SERVIC

ES
Marketing

VINCENT
C.
CORTIAS
INTERNATIONAL MARKETING INSTRUCTOR

LEARNING OBJECTIVES
1. Discuss the nature and processes of managing multinational
product lines
2. Explain strategies for overcoming product piracy
3. Discuss the effects of a country of origin and identify
strategies to accommodate these effects
4. Describe international products and service branding
strategies
5. Discuss the challenges and opportunities in marketing
services globally and identify global service marketing
strategies

THE PRODUCT CONCEPT

The product concept is a key strategy
decision because the international marketer
is guided as to how to position the product in
different markets
The product concept guides the other
elements of the marketing mix such as
marketing communications, selling, pricing
and distribution.

LEV
ELS
OF
A
PRO
DUC
T

HOW THIS IS
OPERATIONALIZED IN
INTERNATIONAL
MARKETING
Core
Product
Actual Product
Brand
Quality
Design
Packaging
Augmented Product
After sales service
Warranty
Installation
Credit

IMPLICATIONS:

The core product represents the key benefits and

the unique positioning of the product
Should it be consistent in every market? That
depends on strategic positioning
By right, the core product should be faithfully carried
as a common platform across global markets
Like the HSBC ad: worlds local bank global
positioning but local servicing

THE INTERNATIONAL

PRODUCT MIX

One of the areas of product strategy involves the

product mix or product portfolio
The marketing manager must decide on the range of
products that must be carried in different country
markets
Product Mix has two dimensions
Width
Depth
This could vary from country to country

INTERNATIONAL PRODUCT MIX BY COUNTRY

MARKETS

Why are product ranges different by country markets?

include:

Market demand and market size

Different preferences and consumption patters
Marketing and distribution costs
Level of penetration of new products

Factors

MANAGING INTERNATIONAL PRODUCT

LINES
Four possible variations:
1.Extension of a domestic line
2.A subset of the home markets product line
3.A mix of local and non-local products
4.A completely localized product line

EXTENSION OF DOMESTIC PRODUCT

LINE

Basically a replication of the product mix into the foreign market

Used by many small exporters who have limited resources for adaptation
or where the foreign market desires the original range

A SUBSET OF THE HOME MARKETS PRODUCT

LINE
Usually the foreign country market may
not have the market potential for all the
product range produced in the home
country
Example BMW and Mercedes in
Germany has a much wider range of
cars than those imported in Singapore

A MIX OF LOCAL AND NON-LOCAL PRODUCTS

Burger King in Singapore has a variation with Rendang burger alongside
the traditional BK range
KFC Hong Kong has porridge and desserts to appeal to local tastes

MANAGING MULTINATIONAL PRODUCT

LINES

Drivers that affect an international product line:

customer preferences
price spectrum
competitive climate
organization structure
Products history

SEVERAL DRIVERS AFFECT COMPOSITION

OF INTERNATIONAL PRODUCT LINE

PRODUC
T PIRACY

PRODUCT PIRACY

COUNTERFEIT PRODUCTS IN
ASIA

COPYCAT CARS FROM CHINA

To what extent is this infringing

copyright? There are gray areas.

PASSING OFF OR OUTRIGHT

TRADEMARK INFRINGEMENT?

COMBATING PIRACY

STRATEGIES FOR OVERCOMING

PIRACY- MICROSOFT