1. Creating Products and
Brands for Consumers in
Global Markets

2. Product Components
Core ComponentCore Component
Packaging ComponentPackaging Component
Support Services ComponentSupport Services Component

3. Product Component Model
Repair and
maintenance
SUPPORT SERVICES
COMPONENT
CORE
COMPONENT
Installation
Instructions
Other related
services
Deliveries
Warranty
Spare parts
Legal
Trademark
Brand
name
Legal
Product platform
Design features
Functional features
Legal
PACKAGING
COMPONENT
Price
Quality
Package
Styling

4. 4 Ps - Product
Product decisions are all decision which relate to the
physical product and/or service offering, including its
name, packaging, warranty, and availability. Product
dimensions include:
– Size of the product
– Color(s) of product
– Scent of the product
– Materials/ composition of the product
– Design of the product
– Packaging materials
– Package colors and package design
– Brand name
– Warranty
– Availability of options
– Customizing services
– After-sale service offerings
– Inventory levels

5. The International Marketing Dilemma
ProductProduct
StandardizationStandardization
ProductProduct
AdaptationAdaptation
VSVS..

6. Benefits of Product Standardization
+ Lower manufacturing costs
+ Lower input costs
+ Cost savings due to elimination of
product adaptation efforts
+ Fast global roll-outs are possible

7. Benefits of Product Standardization
+ Product available for global
customers
+ Enhance consumer perceptions of
global brand

8. PRESSURES FOR PRODUCT ADAPTATION
Competitive offerings
Climate, geography, & infrastructure
Government regulations & international standards
Customer expectations, preferences, & buyer behavior

9. Factors Influencing Product
Adaptation vs. Standardization
Stage in Product Life CycleStage in Product Life Cycle
Legal/Standards ConstraintsLegal/Standards Constraints
Product InnovativenessProduct Innovativeness
Cultural DifferencesCultural Differences

10. Types of Product Adaptation
Mandatory
– Necessary for product to be sold in a local
market
Discretionary
– Not necessary but may be beneficial

11. Benefits of Product Adaptation
+ Penetrate otherwise closed markets
+ Able to use products in different
climates & infrastructures
+ Better product performance in different use
conditions
+ Decreased costs due to varying local inputs

12. Benefits of Product Adaptation
+ Decreased costs due to feature
elimination
+ Increased sales due to better meeting
industry norms or cultural preferences

13. Strategic Adaptation to Foreign
Markets
High
Low
Degree of
Cultural
Grounding
Need for
Adaptation
Industrial/ Technology
Intensive
Consumer
Nature of Product

14. Adopter Categories in Diffusion Process

15. Exploiting Product Lifecycles

16. International Product Trade Cycle Model
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1 3 4 5 6 7 8 9 10 11 12 13 14 15
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
High Income Countries
Medium Income Countries
Low Income Countries
Time
Stages of Production Development
New Product Standardized ProductMaturing Product
Q
u
a
n
t
i
t
y
production
consumption
2

17. Characteristics of Innovations
Relative Advantage
Compatibility
Complexity
Trialability
Observability

18. What is a brand?
A name, term, sign, symbol, or design, or
combination of them which is intended to
identify the goods and services of one
seller or group of sellers and to
differentiate them from those of
competitors (Kotler, 1991)

19. Brand Strategies
Global BrandsGlobal Brands
National BrandsNational Brands
Global/National Brand MixGlobal/National Brand Mix
Private BrandsPrivate Brands

20. Global v. Local branding
In 1989, Mars changed the name of Kal
Kan cat food to Whiskas.
Why?
– Sharing of ideas in global corporation
– Pet owners travel and might switch if their
familiar brand was not available somewhere.
– Two years earlier, Mars had created to other
global brands
Kal Kan dog food Pedigree in U.S.
Mealtime dry dog food Pedigree Mealtime
– High market share in U.S.
– Brand associations

21. Global v. Local Brands
Global brands provide:
– Scale economies in the
Development of
advertising, packaging,
promotion, etc.
– Exploitation of:
Media overlap
Exposure to customers who
travel
– Associations
of a global presence
of the “home” country
Local brands provide:
– Names, symbols, and
associations that can be:
Developed locally
Tailored to local market
Selected without the constraints
of a global brand
– Reduced risk from “Buy
Local” sentiments

22. Brand Name Decisions
Arbitrary or invented word (Lexus)
Recognizable English (or foreign language) word but
unrelated to product (Cheer)
Recognizable English (or foreign language) but suggestive
of product (Mr. Clean)
English (or foreign language) word descriptive of product
but may not be understandable to outsiders (Pampers)
Geographic place or common surname (Kentucky
Fried Chicken)
Device, design, number or some other element (3M)

23. What is brand equity?
A set of brand assets linked to a brand, its
name and symbol, that add to or subtract
from the value provided by a product or
service to a firm and/or to that firm’s
customers.

25. Developing A Framework For Generic Brands
Based on Brand Knowledge
Brand Awareness
– Recognition
– Recall
Brand Image
– Type
– Strength
– Favorability
– Uniqueness
of Brand Associations
Components of Brand Knowledge (Keller, 1992)

26. Packaging & Labeling Adaptations
Size, shape, materials
– Product packaging norms
– Existing standards
– Economic development
– Environmental concerns
Color & text
– Promotional strategy
– Cultural meaning &
implications
– Government regulations
– Language issues