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Creating products for consumers in global market

Group members:Rahul takkarRavindra pal marwalRachak dixitRupendra singh chauhanSahil munjral

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Contents

• Introduction• Developing a global product• Development process• Marketing industrial products and services • Recommended international distribution system• International retail• Conclusion• References

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Introduction

• PRODUCTS – Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It includes physical objects, services, places, organizations, ideas and people.

• Global market. Acc. to financial times lexicon” The activity of buying or selling goods and services in all the countries of the world, or the value of the goods and services sold.”

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What are new products ?

• New product line• Addition to product line• Repositioning to new market segments• Improvements/revisions• Cost reductions

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Strategic options

• EXTENSION STRATEGY – Same approach as home market• ADAPTATION STRATEGY - Makes changes to fit new market

requirements• INVENTION STRATEGY - Entirely new approach is developed

for the new market• STANDARDIZATON –Same product, all markets• GLOBAL PRODUCTS -Only some aspects of the product is

standardized

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Development process

• Idea Generation• Idea Screening• Concept Development & Testing• Marketing Strategy Development• Business Analysis• Small Batch Prototype Development• Product Development & Testing• Test Marketing• Commercialization / Launch

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Total product includes

Physical productBrand nameAccessoriesAfter-sales serviceWarrantyInstructions for useCompany imagePackage

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Types of Products

• Industrial Products– Many can be sold unchanged worldwide (computer chips)– If changes are required, they may be cosmetic (printing

instructions in another language)– In developing countries problems with

• Overload of equipment• Maintenance

– Local legal requirements

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Consumer Products– Require greater modification to meet local market

requirements than do industrial products

– Some can be sold unchanged to certain market segments• Large automobiles, sporting equipment, and perfumes

– Greater dissimilarity as you go down the economic strata

servicesMarketing of services similar to that of industrial products

Services easier to market globally compared to consumer productsLaws and customs may force changes

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Marketing of industrial products

• Industrial Marketing:• Also called: Business-to-Business (B2B) and

Organizational Marketing.

• Definition: the creation and management of mutually beneficial relationships between organizational suppliers and organizational customers.

• Customer can be private firm, public agency, or nonprofit organization.

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Marketing Concept

• Three major components:– All company activities should begin with, and be

based on, the recognition of a fundamental customer need.

– A customer orientation should be integrated throughout the functional areas of the firm: production, engineering, finance, R&D.

– Customer satisfaction is viewed as the means to long-term profitability goals

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Marketing Mix

• Limited number of variables under Marketing’s control to create position that is attractive to the target market segment.

• Four Ps– Product– Price– Promotion– Place (Distribution

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So what’s different about B2B?

• Marketing Concept• Marketing Mix• Market Segmentation• Product Life Cycle

• All apply in both B2C and B2B.

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Five Major Differences Between B2B and B2C

• Products/Services being marketed• Nature of demand• How the customer buys• Communication process• Economic/Financial factors

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3 types of industrial markets

• producers and manufacturers

• trade industries (wholesalers and retailers)

• governments

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Classifying industrial products

• 1. Installations - major assets, factories, heavy machinery

• 2. Accessory Equipment - used in production - short-lived items eg. tools

• 3. Raw Materials

• 4. Component Parts and Materials - finished units which, when assembled, make the complete product

• 5. Maintenance, Supplies (MRO Items) - maintenance,- cleaning fluids

• 6. Professional ServicesRupendra chauhan

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Marketing of industrial services

• The service sector :• The services sector has been growing at a rate

of 8% per annum in recent years• More than half of our GDP is accounted for

from the services sector• This sector dominates with the best jobs, best

talent and best incomes

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What is services?

• It is the part of the product or the full product for which the customer is willing to see value and pay for it

• It is intangible.• It does not result in ownership.• It may or may not be attached with a physical

product

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The three additional ‘P’s of Service Marketing

• People• Physical evidence• Process

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Pricing Services

• The characteristics of perishability, inability to store, and fluctuating demand for services create pricing challenges.

• Pricing Strategies include:• Discount strategies: Cheaper by the

week.• A variable pricing strategy: Kids eat free,

movies cheaper on Tuesdays.• Price competition.

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The Changing Environment for Services

• The boom in the service economy, reduced regulation has created an increase in competition.

• Major focus on increased productivity, efficiency– Work on people aspects of business:

• Education, training programs– Change technology:

• Computer-based technologies used.– Restructure jobs.

• Bottom line: People are key to success!

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Other Considerations in Marketing Services

• Impact of Technology:– Remember, not everyone likes impersonal

technology• Performance Measurement:

– Larger firms can use market share, etc.– Customer perceptions are essential.

