-3 Explain how Maslow’s needs hierarchy helps global marketers understand the benefits sought by buyers indifferent parts of the world.10-4

307
307
Exhibit 10-1 Alphabet is investing in moonshot innovations such as Project Loon, a network of stratospheric balloons that will bring Internet access to billions of people.
Source: CB2/ZOB/Supplied by WENN.com/
Newscom.
Alphabet spends approximately $10 billion each year on research and development. X (formerly Google X, the company’s semi-secret research division, is known as the Moonshot Laboratory. The name references its lofty mission Staff members are working on moonshot projects that represent leading-edge technology leaps (see Exhibit 10-1). Astro Teller, the division’s Rollerblade- wearing chief executive, has the title Captain of
Moonshots.”
Another research group, Advanced Technology and Projects
(ATAP), focuses on mobile applications. Among the many new products and services currently underdevelopment are self-driv- ing cars Wing, a delivery drone service and wearable devices. To learn more about some of the challenges and opportunities facing managers in charge of Alphabet’s diverse product and brand portfolio, turn to the continuation of Case 10-1 at the end of the chapter.
Alphabet’s myriad product development initiatives illustrate the point that products and brands are perhaps the most crucial element of a company’s marketing program they are integral to the company’s value proposition. In Part Three elsewhere in this text, we surveyed several topics that directly impact product strategy as a company approaches global markets. Input from a company’s business intelligence network and market research studies guides the product development process. The market must be segmented, one or more target markets selected, and strong positioning established. Global marketers must also make decisions about exporting and sourcing other market-entry strategies, such as licensing and strategic alliances, maybe considered as well.
As we will see in Part Four, every aspect of a firm’s marketing program, including pricing, distribution, and communication policies, must fit the product. This chapter examines the major dimensions of global product and brand decisions. First is a review of basic product and brand concepts, followed by a discussion of local, international, and global products and brands. Product design criteria are identified, and attitudes toward foreign products are explored. Then, strategic alternatives available to global marketers are presented. Finally, new-product issues in global marketing are discussed.
10-1
Basic Product Concepts
The product P of the marketing mix is at the heart of the challenges and opportunities facing global companies today Management must develop product and brand policies and strategies that are sensitive to market needs, competition, and the company’s ambitions and resources on a global scale. Effective global marketing often entails finding a balance between the payoff from extensively adapting products and brands to local market preferences and the benefits that come from concentrating company resources on relatively standardized global products and brands.
A product is a good, service, or idea with both tangible and intangible attributes that collectively create value fora buyer or user. A product’s tangible attributes can be assessed in physical terms, such as weight, dimensions, or materials used. Consider, for example, a flat-panel TV with an OLED screen that measures 42 inches across. The unit weighs 20 pounds, is 2.2 inches deep, features four high-definition media interface (HDMI) connections, has a builtin tuner capable of receiving high-definition TV signals over the air, and delivers a K screen resolution. These
10-1
Review the basic product concepts that underlie a successful global marketing product strategy.
M10_KEEG9756_10_SE_C10.indd 307 24/10/18 5:52 AM

308 PART 4 • THE GLOBAL MARKETING MIX
tangible, physical features and attributes translate into benefits that enhance the enjoyment of watching HDTV broadcasts and Blu-ray movies. Accessories such as wall mounts and floor stands enhance the value offering by enabling great flexibility in placing the set in a living room or home theater.

Download 2.75 Mb.

Share with your friends: