Product can be adapted physically and culturally for foreign markets. Discuss.

A product has its form, taste, color, odor, texture, how it functions in use, the package, the label, the warranty, its reputation etc. Much of the importance of these other benefits is imputed by the values and customs within a culture. The product is the sum of physical and psychological satisfactions it provides the user. It psychological attributes generally are required to create the primary function of the product. Few changes to the physical attributes of product are required when moving from one culture to another.

The meaning and value imputed to psychological attributes of a product can vary among cultures and are perceived as negative or positive. To maximize the bundle of satisfactions received and to create positive product attributes rather then negative ones, adaptation of the nonphysical features of a product may be necessary. The culture determines an individual’s perception of what a product is and what satisfaction that product provides.

9) What are 3 major components of product? Discuss the importance of product adaptation. Смотрите рисунок на первой странице

- The core (основной) component- consists of the physical product- the platform that contains the essential technology- and all its design and functional features. It’s on the product platform that product variations can be added or deleted to satisfy local differences. The change in a platform can affect product process and thus require additional capital investment. However, alterations in design, functional features, flavors, color, and other aspects can be made to adapt the product to cultural variations

- The packaging component - includes style features, packaging, labeling, trademarks, brand name, quality, price, and all other aspects of a product’s package. Care must be taken to ensure that corporate trademarks and other parts of the packaging component do not have unacceptable symbolic meanings. Particular attention should be given to translations of brand names and color used n packaging.

- The support Services component - includes repair and maintenance, instructions, installation, warranties, deliveries, and the availability of spare parts.

10) How can knowledge of the diffusion of innovations help a product manager plan international investments?

Knowledge of this process may provide the foreign marketer with the ability to assess the time it takes for a product to diffuse- before it’s necessary to make a financial commitment. It also focuses the marketer’s attention on features of product that provoke resistance, thereby providing an opportunity to minimize resistance and hasten product acceptance.

Discuss the 4 types of innovations. Give examples of a product that would be considered by the US market as one type of innovation but a different type in another market. Support your choice.

- Congruent innovation- it causes absolutely no disruption of established consumption patterns. The product concept is accepted by the culture and the innovativeness is typically one of introducing variety and quality or functional features, style or perhaps an exact duplicate of an already existing product.

- Continuous innovation- has the least disruptive influence on established consumption patterns. Alteration of a product is almost always involved rather than the creationof a new product. Generally the alteration result in better use patterns- perceived improvement in the satisfaction deriver from its use (Fluoride toothpaste, flavors in coffee, disposable razors).

- Dynamically continuous innovation- it generally doesn’t involve new consumption pattern (модель потребления). It may mean the creation of new product or considerable alteration of an existing one designed to fulfill new needs arising from changes in life-styles or new expectations brought about by change (Electric toothbrushes, electric hair-curlers, frozen dinners).

- Discontinuous innovation- involves the establishment of new consumption patterns and the creation of previously unknown products. It introduces an idea or behavior pattern where there was none before (television, computer, automobile etc.).

Example: cake mix is a part of US eating habits is congruent innovation when a new brand is offered on the US market. If it is offered in a new, unique flavor, it’s a continuous innovation. If it’s introduced at the same time into a market unfamiliar with cake mixes, it’s a dynamically continuous innovation.