Questions and Answers
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.
False
A poorly conceived product always leads to market success.
False
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.
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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.
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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.
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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.
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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.
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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.
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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.
