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Product Adaptation versus Standardisation (market environment (competitive…
Product Adaptation versus Standardisation
Factors affecting product adaptation decisions
company considerations
e.g. profitability, resources, cost of adaptation, market opportunity
Product characteristics
e.g. positioning, branding, packaging, method of usage, durability, quality, country of origin
Regional, country or local characteristics
e.g. govt regulations, non-tariff barriers, customer expectations & preferences
4 basic alternatives
sell the product as in international marketplace
modify the product for different countries/regions
design new products for foreign markets
incorporate all the differences into one product design and introduce a global product
market environment
competitive offerings
climate & geography
govt regulations
economic development
non-tariff barriers
customer preferences, characteristics and expectations
ways to avoid brand name problems
translation
transliteration- testing of an existing brand name for connotative meaning
transparency- develop an entirely new and meaningless brand name
transculture- using a foreign language name for a brand
cultural & psychological factors
affecting product adaptation
consumption patterns- pattern of purchase: purchased by same demographic or psychographic target segment? spend same amount of time to make the purchase?
pattern of usage- use the product for the same purposes? used in different amounts? is the product used alongside other products?
psychosocial characteristics- attitude towards the product/service- are the advantages/disadvantages viewed the same way from market to market? Does the symbolic content differ?
Attitude towards the brand- is the brand name equally known and accepted? are attitudes toward the packaging/pricing the same?
general cultural criteria- does society restrict the purchase/use of a product? is there a stigma attached to the product? does the usage of the product interfere with tradition in one or more markets?