1. 3 elements of the product or service
Benefits
Attributes
The core product
benefit or service
Image Perceived
value
Brand name
Quality
Features
Packaging
Size and colour
variants
Design
After-sales service
Guarantees
Delivery
Installation
Performance
Marketing
support services
Standardisation
Adaptation
Adaptation

2. Fundamental Questions
 To what extent are our products suitable for
international markets?
 If we must change the product, what should these
changes be?

3. International product life cycle
Market
D
Domestic
market
Sales
Time
Market
AMarket
B
Market
C

4. International product strategies
(Van Mesdag)
 Sell What You have Got (SWYG)
 Sell What people Actually Buy (SWAB)
 Sell the same thing globally, disregarding national
frontiers (GLOB)

5. Global Product Strategies
 Extension—offering product virtually unchanged
in markets outside of home country
 Adaptation—changing elements of design,
function, and packaging according to needs of
different country markets
• Invention—developing new products for the
world market

6. Product/communication strategies
Promotion
Product
Standard
Adapt
NewAdaptStandard
Straight
Extension
One product,
one message
Promotion
Adaptation
only
Product
Adaptation
only
Dual
adaptation
Product
invention
Source: Source: adapted from Keegan, 1995.

7. STRATEGIC ALTERNATIVES AVAILABLE
 One product, One message worldwide
 Product Extension-Communications Adaptation
 Product Adaptation-Communications Extension
 Dual Adaptation
 Product Invention

8.  Standardized product with same communications
strategy across the globe. i.e Product Extension
 This strategy is Cost effective
 Allows for greater economies of scale
 Rarely used for consumer type products except soft
drink and some luxury type goods
 Used mainly for industrial type products

9. 2.Product Extension-Communications Adaptation
 Use conditions are similar or identical but the product
fulfills a different need or serves a different function.
 Cost effective because communications adaptation is less
expensive than the tailoring product to a local market.
 Can be used for consumer type products E.g Motorcycles &
Bicycles
 Serve the purpose of recreation in U.S but provide basic
transportation in many foreign countries.

10.  3.Product Adaptation-Communications Extension
 Changes made to the product, same communications
strategy across the globe
 To extend without changing the basic communication
strategy developed for home market.
 Assumes that the product will serve the same function in
foreign markets under different use conditions.
 Product formulations are changed without consumers
knowing it
 Electrical Appliances, Detergents

11.  4. Dual Adaptation - Changes made to the product,
changes made to communications strategy
 When there is difference in environmental conditions
of use and in the function which a product serves
 Combination of marketing conditions of strategies
2and 3.

12. *Kellogg’s ‘dual adaptation’
for Indian market

13.  5. Invention - Usually redesigning of an original
product at a lower level of complexity.
Recognizes the socio-cultural and economic
differences from country to country
 Leads to more purchases as a result of the reinvention
of the product

14. Standardization versus Adaptation
 Global Standardization: standardization of products
across markets and standardization of the marketing mix
worldwide
 Addresses needs of global consumers (homogeneous consumer groups
sharing similar interests and product/ brand preferences)
 Allows for global branding – using the same brand name, logo, image,
and positioning everywhere in the world

15. Standardization versus Adaptation,
 Mandatory Adaptation:
 Adapting products to local requirements so that they can
legally and physically operate in the respective countries –
for example: Left-hand driving in the United Kingdom
 Local Non-Mandatory Adaptation:
 Adapting a product to better meet the needs of the local
market, or developing new brands for individual local
markets, even though such adaptation is not required

16. Factors encouraging standardisation
 Economies of scale
 production
 R&D
 Marketing
 Reduced inventory costs
 Reduced component costs
 Cost of investment
 Reducing trade barriers
 Where ‘made in’/‘designed by’ is important

17. Reasons for adaptation
 Cultural factors
 Usage factors
 Differing consumer purchasing power
 Level of local technical skills
 Local taxation policies
 Effect of different market entry methods
 Legal standards
 Tariffs
 Technical Specifications
 Climate

18. How to Choose a Strategy
 Two errors that management makes in choosing a
strategy
 NIH (not invented here) syndrome means managers
ignore the advancements of subsidiaries overseas
 Managers impose policies upon subsidiaries because
they assume what is right for customers in one market is
right in every market
10-18

19. Failure of New Product Development
• Tariff and non-tariff barriers
• Subsidies given to local competitors
• Cultural insensitivity
• Poor planning
• Lack of unique selling proposition
• Product deficiencies
• Top management approach