and products quickly and widely as possible has encouraged the rapid expansion of more creative and costeffective ways of achieving cooperation. Challenge is to find partners with truly complementary experise such as expertise, knowledge and capability.  Marketing management A more creative approach needs to be adopted in developing product policy. There are now more improved tools available for marketing research, planning and performance management. Success on this depends of the managers ability to redefine niche segments and creative in innovating in all areas of the marketing mix. They also need to integrate the new product development with the firms’ strategies.  Environment, legal and ethical considerations – FB have servers in Iceland so it doesn’t overheat the servers. Concern for environmental issues are becoming greater. For example, policies vary from country to country. There needs to be greater public awareness in things such as floods, fires in Indonesia, deforestation etc. MNE’s must repond in the appropriate way and take global concerns into considerations. Sony and Ford have adapted standed ISO4001 worldwide. Goal to achieve enronmental excellence such as body shop, BT etc. Difficult to embed in corporate strategy because there are different view of global warming around the world and replacement processes/chemicals can give rise to new problems.

 Product policy First before we need to establish the suitability of the existing products before embarking on the development of new or modified products. The products which range should be marketing internationally is determined by several factors such as overall objectives, experience, characteristics of market, products and services themselves, attributes, appeal and perceived value etc. The ease of distributing them online and selling them, level of risk company is prepared to take and the support of the products required....