Scribd Logo
Upload

Welcome to Scribd!

  • Fib 12

    Uploaded by

    Anshu kumar
    14 views15 pages

    Original Title

    FIB 12

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    14 views15 pages

    Fib 12

    Uploaded by

    Anshu kumar

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 15
    12 PRODUCT AND BRANDING DECISIONS FOR FOREIGN MARKETS MEANING AND DEFINITION OF PRODUCT ordinarily speaking, product or good is a word which means any commodity which be recognised by its certain shape, quality or quantity e.g, car, book, watch, clothes Actually this meaning of the product is narrow in sense. The word ‘Product’ is taken wider perspective in marketing, Here, every brand is considered a separate product je, \ux and Lifebuoy—both are soaps, but are treated as separate products. In narrow se, these will be considered as merely soaps. Every business firm undertakes the function of product selling, though it may or may not be visible. A laundry firm provides the Clothes-washing service. This function is similar to product selling which a retailer performs. Firms while selling their products, sell services too which are related to their products. A consumer buys a product because lie gets psychological and physical satisfaction from that product. Thus a seller not only sells hie products rather he enters into marketing of such Psychological and physical satisfaction. For example, a person while purchasing a product does not bother about the inputs by which that product is manufactured, He is rather interested in the fact as ‘© what utility or satisfaction, he will gain by using that product. In this Context, the ‘Seas of George Fisk are worth describing. According to him, “Product is a duster of Psychological satisfaction.” Definitions of Product | According to Philip Kotler—A product is a bundle of physical service and ‘vole particulars expected to yleld satisfaction or benefits to the buyer” ‘anv, MeCording to W. Alderson—“ product is a bundle of utilities consisting of ms ‘atures and accompanying services;" rena Oring to Rustam S. Davar—“A product may be regarded from the “9 Viewpoint as a bundle of benefits which are being offered to consumes” Cmte abt, eg te est ; wage othe juct that consumers prefer those yr about the prod oe roduc has tree under-mentioned levels: 1. core Product--Core product is usually In the form of durable and nondurable goods, This isthe basis of total output. Core product satisfies the main wants of the Consumers. Some imperceptible re also received by the consumers along withthe core product eg. social pes ined by the consumer when he BUYS 2 This is called core product. 2. Actual Product—Actual product is that physical commodity which we use. Car ‘san example of actual product which s manufactured by using different products such into actual product withthe Is taken to be broad concept of product. Some services = an benefits re cbained by the consumers when they buy some produc caer trac anae aren the forqscf payrments in ataliments, home GOeE soc er ond aaa ater faces the competition inthe market by Provan? - buyers. This adds to the goodwill of the company and Branding Decisions for Foreign Mar tet ofthe product can be shown withthe help of chart its toe protic qe levels the product and wi Product develop of unprofitable products. ss Analysis Bu step efforts are made to establish wheter the new product wl be sutable inn asiness analysis following tree types of estimates ae made, with the product policies and objectives of the fi sch oi res ae rm may Pica 'some other ideas which are good and consistent with compar om ‘All the ideas collected may not be acceptable. Ideas which are qu ox~oe 18 product nd ranting Dvn Por Porton Marty, os 3 "a Markets . ‘market introduction, eh . : ‘offerings in which the stages of ‘market growth, market sat se eS othe the We oye. ‘and profit decreases. (0) With the change in profit, to maintain the Full ale It's necessary to change activites of engineering research, production, marketing and financial contol dn, the stages of if cyce. (W) The long life cycle of a product is unpredictable (not certain). International Product Life Cycle Raymond Vernon discovered the international product life cycle model, Internat product If cycle model is based on empirical actual pattern of trade. This model expt the relationship between the product life cycle trade and investment. oe International product life cydle model explains : Contin, 1. High-income, mass-consumption countries initially export, and later import te pO an wl product as they lose ther export markets. TEETIT ET Tabane 2. Late the other advanced countries shift from an importing country to an exporting i oun , |r | a 3. After some time, even the less developed countries shift from the statis ‘porting crunty -€Siages of Product Development f 4. New products are initially introduced in high-income countries/markets ast ‘Source : Warren 3. Keegan, 0p. ot, p. 40. Potential demand, 1th es Gal aa cand oa ae Income countries, and other factors of production in the volt factors. Production of new products. i lumes due to heavy demand, consequent upon lw cast of Market stabilises when the technolo 13, Lowsi to high-income countries and compete with the markets stabilise, Product reaches metury, the desir Industries of No SNe em eal monopoly at the il stage of the de, 9. Production from low-income ighsnoo™ on of counties et the st ach oes laces the producti ETS RE its tum. Textiles s an example ofthis 34 i