Chapter 11 Flashcards
government regulations
the most important factor contributing to product adaptation
e.g. some governments require returnable containers for all beer and soft drinks –> this restricts foreign brewers whose businesses are not large enough to justify the logistics system necessary to handle returnable
Non-tariff barriers
hurdles that countries put up to control what comes into their place – they aren’t taxes or tariffs, instead it’s just rules and things that affect products
e.g. Japan requires testing of all pharmaceutical products in Japanese labs
Customer characteristics, expectations, and preferences
the way customers are, what they expect, and what they like can influence how a product needs to cahnge, even if the benefits are the same
e.g. Oreo cookies = too sweet and too largely packaged for Chinese consumers
Economic development
as a country gets richer/better, the people there want and ask for nicer and improved things
Reverse innovation
to meet the demands of different countries
*finding great ideas in simple places and bringing them to everyone, no matter where they live
Product characteristics
Perry
Plays
The
Piano
And
Maizy
Quickly
Sits
Comfortably
- Product standardization or adapation
- Product consituents and content
- Translations of Brand name
- Packaging
- Appearance
- Method of Operation
- Quality
- Service
- Country-of-original effects
*Perry Plays The Piano And Maizy Quickly Sits Comfortably
Company considerations
when a company thinks about changing its product, its because they want to…
- Control costs = making sure they don’t spend too much money
- Correctly estimate markets potential = figure out how many people might buy their product
- Secure long term profitability = make sure they can make money not just now, but also in the future
Stages of product development process
Isaac
Still
Prays
To
Christ
- Idea generates
- Screening
- Product and process development
- Test marketing
- Commercialization
Global Product Launch
introducing a product into countries in three or more regions within a narrow time frame
*basically when a company wants to introduce a product to the whole world at the same time
Benefits of global product launch
- allows the company to show off its cool technology to people around the world at the same time
- it solves the problem of having old products in some places while people know there’s a new and better one
- saves money and time
Characteristics of global brands
- Quality signal
- Feeling cosmopolitan
- Reflecting Status
- Using resources for society
Counterfeit goods
things that have a copy of a brand, invention, or creative work but it’s not allowed by the law
