7.0 Introduction

Learning Objectives

After reading this section, students should be able to:

  1. Describe common consumer product categories.
  2. Describe the product life cycle.
  3. Explain marketing considerations through the product life cycle.
  4. Explain the stages of the new-product development process.
  5. Outline the trade-offs between standardized versus customized products.
  6. List the dimensions of value proposition adaptation.
  7. List the major drivers behind value proposition adaptation.
  8. Outline the significant advantages of a global innovation strategy.
  9. List the steps in the global innovation strategy of a firm.
  10. Outline the nature and size of BOP markets.
  11. Provide examples of firms pursuing BOP strategies.

The product is the most important element of a company’s marketing program. Global marketers face the challenge of formulating coherent product and brand strategies on a worldwide basis. A product can be viewed as a collection of tangible and intangible attributes that collectively provide benefits to a buyer or user. A brand is a complex bundle of images and experiences in the mind of the customer. In most countries, local brands compete with international brands and global brands. A local product is available in a single country; a global product meets the wants and needs of a global market.

Product and communications strategies can be viewed within a framework that allows for combinations of three strategies: extension strategy, adaptation strategy, and creation strategy. Five strategic alternatives are open to companies pursuing geographic expansion: product-communication extension; product extension-communication adaptation; product adaptation-communication extension; product-communication adaptation; and product invention (innovation). The strategic alternative(s) that a particular company chooses will depend on the product and the need it serves, customer preferences and purchasing power, and the costs of adaptation versus standardization. Product transformation occurs when a product that has been introduced into new country markets serves a different function or is used differently than originally intended. When choosing a strategy, management should consciously strive to avoid the “not invented here” syndrome.

Global competition has put pressure on companies to excel at developing standardized product platforms that can serve as a foundation for cost-efficient adaptation. New products can be classified as discontinuous, dynamically continuous, or continuous innovations. A successful product launch requires an understanding of how markets develop: sequentially over time or simultaneously. Today, many new products are launched in multiple national markets as product development cycles shorten and product development costs soar.

Core Principles of International Marketing – Chapter 8 by Babu John Mariadoss is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.


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Global Marketing In a Digital World Copyright © 2022 by Lina Manuel is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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