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International Marketing
Notes The world products have some inherent problems also. A large number of manufacturers of cars
in India do not have Euro-I and Euro-II modifications to check pollution. Hence, the cars, which
are not having these modifications, cannot be registered in New Delhi (NCR). Similarly, Ford
Escort car was designed in Europe as Ford’s world car.
Self Assessment
Fill in the blanks:
9. A ………………product leads to great savings due to cost reductions.
10. A………………..product is made for the national market but later introduced in the
international market.
Task Pick up examples of any two international airlines services and discuss their
marketing strategy in India.
7.6 Factors influencing Product Adaptation in International Markets
Product adaptation is an essential business process in which a company alters or “adapts” an
existing product. Product adaptation may be a way to stay competitive in an evolving domestic
marketplace, or a way to sell products abroad that might not be appealing to foreign consumers
without small, or large, changes.
Standard of Living: Foreign markets are likely to feature a different standard of living than that
found in the region where a product was first sold. This may mean a need to lower the price, or
an opportunity to raise it. Adapting a product to use different materials and meet different
standards of quality is one way that product adaptation addresses the needs of new markets.
Regulations: Selling products abroad may be an essential factor in product adaptation when
government or industry regulations require products to meet certain standards. This is the case
with many foreign automobiles, which must undergo a major product adaptation to meet strict
American safety and emissions standards before being sold in the United States. Manufacturers
also need to adapt electronic equipment to meet the voltage requirements of new markets.
Usage Conditions: Product usage conditions can affect product adaptation in a number of ways.
The climate, altitude and distance of a new market may require manufacturers to develop new
solutions that allow a product to function as intended or new packaging that will allow the
product to reach its destination in good condition. Storage and sales trends in a new market can
also require product adaptation, with manufacturers providing new versions of a product that
can be stacked, hanged or displayed according to regional conventions. Food containers are a
good example of this, with manufacturers needing to provide bottles and boxes that will fit in
the refrigerators and cabinets of consumers in a new market.
Cultural Condition and Style: Sometimes a product needs only superficial adaptation in order
to fit into a new market. Different cultures assign meaning to colors, words and numbers very
differently, for example. This may mean that a manufacturer will have more success changing
the name or color of a product while leaving its functional components unchanged. Manufacturers
may also need to change the name of a product to avoid confusion in the translation into a new
language or to avoid using a name already copyrighted or associated with a different product in
the new market.
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