GMMCH11.ppt 58KB Jun 05 2011 09:30:25 PM

GLOBAL PRODUCT POLICY 1:
DEVELOPING NEW
PRODUCTS FOR GLOBAL
MARKETS
Chapter Eleven
John Wiley & Sons, I

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Global Product Policy Decisions 1:
Developing New Products for Global
Markets
Chapter Eleven
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Overview

1. Global Product Strategies
2. Standardization versus Customization
3. Multinational Diffusion
4. Developing New Products for Global markets
5. Global NPD and Culture
John Wiley & Sons, I

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Overview
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Ikea in the United States
Procter & Gamble in Australia and Japan
Wal-Mart in Hong Kong
U.S. carmakers in Japan

Ford in Brazil

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1. Global Product Strategies
– Exhibit 11-1 Global Expansion Strategies

• Strategic Option 1: Product and
Communication Extension - Dual Extension
• Strategic Option 2: Product Extension Communications Adaptation
• Strategic Option 3: Product Adaptation Communications Extension
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1. Global Product Strategies (cont)
• Strategic Option 4: Product and
Communications Adaptation - Dual

Adaptation
• Strategic Option 5: Product Invention

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2. Standardization versus Customization
• 1. Common Customer Needs
– Exhibit 11-2 Convergence in Drinking Patterns
– Exhibit 11-3 Comparison of Recognitions
Around Car Value Between Europe, USA, and
Japan
– Exhibit 11-4 Differences in Car Requirements
for Various European Countries

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2. Standardization versus Customization
(cont)
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2. Global Customers
3. Scale Economies
4. Time-to-Market
5. Europe 1992 and Other Regional Market
Agreements
• Modular Approach
• Core-Product Approach
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3. Multinational Diffusion
– Exhibit 11-5 VCR Sales in Various Countries

• Five Product Characteristics
– Relative advantage, Compatibility, Complexity,
Trialability, Observability
– Exhibit 11-6 National Innovativeness vs
Individualism

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4. Developing New Product
for Global Markets
– Exhibit 11-7 Global NPD Process

• Identifying New Product Ideas
• Screening
– Exhibit 11-8 NewProd Screening Model

• Concept Testing

– Exhibit 11-9 Salient Attributes and Attribute
Levels for Satellite Dishes
– Exhibit 11-10 Example of a Product Profile
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4. Developing New Products
for Global Markets (cont)
• Concept Testing (cont)
– Exhibit 11-11 Results of Conjoint Analysis for
Satellite Dishes
– To standardize or not to standardize
– Exhibit 11-12 Utilities for Respective
Alternatives Derived via Conjoint Study

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4. Developing New Products
for Global Markets (cont)
• Test Marketing
– Exhibit 11-13 Examples of Test Market
Countries

• Timing of Entry: Waterfall vs Sprinkler
Strategies
– Exhibit 11-14 “Waterfall” vs “Sprinkler” Model

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5. Global NPD and Culture

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