International product policy Standardization versus adaptation in Central European and other countries Branding and regional opportunities New product development or examples of good practice from CE countries Elena Horska

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International product policyStandardization
versus adaptation in Central European and
other countriesBranding and regional
opportunitiesNew product development or
examples of good practice from CE
countriesElena Horska
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Designing the marketing programme

• Once the firm has decided how it will enter the
  international market, the next issue is how to
  desigh the international/global marketing mix.
• There are different forces in the international
  environment that may favour either increasing
  globalization or increasing adaptation of the
  firm.
• Supporters of adaptation state that there are
  substantial differences between countries and
  even between regions in the same countries.

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Designing the marketing programme

• It is relevant to discuss
• degree of standardization
• or so called
• standardization potential profile

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Main decisions in product policy

• What kind of product?
• Product life cycle
• New product development and innovations
• As a product we can consider anything what can
  be offered to our customer.

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Which products for international markets?

• The same as for home market
• Adapted products
• Standardized products
• New products

Define the reasons for each option!
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Factors of adaptation

• Consumer goods for daily use
• Local competition

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Factors of adaptation

• Different conditions of use
• Intercultural differencies in consumer behaviour
  and purchasing behaviour
• Differences in purchasing power
• Different conditions in supplying with production
  inputs
• Different legislation

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Factors of standardization

• Economics of scale
• High costs of adaptation process
• Industrial and high tech products
• Entering the similar markets
• Export
• Global competition
• Strong image of the country/producer/brand

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Branding decisions
Source Source adapted from Onkvisit and Shaw,
1993, p. 534.
14-10
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Different degrees of product newness
New to International markets
Increasing risk
High Newness to International Market Low
New to home country
New to regional market
Reposition Existing products
New to company
Line extensions/ improvements
Cost reductions
Low Newness to Company High
14-11
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Benefits of strong brand in local/regional market

• New product in brand portfolio
• Repositioning the traditional product
• Seasonal product for larger market
• Brand partnership