INTERNATIONAL PRODUCT DECISIONS.
Product to be marketed internationally:
COCONUT WATER with CRUSHED MALAi.
Trade is increasingly global in scope today. There are several reasons for this. One significant reason is technology—because of improved transportation and communication opportunities today, trade is now more practical. Thus, consumers and businesses now have access to the very best products from many different countries. Increasingly rapid technology lifecycles also increases the competition among countries as to who can produce the newest in technology. In part to accommodate these realities, countries in the last several decades have taken increasing steps to promote global trade through agreements such as the General Treaty on Trade and Tariffs, and trade organizations such as the World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), and the European Union (EU). INTERNATIONAL MARKETING:
International Marketing or Global Marketing refers to marketing carried out by companies overseas or across national borderlines. This strategy uses an extension of techniques used in the home country of a firm. According to the American Marketing Association (AMA) "international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives”.
INTERNATIONAL PRODUCT DECISIONS:
The uniqueness of product in marketing mix is that all the other elements of the marketing mix, viz., price, promotion and place are designed to achieve successful exchange of the product for consumer satisfaction and income. If the product fails to satisfy the consumer, any amount of efforts to boost the sales will not have long term success. There is, however, no denying the fact that the success of marketing depends on the success of the product in satisfying the consumers. The important product decisions in international marketing management are: 1. Market segment decision.
2. Product mix decision.
3. Product specifications.
4. Positioning and communication decisions.
A product can be defined in terms of its physical attributes such as weight, dimension, or material. It can also be defined in terms of color, texture, style, shape, or contour. However, marketers consider these definitions to be incomplete because the definition must also clarify what needs a product fulfills. Products are, in general, classified on the basis of their characteristics like usage, durability and tangibility.
International marketing product decisions need to take 5 important characteristics into consideration. They are primary functional purpose, secondary purpose, durability and quality, method of operation, and maintenance. Product design plays a key role in the success of global marketing. Product design decisions address questions, such as whether to design different products for different national markets or to design a single product for the global market. Takeovers, Joint ventures, and Contractual agreements are some of the ways in which international R&D capabilities can be acquired. International diffusion process involves shifting of products to overseas markets. Several factors influence the speed with which diffusion takes place. These are: nature of the product, characteristics of the overseas markets, strategy of the firm, competition, degree of product adaptation necessary, and propensity of consumers to change from the current pattern of consumption to a new pattern of consumption.
A product suitable for one market may not be suitable for other markets. Factors that encourage or restrain product adaptation in different countries are: different use conditions, other market factors, and influence of government. International Product Life Cycle describes international trade and...
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