Page 192 - GLOBAL STRATEGIC MARKETING

End of Unit Summary

This unit discussed the importance of segmentation and the need for the
international marketer to understand the needs of international consumers
and markets in relation to the purchasing power of consumers, how the

segment can be reached and served, the level of profitability and the
degree to which the organisation has sufficient expertise and resources.

It is concluded that in order to meet the needs of specific segments in the
market, the product decisions lie at the heart of the marketing mix

decisions. One of the main strategic concerns for the international
organisation is whether to standardise or adapt the product offering, Leitt
(1983) argued that lower prices fuelled by technology, quality and good

customer service is the key to establishing global brands. On the other
hand, adaptation can sometimes not be ignored, as products and services

can be more successful when adapted to the local market and changing
consumer tastes. A successful product strategy can rely on the following
choices (Mesdag, 1985):

• SWYG: Sell What You’ve Got.

• SWAB: Sell What people Actually Buy.

• GLOB: Sell the same thing globally, disregarding national frontiers.

These choices need to be carefully considered and related to the

company’s existing product portfolio. Different strategies were discussed
in relation to the product life cycle (PLC) and the appropriate strategies

depending on the position held in existing and new markets. It is prudent
for the international marketer to take existing products into new markets

(SWYG strategy) and manage the life cycles of existing product over many
different markets. Decisions will be made in relation to the company

objectives, the range of products, their PLC positions and the
manufacturing capacity available.