What is a Product? Multidimensional, Sum of all its features, Bundle of utility
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 Irwin/McGraw-Hill 12-6
Products for Consumers Two Approaches for International Product Development –Adaptation – The strategy of altering products to meet the needs of local markets –Global Standardization – The standardization of products across markets & ultimately the standardization of the marketing mix worldwide
To Standardize or Adapt Product ? THAT IS THE QUESTION
Standardization vs. Adaptation In general, however, some type of mandatory adaptation may have to be made or a voluntary change (minor or major) may be beneficial. EX: ProductAdaptation + Sony TVVoltage, broadcast standard + McDonaldsMenu, decor of restaurant + Levi jeansSize mix, fabric, cut + Coca-colaBrand name (China), package
Global Standardization vs. Local Adaptation – Continuum
Globalization A little boy from Japan flies to the United States with his parents, and on the way in from the airport they pass the "miracle mile" most places have now. The little boy turns to his parents and says, "Horeee! They have McDonald's here in America too!"
Which Components of the Product May Require Adaptation? Irwin/McGraw-Hill 12-7 Core Component Physical Product Features Design *Positioning Psychological Packaging Component Style Brand Name Packaging Quality Labeling Price Trademarks Support Services Component Repair Warranties Maintenance Deliveries Instructions Spare Parts Installation
CASE: How could this product be adapted to (i.e.) U.S.? Product? Package? Support Services?