ASSIGNMENT

ON
INTERNATIONAL
MARKETING

SUBMITTED TO: DR. ATUL DHINGRA

SUBMITTED BY:KOMAL(2018A124MBA)
INTERNATIONAL PRODUCT DECISION

INTRODUCTION
Product is an important element of marketing mix. It is the centre of all
marketing activities like pricing, distribution ,sales promotion, advertising,
personal selling, etc. The life cycle of business unit depend upon the
product. The product planning and development is a complex task in
international marketing due to heterogeneous marketing environment in
different nations. Now global companies make customised products to
match the product features with customers expectations, local
requirements, culture etc.

MEANING OF PRODUCT
Put simply, a product is a bundle of utilities. To be more concise, a product can be defined
as a collection of physical, service and symbolic attributes which yield satisfaction or benefits
to a user or buyer. A product is a combination of physical attributes say, size and shape, and
subjective attributes say image or quality. A customer purchases on both dimensions. It is
increasingly important that the product fulfills the image which the producer is wishing to
project.

DEFINITION OF PRODUCT
ACCORDING TO PHILLIP KOTLER, ‘’A Product is a bundle of physical services and symbolic
particulars expected to yield satisfaction or benefits to the buyer .’’

LEVELS OF PRODUCT
There are three levels of product which are mentioned below

 CORE PRODUCT : It consists of main features of the product which aim to satisfy the
core need of purchasing the product. For ex. The basic purpose of buying washing
machine is to wash clothes.
 ACTUAL PRODUCT: It includes not only the basic features of product but also includes
style, design, brand, packaging, labelling etc.
 AUGMENTED PRODUCT: It represents the totality of benefits and services offered by
marketer to consumers. It includes additional services like free installation of product at
consumer place etc.
PRODUCT PLANNING
It consists of two terms product and planning. Product refers to goods and services which provide
some satisfaction to consumers . Planning refers to thinking about future. It mainly includes:

 Development of new product

 Modification of existing product
 Extension of existing product line to the foreign market
 Elimination of unprofitable and marginal product

PRODUCT DEVELOPMENT

It is the next step to product planning. It is the process of finding out the possibilities of
manufacturing the product. Under product development, the technical and financial feasibilities of
product are checked and the product is physically developed.

INTERNATIONAL PRODUCT STRATEGIES

PRODUCT ADAPTATION STRATEGY

Product adaptation is the process of modifying an existing product so it is suitable for different
customers or markets. An adaptation strategy is particularly important for companies that export their
products because it ensures that the product meets local cultural and regulatory requirements.
Adaptation is also important for companies that want to introduce new products but do not have the
funds or resources to develop completely new items .

Mandatory Product Adaptation

• Government regulations
• Electrical current standards
• Measurement systems
• Operating systems

Optional Product Adaptation

• Physical distribution
• Local use conditions
• Climatic conditions
• Space constraint
• Consumer demographics as related to physical appearance
• User's habits
• Environmental characteristics
 FACTORS OF ADAPTATION STRATEGY

• Local competition
• Consumer goods for daily use
• Different conditions of use
• Intercultural differencies in consumer behaviour and purchasing behaviour
• Differences in purchasing power
• Different conditions in supplying with production inputs
• Different legislation

PRODUCT STANDARDISED STRATEGY

PRODUCT standardization refers to the process of maintaining uniformity and consistency among the
different iterations of a particular good or service that are available in different markets. It is a process
of marketing a good or service without making any changes to it. If a product is changed at all, it is
only changed superficially. Otherwise, the characteristics of the good or service remain uniform. It is
made using the same materials and processes, has the same packaging and is marketed under the
same name.The strategy of product standardization requires a particular industry or organization to
follow certain guidelines in order to maintain the consistency of a product’s nature, appearance, and
quality. These guidelines are ones that are accepted on a general basis and are adhered to when
producing a good or carrying out a service.

USES OF PRODUCT STANDAEDISED

 Cost reduction: Product standardization reduces the cost of production. When a set of
guidelines are being adhered to in order to produce identical goods or services, the cost of raw
materials goes down. The raw materials being used for that particular product are the same.
 Production efficiency: The production process becomes more efficient when the end goal is to
maintain uniformity of products. Less effort is expended on production. It is easier to automate at least
part of the production process. The same process is utilized in different organizations or industries to
produce the same good or service.
 Establishment and strengthening of the brand: When a particular product is available
across different markets, including the international sphere, in a consistent form with uniform features,
it becomes a brand that the consumer base recognizes and trusts. Regardless of geographical location,
the exact same good or service is delivered to the consumer, with no change in quality.
 Convenience for consumers: Product standardization is convenient for consumers when it
comes to products like technology or construction materials or automobiles. There are certain product
specifications according to which particular products are made.
 Standard of quality: Standardizing of products ensures that all products are held to a
certain standard of quality. The particular product must be uniform in every way. Therefore, it
is easy to detect any failure in the process of production or marketing.
FACTORS OF STANDARDISED STRATEGY
• Economics of scale
• High costs of adaptation process
• Industrial and high tech products
• Entering the similar markets
• Export
• Global competition
• Strong image of the country/producer/brand

ADVANTAGES

 Product innovation: The availability of a basic template to work with increases the possibility of
innovation. Different organizations in a particular industry that offers standardized goods and services
build upon the standardized product to produce a more distinct good or service that is consistent with
the standards of the industry yet improved in nature.
 Benefits to the consumer: Product standardization reduces the number of available
products which serve a particular purpose. The consumer is able to choose more easily which
product they desire to purchase. It lowers confusion among consumers. A particular good is
identical in all its iterations and the consumer is aware of its quality.
 International market: In today’s world, globalization has led to a growing similarity in the
demands of people that transcends geographical and cultural borders. Product standardization across
national and international markets ensures that the same product, consistent in all its aspects, is
available to consumers, with no need to consider their actual location
 Avoiding the cost of adaptation: It is undeniably more expensive to tailor a particular good
or service to a particular consumer base. Industries and organizations save money by taking a
“one size fit all approach”.

DISADVANTAGES
 Stagnation: There is always a possibility of stagnation when it comes to product standardization.
Innovation may not be easy to achieve if uniform, identical products has been made the norm. The
producer may suffer in the face of competitors.
 Failure to communicate: If the demands of the consumer change and the industry or organization is
too committed to maintaining consistency of products to realize this and respond accordingly then the
consumers will cease to purchase the product and the producer will not be able to create a new
product to meet the changing demands.
 Differences in equipment: While products may be standardized across markets without consideration
for geographical boundaries, different countries may have different systems when it comes to electronics.
Thus technological devices may be produced according to standardized specifications, but they cannot be
used in every country
 Cultural differences: Even in the age of globalization differences based on culture do exist. Religion is a
very important factor as well, that affects the lives of many across the world. For example, a fast-food
chain specializing in non-vegetarian food would have to adapt to the local market before it could make a
significant profit in India.