The question is - “discuss in brief the five major product strategies in international marketing.” The assignment question is solved very professionally. It is in the series of “exchange rate arrangements of developing and transition countries” and “bill of lading” for SMU MBA MB0037 assignment.
There are five major product strategies in international marketing:
Product Communications Extensions:
This strategy is very low cost and merely takes the same product and communication strategy into other markets. However it can be risky if misjudgments are made. For example, CPC international believed the US consumer would take to dry soups, which dominate the European market. It did not work.
Extended Product – Communications Adaptation:
If the product basically fits the different needs or segments of a market it may need an adjustment in marketing communications only. Again this is the low cost strategy, but different product functions have to be identified and a suitable communications mix developed.
Product Adaptation – Communications Extension:
The product is adapted to fit usage conditions but the communication stays the same. The assumption is that the product will serve the same function in foreign markets under different usage conditions.
Product Adaptation – Communications Adaptation:
Both product and communication strategies need attention to fit the peculiar need of the market.
Product Invention:
This needs a totally new idea to fit the exclusive conditions of the market. This is very much a strategy which could be ideal in a Third World situation. The development costs may be high, but the advantages are also very high.
The choice of strategy will depend on the most appropriate product/market analysis and is a function of the product itself defined in terms of the function or need it serves, the market defined in terms of the conditions under which the product is used, the preferences of the potential customers and the ability to buy the product in question, and the costs of adaptation and manufacture to the company considering these product – communications approaches.
There are five major product strategies in international marketing:
Product Communications Extensions:
This strategy is very low cost and merely takes the same product and communication strategy into other markets. However it can be risky if misjudgments are made. For example, CPC international believed the US consumer would take to dry soups, which dominate the European market. It did not work.
Extended Product – Communications Adaptation:
If the product basically fits the different needs or segments of a market it may need an adjustment in marketing communications only. Again this is the low cost strategy, but different product functions have to be identified and a suitable communications mix developed.
Product Adaptation – Communications Extension:
The product is adapted to fit usage conditions but the communication stays the same. The assumption is that the product will serve the same function in foreign markets under different usage conditions.
Product Adaptation – Communications Adaptation:
Both product and communication strategies need attention to fit the peculiar need of the market.
Product Invention:
This needs a totally new idea to fit the exclusive conditions of the market. This is very much a strategy which could be ideal in a Third World situation. The development costs may be high, but the advantages are also very high.
The choice of strategy will depend on the most appropriate product/market analysis and is a function of the product itself defined in terms of the function or need it serves, the market defined in terms of the conditions under which the product is used, the preferences of the potential customers and the ability to buy the product in question, and the costs of adaptation and manufacture to the company considering these product – communications approaches.
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