• Prospects for Growth:– It is very likely that services will continue to take an

increasing share of the consumer dollar.– The use of marketing programs in all services is

expected to increase considerablyRochak dixit

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International distribution system

• Distribution Channel:

• A set of organizations (intermediaries) involved in the

process of making a product or service available for use or

consumption by the consumer or business user.

• Used to move the customer towards the product

• Selling through wholesalers and retailers usually is much

more efficient and cost effective than direct sales

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Distribution Channel Functions

InformationInformation

PromotionPromotion

ContactContact

MatchingMatching

NegotiationNegotiation

PhysicalPhysical

Gathering and distributing marketing research about the environment

Gathering and distributing marketing research about the environment

Developing and spreading persuasive communications about an offer

Developing and spreading persuasive communications about an offer

Finding and communicating with prospective buyersFinding and communicating with prospective buyers

Shaping and fitting the offer to the buyer’s needShaping and fitting the offer to the buyer’s need

Agreeing on price and terms of the offer so ownership or possession can be transferred

Agreeing on price and terms of the offer so ownership or possession can be transferred

Distribution: transporting and storing goodsDistribution: transporting and storing goods

FinancingFinancing Acquiring and using funds to cover the costs of channel work

Acquiring and using funds to cover the costs of channel work

Distribution

Channel Key Functions

Risk TakingRisk Taking Assuming financial risks such as the inability to sell inventory at full margin

Assuming financial risks such as the inability to sell inventory at full margin

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Number of Channel Levels

WholesalerWholesaler JobberJobber RetailerRetailer ConsumerConsumer

ConsumerConsumer

RetailerRetailer ConsumerConsumer

ProducerProducer

0-level channel

WholesalerWholesaler RetailerRetailer ConsumerConsumer ProducerProducer

2-level channel

ProducerProducer

3-level channel

1-level channel

ProducerProducer

Channel Level - Each Layer of Marketing Intermediaries that Perform Some Work in Bringing the Product and its Ownership Closer to the Final Buyer.

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Global Distribution System

GDS is a very power reservation tool for agent making airline, car rental, hotel and other travel services booking.

GDS is a tool using computerized system and digital database to restore information and make transaction through internet.

GDS was actually very primary e-commerce business tool.

Facilitate B-B e-commerce business modelRahul takkar

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Four Major Global Distribution System

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International retail

• All the activities involved in selling products and services to final international consumers for their personal consumption

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International Expansion of Retailers

Wal-Mart Metro AG Sears Roebuck Rewe Gruppe Edeka Gruppe Aldi Gruppe Dayton Hudson Tenzelmann Gruppe

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Retail Formats: Variations in Different Markets

• Specialty Stores• Specialized Markets• Department Stores • General Merchandise Discount Stores

Off-Price Retailers Examples:

-Factory outlet stores-Close-out retailers (broad, inconsistent assortments)

• Single-price retailers (all products for the same price) Catalog Showrooms Offer high-turnover, brand name goods at discount prices Internationally, however, goods sold through this venue tend not to be brand name,

but, rather, goods that have not sold the last season through the catalog Ravindra pal marwal

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THE INFORMATION KIOSK

• It is the first kiosk platform for a variety of functions offered on many kiosks in the marketplace today. By the touch of a finger user can gain access to product information ,company services, forms, and printouts for retail stores ,school, churches, city government,tourist locations and more

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International Food Retailers

• Conventional Supermarkets

• Self-service retailers with annual sales higher than $2 million and less than 20,000 square feet of store space

• Superstores Combination stores (food

and drug) Hypermarkets- combines

supermarket, discount, and

warehouse retailing Ravindra pal marwal

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Non-store Retailing

• Internet Retailing• Vending Machines• Television Home

Shopping• Catalog Retailing and

Direct Mail Retailing• Direct Selling

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Issues in International Retailing

• Legislation and Regulation• Taxation and Cross Border Shopping• Variations in Retailing Practice and Customs• Security issues.

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Conclusion

• At last, I would like to sum up by saying that creating products for consumers in global market is important as well as tricky. Important because, today in this modern era it has become very crucial to capture the foreign market in addition to native one as everything today is going global and it is tricky because every market is different and to make spaces in variety of culture is not that easy as it looks. The various factors which comes under this are briefly discussed in this paper. To create a product for the consumer it is very important to know the needs of the consumer and conduct a deep market research so that it becomes a success in the long run and contribute a bit in uplifting the standard of the people.

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Thank you…