Welcome to class of Products

byDr. Satyendra Singh

University of WinnipegCanada

Product Components for Adaptation

Product Component for Adaptation• Core Component (Intrinsic)

– Product platform (LHS driving, voltage, metric system)– Design Features (size problem EU/USA), Fish/rice

b/fast in Japan; fruits…– Functional Features (KFC as American…)

• Augmented Product Component (Features)– Packaging High humidity, reuse of containers, more

than one language requirements, font size, country-of-origin requirements, color compatible with culture, retail price must be shown.

• Support Services Component (increase life)– Repair and Maintenance– Instruction Manuals characters– Installation instructions audio

Products• Consumer Goods/services

– Large and small firms – Durable goods (cars, fridge, computer…)– Non-durables (foods, drugs, toys…)

• Industrial Goods/services– Large firms– Few buyers; they act in synch– Driven demand (depends on source) swings market– High volatility

• To Reduce Volatility– Broad product line– Spread risks across several markets– Demand is difficult to predict

Factors Driving Int’l. Demand…• Technology

– Demand latest technology to expand industrial base– Build/upgrade infrastructure (e.g., tel. Firms, ATMs, )– Demand for cars, toys, DVDs…– Demand , competition

• Industrial Products– GDP – Industrialization

• Product Quality– Value (cost/quality)– Better quality at competitive price– Phones with roaming feature – Define quality

Factors Deriving Int’l. Demand…• Definition of Quality

– Market perceived quality (tourist, emotion, linking…)– Performance Quality (technical – saving in power)– Price-quality relationship– Specification (Europeans—exact vs. Americans—

more screws/more capacity than stated)– Maintain standards

• Universal Standards– FPS/MKS (metric system in EU)– Different sizes– shoes, cloths– North American Industry Classification System

(NAICS—6 digit)– Standard Industrial Classification (SIC—4 digit)– ISO 9000/14001 (Environment)/18001 (Health)

Universal Standards

Factors Deriving Int’l. Demand

• Green Marketing– Demand for environmentally products– Follow guidelines for Eco-labeling (e.g.,

detergent should be biodegradable and non-polluting)

– Systems to control solid waste– EU requires all packaging material to be

recycled– Use of Eco-logo– 3BL customers interest in process