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International Marketing

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International Marketing ­ MKT630
VU
Lesson # 38
INTERNATIONAL MARKETING MIX ­ PRODUCT POLICY
Product Planning
International product planning:
Product management is an organizational function within a company dealing with the product
planning or product marketing of a product or products at all stages of the product lifecycle.
Product Management is also a collective term used to describe the broad sum of diverse activities
performed
in
the
interest
of
delivering
a
particular
product
to
market.
From a practical perspective, product management is an occupational domain which hold two
professional disciplines: product planning and product marketing. This is because the product's
functionality is created for the user via product planning efforts, and product value is presented to the
buyer via product marketing activities.
Product planning and product marketing are very different but due to the collaborative nature of these
two disciplines, some companies erroneously perceive them as being one discipline, which they call
product management. Done carefully, it is very possible to functionally divide the product management
domain into product planning and product marketing, yet retain the required synergy between the two
disciplines.
Product planning typically deals with these activities:
·
Defining new products and gathering market requirements
·
Product Life Cycle considerations
·
Product portfolio management
·
Product differentiation
Product marketing typically deals with these activities:
·
Product positioning and outbound messaging
·
Promoting the product externally with press, customers, and partners
·
Bringing new products to market
Product management typically deals with these closely-related functions:
·
Product planning
·
Product marketing
·
Program management
·
Project management
Product planning related decisions:
which product to introduce in which countries
what modifications to make in the products
what new products to add
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International Marketing ­ MKT630
VU
what brand name to use
what guarantees and warranties to give
what after-sales service to offer
when to enter the market
International product design strategies ­ to differentiate:
In marketing, product differentiation is the modification of a product to make it more attractive to the
target market. This involves differentiating it from competitors' products as well as one's own product
offerings. In economics, successful product differentiation leads to monopolistic competition and is
inconsistent with the conditions for perfect competition, which include the requirement that the products
of competing firms should be perfect substitutes.
The changes are usually minor; they can be merely a change in packaging or also include a change in
advertising theme. The physical product need not change, but it could. The major sources of product
differentiation are as follows.
Differences in quality or design among output (product)
Ignorance of buyers regarding the essential characteristics and qualities of goods they are
purchasing
Pervasive sales promotion activities of sellers and, in particular, advertising
Possibility of developing significant product differentiation through advertising is greatly
enhanced for so called "gift goods" or "prestige goods"
Differentiation in the locations of sellers of the same good where the product fills no technical
function but rather can satisfy many different sort of personal needs or uses (psychological or
physical).
The objective of this strategy is to develop a position that potential customers will see as unique. If your
target market sees your product as different from the competitors', you will have more flexibility in
developing your marketing mix. A successful product differentiation strategy will move your product
from competing based primarily on price to competing on non-price factors (such as product
characteristics, distribution strategy, or promotional variables).
Differentiation has been shown to impact firm performance positively both theoretically and
empirically. Differentiation primarily impacts performance through two mechanisms:
Reduced price sensitivity: Consumers may become willing to pay a premium price for the
differentiating factor/s.
Reducing directness of competition: As the product becomes more different, categorization
becomes more difficult and hence draws fewer comparisons with its competition.
Most people would say that the implication of differentiation is the possibility of charging a price
premium; however, this is a gross simplification. If customers value the firm's offer, they will be less
sensitive to aspects of competing offers; price may not be one of these aspects. Differentiation makes
customers in a given segment have a lower sensitivity to other features (non-price) of the product.
The disadvantage of this repositioning is that it usually requires large advertising and production
expenditures.
