Page 160 - International Marketing

NPP

162 International Marketing BRILLIANT'S

product to meet the needs of the foreign customers more closely or
developing new products to meet the specific needs of the customers in
foreign markets. The selection process needs a careful analysis of the
foreign market needs, appraisal of the market opportunity and detailed
product planning.
What is a Product?
In general a product is a bundle of utilities. To be more concise, a
product can be defined as a collection of physical service and symbolic
attributes which yield satisfaction or benefits to a user or buyer.
A product's physical properties are characterized the same throughout
the world. They can be convenient or shopping goods or durable or non-
durable goods, however, they can be classified according to their degree
of potential for global marketing.
(a) Local products: These are suitable only in single market.
(b) International products: Such products are having extension
potential in other markets.
(c) Multinational products: Products adopted to the perceived
unique characteristics of national markets.
(d) Global products: Products designed to meet global segments.
As a prerequisite to export marketing, it is becoming increasingly
important to maintain quality products based on the ISO 9000 standards.
Consumer's beliefs or perceptions also affect the "world brand" concept.
World brands are based on the same strategic principles, same positioning
and same marketing mix but there may be changes in message or other
image. The world brand names are to be built up over the years with great
investments in marketing and production.
Identification of Products for International Market
The firm has to carry out preliminary screening, that is identification of
markets and products by conducting market research. A poorly conceived
product often leads to marketing failures. It was not a smooth selling in the
Indian market for a number of transnational food companies after the initial
short lived euphoria among Indian consumers. Pizza Hut, McDonald’s and
Domino's Pizza had all run into trouble in the Indian Market at one point of
time. The basic mistakes that these firms made, are as follows:
1. Gross overestimation of spending patterns of Indian
consumers: Despite the ability to buy products, the customers in
South Asia are very cautious and selective when spending. They
look for value of money in their purchase decision far more than
their western counterparts do.