Page 168 - International Marketing

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170 International Marketing BRILLIANT'S

2. Consumer products: The firms
which are dealing with the consumer Factors Encouraging
Adaptation
products have to adapt their, offerings
according to the customers needs. 1. Difference in tec-hnical
For example, at McDonald's, coffee in standards
South American units are much stronger as 2. Consumer products
compared to North America, and in certain 3. Income differences
parts of Europe and Asia, the food is more 4. Cultural differences
spicy to meet the local tastes. 5. Government influ-
3. Income differences: The level of ences
income vary from country to country. This
affects the demand for consumer durables. The features of the product
have to be modified to make them affordable to lower income people.
For example, in US, the bicycles have several added features as
they are used for exercise and recreation. But in many developing countries;
only basic models are available as they are used for transportation.
4. Cultural differences: The culture varies from one country to other.
If a product is liked in one country, it is not necessary that it would be
liked by other country too. For example, cosmetic and other beauty
aids, that sell well in the US may not be acceptable to Indian women.
Similarly, the shampoos and deodorants which may have strong appeal in
Europe, fails to attract customers in the U.S. Thus, adaptation, is required
to fulfil the customer’s needs in culturally-different countries.
5. Government influences: Sometimes, the government regulations
of a particular country are strict, such as the product may be required to
be locally manufactured and not imported. The taxation policy of government
also influences the product modification. For example, in Europe, tax on
car and engine design influence the car modification there.
Local market regulations also influence the product adaptation. For
example, European and American MNCs sell non-alcoholic beer in the
Middle East. The drink is called a malt beverage and cannot be advertized.
Thus, marketers rely on in store promotions and contests.
Branding Strategies
Export Marketing may involve several decisions to branding. Some
important branding decisions are explained as follows:
1. To Brand or Not to Brand: Although branding provides many
advantages, howevers it is costly and risky. At the same time, in the
absence of a brand, a company's product would be devoid of an easy
identity. However, there are lot of export opportunities for non-branded