International product policy Standardization versus adaptation in Visegrad

  • Slides: 12
Download presentation
International product policy Standardization versus adaptation in Visegrad and other Central European countries Branding

International product policy Standardization versus adaptation in Visegrad and other Central European countries Branding and regional opportunities New product development or examples of good practice from V 4 and CE countries Elena Horska

Designing the marketing programme • Once the firm has decided how it will enter

Designing the marketing programme • Once the firm has decided how it will enter the international market, the next issue is how to desigh the international/global marketing mix. • There are different forces in the international environment that may favour either increasing globalization or increasing adaptation of the firm. • Supporters of adaptation state that there are substantial differences between countries and even between regions in the same countries.

Designing the marketing programme It is relevant to discuss degree of standardization or so

Designing the marketing programme It is relevant to discuss degree of standardization or so called „standardization potential profile“

Main decisions in product policy • What kind of product? • Product life cycle

Main decisions in product policy • What kind of product? • Product life cycle • New product development and innovations As a product we can consider anything what can be offered to our customer.

Which products for international markets? • • The same as for home market Adapted

Which products for international markets? • • The same as for home market Adapted products Standardized products New products Define the reasons for each option!

Factors of adaptation • Consumer goods for daily use • Local competition

Factors of adaptation • Consumer goods for daily use • Local competition

Factors of adaptation • Different conditions of use • Intercultural differencies in consumer behaviour

Factors of adaptation • Different conditions of use • Intercultural differencies in consumer behaviour and purchasing behaviour • Differences in purchasing power • Different conditions in supplying with production inputs • Different legislation

Factors of standardization • Economics of scale • High costs of adaptation process •

Factors of standardization • Economics of scale • High costs of adaptation process • Industrial and high tech products • Entering the similar markets • Export • Global competition • Strong image of the country/producer/brand

Branding decisions Source: adapted from Onkvisit and Shaw, 1993, p. 534. 14 -10

Branding decisions Source: adapted from Onkvisit and Shaw, 1993, p. 534. 14 -10

Different degrees of product newness Increasing risk High Reposition Existing products Newness to International

Different degrees of product newness Increasing risk High Reposition Existing products Newness to International Market Cost reductions Low Line extensions/ improvements New to International markets New to home country New to regional Visegrad market New to company Newness to Company High 14 -11

Benefits of strong brand in local/regional Visegrad market • New product in brand portfolio

Benefits of strong brand in local/regional Visegrad market • New product in brand portfolio • Repositioning the traditional product • Seasonal product for larger market • Brand partnership