Podcast
Questions and Answers
Conducting preliminary screening for market and product identification is not necessary through market research.
Conducting preliminary screening for market and product identification is not necessary through market research.
False
A single standardized product is always produced for all international markets.
A single standardized product is always produced for all international markets.
False
A poorly conceived product always leads to market success.
A poorly conceived product always leads to market success.
False
Different approaches are not adopted by international marketers for developing products.
Different approaches are not adopted by international marketers for developing products.
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Ethnocentric approach involves producing separate products for each different market.
Ethnocentric approach involves producing separate products for each different market.
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Standardization of a product involves making significant changes to the product to meet the needs of target markets.
Standardization of a product involves making significant changes to the product to meet the needs of target markets.
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Product adaptation involves making no changes to the product to meet the needs of target markets.
Product adaptation involves making no changes to the product to meet the needs of target markets.
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In polycentric approach, the firm produces separate products for each different market.
In polycentric approach, the firm produces separate products for each different market.
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Region-centric approach involves finding similarities exhibited by consumers in their purchase behavior.
Region-centric approach involves finding similarities exhibited by consumers in their purchase behavior.
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High technology content products like computers are always adapted to meet the needs of local markets.
High technology content products like computers are always adapted to meet the needs of local markets.
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Government regulations are a voluntary factor that influences product adaptation.
Government regulations are a voluntary factor that influences product adaptation.
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Most companies customize their products completely for each target market.
Most companies customize their products completely for each target market.
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Differences in operation systems of electronic goods are a reason for product standardization.
Differences in operation systems of electronic goods are a reason for product standardization.
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Standardization of a product helps to meet the needs of local customers and provides cost savings due to economies of scale in production.
Standardization of a product helps to meet the needs of local customers and provides cost savings due to economies of scale in production.
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Study Notes
International Product Development Approaches
- International marketers must decide between producing a single standardized product or customized products for different markets.
- Conducting preliminary market research is crucial for identifying markets and products.
Ethnocentric Approach
- Assumes consumer needs and market conditions are similar across markets.
- Modifies home market products for international markets with minor changes.
- Fails to achieve maximum market share and profit.
Polycentric Approach
- Produces separate products for each market.
- Also fails to achieve maximum market share and profit.
Region-Centric Approach
- Considers product similarity within market clusters.
- Attempts to standardize products within regions.
Geocentric Approach
- Seeks similarities in consumer purchase behavior across markets.
- Develops a standard product for all global markets.
Product Customization
- Most companies customize product components (features, packaging, labeling) to suit target markets.
- Retains brand name while adapting products to meet local needs.
Product Standardization
- Offers products in foreign markets with minor changes (packaging, labeling).
- Meets global customer needs and achieves cost savings through economies of scale.
Product Adaptation
- Makes changes to products to meet target market needs.
- Reasons for adaptation include government regulations, technical differences, and cultural factors.
- Voluntary factors like consumer demographics, culture, and local customs also influence adaptation.
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Description
Learn about the importance of deciding on standardized or customized products for different markets in international marketing. Understand the role of market research in identifying potential markets and products.