Course summary (International product policy):
Objectives:
this learning unit (International product policy) sets out to analyze the key areas of International product policy.
In this unit (International product policy) you will: Learn the importance of adapting
export product or service to local or regional requirements when
entering new export markets.
This will be achieved by:
- Examining the product / service adaptation options available to the
exporter.
- Analyzing the product / service characteristics that typically need to be modified for
different international markets.
Perhaps, the most important question for the exporter is ...
Is it a global (regional)
product or service or shall I have to localize it to every market or region?
The exporter should ask himself if the product or service is exportable. A product
(or service) which is successful in the local market will not
always be as successful in international markets. Although the exporter works in
the
globalization
age, each market is different in its on way (culture,
perceptions, forms of doing business....). Therefore, only through international Market research
the exporter can find out if the product or service has potential or not in each
target market. Furthermore, the exporter should look at what types of modifications
and/or adaptations should carry out on the product or service in his
international marketing strategy.
There are two common mistakes that export
managers make with respect to their product (or service) and exporting.
- The first and main one is to believe that what is good in the home market will
also be good in international markets.
- The other is that they don't keep in mind
the different channels available for the
distribution of their product
(importers, subsidiaries, etc.)
Example of the course International product policy:
When an exporting firm makes his the Market research, one of the most
important tasks it will face will be the analysis of the products or services of
the competition in each target market.
Especially when entering new markets, familiarity with the products or services of competitors is vital. Many exporters
ignore this key point. Two questions are fundamental:
- How competitive is our product or service?
- What advantages, unique to our product or service, are granted on the customer
/ importer ?
e-Product. In many cases we will have to add value to our products
(atoms) with digital services (bits). We will also see industries in transition which are no longer selling atoms in order to sell bits. In almost every case companies are re-inventing in some way their products
(their atoms) in order to add digital value to them through bits.
