Chapter global product policy decisions. What you should learn from chapter 10: The importance of time zones for trade relationships and marketing operations, the political and economic changes affecting global marketing, the connection between the economic level of a country and the marketing task, the variety of stages of economic development among American nations,...
Trang 1MARKETING
MANAGEMENT
Seventh Edition
MASAAKI KOTABKE | KRISTIAAN HELSEN
Global Product Policy Decisions I: Developing New Products for
Global Markets
Chapter 10 PowerPoint
Trang 2Chapter Overview
1 Standardization Versus Customization
2 Multinational Diffusion
3 Developing New Products for Global Markets
4 Truly Global Product Development
5 Appendix: Using Conjoint Analysis for Concept
Testing in Global New Product Development
Trang 3• A cornerstone of a global marketing mix program is the set of product policy decisions that multinational companies (MNCs) constantly need to formulate.
• The range of product policy questions may include:
– What new products should be developed for what
markets?
– What products should be added, removed, or
modified for the product line in each of the countries
in which the company operates?
– What brand names should be used?
– How should the product be packaged and serviced?
Chapter 10 Copyright © 2017 John Wiley & Sons,
Trang 4• Examples of improper product policy decisions in
global marketing:
– Ikea in the United States
– Procter & Gamble in Australia
– U.S Car Makers in Japan
Trang 51 Standardization versus Customization
• Five forces favoring a globalized product strategy:
1 Common customer needs
2 Global customers
3 Scale economies
4 Time to market
5 Regional market agreements
Chapter 10 Copyright © 2017 John Wiley & Sons,
Trang 61 Standardization versus Customization
• Five forces pushing product adaption:
• Modular Product Design Strategies
– Allows firms to modify product while keeping benefits of a
uniform product policy – Core product design strategy
Trang 71 Standardization versus Customization
• Back of the Envelope Calculations–Break-Even
Analysis (IBEA)
− Determines what the extra sales should be to justify the costs of adapting product or service for host
market
− Overstandardization – stifles initiative at local level
− Overcustomization – runs risk of losing appeal of
foreignness
Chapter 10 Copyright © 2017 John Wiley & Sons,
Trang 8Exhibit 10-2: Top Three Reasons for Buying
a New Product
Trang 92 Multinational Diffusion
• Example:
– Microsoft’s Xbox videogame
• The adoption of new products is driven by three types of
Trang 102 Multinational Diffusion
• Other country characteristics used to predict new
product penetration patterns include:
Trang 112 Multinational Diffusion
Time-to-Takeoff
- Takeoff marks turning point tween introduction and growth stages of product life cycle
- Time-to-takeoff is declining over the years
- Country differences are strong
- Economic development and cultural differences explain cross-country variation
- Takeoff for “fun” products is much fast than “work” products
- Probability of takeoff in target country increases with
previous takeoffs in other countries
Chapter 10 Copyright © 2017 John Wiley & Sons,
Trang 12Exhibit 10-3: Mean Time-to-Takeoff across
Product Categories within Country
Trang 133 Developing New Products
in the Global Marketplace
• New Product Ideas
Trang 143 Developing New Products
in the Global Marketplace
• Test marketing
– May be skipped to save money
– Lead markets can be used as projections
(Exhibit 10-4)
• Timing of Entry (Exhibit 10-5)
– Waterfall—staged rollout beginning with home country– Sprinkler—global rollout simultaneously
• Often used for high tech goods
Trang 15Exhibit 10-4: Waterfall versus Sprinkler
Models
Chapter 10 Copyright © 2017 John Wiley & Sons,
Trang 16Exhibit 10-5: Roll-Out of Xbox 360 and Sony
Playstation 3
Trang 174 Truly Global Product Development
• Scores of companies have research centers spread across the world Challenge is to establish a truly
global innovation process that transcends local
clusters (i.e., to become a metanational innovator).
• To harvest the benefits of metanational innovation:
– Prospecting- find valuable new pockets of knowledge around the world
– Assessing- decide on an optimal footprint (number
and dispersion of knowledge sources)
Chapter 10 Copyright © 2017 John Wiley & Sons,
Trang 184 Truly Global Product Development
– Mobilizing: To harness the benefits of global
innovation, companies must find ways to mobilize
pockets of knowledge (e.g., technical blueprints,
patents, equipment, market knowledge)
– The optimal strategy for mobilizing knowledge
depends on the type (simple vs complex) and nature (technical vs market) of the knowledge involved
Trang 194 Truly Global Product Development
• 4 possible strategic scenarios for mobilizing
Trang 20Exhibit 10-6: Estimated Foreign Susceptibility, Clout, and Takeoff Time in 20
Countries
Trang 215 Appendix: Using Conjoint Analysis for Concept Testing in Global New Product
Development
Chapter 10 Copyright © 2017 John Wiley & Sons,