Page 180 - GLOBAL STRATEGIC MARKETING
P. 180

very good idea of the degree of product modification that may be required
               to achieve market success (Woods, 2001). But the question is: ‘What is

               the  product?’  A  product  or  a  service  is  the  solution  to  the  customer’s
               problem,  and  helps  the  organisation  to  achieve  its  objective.  But  the
               company must examine what the customer wants to buy. Levitt (1983)

               mentions  that  what  customers  want  when  they  buy  a  0.25  inch  drill  is
               actually 0.25 inch holes!  So the drill itself is only a means to an end. The

               product  itself  is  normally  sold  in  the  domestic  market  already,  but  key
               questions are whether a standard product can be sold internationally or to
               what extent it should be adapted to meet local requirements.



               7.4 Standardisation v adaptation

               Standardisation is common for office and industrial equipment, computers

               and certain consumer products, such as toys. However, more and more
               lifestyle brands can be standardised and be successful depending on the

               uniqueness of the product offering – such as Bionade (Trueman, 2007).
               However, some differences may need to be made because of language,
               business  procedures  or  consumer  taste.  Many  products  are  subject  to

               considerable local variation. Nestlé, for example, had 560 brands in 1995,
               but 250 were unique to individual countries and only 19 were marketed in

               over 50% of the countries in which Nestlé operates (De Chernatony and
               McDonald,  2002).  Therefore,  companies  may  need  to  change  their
               product in relation to change in the surrounding environment as well as

               consumer tastes and demand. Product invention is a strategy adopted by
               firms  in  advanced  nations  to  support  and  sell  their  product  to  less

               developed countries. In other words, a product is developed to meet the
               needs of an individual market. For example, when Trevor Bayliss saw a
               programme about AIDS in Africa, he invented a clockwork radio that would

               help  the  news  about  prevention  to  spread  to  areas  that  do  not  have
               electricity  and  where  people  cannot  afford  batteries.  Despite  many

               rejections from multinational companies, Bayliss persevered, and his staff
               who have physical disabilities make 50,000 radios per month at BayGen
               in South Africa.
   175   176   177   178   179   180   181   182   183   184   185