1、Global Marketing ManagementWarren J.KeeganChapter 11 Product DecisionsKeegan:Global Marketing PerspectiveChapter 11/2OverviewzBasic Concepts zProduct Positioning zProduct Saturation Levels zProduct Design ConsiderationszAttitudes Towards Country of OriginzGeographic ExpansionzNew Products in Global
2、MarketingzSummary Keegan:Global Marketing PerspectiveChapter 11/3Learning ObjectiveszKnow the differences between local,national,international&global brandszLearn alternatives for positioning global brandszAppreciate the importance of saturation levelszBe aware of design considerations and attitudes
3、 toward country of originzKnow why development of new products are keys to survival and global growth Keegan:Global Marketing PerspectiveChapter 11/4Basic Concept of ProductszProducts can be defined as a collection of physical,psychological and symbolic attributes that can collectively yield satisfa
4、ction,or benefit,to a buyer or user.zProducts can be classified into consumer&industrial goodszProducts can be classified by the way they are purchased or their life-spanKeegan:Global Marketing PerspectiveChapter 11/5Local,National,International and Global Products zLocal products are offered in a p
5、ortion of a national marketzNational products are offered in a single national MarketzInternational products are offered in multinational,regional marketszGlobal products are offered in the global market.They are international and multi-regionalKeegan:Global Marketing PerspectiveChapter 11/6Global B
6、randzA symbol about which customer have beliefs&perceptionszSame name or same meaning in another languagezSimilar image&positionzGuided by same strategic principleszMarketing mix may vary from country to countryKeegan:Global Marketing PerspectiveChapter 11/7Positioning of Products and Services zAttr
7、ibute or BenefitzQuality/PricezUse/UserzHigh-Tech PositioningzHigh-Touch PositioningKeegan:Global Marketing PerspectiveChapter 11/8Product Saturation Levels in Global Markets zMany factors determine a products market potentialzProduct saturation level increases as national income per capita increase
8、szThe presence or absence of a particular companion product can be significantKeegan:Global Marketing PerspectiveChapter 11/9Product and Service Design Considerations zPreferenceszCostszLaws and RegulationszCompatibilityzLabeling and instructionsKeegan:Global Marketing PerspectiveChapter 11/10Attitu
9、de towards the Country of Origin zStereotyped attitudes toward foreign products&services can favor or hinder marketing effortszIf the quality is perceived to be lowyForeign origin of the product can be disguisedyForeign identification of the product can be continued&consumer attitudes towards the pr
10、oduct can be changedzIn some market segments foreign products have a substantial advantage because they are foreignKeegan:Global Marketing PerspectiveChapter 11/11Geographic Expansion-Strategic Alternatives DifferentSameSameDifferentedlichProductCommunicationsStrategy 2:Product Extension,Communicati
11、onsAdaptationExample:MotorbikesStrategy 1:Dual ExpansionExample:Applications SoftwareStrategy 4:Dual AdaptationExample:Greeting CardsStrategy 3:Product Adaptation,CommunicationExtensionExample:Electrical productsG l obal Product Pl anni ng:St rat egi c A l t ernat i ves for Expandi ng i nt o G l oba
12、l M arket sKeegan:Global Marketing PerspectiveChapter 11/12Strategy 1:Product/Communication Extension or Dual Extension zCompany sells exactly the same product or service with the same advertising as used in the home countryzCompany assumes that all markets are alikezDoes not work in all marketszOft
13、en used because it saves costszExample:Campbell SoupKeegan:Global Marketing PerspectiveChapter 11/13Strategy 2:Product Extension,Communications Adaptation zIf the product serves different needs in various countries,only marketing communication may have to be adaptedzAdaptation can happen by design o
14、r accidentzCheap implementation because product does not changezExample:Motor scootersKeegan:Global Marketing PerspectiveChapter 11/14Strategy 3:Product Adaptation,Communication ExtensionzProduct is adapted to the new market,but basic home market communication strategy remains unchangedzProduct is a
15、dapted to the environment and the preferences of the consumers in the new marketzExample:ExxonKeegan:Global Marketing PerspectiveChapter 11/15Strategy 4:Product/Communication Adaptation or Dual Adaptation zUsing Dual Adaptation the company must adapt the product or service as well as the marketing c
16、ommunication to the foreign marketzExample:Unilever fabric softenerKeegan:Global Marketing PerspectiveChapter 11/16Strategy 5:Product InventionzDemanding but potentially rewarding strategy for reaching mass markets in LDCszProduct quality is essential but must be supported with imaginative,value-cre
17、ating advertising&marketing communicationKeegan:Global Marketing PerspectiveChapter 11/17How to Choose a Strategyz3 StagesCave Dweller primary motivation is to dispose of excess capacityNave Nationalist Sees adaptation as the only alternativeGlobally Sensitive-Evaluated across countries with some st
18、andardization&some differentiationKeegan:Global Marketing PerspectiveChapter 11/18New Products and Services in Global Marketing(1)zNew to consumer&company(Product or service innovation)zNew to consumer but not new to company(Product/service or line extension)zNot new to consumer but new to company(N
19、ew product or service duplication)Keegan:Global Marketing PerspectiveChapter 11/19New Products and Services in Global Marketing(2)zNew-product development processyPermanent identification of new-product ideasyScreening of these ideas and identification of candidates for further investigationyStringe
20、nt investigation and analysis of the selected new-product ideasyOrganisation of sufficient resourceszThe international new-product departmentzTesting new products&services in national marketsKeegan:Global Marketing PerspectiveChapter 11/20New Products in Global Markets-ReinerzGlobal companies in fie
21、rce competition so must be world classzFocus on 1 or a few businesseszSenior management is actively involvedzRecruit&retain the best&the brightestzUnderstand the importance of speed to marketKeegan:Global Marketing PerspectiveChapter 11/21SummaryzProduct and services are the most important elements
22、of the marketing programzImportant factors:preferences,costs,laws and regulations,and compatibilityzFive strategic alternatives for geographic expansion:yProduct/communication extension,product extension/communications adaptation,product adaptation/communications extension,dual adaptation and product invention
