Page 136 - DMGT547_INTERNATIONAL_MARKETING

Unit 7: Product Strategy for International Markets

improve communication if similar systems are used by sellers or buyers Notes
reduced conflict and need for arbitration

enhanced competitiveness against synthetic fibres
improved integration with modern spinning machines
·reduced costs on training of experts and in measuring time.
The system can process 2000 bales per day and give a printout on the seven parameters of
grading. These include length and length uniformity, strength and elongation, micronaire
or fineness, leaf and colour. Manufacturers include SPINLAR INC. of Knoxville, USA
Source: http://www.fao.org/docrep/W5973E/w5973e0c.htm#chapter 8: product decisions

7.5 International Product Marketing

Product standardization and modification may give the impression that a marketer must choose
between the two processes and that one approach is better than other. In many instances, a
compromise between the two is more practically are for superior in selecting either processor
exclusively. Black and Decker have stopped customizing products for every country in favour of
a few global products that can be sold everywhere. Such US publisher Prentice Hall and Harper
Collins also have adopted the “World Book” concept, which makes it possible for English
language book to have world copy writes. Publishers change, if necessary, only the title page
cover and the jacket.

Did u know? World product and standardized product may some time be confused with
each other.

A world product is designed for the international market. A standardized product is product
develop for one national market and then exported with no change to international market.
A move towards a world product by a company is logical and healthy move. If a company has
to adapt a product for each market, this can be very expensive proposition. But without the
necessary adaptation a product might not sell at all. Committing to the design of a world
product can provide the solution to these two major concern faces by most firms dealing with
the international market place.
It is a misnomer to think that a world product would be more expensive than a national or a
local product since the world product may need multipurpose parts. Actually, the world product
should result in greater savings for two reasons. First, costly downtime in production is not
needed to adjust or convert equipment to produce different national versions. Second, a world
product greatly simplifies inventory control, because only one universal part, not many
individual parts have to be stopped.

A world product may also be able to lower certain production costs by anticipating necessary
local adaptation.

Example: The Japanese ministry requires 32 changes on most US built cars and the
changes include: replacing of headlamps, because of left hand drive, dip in the wrong direction;
changing sharp edged door handles; replacing outside rear view mirror, and filling the space
between the body and the rear bumper to prevent catching the sleeves of Kimono-clad women.
Honda is able to sell its US made cars in Japan at relatively low prices because it produces the
cars ready for sale in Japan. Because cars manufactured by GM, Ford and Chrysler are built for
the American market, they must undergo expensive alterations to meet Japanese regulations.

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