1. CHAPTER 11 Product Planning

2. Special Topics International issues Public Policy issues Intellectual Property issues

3. International Issues Product design for international markets Management of global product development

4. Product Design for International Five main strategies  Straight extension – no change to the product  Communication adaptation – same product, only change the promotion aspects (color, language, name) – read examples page 206!  Product adaptation – adapting a product to meet local conditions  Dual adaptation – altering both communication and product  Product invention – new product for the local market

5. International Considerations Different culture and language Lens of company’s culture may alter their view Five themes to consider  Time – perception differs across cultures  Space – personal space, being alone or in groups  Things – belongings, gifts  Friendships – personal relationships  Agreements – the way contracts are executed

6. Global Teams A quarter of new product development teams are global in nature Language or physical location challenges Generation of trust among team members

7. Public Policy Issues Product liability Environmental concerns Product/service performance Morality Other public policy issues

8. Product Liability Vulnerability of the company to litigation due to risks that the product contains  Product design  Manufacturing defects  Adequate instructions  After-use dangers Legal bases  Negligence- Strict liability  Warranty- Misrepresentation

9. Environmental Concerns Raw materials and processes in manufacture of the product Disposal of products at the end of their life EU particularly aggressive in this area

10. Product/Service Performance Assurance that a product will perform as specified Quality control and quality assurance programs Recall programs

11. Morality “Sin” products – cigarettes, alcohol, guns Different cultures have different restrictions and biases regarding “sin” products and types of advertising for them

12. Other Public Policy Issues Politics, economic conditions, and media Congressional hearings on HMO’s Shifting value of the dollar relative to other currencies Media coverage of specific products or categories may unfavorably raise awareness of potential problems

13. Intellectual Property The knowledge of a company Can sometimes be protected by patent, trademark, or copyright Different standards in different countries Can’t patent a service

14. Patents Seven categories that can be patented  An art or process or method of doing something  A machine  A manufactured product  A composition of matter  A new or useful improvement of the above  A new variety of plant  A design of a product – a particular pattern, form, or contour of a product Patent application has a petition, a specification, and an oath

15. Trademark and Copyright A trademark is a unique design identifying that company from another, and lasts for 20 years (can be renewed) A copyright protects original works of authorship, and lasts for the author’s life plus 50 years