Product
According to Kotler and Armstrong, “A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.” Product constitutes one of the four P’s of the marketing mix and entails both the physical products and also the services that comprise all the offerings of a company to the target market. Product can also be further sub-divided into two categories comprising; firstly consumer products and secondly industrial products. Consumer products are bought by final consumers for personal consumption. They can be broken down to tangible and intangible (services). Examples of tangible are laptops, cars, books, games. Examples of intangibles are insurance and haircuts.
Industrial products are those purchased by individuals and organizations for added processing or for use in conducting a business. It comprises of materials and parts, capital items and supplies and services. Some examples include steel, building and equipment.
Product Standardization
According to Buzzell, standardization can be defined as, “The offering of identical product lines at identical prices, through identical promotion programs, in different countries” 2. In the world we live, we are observing same patterns of consumer buyer behaviour, tastes and demands as the world is becoming a homogenous place.
Standardization of a company’s product signifies that there is no change to the product what so ever and that the same product is distributed and sold to all markets around the globe. This strategy is seen as significant in lowering costs through economies of scale where each product unit shares uniform characteristics making them identical to each other. With standardization the compan...
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... – A company’s product is adapted to the needs and wants of the international markets. Thus this satisfies and provides customer value. For instance Subway offers “Halal meats” in specific stores and McDonald offers the “Maharaja Mac” in India.
2) Flexibility-A company can adjust to market conditions and adapt its product decisions to the international market.
3) Risk is reduced- A company that adapts its product to cultural background across international markets would see risk of failure greatly reduced and a higher probability of success.
Cons
1) Economies of Scale- Each product it tailored for each specific target market and the firm cannot enjoy the benefits of economies of scale.
2) Quality- There may be differences in the consistency of quality of products to the target market.
3) Costs- The company has to spend large sums of finance in marketing the product
• A more competitive, efficient and profitable business with less competition in the domestic markets.
Breaking into new markets helps the company grow and brings in new customers, which leads to higher profit margins.
Consumers become more interested in what brand they buy, and that what they want does not reflect their needs. While there are different products having the same features, people are still giving attention to the brands’ name. When people go shopping at the mall, they do care how the stores present their commodities, which brands use to target their consumers, especially women, and teenagers because they spend more time at the mall, so they are more likely to spend money on useless features’ commodities. Shopping at home, the salesperson explains the features of the product so that another will offer to buy it. Also, at home is the easiest way to buy useless
The company is managed such that it adjusts to the laws and regulations of different countries it operates thus making it successful.
Some of the major characteristics that make it in this firm includes high barriers to entry of other related substitutes, it ensure maximum profit on maximization, it is considered as the sole seller, price determiner and price changer. That is; it can change the price of its products a...
Today, many companies enter the global market, and some companies have become extremely successful in the global marketplace and others still struggling. In Theodore Levitt’s article “The Globalization of Markets”, he states that a well managed corporation focuses on selling standardized products with high quality and low priced instead of focuses on selling on customized products with high cost. Levitt defines the differences between multinational corporation and global corporation, and adopts many specific examples to proves his view. He defines the multinational corporation who operates in many countries and adjust its product based on the taste of specific region. This will result in a high cost to produce the product because company have to input more resource into each individual product. However, global corporation sells similar product worldwide at relative low cost. According to Levitt, the cultural differences are becoming more and more “homogenized”; therefore, becoming a global corporation will lead to the successful of the company in the global market.
More competition in lower trade as other firms will try to convince that their product is better than K2-products.
When it comes to doing business internationally the decision making is more complex. There are many interactions between each country that need to be addressed. In order for a business to be successful in the international market they need to examine and analyze all the facets of their company. They need
...price, it also allows for them to increase their sales and enter into new markets, which in turn would help to increase their profits.
For instance, convenience offerings are low-priced goods that consumers can effortlessly acquire because they are relatively ubiquitous while shopping offering requires the consumers’ effort in comparing and contrasting various brands and retail outlet to find the best product at a good price. Besides, while convenience products are needed on a daily basis, shopping goods may not be required on a daily basis and it has a higher price compared to convenience goods. (Tanner & Raymond, 2010). Furthermore, specialty products are different from convenience and shopping offering because it is more expensive from the previous offerings and it is also not commonly sold in retail outlets. The consumers are few and the products are purchased less frequently, which give it a high margin profit. Finally, unsought offerings are different from all because they could be acquired even when it may be unnecessary at the moment. It is a product of circumstance by any
Pricing. Our product is priced lower than our competitors in our industry. Even though our competitors have a different kind of product compared to us.
Products are not standardized and vary by country in terms of type, packaging and specification. This increases production time, production costs, lead tim...
The first element in the marketing mix is the product. A product is any combination of goods and services offered to satisfy the needs and wants of consumers. Hence, a product can be anything that is tangible or intangible and can be offered for purchase or use by consumers. An organization needs to have an in depth understanding about what it is they are marketing. Developments of the product’s quality, design, or brand name are important when trying to match with customers’ needs and wants. An organization should explain how their product’s features benefit the customer.
Among every product selling in the market, products are divided into three levels. From the first level to the third level, they are “core customer value”, “actual product” and “augmented product”.
The term "product" refers to tangible, physical products as well as services. It also means defining the characteristics of your product or service to meet the customers' needs. AirAsia’s philosophy is girded by the fact that they have been seen as a small airline competitor for many years. Therefore, in order to win more customers and return customers, they need to ensure that their primary products and services are up to par and meet the defining needs of customers. AirAsia offered (product) tangible and (services) intangible good to increase the demand of customer. (AIR ASIA MARKETING PLAN, 2015)