ths ae, ope are cce he vesting country (UR) Soe This product has gone through ihe GE ing countries. Siar, electrons So ge Tho rot shied Hom he USATD pan tReet oinda, Life Cycle ‘Stages of International Product ‘Stages of international product life cycle include ‘Stage Zero : Local Innovation—The product in this stage liar Prod, tn the local market, Product innovations take place most due tothe changing Wang ‘the local people. ‘fs successful in the Product in the market for tt Stage 1: Overseas Innovation—After a product comeste IP known a5 introductory stage. The sle & gate war ie Mae rte fst tes fe produce deares exporting to the frlgn markets due excess prog bos epee a ‘compared to ts demand in the domestic country. pe aing alrendy. That why tes yt se Py * Stage 2: Maturty—The development ofthe oduct reaches the pak sane JF posse that the same product © rt alae ware nee no even in foreign markets. The producer modifies it and develops it based on taste any In this stage Of product fe cyde promationl expenses re mare as, preference of the customers in foreign markets. The producer exports the prods proceeds. The following steps ae tala nthe stay aceon opens ‘even to less developed countries in this stage. ') Introducing the new and unknown product tothe praspecoee tore '¢ Stage 3 : World-wide Imitation—The local manufacturers in various fore, i) Laying pressure on the consumer to use the produce or, countries start to imitate the popular foreign products. They modify those producs ') Making provision for distribution facies through retaers. ‘Sight based on the local needs and produce the same at less cost and sel them at ‘The prices are kept very high inthe presentation sage bese ‘cheaper prices. (0) The cost of production becomes high due t less reduction, ‘@ Stage 4 : Reversal—Competitive advantage of innovative or original manufaches (8) Technological problems pertaining to products stil remain in the enterrse disappears at this stage as producers in many foreign countries imitate the produc, (Wi) High price becomes essential in order to meet the promotional expenses, develop & further and produce it at less cost. This stage also results in produc 2. Growth—This is the second stage of the life cyce of the product. Under ths standardisation and competitive disadvantage. The product at this stage does not have stage a product gains acceptance from the part of consumers and businessmen. Sales intensive- of the product increase. Profit also increases. This s the stage where competitors appear ares alan copes Seaeeye oe ern mer ors long with substitute products in large numbers. Prewous buyers continue in ther senna entra erat hat aad Purchase and new ber pp: Fs nay est We esr Te is success depends upon the efficent maniacnang and SSbeuton stems ‘Marketing Strategies during PLC arent | Deduct ea Every prec has 3 certain eng of Be ring which R passes though dat 3, Maturity—This is the third stage ofa product. During ths tage sas continue ‘stages. The product life cycle concept is very useful in this context. It helps 2 | {0 increase but at a decreasing rate. This is termed 2s the maturty stage. This & the in preplanning the entry of anew product in a market, in prolonging the profabe Most crucial stage as the marketers have to adopt such strategies as wil boost the Sask, in meeting competion and in long-term decisions on investment on POS ‘Sirath rate, and face competion with te subse padi, The meager’ nas [When a product is first introduced at the pioneering stage, the sales will take some e rental expendture in pad moceaton beans Beet eee before they pick up. Once the product gains consumer acceptance the sales wil ® __ Brice which overall reduces the profits. The eflectveness ofthe marketing ape Sam, Hest as more compettors ents te market the owen eR tn mest portant fcr nthe matty Sa iter BB Be total sale volume goes up. Afterwards, a stage comes when the Sales nee ‘Saturation—During this stage ee sae pred oe cas omit te best efforts ofthe marker. This isthe saturation SO tenet Sage, sitesi Ths te Sop wen OT se ‘74 sls are lly to 90 down or may reach the decline stage and the produ ‘made posse lve. The sas = 172 product and Branding Decislons for Foreign 1 ‘hs stage continues til substiues f the product enter the Market. The Produc, to capture the market. The cost of g0es on increasing and the competors ara Se ovice promotion increase and consequently the profits of the one? seceose. eae ge of roc tne marketer musty develop on is characterized by the product's gradual rept sora tnators. Ne New products are introduced in the market by =a? Soles of existing product go down inspite ofall the best efforts for picking it up, cps control becomes necessary to reduce the price in order to compete. At this stage, ye covlcter should explore the possiblities of sling the produc. If he finds bleak poss he should divert his resources to other products. em, €. Obsolescence—This is the end stage of a product. The demand ofthe prays 1s almost nil and there is no effect of advertising and sales promotion measures of ie rterprise on consumers. New substitutes capture the market and the old produc practically out ofthe market Tiss the stage when the enterprise suffers a loss adie ossibilties of creating any demand for the product are almost nil. At this stage, i evisable that the marketer should stop the production of his product and think a ‘starting the production of some new products. Different Stages in the Life-cycle of a Product Y (0 Inieducion