Welcome to class of Products by Dr. Satyendra Singh University of Winnipeg Canada

Product Components for Adaptation

Product Component for Adaptation Core Component (Intrinsic) –Product platform (LHS driving, voltage, metric system) –Design Features (size problem EU/USA), Fish/rice b/fast in Japan; fruits… –Functional Features (KFC as American…) Augmented Product Component (Features) –Packaging  High humidity, reuse of containers, more than one language requirements, font size, country-of-origin requirements, color compatible with culture, retail price must be shown. Support Services Component (increase life) –Repair and Maintenance –Instruction Manuals  characters –Installation instructions  audio

Products Consumer Goods/services –Large and small firms –Durable goods (cars, fridge, computer…) –Non-durables (foods, drugs, toys…) Industrial Goods/services –Large firms –Few buyers; they act in synch –Driven demand (depends on source) swings market –High volatility To Reduce Volatility –Broad product line –Spread risks across several markets –Demand is difficult to predict

Factors Driving Int’l. Demand… Technology –Demand latest technology to expand industrial base –Build/upgrade infrastructure (e.g., tel. Firms, ATMs, ) –Demand for cars, toys, DVDs… –Demand , competition  Industrial Products –GDP  –Industrialization Product Quality –Value (cost/quality) –Better quality at competitive price –Phones with roaming feature –Define quality

Factors Deriving Int’l. Demand… Definition of Quality –Market perceived quality (tourist, emotion, linking…) –Performance Quality (technical – saving in power) –Price-quality relationship –Specification (Europeans—exact vs. Americans— more screws/more capacity than stated) –Maintain standards Universal Standards –FPS/MKS (metric system in EU) –Different sizes– shoes, cloths –North American Industry Classification System (NAICS—6 digit) –Standard Industrial Classification (SIC—4 digit) –ISO 9000/14001 (Environment)/18001 (Health)

Universal Standards

Factors Deriving Int’l. Demand Green Marketing –Demand for environmentally products –Follow guidelines for Eco-labeling (e.g., detergent should be biodegradable and non- polluting) –Systems to control solid waste –EU requires all packaging material to be recycled –Use of Eco-logo –3BL  customers interest in process