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Chapter 11Product

Management and Global Brands

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Product Variables

• Product/service – Complex combination of tangible and intangible elements distinguishing it from others in the market

• Core product

•

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Product Variables

• Standardization versus adaptation• 4 basic alternatives for international markets

• • • •

• Product standardization is increasing•

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The Market Environment

• Government regulations• Nontariff barriers• • • •

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The Market Environment

• Customer characteristics, expectations, and preferences• • • • • Positioning:

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The Market Environment

• Economic development•

•

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The Market Environment

• Competitive offerings•

• Climate and geography•

•

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Product Characteristics

• Product constituents and content•

• Branding•

• Trademark -

• Indicated by

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Product Characteristics

• Packaging• • •

• Appearance• • Quality• • Country-of-origin effects

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Company Considerations

• Product adaptation depends on the firm’s ability to:• • •

• Decision to adapt should be preceded by a thorough analysis of the market

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Global Product Development

• Essential for catering to new or changing customer needs on a global basis

•

• Build adaptability into products and product lines to achieve worldwide appeal

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Global Product Development

• Stages of the product development process• • • • •

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Global Product Development

• Sources for idea generation• Company• • Lead users:

• Procurement requisitions from governments and supranational organizations

•

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Global Product Development

• Open innovation:

• Global companies have an advantage in being able to utilize resources from around the world

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Global Product Development

• Computer aided design (CAD) allows

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Global Product Development

• Time lag between product development and introduction into the market depends on:• • • • • •

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Global Product Development• Reasons for investing in R&D activities

abroad•

•

•

•

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Global Product Development

• Center of excellence:

• The set of capabilities have been identified as an important source of value creation

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Global Product Development• Organization of global product

development • Product development activity is undertaken by

specific teams to:• • •

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Global Product Development• Representatives of all the affected functional

areas serve on each team to ensure the integrity of the project

• Multidisciplinary teams in an organization• • • •

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Global Product Development• Companies focus on reducing the language

and cultural barriers among R&D teams• ___________ have been established to develop

technologies ranging from artificial intelligence to those in semiconductor manufacturing

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Global Product Development

• Testing of new product• • •

• Reasons for product failure• • •

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Global Product Development• Market testing techniques• Controlled market tests:

• Simulated test markets:

• Vitality lab:

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Global Product Development

• Global product launch•

• Measures undertaken for successful launches• •

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Global Product Development• Benefits of a successful global launch

• •

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Managing the Brand Portfolio

• Managing the brand portfolio•

• Brands help to:•

•

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Managing the Brand Portfolio• Co-branding –

• Global marketers have three choices of branding• • •

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Managing the Brand Portfolio• Brand strategy decisions• Global brands:

• Some are completely standardized, but some elements may be adapted to local conditions

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Managing the Brand Portfolio• Characteristics of global brands

•

•

•

•

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Managing the Brand Portfolio• Brand strategy decisions• Three main implications for the marketing

manager to consider:•

•

•

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Managing the Brand Portfolio• The SBU and general management establish a

planning policy document with respect to:• • • •

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Managing the Brand Portfolio• Carefully crafted brand portfolios allow

marketers to serve defined parts of specific markets

•

• Before disposing a brand, managers need to assess it in terms of current sales, loyalty, potential, and trends

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Managing the Brand Portfolio

• Private brand policies• Private brands:

• Methods used for private branding:• •

•

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Product Counterfeiting

• Counterfeit goods –

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Product Counterfeiting

• Types of actions that can be taken against counterfeiting• • • •

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Product Counterfeiting

• Companies are taking measures to help protect their products against counterfeits•

•

•