Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/1

INTERNATIONAL PRODUCT AND SERVICE MANAGEMENT

Session 8

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/2

The Product-Service Continuum

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/3

THE 3 ELEMENTS OF THE PRODUCT OR SERVICE

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/4

EVALUATING THE PRODUCT

• For what purpose has the product been developed– how would it be used in that country?

• What distinctive properties does it have?• What benefits is the consumer expected to gain?• How is it positioned

– what image do consumers perceive it to have?

• Which consumer segments are expected to buy it– on what occasions and for what purpose?

• How does it fit into the total market?

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/5

FACTORS AFFECTING INTERNATIONAL MANAGEMENT OF PRODUCTS AND SERVICES

• Balance between standardisation and adaption– Cultural, usage and legal factors

• Product accessibility and ethical issues• Green environmental issues• Shortening product life cycles• Effect of differing market entry methods• Changes in marketing management

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/6

TOWARDS STANDARDISATION

• Markets are becoming more homogeneous

• More identifiable international consumer segments

• Increase in number of firms moving towards globalisation– Forcing greater standardisation in industry

sectors

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/7

DETERMINING THE PRODUCT RANGE

• Overall growth/profit objectives• Experience, philosophies and attitude of the

company• Characteristics of the market• Requirements, expectations and attitudes of the

consumers• The products and services themselves• Ease of distribution• Support required from elements of the marketing mix• Environmental constraints• Level of risk the company is prepared to take

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/8

THE INTERNATIONALPRODUCT LIFE CYCLE

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/9

THE PORTFOLIO APPROACH TO STRATEGIC ANALYSIS (BCG MATRIX)

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/10

THE BRAND VALUE EQUATION

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/11

The Best Global Brands (2006)

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/12

BRAND VALUATION

• The most basic criteria for brand evaluation include:

– title to the brand has to be clear and separately disposable from the rest of the business

– the value has to be substantial and long term, based on separately identifiable earnings that have to be in excess of those achieved by unbranded products

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/13

BRANDING STRATEGIES

• Umbrella brands

• Product brands

• Line brands

• Range brands

• Endorsing brands

• Source brands

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/14

BRAND PIRACY

• Outright Piracy

• Reverse engineering

• Counterfeiting

• Passing-off

• Wholesale infringement

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/15

NEW PRODUCT DEVELOPMENT PROCESS

• Idea generation

• Initial screening

• Business analysis

• Development

• Market testing

• Commercialisation and launch

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/16

NEW PRODUCT CATEGORIES

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/17

RESEARCH & DEVELOPMENTSTRATEGIES

• Companies must take decisions on:– Location of their own internal R&D facilities– Extent to which they contract out certain parts of

their R&D programme– Whether or not they might acquire a company

which can provide either the required new technology or a new product

– Licensing the technology and process from another company

– Funding joint ventures or strategic alliances with companies that have complementary technology

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/18

THE ARGUMENTS FOR & AGAINST CENTRALISATION OF R&D

Use with INTERNATIONAL MARKETING STRATEGY:

Analysis, development and implementation 5TH edition ISBN 13: 978-1-84480-763-5 Published by Cengage Learning DOOLE AND LOWE

ch8/19

FAILURE OF NEW PRODUCT DEVELOPMENT

• Tariff and non-tariff barriers• Local competitor subsidiaries• Cultural insensitivity• Poor planning• Lack of unique selling proposition• Product deficiencies• Misguided enthusiasm of top management