Prices obtained and net profit returned to farmer, average price, maximum and minimum prices, effect of different quality standards on price? Catering to the global customers moving across countries iii. In order to illustrate the above points, cotton can be used as an example. These may be due to climate, skills, level of literacy, culture or physical conditions.
The international firms attempt to retain their country-of-origin CoO image and market, at least the packaging product component, with little customization. Packaging which is non-degradable - plastic, for example - is less in demanded. Packaging specifications, weight of produce per packaging unit, type of packaging?
Service In agricultural machinery, processing equipment and other items which are of substantial value and technology, service is a prerequisite. Errors in product decisions are legion. The system can handle large numbers of bales, reduce variation in classification and the need for highly trained bate classifiers.
People who are part of one culture may take in the whole picture in an advertisement and be able to report specific details of what they have seen, even in the background; those of another culture may only see and identify with the central figure and ignore background items altogether.
In some cases "foreign made" gives advantage over domestic products. Governments do these things as a way of making sure a larger percentage of income from sales stays in the home country. Increased contact with alien cultures primarily due to augmented movement of people across the countries has made even Chinese and Indian foods popular in the West Exhibit Bio-degradable, recyclable, reusable packaging is now the order of the day.
However, this is not to suggest that in doing so they pioneer in innovation. Keeping in mind vegetarian sensibilities, regulations in India require food packages to exhibit a mark either in green or red colour indicating vegetarian or non-vegetarian ingredients used, so as to explicitly inform the consumers about its contents.
Requirements for crate labelling, etc. Product adaptation - communications adaptation Both product and communication strategies need attention to fit the peculiar need of the market.
Labels may have to be multilingual, especially if the product is a world brand. Product invention This needs a totally new idea to fit the exclusive conditions of the market.
Storage arrangements, if any? Chinese and most East Asian people are shorter in size while Europeans and Germans are generally taller.
Ultimately, the individual company will decide Product Standards: Warranty Many large value agricultural products like machinery require warranties.
Mexicans are loathe to take products from Brazil. In the UK, railway engines were designed from the outset to be sophisticated because of the degree of competition, but in the US this was not the case.
As this whole new frontier opened up, businesses realized there was a brand new opportunity out there for them to generate even more income. The latter can be a factor both to aid or to hinder global marketing development.
Product design is influenced by the measurement systems followed in a country. When the consumer is eventually offered a choice, the reticent. In Zimbabwe, kapenta fish can be used as a relish, but wilt always be eaten as a "starter" to a meal in the developed countries. These attitudes are defined by three orientations toward foreign culture: Volumes sold daily, monthly, annually?
Specification Specification is very important in agricultural products. So, for example, selling mineral water may not be enough. However, there are many obstacles to the application of uniform marketing policies.
The effect of this was to eliminate the Mexican tomato industry which grew a tomato that fell under the minimum size specified. Most countries have an upper, middle and lower class, but the numbers of people in these classes can be significantly different from country to country.
It offers soup and fried rice to cater to Japanese eating habits as well.Adaptation of a product may vary from major modifications in the product itself to minor alterations in its packaging, logo, or brand name. A thorough market research needs to be conducted so as to identify the customers’ requirements in the target market.
Cavusgil, Zou, and Naidu () suggest that the degree of adaptation of the product and promotion is significantly influenced by the firm's characteristics, products and industry, as well as by the foreign market's characteristics. Thus, many authors reject the extreme use of only one or another strategy.
company can have its line of products for various markets global, regional and local products. Some of these products developed for one market may be introduced later in other markets, including global market where the company originates.
The selection of a standardization or adaptation strategy depends on numerous factors, presented in Table 2. Product decisions are based on how much the organisation has to adjust the product on the standardisation - adaptation continuum to differing market conditions.
This results in the evolution of five basic strategic alternatives - extension; extension, adaptation; adaptation, extension; adaptation and invention.
Jun 27, · 3 Cultural Adaptation in the Global Marketplace; People make decisions about consumption of a product based on these cultural influences.
Social Factors in Marketing That Influence Products. Product Standardization and Adaptation in International Marketing: A case of McDonalds 2 Problem discussion When MNCs expand their products to international markets they have to consider the two approaches of standardization and adaptation in order to formulate their global product strategy.Download