Chapter 10: Product Decisions
Learning Objectives
• Explain basic product concepts
• Discuss the general strategies for product positioning
• Identify the factors that influence product saturation, design, and image
• Describe five strategic alternative for global product positioning
• Discuss the process of new product development
Chapter Overview
The product is a key element of a marketing program. Global marketers face the
challenge of formulating a coherent global product strategy for their companies. Product
strategy requires an evaluation of the basic needs and conditions of use in the company’s
existing and proposed markets. Marketers should be able to categorize their products
according to the markets they serve (local, national, international, and global products) in
order to define the opportunities for each in global markets. Marketers must consider
many factors when designing products for global markets including preferences, costs,
regulations, compatibility, and attitudes toward a product’s country of origin. Five
strategic positioning alternatives are open to companies pursuing global market
expansion for their products: product/communications extension, product
extension/communications adaptation, product adaptation/communications extension,
dual adaptation, and product invention.
Lecture Outline
I. Basic Concepts (p. 271)
a. Products: Definition and Classification
b. Products: Local, National, International, and Global
i. Local Products
ii. International Products
iii. Global Products and Global Brands
II. Product Positioning (p. 277)
a. Attribute or Benefit
b. Quality/Price
c. Use/User
d. High-Tech Positioning
e. High-Touch Positioning
III. Product Saturation Levels in Global Markets (p. 279)
IV. Product Design Considerations (p. 280)
a. Preferences
b. Cost
c. Laws and Regulations
d. Compatibility
V. Attitudes Toward Country of Origin (p. 282)
VI. Global Product Positioning: Strategic Alternatives (p. 283)
a. Strategy 1: Product/Communication Extension (Dual Extension)
b. Strategy 2: Product Extension/Communication Adaptation
c. Strategy 3: Product Adaptation/Communication Extension
d. Strategy 4: Dual Adaptation
e. Strategy 5: Product Invention
f. How to Choose a Strategy
VII. New Products in Global Marketing (p. 288)
a. Identifying New-Product Ideas
b. New-Product Development Location
c. Testing New Products in National Markets
VIII. Summary (p. 291)
Tables and Figures
Table 10-1 Product Categorization Frameworks (p. 272)
Figure 10-1 Global Brands Characteristics (p. 275)
Table 10-2 2011 Ranking of the Top 100 Brands (p. 276)
Figure 10-2 Global Product Planning Strategic Alternatives (p. 284)
Table 10-3 Major Perspectives of Global Marketing Strategy (p. 288)
Table 10-4 Forbes’ List of the World’s Most Innovative Companies (p. 289)
Figure 10-3 Innovation Framework for Consumer Products (p. 290)
Sidebars
Sidebar 10-1 Swatch Group (p. 270)
Sidebar 10-2 Riding the Green Wave on Four Wheels (p. 277)