Transcript New-product development - the blog of Tran Bao Thanh

Principles of Marketing: An Asian
Perspective
Instructor Supplements
Created by Geoffrey da Silva
New Product Development and Product Life-Cycle
Strategies
3
© 2012 Principles of Marketing: An Asian Perspective
Chapter 9 Outline
9.1
9.2
9.3
9.4
4
The New-Product Development Process
Managing New-Product Development
Product Life-Cycle Strategies
Additional Product and Service Considerations
© 2012 Principles of Marketing: An Asian Perspective
Opening Case
Samsung
This Korean company has transformed
from being a maker of cheap electronic
knock-offs to become the world’s largest
television manufacturer.
5
© 2012 Principles of Marketing: An Asian Perspective
9.1
The New-Product Development Process
6
© 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
Importance of new product development
7
•
A company must be good at developing and managing new products.
•
Every product seems to go through a life cycle—it is born, goes
through several phases, and eventually dies as newer products come
along that better serve consumer needs.
© 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
Challenges of the product life cycle
8
•
First, because all products eventually decline, a firm must be good at
developing new products to replace ageing ones (the challenge of
new product development).
•
Second, the firm must be good at adapting its marketing strategies
in the face of changing tastes, technologies, and competition as
products pass through life-cycle stages (the challenge of product
life-cycle strategies).
© 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
New Product Development Strategy
•
9
A firm can obtain new products in two ways:
– Acquisition—by buying a whole company, a patent, or a license
to produce someone else’s product.
– New-product development efforts.
© 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
Product failures
There are a number of reasons new products may fail:
1.
Although an idea may be good, the company may overestimate
market size.
2.
The actual product may be poorly designed. Or it might be
incorrectly positioned, launched at the wrong time, priced too
high, or poorly advertised.
3.
A high-level executive might push for a favorite idea despite poor
marketing research findings.
4.
Sometimes the costs of product development are higher than
expected, and sometimes competitors fight back harder than
expected.
10 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
New Product Failure
The Betamax videotape failed
to capture market share and
eventually lost to Sony’s VHS
in the videotape format war.
11 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
Major Stages in New Product Development
12 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
1. Idea generation
Idea generation is the systematic search for new product ideas.
13 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
Sources of New Product Ideas
14 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
Internal Idea Sources
Using internal sources,
the company can find
new ideas through
formal research and
development.
Or it can pick the brains
of employees—from
executives to scientists,
engineers, and
manufacturing staff to
salespeople.
15 © 2012 Principles of Marketing: An Asian Perspective
The idea of an electronic pet came about when a
Bandai staff noticed two trends—Japanese were
inclined towards keeping small pets and their
love for electronic gadgets. She combined these
two trends and created Tamagotchi.
(www.bandai.com)
9.1 The New-Product Development Process
External Idea Sources
Companies can also
obtain good new product
ideas from any of a
number of external
sources, such as
distributors and
suppliers, or even
competitors.
Perhaps the most
important source of new
product ideas is
customers themselves
16 © 2012 Principles of Marketing: An Asian Perspective
At uNIQLO, new clothing ideas are generated in
part from opinions and requests from customers.
9.1 The New-Product Development Process
External Idea Sources
Some companies seek the help of external
design firms for new-product ideas and design.
For example, a design company helped
Tupperware find a new-product solution to a
common customer problem—organizing that
closet full of randomly stacked plastic storage
containers and matching the lids with the bases.
17 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
Crowdsourcing
• Crowdsourcing throws the
innovation doors wide open,
inviting broad communities
of people into the new
product innovation process.
• When it comes to helping to
improve products and
services, many heads are
better than one.
• Crowdsourcing can produce
a flood of innovative ideas.
18 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
Reviewing the Key Concepts
Explain how companies find and develop new-product ideas.
19 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
2. Idea Screening
The first idea-reducing stage is idea screening, which helps spot
good ideas and drop poor ones as soon as possible
20 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
3. Concept Development and Testing
In concept development, several descriptions of the product are
generated to find out how attractive each concept is to customers.
From these concepts, the best one is chosen.
21 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
Product concepts for an electric car
Concept 1: An affordably priced mid-size car
designed as a second family car to be used
around town. The car is ideal for running errands
and visiting friends.
Concept 2: A mid-priced sporty compact
appealing to young people.
Concept 3: A “green” car appealing to
environmentally conscious people who want
practical, low-polluting transportation.
Concept 4: A high-end SUV appealing to those
who love the space SUVs provide but lament the
high fuel consumption.
