INTERNATIONAL PRODUCT PLANNING: STANDARDISATION vs. ADAPTATION

INTRODUCTION The success of any business depends upon the satisfaction of its customers. The commodity market consists of national and international markeys. Product planning is nacessary for any producer to bring and move its product in the market. A businss enterprise has to take decisions regarding product development, product development, product life cycle.

MEANING OF PRODUCT A good, idea, method, information, object or service created as a result of a process and serves a need or satisfies a want. It has a combination of tangible and intangible attributes (benefits, features, functions, uses) that a seller offers a buyer for purchase. In marketing a good or service that most closely meets the requirements of a particular market and yields enough profit to justify its continued existence.

DEFINITION OF PRODUCT “A product is a bundle of physical service and symbolic particulars expected to yield satisfaction or benefits to the buyer.” PHILIP KOTLER

IMPORTANCE OF PRODUCT CENTRAL POINT FOR ALL MARKETING ACTIVITIES STARTING POINT OF PLANNING IS AN END COMPETITI VE WEAPON FROM BUYER’s POINT OF VIEW EMPLOYM ENT OPPORTU NITIES FROM SELLER’s POINT OF VIEW FROM SOCIAL POINT OF VIEW

LEVELS OF PRODUCT

CLASSIFICATION OF PRODUCTS  TRADITIONAL PRODUCT CLASSIFICATION  INDUSTRIAL PRODUCT CLASSIFICATION

TRADITIONAL PRODUCT CLASSIFICATION TRADITIONAL PRODUCT CLASSIFICATION CONSUMER PRODUCTS CONVENIENT PRODUCTS SHOPPING PRODUCTS SPECIALITY PRODUCTS INDUSTRIAL PRODUCTS PRODUCTION FACILITIES &MATERIAL PRODUCTION MATERIAL PRODUCTION SUPPLIES MANAGEMENT MATERIALS

MODERN PRODUCT CHARACTERISTICS  REPLACEMENT RATE  GROSS MARGIN  ADJUSTMENT  CONSUMPTION TIME  SEARCHING TIME

MODERN PRODUCT CLASSIFICATION RED PRODUCTS YELLOW PRODUCTS ORANGE PRODUCTS

RED PRODUCTS REPLACEMENT RATE GROSS MARGIN ADJUSTMENT CONSUMPTION TIME SEARCHING TIME HIGH LOW ORANGE PRODUCTS REPLACEMENT RATE GROSS MARGIN ADJUSTMENT CONSUMPTION TIME SEARCHING TIME MEDIUM YELLOW PRODUCTS REPLACEMENT RATE GROSS MARGIN ADJUSTMENT CONSUMPTION TIME SEARCHING TIME LOW HIGH

PRODUCT ADAPTATION AND STRATEGIES Product adaptation is the process of modifying an existing product so it is suitable for different customers or markets. An adaptation strategy is particularly important for companies that export their products because it ensures that the product meets local cultural and regulatory requirements. Adaptation is also important for companies that want to introduce new products but do not have the funds or resources to develop completely new items.

PRODUCT ADAPTATION STRATEGY ONE PRODUCT ONE MESSAGE- WORLDWIDE PRODUT ADAPTATION- COMMUNICATI ON EXTENSION PRODUCT INNOVATION DOUBLE ADAPTATION SAME PRODUCT- MODIFIED COMMUNICATI ON

STANDARDISATION It is a process of establishing particular physical attributes and chemical composition against other items

ADVANTAGES &DISADVANTAGES ADVANTAGES  Increase in sales  Easy marketing  Increase in goodwill  Less selling risk  Large scale production economies DISADVANTAGES  Technical factors  Legal factors  Buyer’s will  Resource environment  other factors

PRODUCT PLANNING Product planning means all the activities to decide the product lines of the enterprise and product items to be included in these product lines.

CHARACTERISTICS  Product investigation  Change in commodity according to demand  To know the practical aspect of the product  Discontinuance of product

IMPORTANCE STARTING POINT OF MARKETING MEANS OF FULFILLING SOCIAL LIABILITY INDICATORS TO MANAGERIAL ABILITY COMPETITIVE TOOL WIDE SCOPE

ELEMENTS OF PRODUCT PLANNING Search of product Development and Commercialization Change in Product Line Improvement in Products Determination of Product capacity Discontinuance of product Determination of product price

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