InternationalproductstrategiesCompaniespursueoneormoreofthreegenericstrategiestopenetrateforeignmarkets.Theseare:Extension.Thecompanyusesthesameproductorcommunicationstrategyasisusedinthehomemarket.Adaptation.Thecompanymakeschangestotheproductorcommunicationsstrategytosuitthelocalmarketplace.Invention.Thecompanydesignsnewproductsfromscratchforinternationalmarkets.Kotabe,M.&Helsen,K.(2004)GlobalMarketingManagement3Ed.Brisbane:WileyStandardisationversuscustomisationStandardisationmeansofferingauniformproductregionallyorworldwide.Minorchangesaremadetomeetlocalregulationsormarketconditionssuchasvoltageadjustmentsforelectricalappliances.Customisationfocusesoncrossborderdifferencesintheneedsandwantsofthefirm’stargetcustomersadaptingtheproducttolocalmarketconditions.Kotabe,M.&Helsen,K.(2004)GlobalMarketingManagement3Ed.Brisbane:WileyStandardisationversuscustomisationForcesdrivingaproductstrategyofstandardisationare:CommoncustomerneedsGlobalcustomersEconomiesofscaleRegionalmarketagreementsKotabe,M.&Helsen,K.(2004)GlobalMarketingManagement3Ed.Brisbane:WileyTastePatterns-ConvergenceKotabeandHelsen2000Taste-Patterns:TransitionsofbodysizeKotabeandHelsen2000Trends•GeneralConvergenceofsize•SUVs,Peoplemovers,Utilities,Sedans,SporstersandMicrocars•Proliferationofmodels60conceptmodelsinDetroitshow.•WithSUVs–70models•Useofcommonplatformswithsharedcomponents•Trendstomakecarsmoreinteresting–eg.“Retrolook”StandardisationversuscustomisationTwocommonproductdesignphilosophiesare:Modularapproach.Thisapproachallowsforthedevelopmentofarangeofstandardisedproductpartsthatcanbeassembledintodifferentproductconfigurations.Forexample,mosttyremakersdevelopedastandardisedsetofsizestofitmostmakesofautomobiles.Core-product(platform)approach.Thisapproachstartswiththedesignofamostlyuniformcoreproductorplatform.Forexample,Toyotafollowsthisapproachwithmanyofitsvehicles.Kotabe,M.&Helsen,K.(2004)GlobalMarketingManagement3Ed.Brisbane:WileyMultinationaldiffusionTheadoptionofnewproductsisgenerallydrivenby:IndividualdifferencesPersonalinfluencesProductcharacteristicsKotabe,M.&Helsen,K.(2004)GlobalMarketingManagement3Ed.Brisbane:WileyMultinationaldiffusionLeadcountriesarethefirstcountriestowhichanewproductisintroduced.Lagcountriesarelatercountriestowhichanewproductisintroduced.Productadoptionratestendtobefasterinlagcountries.Kotabe,M.&Helsen,K.(2004)GlobalMarketingManagement3Ed.Brisbane:WileyMultinationaldiffusionResearchhasidentifiedanumberofothercountrycharacteristicsthatidentifiedfactorsthatinfluenceadoptionpatternsforconsumerdurables:Cosmopolitanism.Mobility.Proportionofwomeninthelabourforce.Kotabe,M.&Helsen,K.(2004)GlobalMarketingManagement3Ed.Brisbane:WileyInnovators2.5%EarlyAdopters13.5%Laggards16%EarlyMajority34%LateMajority34%AdopterCategoriesDiffusionofinnovation:WesterncultureDiffusionofinnovation:AsiancontextSource:Schuttep75GlobalNewProductDevelopmentMarket(Productclass)EvaluationOpportunityidentificationScreeningConceptEvaluationPre-testmarketTestMarketGlobalrollout•Sprinkler•WaterfallNogoNogoNogoNogoNogoExpandmindofdesigner–originalproductsProductconceptSpecificR&DprojectsformaterialsandprocessesMarketanalysisandinvestmentneedsCompetitionandprofitanalysisProductplanningSupplierChoiceMarketingplanningLaunchJapanesecarmanufacturersKotabe,M.&Helsen,K.(2004)GlobalMarketingManagement3Ed.Brisbane:WileyProductConceptTestingInternationalproductdevelopmentisexpensiveIsthereawaytoreducerisksandcosts?TestproductatconceptstageOceanSpray-testingconceptthoughdescriptionandtasteAnsweristousetechnique:ConjointanalysisStep1developsalientattributesofproduct/serviceconceptUseofexploratorymethods–focusgroups,judgementDeterminelevelsofattributeUsingexampleofsatellitedishKotabe,M.&Helsen,K.(2004)GlobalMarketingManagement3Ed.Brisbane:WileyProductConceptTestingConcept-salientattributesforlevelsofasatellitedish-developedfromfocusgroupAttributeAttributeLevelNumberofChannels(1)30(2)50(3)100SellingPrice(1)$500(2)$600(3)$700Sizeofdish(1)18”(2)25”(3)30”Step1ProductConceptTestingStep2PresentprofilestoconsumersforevaluationSampleprofile1.Numberofchannels:302.Price:$503.Sizeofdish:25”ConsumerrespondswithratingorrankingUseofexperimentalmethodtodevelopsmallnumberofproductprofilesTrade-offattributesagainsteachotherForthisprofileonscale,(7=mostlikelytopurchase,1leastlikelytopurchase)Response=6ConvertedtoUtilityProductConceptTestingStep3Resultslevelsofconsumerutilityforeachlevelofproductattributeie.howmuchutilityderivedbyeachlevelofprice,size,no.ofchannelsConsumersegmentationbasedonresponsesSegment1UtilityforChannels300.0501.51003.2Segment2Utilityforchannels300.0503.41005.6ProductConceptTestingStep4RepeatforeachcountryThailandUtilityprofileMalaysiaUtilityprofileSegment1Segment2Segment1Segment2TimingofEntryHighLowGNPTimeIndustrialisedDevelopingLDCsWaterfallSprinklerIndustrialisedDevelopingLDCsInnovationInnovationKotabe,M.&Helsen,K.(2004)GlobalMarketingManagement3Ed.Brisbane:WileyWhatconditionsfavourlaunchingaproductwithasinglebrandname,logoand