22 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
Concept Testing
Concept testing calls for testing new-product concepts with groups of
target consumers. An example:
An efficient, fun-to-drive, battery-powered
subcompact car that seats four. This 100 percent
electric wonder provides practical and reliable
transportation with virtually no pollution. It goes
up to 45 kilometers per hour and costs a few
cents per kilometer to operate. It’s a sensible,
responsible alternative to today’s pollutionproducing fuel-guzzlers. It’s priced, fully
equipped, at $25,000.
23 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
Questions for Battery-Powered Electric Car Concept Test
1.
2.
3.
4.
5.
Do you understand the concept of a battery-powered electric car?
Do you believe the claims about the car’s performance?
What are the major benefits of the battery-powered electric car
compared with a conventional car?
What are its advantages compared with a battery-powered electric
car?
What improvements in the car’s features would you suggest?
24 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
Questions for Battery-Powered Electric Car Concept Test
6.
7.
8.
9.
For what uses would you prefer a battery-powered electric car to a
conventional car?
What would be a reasonable price to charge for the car?
Who would be involved in your decision to buy such a car? Who
would drive it?
Would you buy such a car (definitely, probably, probably not,
definitely not)?
25 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
Concept Test
M&M Mini’s received an A+ concept rating from consumers.
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9.1 The New-Product Development Process
4. Marketing Strategy Development
27 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
4. Marketing Strategy Development
•
•
The marketing strategy statement consists of three parts.
The first part describes the target market; the planned product
positioning; and the sales, market share, and profit goals for the first
few years. Example:
The target market is that of younger, well-educated, moderate tohigh-income individuals, couples, or small families seeking practical,
environmentally responsible transportation. The car will be
positioned as more fun to drive and less polluting than today’s
internal combustion engine or hybrid cars. It is also less restrictive
than battery-powered electric cars, which must be recharged
regularly. The company will aim to sell 100,000 cars in the first year,
at a loss of not more than $15 million. In the second year, the
company will aim for sales of 120,000 cars and a profit of $25
million.
28 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
4. Marketing Strategy Development
•
The second part of the marketing strategy statement outlines the
product’s planned price, distribution, and marketing budget for the
first year. Example:
The battery-powered electric car will be offered in three colors—
green, white, and blue—and will have optional air-conditioning and
power-drive features. It will sell at a retail price of $25,000—with15
percent off the list price to dealers. Dealers who sell more than10
cars per month will get an additional discount of 5 percent on each
car sold that month. An advertising budget of $50 million will be split
50-50 between a national media campaign and local advertising.
Advertising will emphasize the car’s fun spirit and low emissions.
During the first year, $100,000 will be spent on marketing research
to find out who is buying the car and their satisfaction levels.
29 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
4. Marketing Strategy Development
•
The third part of the marketing strategy statement describes the
planned long-run sales, profit goals, and marketing mix strategy.
Example:
We intend to capture a 3 percent share of the total auto market in
the long run, and realize an after-tax return on investment of 15
percent. To achieve this, product quality will start high and be
improved over time. Prices will be raised in the second and third
years if competition permits. The total advertising budget will be
raised each year by about 10 percent. Marketing research will be
reduced to $60,000 per year after the first year.
30 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
5. Business Analysis
Companies look at the sales history
of similar products and conduct
surveys of market opinion
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9.1 The New-Product Development Process
5. Business Analysis
•
Business analysis involves a review of the sales, costs, and profit
projections for a new product to find out whether they satisfy the
company’s objectives.
•
If they do, the product can move to the product development stage.
•
To estimate sales, the company might look at the sales history of
similar products and conduct surveys of market opinion. It can then
estimate minimum and maximum sales to assess the range of risk.
32 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
5. Business Analysis
•
After preparing the sales forecast, management can estimate the
expected costs and profits for the product, including marketing,
R&D, operations, accounting, and finance costs.
•
The company then uses the sales and costs figures to analyze the
new product’s financial attractiveness.
33 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
6. Product Development
34 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
6. Product Development
•
In product development, R&D or engineering develops the product
concept into a physical product.
•
The product development step calls for a large jump in investment.
The new product must have the required functional features and also
convey the intended psychological characteristics.
35 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
6. Product Development
At Gillette, 200 volunteers from
various departments come to work
unshaven and enter small booths with a
sink and mirror. There they take
instructions from technicians on the
other side of a small window as to
which razor, shaving cream, or
aftershave to use. The volunteers
evaluate razors for sharpness of blade,
smoothness of glide, and ease of
handling. In a nearby shower room,
women perform the same ritual on their
legs and underarms.
