Chapter 4 Flashcards
Int. product management
What are the aspects international marketing policy is centered on? Or the so called marketing mix
-international product management
-international price management
-international communication management
-international distribution management
4 Ps: product, price, promotion, place
What is international product management
-encompasses all decisions relating to development, control and integration of market services in tangible/ intangible nature
What are the tasks of int. product management?
-make decisions about product positioning in target market (standardization vs differentiation)
-add value to product
-choose potential customers
-select processing and product features to gain competitive advantage
What are the objectives of int. product management?
-quality enhancement of product and other elements in value chain
-utilization of synergy effects
-expand profit, sales and market share
-risk diversification by spreading risk failure across different countries (losses of one country can be compensated by gains of another)
-advantages of the division of labor
-smooth coordination
-specialization at int. level
-cost reduction by increasing volume to create economies of scale
-differences in seasonality across countries can be exploited to meet product policy objectives of employment smoothing
-conflict avoidance
What are the challenges in int. product management?
-deciding whether to standardize of differentiate
-looking for ways to design objectives so they fit company and remain achievable
What are the restrictions that can influence product policy decisions?
-market environment
-product related factors
-company related factors
What factors affect market environment?
-legal regulations as they can significantly restrict the scope of int. product policy
-regulations on product liability and product safety can make force product adaptations
-consumer behavior and preference
-competition
What factors belong to product related factors?
-sustainability
-technology
-environmentally friendly features
-product quality and image
-culture, norms, values, traditions
What factors belong to company related factors?
-profitability
-basic orientation of management
-costs of product modification vs potential global sales
-corporate philosophy
-corporate culture
What are the int. product decision elements that can influence standardization vs differentiation in general?
-time (product introduction, variation, differentiation, elimination)
-substance (core product, design, functional features, quality, brand name, packaging, labeling, services: pre-sales, delivery, installation, after-sales, warranty, guarantee)
substance is only important because time is already given when it comes to internationalization
What three parts are products made up of?
-core product
-actual product
-augmented product
What is a core product?
-intangible element that brings value to customer (e.g. convenience)
-the more homogenous needs of market the more likely core product will be standardized
What is augmented product?
-accompanying services of core product that can arouse demand for core product
What elements can influence actual product?
-special functions (“symbolic features”): brand, image, country -that can emotionally appeal to consumers; bringing improved high esteem or sense of belonging
-expected functions and features, depending on consumer taste and preference
-additional functions and features, depending on consumer expectations
What is int. product development
subsection of company’s int. product and program policy.
-pre-requisite know potential customers, needs and preferences
