Page 130 - DMGT547_INTERNATIONAL_MARKETING

Unit 7: Product Strategy for International Markets

plastic, measuring 190" long, 75" wide and 59" high. However, any description limited to physical Notes
attributes gives an incomplete account of the benefits a product provides. At a minimum, car
buyers expect an automobile to provide safe, comfortable transportation, which derive from
physical features such as air bags and adjustable seats. However, marketers cannot ignore status,
mystique, and other intangible product attributes that a particular model of automobile may
provide. Indeed, major segments of the auto market are developed around these intangible
attributes.
A product, then, can be defined as a collection of physical, psychological, service, and symbolic
attributes that collectively yield satisfaction, or benefits, to a buyer or user. A number of
frameworks for classifying products have been developed. A frequently used classification is
based on users and distinguishes between consumer and industrial goods.
Both types of goods, in turn, can be further classified on the basis of other criteria, such as how
they are purchased (convenience, preference, shopping and specially goods) and their life span
(durable, non-durable and disposable). These and other classification (frameworks developed
for domestic marketing are fully applicable to international marketing).

7.1 Products: National and International

In marketing, a product is anything that can be offered to a market that might satisfy a want or
need. Following are the categories of products based on their nationality:

7.1.1 National Products

A national product is one that, in the context of a particular company, is offered in a single
national market. Sometimes national products appear when a global company caters to the
needs and preferences of particular country markets.

Example: Coca-Cola developed a non-carbonated, ginseng-flavoured beverage for sale
only in Japan and a yellow, carbonated flavoured drink called Pasturina to compete with Peru’s
favourite soft drink, Inca Cola.
Such examples notwithstanding there are several reasons why national products-even those
that are quite profitable-may represent a substantial opportunity cost to a company. First, the
existence of a single national business does not provide an opportunity to develop and utilize
international leverage from headquarters in marketing, R&D, and production. Second, the local
product does not allow for the transfer and application of experience gained in one market to
other markets. A third shortcoming a single-country product is the lack of transferability of
managerial expertise acquired in the single-product area.

7.1.2 International Products

International or regional products are offered in multinational, regional markets. The classic
international product is the Euro product, offered throughout Europe but not in the rest of the
world. The Renault is a Euro product: Offered in every EU market, it is clearly an international
product; however, unlike the Toyota, for example, it is not an international product.

Notes A product is not a brand.

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