International Product Policy PDF

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International Product Policy...

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International Product Policy • product: o anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas

• factors affecting product-adaption decisions: Market environment Products Company characteristics characteristics considerations • • •

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• government regulations • nontariff barriers • customer characteristics, expectations, preferences • purchase patterns • culture • economic status of potential users

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• products constituents • brand • packaging • physical form of appearance • function, attributes, features • method of operations or usage • durability/ quality

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• profitability • market opportunity • cost of adapting • policies • organization • resources

international product variety decision: o decision concerning the entirety of offered products and services and concerning the countries, regions or target groups, (in) which these products are to be offered • international product lifecycle timing of market entrance – product level o sequential strategy → waterfall model o simultaneous strategy → sprinkler model • • • • • •

1. starting point: existing product range in home country 2. step: which products are generally viable for the foreign market? 3. step: can I use them in a standardized way or would it be better to modify/ adapt to local conditions? 4. step: would it be beneficial to develop new products specifically for this country? 5. step: should I introduce the “foreign” products in the home country and third countries as well? • product/ brand matrix for global marketing

product Brand Local

Local

global

1. Local product/ local brand

2. Global products/ local brand

3. Local product/ global brand

4. Global products/ global brand

global

motives for global branding o consistent image across the world o o o o o o

more visibility being global (usually) adds to the image of a brand cost for the brand can be spread over large sales volumes global brands reach highest brand equity necessary requirement for global advertising campaigns leverage the country association for the product (country of origin)

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• most valuable brands 2017: Apple, Google, Microsoft, Coca-Cola, Amazon, Samsung, Toyota, Facebook, … • barriers to global branding o adaption of product, price and promotion to foreign market is easier with different brand names o local brand names might be easier understood/ brand name not adequate for internationalization o only domestic country-of-origin effect o in case of acquisition of local brand, high brand equity of acquired brand o legal prohibition (through competition or politically)...