Growth Maturiy Saturation Decline Obsolescence PRODUCT BRANDING DECISIONS rest! ‘The same kind of products are avaliable in the market which are manufac i 1am Soap, Resane ux Soap and Ninma Etc. The intention of the producer in this stuaton I : lust recognise the product easily, For this purpose, manufactures Products brand names which may consist of word, letter, sign, design & “Thus from technical point of view, pose meted 0 Werte prods car sane and a ea rough diagram : mo ten, ‘of numbers which may be pronounced (they may aso include a pictorial 3. According to Lipson and Darling, "The brand name concemed with that ‘part of the brand that can be vocalzed. * From the above definitions its clear thatthe word brand isa comprehensive term. tions following are the main characteristics of brand : sive term and main objective is to make @ distinct nd may include the words, letters or numbers which maybe pronounced. include a pictorial design but not include packaging. 3. Branding is helpful in sales promotion of a product. Branding Decisions “The outline of branding derision s presented in the folowing fae p sranding Decisions for Foreign Marker, and Branding Decisions for Foreign Markets 178 7, pecal Brand—Globel companies have started widely using the local brands Lace the impression of cultural compat of thecal more. The edvarapes “ns sgggeteene product and! 174 is randing Decisions Branded products Manufacturer's Own Brand, Multiple Markets esa Local Brand Global Brand single Market eet Single Brand Mute Brands power. ‘exports 5, Single Brand—The global company go for a single brand for all ts expo" © thesane rrr (se mart, The advantages of single brand in snes ice: eter inact on marketing, permiting more focussed marketing brand! att econ in cst of promotion ec. sto very pe Brande The marketing conditions and the features of eoot! Cen oo eg to the othe inthe same country. Therefore, ee oot tomeet te nse sions in such cases. Multiple branding enables the Of te segments. The other advantages of multiple branding Lam d agate erctement among employees, gaining of more shelf space? S#tNecanncation of exiting brand, ete. (in single market) et segmentation technique existing brand ination of afc in pronunciation for more meaningful names (ey more fication) of negative connotations ‘of taxation on international brand ket penetration by acquiring local Atowance of vreons of quatty ad cu ‘across markets: atone Source Sak Onis and John 3 Sew, 0. ty P-423- Sa - ™~ a proact and Branding Dedlstons for Foreign Margy, Decisions consistency and salient attributes which manufacturer to gofor branding athens 176 Strategies for Branding Tt the product has production cme tater tose the product wanout any brand 2 tose rare eat dependent person it would Be Fesible to 90 fy re Rens, wou be feasible to gO for a private rang ® manufacturer's own braF eon mrermaret ferences tke demogr@phic and PSYCNOIGA Ryn c te esos to having a ea brand. Otherwise, WOU Be BEE to Go for ig : brand. ; intermarketderences ike demographic and pSYChoIOgIA, Raye 4. If there are se tant tor mtbrands. otters, woud be feasible to 90 fra single bran Branding Problems in International Marketing area acblens arse for banding in international marketing, They ae 2s une wo ery ditto take the decison regarding branding due to ua ay ether factors in international marketing. * tocmttnes before sing the modified brand name in the country, the frm as tote permision and has to pay fees to the person, who was the fist to renter te ‘same type of brand name in the county. or small company t's very dificult to popularse their brand name in int i elton i res GE 5. tried to sove this problem by modifying the original brand name. For example, Instat of Mazda’ now ‘Swaraj Mazda, ‘Hero Honda’ instead of ‘Honda’ Trade Mark Generally ‘Brand’ and "Trade Mark have been used forthe same purrs 5! legally both are different. When a brand name or bra tT heobmes 2 trademark. So registered brandis trade mark. For example, "Dal ind mark is registered and legalet J proauct and Branding Decstons for Foreign 3. according to W.3. Stanton, ‘Ay rade ” ports EEE O UN'S WE yb rece ay oe a ee esign MAY also nce pictora) pifference between Trade Mark and 8 owing are the main diferences fol between Trade Mark and Bran 2 compulsory to get 2 trade mark registered. The eats tht te repress rar | trade mark. 5 indication—A brand is gene 2 sn pio carver, site a made mark bQuaily eomidetmenecnmn 4. cOpy-A Urard can be Used by tary manlachren.Noboy cm ec ham 5, Nature—All the trade marks are brands but ail the brands are not bade marks. Product Packaging Decisions Packaging of a product is an art in the safe, easy ted convent dation ord a TRY Tae = = meant tn good condition from the time of iia peeping the product safe and if goad ah wor easy, safe and convenient distribution of ca yt oi pve aati : consis andr moking & Brod erent rom the BE sharers ae “ the other manufacturers forage, dp, nd wage. fc aang on a hha as a : ya economic Te a err coc pent et ers use of the prot. 2 ea of 'ackagie eckage so protect contents in transit in storage yy et ero The “an menor The asc wr ccaazng end large o the nature of the COMES na a ves a carey, = Kind o e298 con ond durabity, the feng ofthe distribwten Sere prometion Te te ro a nk ther valve, Payee ing wich the container will receive and variations fan aut. wratee ian on cam mms the amount of Morey pe encountered between the point Of MaNUTACtue ang yy! 8 ae ree me doar or

    You might also like