International product policyInternational Marketing
Radhitya Adhitama
Designing the marketing programmeOnce the firm has decided how
it will enter the international market, the next issue is how to
desigh the international/global marketing mix.
There are different forces in the international environment that
may favour either increasing globalization or increasing adaptation
of the firm.
Supporters of adaptation state that there are substantial
differences between countries and even between regions in the same
countries.
Main decisions in product policyWhat kind of product?Product
life cycleNew product development and innovations
As a product we can consider anything what can be offered to our
customer.
Which products for international markets?
The same as for home marketAdapted productsStandardized
productsNew products
Define the reasons for each option!
Factors of adaptationConsumer goods for daily useLocal
competition
Factors of adaptation Different conditions of useIntercultural
differencies in consumer behaviour and purchasing
behaviourDifferences in purchasing powerDifferent conditions in
supplying with production inputsDifferent legislation
Factors of standardization
Economics of scaleHigh costs of adaptation processIndustrial and
high tech productsEntering the similar marketsExportGlobal
competitionStrong image of the country/producer/brand
14-*
Branding decisionsSource: Source: adapted from Onkvisit and
Shaw, 1993, p. 534.
14-*
Different degrees of product newnessLow Newness to
CompanyHighHigh
NewnesstoInternationalMarket
LowRepositionExistingproductsLine extensions/ improvementsNew to
companyNew to homecountryCost reductionsNew
toInternationalmarketsIncreasingriskNew to regional market
Benefits of strong brand in local/regional marketNew product in
brand portfolioRepositioning the traditional productSeasonal
product for larger marketBrand partnership