An international firms product design strategies would depend on the following factors;
nature of product
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International Marketing ­ MKT630
VU
market development
legal requirements
cost / benefit relationship
competition
support system
physical environment
market conditions
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Table of Contents:
  1. OVERVIEW OF INTERNATIONAL MARKETING:Domestic marketing, Multinational marketing, Globalization of markets
  2. INETRNATIONAL MARKETING PROCESS:Situation Analysis, Implementation and Control, Relationship
  3. INETRNATIONAL MARKETING PROCESS:The Product Concept, The Societal Marketing Concept
  4. INETRNATIONAL MARKETING PROCESS
  5. ENGAGING IN INETRNATIONAL MARKETS:Expansion of technology, Merchandize export and import
  6. INTERNATIONAL TRADE & INVESTMENT THEORIES:Theory of Comparative Advantage, Country Similarity Theory
  7. INTERNATIONAL TRADE & INVESTMENT THEORIES:Global Strategic Rivalry Theory,
  8. INTERNATIONAL MARKETING INFORMATION REQUIREMENTS:Foreign exchange info
  9. INTERNATIONAL MARKETING INFORMATION REQUIREMENTS:The Product
  10. FOREIGN NATIONAL ENVIRONMENTS:Political systems in the world, Political risks in international markets
  11. FOREIGN NATIONAL ENVIRONMENTS:Types of legal systems,
  12. FOREIGN NATIONAL ENVIRONMENTS:Conciliation, Mediation, Global relevance
  13. ROLE OF GOVERNMENTS IN INTERNATIONAL MARKETS:Industry-level needs, Promotion of exports by governments
  14. INTERNATIONAL CULTURAL AND SOCIAL ENVIRONMENTS:The concept of culture, Attitudes & beliefs,
  15. INTERNATIONAL CULTURAL AND SOCIAL ENVIRONMENTS:Culture is a human medium
  16. DETERMINING EXPORT POTENTIAL IN INTERNATIONAL MARKETS:Political Environment
  17. DETERMINING EXPORT POTENTIAL IN INTERNATIONAL MARKETS:Product Potential
  18. INTERNATIONAL MARKETING RESEARCH PROCESS:market structure, Implementing the research plan
  19. INTERNATIONAL MARKETING RESEARCH PROCESS:Identify alternative information sources
  20. INTERNATIONAL MARKETING RESEARCH PROCESS:Issues with primary global research:
  21. INTERNATIONAL MARKETING RESEARCH PROCESS:Problems with data, Comparative Analysis
  22. MODES OF ENTRY INTO INTERNATIONAL MARKETS:Export intermediaries, Export and import management
  23. MODES OF ENTRY INTO INTERNATIONAL MARKETS:Licensing contract, Licensing risks
  24. MODES OF ENTRY INTO INTERNATIONAL MARKETS:The franchiser’s balance,
  25. MODES OF ENTRY INTO INTERNATIONAL MARKETS:Forms of countertrade, Specialized entry modes
  26. MODES OF ENTRY INTO INTERNATIONAL MARKETS:Demand factors, Political factors
  27. MODES OF ENTRY INTO INTERNATIONAL MARKETS:Drivers behind successful joint ventures
  28. MODES OF ENTRY INTO INTERNATIONAL MARKETS:Distribution agreements, Critical mass & optimism traps
  29. INTERNATIONAL STRATEGIC ALLIANCES:Impetus for international alliances, Management of strategic alliances
  30. INTERNATIONAL CONSUMER MARKETS:Model of Consumer BehaviorThe Buyer Decision Process
  31. INTERNATIONAL BUSINESS MARKETS:Nature of buying unit, Major influences on international business buyers
  32. INTERNATIONAL TARGET MARKETING:Market segmentation, Market positioning
  33. INTERNATIONAL MARKET SEGMENTATION:Geographic, Behavioral, Situational factors
  34. INTERNATIONAL MARKET SEGMENTATION:Basis for country segmentation, Stages of economics development
  35. INTERNATIONAL MARKET SEGMENTATION:Cultural Variables,
  36. INTERNATIONAL MARKET SEGMENTATION:Market coverage strategy, Socio-economic variables
  37. INTERNATIONAL MARKETING MIX - PRODUCT POLICY:Individual product decisions, Branding
  38. INTERNATIONAL MARKETING MIX – PRODUCT POLICY:
  39. INTERNATIONAL MARKETING MIX - PRODUCT POLICY:Modular Approach
  40. INTERNATIONAL MARKETING MIX – PRODUCT POLICY:Issues in labeling, Pricing, Distribution
  41. INTRODUCING NEW PRODUCTS IN INTERNATIONAL MARKETS:The new product development process
  42. PRICING IN INTERNATIONAL MARKETS:Factors influencing international pricing,
  43. ITERNATIONAL MARKETING CHANNELS:Channel membership, Vertical marketing, Control over distribution
  44. PROMOTING IN INTERNATIONAL MARKETS:Advertising, Direct marketing, Public Relationing
  45. REVISION