Products and services

1. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/1
INTERNATIONAL PRODUCT AND SERVICE
MANAGEMENT
Session 8

2. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/2
The Product-Service Continuum

3. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/3
THE 3 ELEMENTS OF THE
PRODUCT OR SERVICE

4. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/4
EVALUATING THE PRODUCT
• For what purpose has the product been developed
– how would it be used in that country?
• What distinctive properties does it have?
• What benefits is the consumer expected to gain?
• How is it positioned
– what image do consumers perceive it to have?
• Which consumer segments are expected to buy it
– on what occasions and for what purpose?
• How does it fit into the total market?

5. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/5
FACTORS AFFECTING INTERNATIONAL
MANAGEMENT OF PRODUCTS AND SERVICES
• Balance between standardisation and
adaption
– Cultural, usage and legal factors
• Product accessibility and ethical issues
• Green environmental issues
• Shortening product life cycles
• Effect of differing market entry methods
• Changes in marketing management

6. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/6
TOWARDS STANDARDISATION
• Markets are becoming more
homogeneous
• More identifiable international consumer
segments
• Increase in number of firms moving
towards globalisation
– Forcing greater standardisation in industry
sectors

7. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/7
DETERMINING THE PRODUCT RANGE
• Overall growth/profit objectives
• Experience, philosophies and attitude of the
company
• Characteristics of the market
• Requirements, expectations and attitudes of the
consumers
• The products and services themselves
• Ease of distribution
• Support required from elements of the marketing mix
• Environmental constraints
• Level of risk the company is prepared to take

8. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/8
THE INTERNATIONAL
PRODUCT LIFE CYCLE

9. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/9
THE PORTFOLIO APPROACH TO STRATEGIC
ANALYSIS (BCG MATRIX)

10. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/10
THE BRAND VALUE EQUATION

11. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/11
The Best Global Brands (2006)

12. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/12
BRAND VALUATION
• The most basic criteria for brand evaluation
include:
– title to the brand has to be clear and separately
disposable from the rest of the business
– the value has to be substantial and long term,
based on separately identifiable earnings that
have to be in excess of those achieved by
unbranded products

13. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/13
BRANDING STRATEGIES
• Umbrella brands
• Product brands
• Line brands
• Range brands
• Endorsing brands
• Source brands

14. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/14
BRAND PIRACY
• Outright Piracy
• Reverse engineering
• Counterfeiting
• Passing-off
• Wholesale infringement

15. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/15
NEW PRODUCT DEVELOPMENT PROCESS
• Idea generation
• Initial screening
• Business analysis
• Development
• Market testing
• Commercialisation and launch

16. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/16
NEW PRODUCT CATEGORIES

17. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/17
RESEARCH & DEVELOPMENT
STRATEGIES
• Companies must take decisions on:
– Location of their own internal R&D facilities
– Extent to which they contract out certain parts of
their R&D programme
– Whether or not they might acquire a company
which can provide either the required new
technology or a new product
– Licensing the technology and process from
another company
– Funding joint ventures or strategic alliances with
companies that have complementary technology

18. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/18
THE ARGUMENTS FOR & AGAINST
CENTRALISATION OF R&D

19. Use with INTERNATIONAL MARKETING STRATEGY:
Analysis, development and implementation 5TH
edition ISBN 13: 978-1-84480-763-5
Published by Cengage Learning DOOLE AND LOWE ch8/19
FAILURE OF NEW PRODUCT DEVELOPMENT
• Tariff and non-tariff barriers
• Local competitor subsidiaries
• Cultural insensitivity
• Poor planning
• Lack of unique selling proposition
• Product deficiencies
• Misguided enthusiasm of top management