Adapting Products for Foreign Markets
1.0 Introduction
Nowadays, the market is becoming progressively globalized, it is therefore imperative for a company that wants to compete globally to have a strategy concerning the adaptation of its product to the needs of the foreign market. In fact, it is claimed how fundamentally important it is for a company to choose the correct product to plan the internationalization process (Valdani and Bertoli, 2006). The choice of the product it is extremely important because it can allow identified market areas, including the clients and the rivals. Actually, the product’s choice affects the way it enters into a foreign market as well as other decisions regarding the other variables of the marketing mix.
This paper will present the factors that a company have to keep in mind when it wants to adapt a product to the needs of foreign markets, passing through the basic concepts of a product, the role played by the home country, and will try to give an answer to the important issues about adapting or standardising.
2.0 Defining product
Generally speaking it is possible to say that a product is a mix of tangible and intangible attributes. These attributes do not give a product solely concrete dimension, but also have symbolic significance for people that buy this product.
2.1 Product’s Attributes
According to Valdani et Bertoli (2006), these attributes can be distinguished in: structural elements (the materials of which it is made, ingredients and quality), external elements (for instance package, shape, design and colour), and auxiliary services (they can be divided in commercial services such as warranties and delivery quickness, financial services such as financial assistance, and support services such as pre and post selling assistance).
2.2 Product’s constraints
However, in deciding its internationalization strategy, a company is subjected to a series of constraints that are originated by its own and by the market in which this firm wants to penetrate.
Nowadays, the market is becoming progressively globalized, it is therefore imperative for a company that wants to compete globally to have a strategy concerning the adaptation of its product to the needs of the foreign market. In fact, it is claimed how fundamentally important it is for a company to choose the correct product to plan the internationalization process (Valdani and Bertoli, 2006). The choice of the product it is extremely important because it can allow identified market areas, including the clients and the rivals. Actually, the product’s choice affects the way it enters into a foreign market as well as other decisions regarding the other variables of the marketing mix.
This paper will present the factors that a company have to keep in mind when it wants to adapt a product to the needs of foreign markets, passing through the basic concepts of a product, the role played by the home country, and will try to give an answer to the important issues about adapting or standardising.
2.0 Defining product
Generally speaking it is possible to say that a product is a mix of tangible and intangible attributes. These attributes do not give a product solely concrete dimension, but also have symbolic significance for people that buy this product.
2.1 Product’s Attributes
According to Valdani et Bertoli (2006), these attributes can be distinguished in: structural elements (the materials of which it is made, ingredients and quality), external elements (for instance package, shape, design and colour), and auxiliary services (they can be divided in commercial services such as warranties and delivery quickness, financial services such as financial assistance, and support services such as pre and post selling assistance).
2.2 Product’s constraints
However, in deciding its internationalization strategy, a company is subjected to a series of constraints that are originated by its own and by the market in which this firm wants to penetrate.
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