Page 165 - International Marketing

NPP

BRILLIANT'S Overseas Market 167

PRODUCT STRATEGY

Q.24. Do you agree that “Product adoption is must” in present en-
vironment? [MBA(FT) 2007, 2004]
OR
State the difference between product standardization and
adaptation.
OR
What are the different product strategies adopted in the in-
ternational market?
Marketing Strategies in International Marketing
An international marketer may use one of the following five product
strategies:
1. Product communication extens- Marketing Strategies in
ion: This strategy is of low cost and merely International Marketing
takes the same product and communication
strategy into other markets. However, it can 1. Product communi-
be risky if wrong judgments are made. cation extension
2. Extended product communication 2. Extended product
communication adap-
adaptation: If the product basically fits the tation
different needs or segments of a market, it 3. Product adaptation-
may need an adjustment in marketing communication ex-
communication only. Again, this is a low cost tension
strategy but different product functions have 4. Product adaptation-
to be identified and a suitable communication communication ad-
mix is developed. aptation
3. Product adaptation-communica- 5. Product invention
tion extension: The product is adapted to
fit usage conditions but the communication may stay the same. The
assumption is that the product will serve the same function in foreign
markets under different usage conditions.
4. Product adaptation-communication adaptation: Both product
and communication strategies need attention to fit the peculiar need of
the market.
5. Product invention: This needs a totally new idea to fit the exclusive
conditions of the market. This is very much a strategy which could be
ideal in a third world situation. Its development costs may be high but the
advantages are also very high.