Niyaz Hasanabba

Shruthi B.j

joyal pinto

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Most Important “P” among 4 P’s in the marketing

mix.

It is a collection of physical, psychological, service

and symbolic attributes that collectively yield

satisfaction, or benefits, to a buyer or user.

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Definition:

Philip Kotler defines a product as “anything

that can be offered to a market for attention,

acquisition, use or consumption that might satisfy a

want or need, includes physical objects, services,

persons, places, organizations & ideas”.

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Pre-Introduction

Introduction

Growth

Maturity

Decline

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It involves determining which products to

introduce into which countries; what modification

to make in the products….etc

Three other consideration:

Product Objective

Coordination of product planning activities

between headquarters and subsidiary

Foreign collaboration

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Idea Generation

Evaluation and Selection

Concept Testing

Business Analysis

Product Development

Market Testing

Commercialization

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Product positioning

extent to which products should be adapted or

standardized for penetration into foreign markets.

other factors like brand, label, packaging,

warranties & Service requirements.

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Process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.

Top of the mind impression about a particular product or brand.

Perception about something caused due to promotional activity, usage, quality etc… over a period of time.

Ex: Chinese Mobile phone brands, Apple, etc…

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When an enterprise enters a new export market

It must determine how it should design its marketing

strategy to fit local conditions.

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Market Demand

Economics of plant & marketing operations

Governmental Effects Compatibility with company resources & policy

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In order to determine the suitability of a product

for a given market, it is necessary to establish the

basic function of the product.

A product has many usages & purposes.

Sometimes even the secondary functions play an

important role in consumer’s evaluation of a

product.

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Economics of operation usually favour

standardization of the product offering as it

reaches economies of scale.

But with different measurement systems, it may be

difficult to achieve standardization.

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Governments affects the product design in numerous ways.

Each of it has a potential effect on decisions to make product modification

Specifications which must be met before a corporation can bid on govt. projects.

Labeling laws – specific information and size etc… needs to be mentioned.

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Any product offered must present a reasonable

compromise between the requirements of the

market and resources available to the firm.

Firms try to match production, marketing

capabilities with company’s profits.

Sometimes lack of market knowledge will lead

to problems.

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Cost efficiency

Advertising efficiency

Idea utilization

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Cultural, political, economic differences among

countries may make it all but impossible to use a

single standardized marketing strategy.

Advertising is often the key component of the

marketing strategy that the firm would like to

standardize. But it might not be effective in some

markets as they need a customized change.

Ex: Language change, Brand model etc… 17

Brand policy becomes more important to the

multinational firm as competition tightens in the

local markets.

If the producer is to gain the advantage of

promotional effort,…

The consumer must be able to identify the product

and to separate it from those of competitors.

Identification could be the colour, logo, name

etc…

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The 4 main branding alternatives are:

Selling unbranded goods, or selling goods to be resold

under the brand of distributor

Establish single worldwide brand to identify the

producer’s product in all markets

Establishing local brand names for the separate national

markets

Establish several brands in a market to identify individual

products or groups of products in the manufacturer’s line.

(ex: food, cosmetics)

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Most marketers of manufactured products probably believe that branding is desirable,…But there are a number of instances in which it is costly & difficult to establish a brand to make profit.

Because…

The product must have the potential demand & margin to support the additional promotional costs & yet provide a greater profit

Maintain same quality. Customers want consistency.

Should be identifiable & differentiate with others.

Product should be consistently available to the consumer to make the best use of the promotional activities etc…

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One product, One Message – Worldwide (straight

Extension)

Same Product, but modified communications

(Communication Adaption).

Product Adaptation – Communications Extension

Dual Adaptation

Product Invention

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Once a company has chosen the market segment to

which it will cater,…

It is confronted with the problem of determining

whether its present products are ideal for such a

move.

Domestic Product to be marketed abroad

Easiest decision is to take the established product

abroad as its proven.

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Cost savings can be obtained as R & D cost is lesser,

Economies of scale can be reached, etc…

But… if the product does not satisfy the basic needs of

the market, it won’t sell.

Therefore should meet the requirements of the new

market segment, but it also adds costs.

Usually some modification of the basic product, brand

policy, packaging, or service is desirable to secure a

better fit.

Ex: Middle Eastern & Japanese markets, the products

are usually modified to meet their tastes.

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Products needs be tailored to each customer target

group because there are variables like…

Economic, political, cultural, etc.. Which vary from

country to country.

But some products are more global and require less

adaptation on the whole.

Coca Cola is less sweet or less carbonated in certain

countries.

Indian pickles are mildly hot in Gulf Countries and

not at all hot in USA.

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