Developing and

Marketing Products
Chapter :14
John J. Wild Kenneth L. Wild
Wings for Life
Standardized product marketing strategy
Strong brand image
Sponsor events to Olympics , atheletes
No change in the taste and preferences
Strong tagline Red bull gives you wings
Standardization and Adaptation
Standardization is just one of a number of strategies with which firms successfully enter
the international marketplace today and it may not always be the most appropriate strategy
A company may be better off adapting to local cultures and exploiting their international
image in order to gain market share locally.
Influence of National Business Environments
Consumers in different national markets often demand products that reflect their unique
tastes and preferences.
Cultural, political, legal, and economic environments have a great deal to do with the
preferences of both consumers and industrial buyers worldwide.
Developing Product Strategies
Let’s look at some of the factors that influence the standardize-versus-adapt decision as
well as at several other international product strategy issues
1-Laws and Regulations
Companies must often adapt their products to satisfy laws and regulations in a target
market. People’s tastes also vary across markets, and taste in chocolate is no exception to
the rule.
2-Culture Difference
Companies also adapt their products to suit local buyers’ product preferences, which are
rooted in culture.

3-Brand and Product Names

Name of one or more items in a product line that identifies the source or character of the
items
4-National Image
The value customers obtain from a product is heavily influenced by the image of the
country in which it is designed, manufactured, or assembled.e.g perfumes from france ,
Japanese cars

5- Counterfeit Goods and Black Markets

We discussed how companies are trying to protect their intellectual property and
trademarks from counterfeit goods
5-Shortened Product Life Cycles
They did this by introducing products in industrialized countries and only later marketing
them in developing and emerging markets. Thus, while a product’s sales are declining in
one market, they might be growing in another
Creating Promotional Strategies
Promotion mix
Efforts by a company to reach distribution channels and to target customers through
communications, such as personal selling, advertising, public relations, and direct
marketing
Pull strategy
Promotional strategy designed to create buyer demand that will encourage distribution
channel members to stock a company’s product.
Push strategy
Promotional strategy designed to pressure distribution channel members to carry a product
and to promote it to final users of the product.
Whether the push or pull strategy is most appropriate in a given marketing environment
depends on several factors:
Distribution System.
Access to Mass Media.
Type of Product
International Advertising
International advertising differs a great deal from advertising in domestic markets.
Managers must rely on their knowledge of a market to decide whether an ad is suitable for
the company’s international promotional efforts
E.g Coke
Standardizing or Adapting Advertisements
The vast majority of advertising that occurs in any one nation is produced solely for that
domestic audience. But companies that advertise in multiple markets must determine the
aspects of the advertising campaign that can be standardized across markets and those that
cannot.
Blending Product and Promotional Strategies
Marketing communication Process of sending promotional messages about products to
target markets.
Communicating Promotional Messages The process of sending promotional messages
about products to target markets is called marketing communication
Product/Communications Extension (Dual Extension)
Chanel perfumes , Hermes .com
Product Extension/Communications Adaptation
Product Adaptation/Communications Extension
Product/Communications Adaptation (Dual Adaptation)
Product Invention
Designing Distribution Strategies
Distribution Planning, implementing, and controlling the physical flow of a product from
its point of origin to its point of consumption.
(1) how to get goods into a country and
(2) how to distribute goods within a country. We presented the different ways companies
get their products into countries in Chapter 13. Here we focus on distribution strategies
within countries
Designing Distribution Channels

Exclusive channel
An exclusive channel is one in which a manufacturer grants the right to sell its product to
only one or a limited number of resellers. An exclusive channel gives producers a great
deal of control over the sale of their product by wholesalers and retailers.
Intensive Channel
Intensive channel Distribution channel in which a producer grants the right to sell its
product to many resellers.
E.g Wholesaler and Distributor Products tahta rae sold in Grocery stores

Channel length and Cost

In a zero-level channel—which is also called direct marketing— producers sell directly to
final buyers. A one-level channel places only one intermediary between the producer and
the buyer. Two intermediaries make up a two-level channel, and so forth.
Influence of Product Characteristics
Value density Value of a product relative to its weight and volume
The value of a product relative to its weight and volume is called its value density. Value
density is an important variable in formulating distribution strategies
E.g Because Johnson & Johnson’s (www .jnj.com) Vistakon contact lenses have high
value density, the company produces and inventories its products in one U.S. location and
serves the world market from there
Special Distribution Problems
A nation’s distribution system develops over time and reflects its unique cultural, political,
legal, and economic traditions.
Lack of Market Understanding
E.g Amway products refill containers
Theft and Corruption
E.g Acer computers warehouse from Russia to finland.
Developing Pricing Strategies
Worldwide pricing Policy in which one selling price is established for all international
markets
Cost of production
Purchasing power
Exchange rates
Dual pricing

Dual pricing Policy in which a product has a different selling price (typically higher) in
export markets than it has in the home market.
Tariffs and Trade
Factors That Affect Pricing Decisions
Transfer price
Price charged for a good or service transferred among a company and its subsidiaries
Arm’s length price
Free-market price that unrelated parties charge one another for a specific product.
Price Control
Price controls Upper or lower limits placed on the prices of products sold within a country
Upper limit for Inflationary period
Lower Limit

Dumping
Recall that dumping occurs when the price of a good is lower in export markets than it is
in the domestic market
Thank You