36 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
6. Product Development
Louis Vuitton’s handbags and
accessories are tested rigorously to
ensure product quality and safety.
37 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
6. Product Development
•
•
New products need to undergo rigorous tests to make sure that they
perform safely and effectively or that consumers will find value in
them.
An example for a new electric car concept might involve the
following:
A new product must have the required functional features and also
convey the intended psychological characteristics. The batterypowered electric car, for example, should strike consumers as being
well-built, comfortable, and safe. Management must learn what it is
that makes consumers decide if a car is well-built or not. To some
consumers, this means that the car has “solid-sounding” doors. To
others, it means that the car is able to withstand a heavy impact in
crash tests. Consumer tests are conducted in which consumers testdrive the car and rate its attributes.
38 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
7. Test Marketing
Test marketing is the stage at which the product and marketing program are introduced
into realistic market settings. Test marketing gives the marketer experience with
marketing the product before going to the great expense of full introduction. It lets the
company test the product and its entire marketing program—positioning strategy,
advertising, distribution, pricing, branding and packaging, and budget levels.
39 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
7. Test Marketing
•
The amount of test marketing needed varies with each new product.
•
Test marketing costs can be high, and it takes time, perhaps
allowing competitors to gain advantages.
•
When the costs of developing and introducing the product are low, or
when management is already confident about the new product, the
company may do little or no test marketing.
40 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
7. Test Marketing
•
Companies often do not test-market simple line extensions or copies
of successful competitor products.
•
However, when introducing a new product requires a big investment,
or when management is not sure of the product or marketing
program, a company may do more test marketing.
41 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
7. Test Marketing
KFC test-marketed its new Kentucky
grilled Chicken product for three years
before rolling it out nationally. Says the
chain’s President, “We had to get it right.”
42 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
7. Test Marketing
In controlled test markets new products and tactics are tested among
controlled groups of customers and stores. Within test stores, such
factors as shelf placement, price, and in-store promotions for the
products being tested can be controlled.
43 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
7. Test Marketing
In simulated test markets researchers measure consumer responses to
new products and marketing tactics in laboratory stores or simulated
shopping environments. Many marketers are now using new online
simulated marketing technologies to reduce the costs of test
marketing and speed up the process are basically simulated shopping
environments.
44 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
7. Test Marketing
Sample Lab, a Japanese store
in the trendy district of
Harajuku in Tokyo, offers free
samples of a wide variety of
products to its pre-registered
customers in return for
customer feedback on the
products via mobile phone SMS
surveys. (www.samplelab.jp)
45 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
Commercialization
46 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
Commercialization
•
Commercialization means introducing the new product into the
market.
•
Decisions must be made concerning:
– Timing
– Where to launch the new product
– Market rollout
47 © 2012 Principles of Marketing: An Asian Perspective
9.1 The New-Product Development Process
Reviewing the Key Concepts
List and define the steps in the new-product development process and
the major considerations in managing this process.
48 © 2012 Principles of Marketing: An Asian Perspective
9.2
Managing New-Product Development
49 © 2012 Principles of Marketing: An Asian Perspective
9.2 Managing New-Product Development
•
Customer-Centered New-Product Development
•
Team-Based New-Product Development
50 © 2012 Principles of Marketing: An Asian Perspective
9.2 Managing New-Product Development
Customer-Centered New-Product Development
Above all else, newproduct development
must be customer
centered. Customercentered new-product
development focuses
on finding new ways to
solve customer problems
and create more
customer-satisfying
experiences.
51 © 2012 Principles of Marketing: An Asian Perspective
9.2 Managing New-Product Development
Customer-Centered New-Product Development
One study found that the most successful new products are ones that
are differentiated, solve major customer problems, and offer a
compelling customer value proposition. Thus, innovative companies
are getting out of the research lab and mingling with customers in the
search for new customer value.
52 © 2012 Principles of Marketing: An Asian Perspective
9.2 Managing New-Product Development
Customer-Centered New-Product Development
P&g uses this crowdsourcing site
for product initiatives from
external innovators
53 © 2012 Principles of Marketing: An Asian Perspective
9.2 Managing New-Product Development
Customer-Centered New-Product Development
54 © 2012 Principles of Marketing: An Asian Perspective
9.2 Managing New-Product Development
Team-based new-product development approach
55 © 2012 Principles of Marketing: An Asian Perspective
9.2 Managing New-Product Development
Team-based new-product development approach
•
Under the sequential product development approach, one company
department works individually to complete its stage of the process
before passing the new product along to the next department and
stage.
