Presentation is loading. Please wait.

Presentation is loading. Please wait.

Global Marketing Management A European Perspective Warren J. Keegan Bodo B. Schlegelmilch Product and Service Decisions.

Similar presentations


Presentation on theme: "Global Marketing Management A European Perspective Warren J. Keegan Bodo B. Schlegelmilch Product and Service Decisions."— Presentation transcript:

1 Global Marketing Management A European Perspective Warren J. Keegan Bodo B. Schlegelmilch Product and Service Decisions

2 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 2 Overview zBasic Concepts of Products and Services zPositioning of Products and Services zProduct Saturation Levels in Global Marketing zProduct and Service Design Considerations zAttitudes towards Country of Origin zGeographic Expansion zNew Products and Services in Global Marketing  Summary

3 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 3 Learning Objectives zKnow the differences between services and products and global brands zLearn several alternatives for positioning global brands zAppreciate the importance of saturation levels zBe aware of strategic alternatives for geographical expansion  Know why development of new products are keys to survival and global growth

4 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 4 Product and Services: Important Concepts zProduct zService zCharacteristics of Services zNational, International, Global Products and Services zGlobal Brand zPositioning  Country of Origin Effects

5 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 5 Basic Concept of Products zProducts can be defined as a collection of physical, psychological and symbolic attributes that can collectively yield satisfaction, or benefit, to a buyer or user. zProducts can also be defined by intangible attributes zProducts can be classified into consumer and industrial goods zProducts can be classified by the way their are purchased or their life-span

6 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 6 Basic Concept of Services zService can be defined as intangible benefits purchased by customers that do not involve ownership zCharacteristics: yIntangibility yPerishability yVariability ySimultaneous Production and Consumption

7 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 7 Product-Service Continuum

8 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 8 National, International and Global Products and Services zNational products or services are offered in a single national Market zInternational products or services are offered in multinational, regional markets zGlobal products and services are offered in the global market. They are international and multiregional

9 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 9 Positioning of Products and Services zAttribute or Benefit zQuality/Price zUse/User zHigh-Tech Positioning zHigh-Touch Positioning

10 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 10 Product Saturation Levels in Global Markets zMany factors determine a product`s market potential zProduct saturation level increases as national income per capita increases zThe presence or absence of a particular companion product can be significant

11 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 11 Product and Service Design Considerations zPreferences zCosts zLaws and Regulations zCompatibility

12 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 12 Attitude towards the Country of Origin zStereotyped attitudes toward foreign products and services can favour or hinder marketing efforts zIf the quality is perceived to be low yForeign origin of the product can be disguised yForeign identification of the product can be continued and consumer attitudes towards the product can be changed zIn some market segments foreign products have a substantial advantage because they are foreign

13 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 13 Geographic Expansion-Strategic Alternatives

14 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 14 Strategy 1: Product/Communication Extension (Dual Expansion) zCompany sells exactly the same product or service with the same advertising as used in the home country zCompany assumes that all markets are alike zDual Extension does not work in all markets zDual Extension is often used because it saves costs zExample: Campbell Soup

15 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 15 Strategy 2: Product Extension, Communications Adaptation zIf the product serves different needs in various countries, only marketing communication may have to be adapted zAdaptation can happen by design or accident zCheap implementation because product does not change zExample: Motorbikes

16 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 16 Strategy 3: Product Adaptation, Communication Extension zProduct is adapted to the new market, but basic home market communication strategy remains unchanged zProduct is adapted to the environment and the preferences of the consumers in the new market zExample: Mueslix

17 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 17 Strategy 4: Product/Communication Adaptation (Dual Adaptation) zUsing Dual Adaptation the company must adapt the product or service as well as the marketing communication to the foreign market zExample: Colgate

18 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 18 New Products and Services in Global Marketing (1) zNew to consumer and company ( Product or service innovation) zNew to consumer but not new to company (Product/service or line extension) zNot new to consumer but new to company (New product or service duplication)

19 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 19 New Products and Services in Global Marketing (2) zNew-product development process yPermanent identification of new-product ideas yScreening of these ideas and identification of candidates for further investigation yStringent investigation and analysis of the selected new- product ideas yOrganisation of sufficient resources zThe international new-product department zTesting new products and services in national markets

20 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 11/ 20 Summary zProduct and services are the most important elements of the marketing program zImportant factors: preferences, costs, laws and regulations, and compatibility zFive strategic alternatives for geographic expansion: yProduct/communication extension, product extension/communications adaptation, product adaptation/communications extension, dual adaptation and product invention


Download ppt "Global Marketing Management A European Perspective Warren J. Keegan Bodo B. Schlegelmilch Product and Service Decisions."

Similar presentations


Ads by Google