INTERNATIONAL MARKETING MANAGEMENT

SESSION 10:

PRODUCT POSITIONING, ADAPTATION AND DEVELOPMENT

IN INTERNATIONAL MARKETS

1

INTERNATIONAL POSITIONING OPTIONS

MarketExtension

(Johnson & Johnson)Adaptation

(Peugeot)

SegmentExtension(BodyShop)

Reposition(Corona)

Adaptation(Playboy)

Different

Same

Same Different

POSITIONINGPOSITIONING

ADVERTISING(Theme, Copy, Media)

ADVERTISING(Theme, Copy, Media)

Broad-Based

FocusedSegment

DOMESTICMARKETSCOPE

DOMESTICMARKETSCOPE

2

PEUGEOT 106

FRANCE GERMANY

SIZE OFSMALL CAR

MARKET59% 40% 18%

POSITIONING Family CarUrban Car

Wide Space

Small

Ecological

TARGETMARKET

Middle Income

Households

20-30 yr.

Olds

The Wife’s

Car

PORTUGAL

HOW MARKET DIFFERENCES IMPACT POSITIONING

3

PRODUCT STRATEGY: BARRIERS TO STANDARDIZATION

4

Product Standards and Regulation

Measurement and Calibration Systems

Usage and Climatic Conditions

Language and Literacy

Design and Taste Differences

THE CHALLENGES OF CROSS-BORDER CONTACT

5

6

MARKET DEVELOPMENT ALTERNATIVES

Modify Product

Product Line Extension

Develop New Products

7

NEW PRODUCT DESIGN

8

Backward Invention

Plan National Adaptations(Modular Production)

Design for Regional/Global Markets

SUMMARY

Global/Regional Positioning Most Likely When Target Focused Segment

Often Need To Adapt Products To Local Standards And Taste

Develop Local Line Extensions To Tap Local Tastes

New Product Development:

– At Bottom Of Line

– Global/Regional Product LaunchesMore Common

9