The purpose of this chapter is to study product in an international context. The discussion focuses on the meaning of product and the necessities of market segmentation and product positioning. Other topics include product development and services. There is also a critical look at the controversial issue of product standardization versus product adaptation, as well as the theory of international product life cycle and that theory’s marketing applications. | Chapter 10 Product Strategies: Basic Decisions & Product Planning Chapter Outline What Is a Product? New Product Development Market Segmentation Product Adoption Chapter Outline Theory of International Product Life Cycle - Stages and Characteristics - Validity of the IPLC - Marketing Strategies Product Standardization vs. Product Adaptation - Arguments for Standardization - Arguments for Adaptation Chapter Outline A Move Toward World Product: International or National Product? Marketing of Services - Importance of Services - Types of Services - The Economic and Legal Environment - Marketing Mix and Adaptation - Market Entry Strategies Product a bundle of utilities or satisfaction Bundling vs. unbundling New Product Development generation of new product ideas screening of ideas business analysis product development test marketing full-scale commercialization Factors Influencing Product Adoption Relative advantage (+) Compatibility (+) Trialability/divisibility (+) Observability (+) Complexity (-) Price (-) Theory of International Product Life Cycle (IPLC) Stage 0--Local Innovation Stage 1--Overseas Innovation Stage 2--Maturity Stage 3--Worldwide Imitation Stage 4--Reversal Product Standardization vs. Product Adaptation Arguments for Standardization - simplicity and cost - consistent company or product image - musical recordings and works of art - industry specifications - cultural universals Product Standardization vs. Product Adaptation Arguments for Adaptation - big-car syndrome - left-hand-drive syndrome Mandatory Product Modification Government regulations Electrical current standards Measurement systems Operating systems Optional Product Modification Physical distribution Local use conditions Climatic conditions Space constraint Consumer demographics as related to physical appearance Optional Product Modification User's habits Environmental characteristics Price Limiting product movement across national borders (gray marketing) Historical preference or local . | Chapter 10 Product Strategies: Basic Decisions & Product Planning Chapter Outline What Is a Product? New Product Development Market Segmentation Product Adoption Chapter Outline Theory of International Product Life Cycle - Stages and Characteristics - Validity of the IPLC - Marketing Strategies Product Standardization vs. Product Adaptation - Arguments for Standardization - Arguments for Adaptation Chapter Outline A Move Toward World Product: International or National Product? Marketing of Services - Importance of Services - Types of Services - The Economic and Legal Environment - Marketing Mix and Adaptation - Market Entry Strategies Product a bundle of utilities or satisfaction Bundling vs. unbundling New Product Development generation of new product ideas screening of ideas business analysis product development test marketing full-scale commercialization Factors Influencing Product Adoption Relative advantage (+) Compatibility (+) Trialability/divisibility (+) Observability (+) .