•
This orderly, step-by-step process can help bring control to complex
and risky projects. But it also can be dangerously slow.
•
In order to get their new products to market more quickly, many
companies use a team-based new-product development
approach.
56 © 2012 Principles of Marketing: An Asian Perspective
9.2 Managing New-Product Development
Team-based new-product development approach
Departments work in crossfunctional teams that stay
with the new product from
start to finish, allowing the
team to work on resolving
problems while moving on
with development.
57 © 2012 Principles of Marketing: An Asian Perspective
9.2 Managing New-Product Development
Team-based new-product development approach
•
Under this approach, company departments work closely together in
cross-functional teams, overlapping the steps in the product
development process to save time and increase effectiveness.
•
Instead of passing the new product from department to department,
the company assembles a team of people from various departments
that stay with the new product from start to finish.
58 © 2012 Principles of Marketing: An Asian Perspective
9.2 Managing New-Product Development
Systematic new product development
59 © 2012 Principles of Marketing: An Asian Perspective
9.2 Managing New-Product Development
Innovation Management System
•
An innovation management system can be used to collect, review,
evaluate, and manage new-product ideas.
•
The innovation management system approach yields two favorable
outcomes:
•
It helps create an innovation-oriented company culture.
•
It will yield a larger number of new-product ideas, among which will
be found some especially good ones.
60 © 2012 Principles of Marketing: An Asian Perspective
9.2 Managing New-Product Development
Innovation Management System
Tata Consultancy Services – Indian
conglomerate Tata uses its consulting arm, Tata
Consultancy Services (TCS), to spearhead its
new-product development. TCS has 20 labs
worldwide and has advised external clients such
as British Airways and ABN Amro Bank.
61 © 2012 Principles of Marketing: An Asian Perspective
9.3
Product Life-Cycle Strategies
62 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
63 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
The five stages of the product-life cycle
1.
Product development begins when the company finds and
develops a new-product idea. During product development, sales
are zero and the company’s investment costs mount.
2.
Introduction is a period of slow sales growth as the product is
introduced in the market. Profits are nonexistent in this stage
because of the heavy expenses of product introduction.
3.
Growth is a period of rapid market acceptance and increasing
profits.
64 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
The five stages of the product-life cycle
4.
Maturity is a period of slowdown in sales growth because the
product has achieved acceptance by most potential buyers. Profits
level off or decline because of increased marketing outlays to
defend the product against competition.
5.
Decline is the period when sales fall off and profits drop.
65 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Sales and profits over the product’s life from inception to
decline
66 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Categories of PLCs
•
The PLC concept can describe a product class (gasoline-powered
automobiles), a product form (SUVs), or a brand (the Kia Sorrento).
•
Product classes have the longest life cycles. Product forms, in
contrast, have the standard PLC shape.
•
A product brand’s PLC can change quickly because of changing
competitive attacks and responses.
67 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Life cycle strategies
STYLE
FASHION
FAD
68 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Styles, fashion and fads
•
A style is a basic and distinctive mode of expression.
•
A fashion is a currently accepted or popular style in a given field.
•
Fads are temporary periods of unusually high sales driven by
consumer enthusiasm and immediate product or brand popularity.
69 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Styles, fashion and fads
70 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Fads
Fads such as the Rubik’s Cube produce
temporary periods of unusually high sales as
consumers are drawn to the product.
71 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Key characteristics, objectives and marketing strategies of
each stage of the PLC
72 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Key characteristics, objectives and marketing strategies of
each stage of the PLC
73 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Product Development
During product development, sales are zero and the company’s
investment costs mount.
74 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Introduction
•
The introduction stage starts when the new product is first
launched.
•
•
In this stage, profits are
negative or low, promotion
spending is relatively high,
only basic versions of the
product are produced.
75 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Introduction Stage of PLC
Toshiba is the first company to
introduce 3D TVs without the need to
wear 3D glasses to watch the shows.
76 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Growth
The growth stage is where sales begin
to climb quickly. New competitors will
enter the market. They will introduce
new product features, and the market
will expand. The increase in competitors
leads to an increase in the number of
distribution outlets. Prices remain stable
or decrease slightly. Profits also may
increase during the growth stage.
77 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Growth Stage of PLC
There were few competitors during the
introduction stage of Amazon’s e-book
reader, Kindle. During the growth stage,
competition became more intense as
Sony’s digital reader called Daily Edition
and Apple’s iPad entered the market.
78 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Maturity
•
The maturity stage is characterized by slowing product growth.
