INTERNATIONAL PRODUCT

MANAGEMENT
 PRODUCT

 A product is anything that can be offered to a

market to satisfy a want or need.

 Products that are marketed include physical

goods, services, experiences, events, persons,
places, properties, organizations, information and
ideas.
PRODUCT COMPONENTS
 DEVELOPING PRODUCTS FOR
INTERNATION MARKETS
 Ethnocentric approach

 Polycentric approach

 Regiocentric approach

 Geocentric approach
 STANDARDIZATION V/S
ADAPTATION

 Industrial products &  Foods, fashions and

services are styles are highly
insensitive to cross- sensitive...
country  McDonald’s serves a
preferences.... variety of customized
products.
 PRODUCT STANDARDIZATION
 Product standardization refers to the process of
marketing a product in overseas markets with
little change except for cosmetic changes, such
as modified packaging & labeling.

 Benefits

1. Projecting a global product image

2. Catering to customers globally

3. Cost savings thru economies of scale

4. Devpt. Of product as aglobal brand

 FACTORS FAVOURING PRDUCT
STANDARDIZATION

 High level of technology intensity

 Formidable adaptation costs

 Convergence of customer needs worldwide

 The country of origin impact

 PRODUCT ADAPTATION
 Making changes in a product in response to the
needs of the target market is termed product
adaptation or customization.
 Benefits

1. Enables a firm to tap market

2. Fulfils needs & wants customers in varied cultures
3. Helps in gaining mkt. Share
4. Increases sales leading to economies of scale
 FACTORS FAVOURING PRODUCT
ADAPTATION
 Government regulations

 Standards for electric current

 Operating systems

 Measurement systems

 Packaging & labeling regulations

VOLUNTARY FACTORS INFLUENCING
PRODUCT ADAPTATION IN INT.
MKTS.
 Consumer demographics

 Culture

 Local customs & traditions

 Conditions of use

 Price
 NEW PRODUCT LAUNCH
‘Waterfall’ approach ‘Sprinkler’ approach

Countr
yA
New
product
Countr
yB

Countr Countr Countr

Countr yA yB yC
yC
 PRODUCT LIFE CYCLE IN
INTERNATIONAL MARKETS
 INTERNATIONAL PRODUCT
STRATEGY
The international competitive posture
P
matrix
r
o Hig
u h Barons Kings
c
t

s
t
r Commoners Crusaders
e Low
n
g
t
h Low High
Geographical Coverage
PRODUCT PROMOTION STRATEGIES
FOR INT. MRKTS
Don’t change
Adapt product
product

Don’t
change
Straight Product
promotio
Extension Adaptation
n

Adapt
promotio Promotion
Dual Invention
n Adaptation
BY
Puneet Audichya