•
The slowdown in sales growth results in many producers with many
products to sell.
•
Competitors begin marking down prices, increasing their advertising
and sales promotions, and upping their product-development
budgets to find better versions of the product. These steps lead to a
drop in profit.
79 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Maturity Stage of PLC
With the entry of big foreign manufacturers, the
automobile industry is in the maturity stage in
India.
80 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Marketing strategies used during the Maturity Stage of the PLC
a)
In modifying the market, the company tries to increase the
consumption of the current product.
b)
In modifying the product, the company tries changing
characteristics such as quality, features, style, or packaging to
attract new users and to inspire more usage.
c)
In modifying the marketing mix, the company tries changing one
or more marketing mix elements.
81 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Modifying the Marketing Mix
Heinz – With almost all Indonesian
households using its Asian label, ABC soy
sauce, Heinz boosted sales through marketing
mix modification. It encouraged broader
consumer use of its soy sauce through a culinary
academy where chefs come up with new ABC
recipes. Heinz also added a new pouring cap on
the soy sauce bottle and introduced lighter
plastic pouches, a potential selling point to the
majority of Indonesians who lug their groceries
home. It also introduced non-alcoholic drinks
made with ABC flavor syrups for the Muslim
celebration of Ramadan.
82 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Decline
•
The sales of most product forms and brands eventually dip. This is
the decline stage.
•
Management may decide to maintain its brand without change in the
hope that competitors will leave the industry.
83 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Decline
•
Management may decide to harvest a product, which means
reducing various costs (plant and equipment, maintenance, R&D,
advertising, sales force) and hoping that sales hold up.
•
Management may decide to drop the
product from the line.
84 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Working at both ends of the product-life cycle stages
Along with reating innovative new products, P&
has become adept at turning yesterday’s faded
favorites into today’s hot new products. For
example, its Mr. Clean brand has now muscled its
way back into a market-leading position.
85 © 2012 Principles of Marketing: An Asian Perspective
9.3 Product Life-Cycle Strategies
Reviewing the Key Concepts
Describe the stages of the product life cycle and how marketing
strategies change during a product’s life cycle.
86 © 2012 Principles of Marketing: An Asian Perspective
9.4
Additional Product and Service Considerations
87 © 2012 Principles of Marketing: An Asian Perspective
9.4 Additional Product and Service Considerations
Product Decisions and Social Responsibility
International Product and Services Marketing
88 © 2012 Principles of Marketing: An Asian Perspective
9.4 Additional Product and Service Considerations
Product Decisions and Social Responsibility
•
Marketers should consider public policy issues and regulations
regarding acquiring or dropping products, patent protection, product
quality and safety, and product warranties.
•
Regarding new products, the government may prevent companies
from adding products through acquisitions if the effect threatens to
lessen competition.
89 © 2012 Principles of Marketing: An Asian Perspective
9.4 Additional Product and Service Considerations
Product Decisions and Social Responsibility
•
Manufacturers must comply with specific
laws regarding product quality and safety.
90 © 2012 Principles of Marketing: An Asian Perspective
9.4 Additional Product and Service Considerations
International product development
91 © 2012 Principles of Marketing: An Asian Perspective
9.4 Additional Product and Service Considerations
International product development
•
International product and service marketers face special challenges.
•
They must figure out what products and services to introduce and in
which countries.
•
They must decide how much to standardize or adapt their products
and services for world markets.
92 © 2012 Principles of Marketing: An Asian Perspective
9.4 Additional Product and Service Considerations
International product development
•
Packaging presents new challenges for international marketers.
•
In the services sector, there is a trend toward growth of global
service companies especially in banking, airlines, telecommunications, and professional services
93 © 2012 Principles of Marketing: An Asian Perspective
9.4 Additional Product and Service Considerations
International product development
The Nestlé KIT KAT chocolate bar in Japan
benefits from the coincidental similarity between
the bar’s name and the Japanese phrase kitto
katsu, which roughly translates to “You will
surely win!” The brand’s innovative “May cherries
blossom,” campaign has turned the KIT KAT bar
and logo into national good luck charms.
94 © 2012 Principles of Marketing: An Asian Perspective
9.4 Additional Product and Service Considerations
International Product Development- Influence of Colour
Yellow is a favored color
in Thailand where it
signifies royalty and
people wear it as a sign
of respect for the king.
95 © 2012 Principles of Marketing: An Asian Perspective
9.4 Additional Product and Service Considerations
Reviewing the Key Concepts
Discuss two additional product issues: socially responsible product
decisions and international product and services marketing.
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