Product characteristics. the product mix

THE PRODUCT MIX

The Product Mix can be defined as the set of attributes that are incorporated into the product such as design, brand, packaging and quality, these characteristics manage to cover in some way the demands of the consumer.

These characteristics can be tangible and intangible, as the name implies: tangible that can be palpable to the senses such as weight, shape, color, texture, etc., and intangible that cannot be felt, for example, image of the brand, guarantee, services, benefits, etc. It can also be said that the acceptance of the product in the market depends on this mixture of elements or characteristics, these elements must be properly applied so that the product has a positive image or appearance in the market.

PRODUCT MIX ELEMENTS

DESIGN

The consumer not only buys a product to satisfy a specific need but they are pleasant to use and represents affective values. That is why when talking about design we must focus on the world of today, with the current era covering and making one of the technological and scientific advances leaving aside the rough design, ordinary ones made manually, acquiring for the use of these new and better products materials that go with futuristic transcendence and daily living.

That is why industrial design is not only satisfying a simple need but it wants to mix aesthetics and beauty in a product without forgetting quality. Industrial design must meet three basic conditions:

1. Seriability: When we talk about seriality we are referring to the ability to reproduce a product x in a limited number of times. Mechanism: It is the introduction of mechanical elements in its production. Initial Aestheticism: In product aesthetics should not only be appreciated in the final finish but the initial project.

From the Marketing point of view, industrial design is an art, since they not only work based on the satisfaction of needs, but also on the aesthetic side depending on the culture.

Styling in the design works as a product innovation, that is, the products are not new but if they are physically changed, either because the product has completed its life cycle and is in the stage of old age or decline and needs to be relocated to the market and raise your position.

The products are exposed to constant instability, that is, they are being replaced or simply displaced because their use is no longer the same and I need a total change making changes visible and pleasant to the public.

Apart from being the design considered for its aesthetic values, it also has to facilitate its sale in the market, facing the competitive advantages of the market.

There are some illustrative factors that define a good design according to R. Hondscambe. Example of the design of some shoes.

1. Aesthetics (visual effect of the shoe). Simplicity (suitable and comfortable last) Safety (non-slip floor) Compatibility (pairing with a bolus, suit, etc.) Standardization (components) Sensitivity of the environment (resistance to water) Efficiency (Comfort) Economy (Price) Energy efficiency (Sewn) Elegance of the solution (Again visual effect) Ease of manufacturing (Elaboration) Predicted quality (Duration) Ease of use (Again comfort)

BRAND

The brand in a few words identifies and differentiates the product in the market, this is due to the large index of competition that exists in it. The brand itself is a system that identifies the product, whether it is through a name by which we will call the product or simply by not remembering the name of this product, we can identify it by a symbol or emblem that accompanies the name of the product.

The brand in the consumer plays a very important role since it is to create in the consumer an expectation which will be monopolized so to speak, its meaning wants to know if it is really good if it is according to the advertising approach they have made and that it really is what they have expected.

It must be taken into account that the brand does it is Marketing because depending on the research at market levels that they have done and especially satisfying the needs of the consumer, this brand will be a leader, of course, as long as it meets the chosen expectations by the consumer, and it depends on them whether it is a good regular or does not exist in the market.

A brand must not only specialize in a single system, that is, it must be comprehensive in every way. Example: Jhonson and Jhonson is not only a brand of tradition and as we all know it is for children, they have over time felt the need to create under the same name a range of products for feminine beauty and thus once again becoming the leader in personal care product, despite the competition, they always try to innovate the design of their combined packaging ingredients in terms of quality, all under the same label that have identified them and made them a leader in the market.

The brand is highly related to the personality through a series of qualities, this in order to create a certain attitude in the consumer, there must be a phonetic motivation, that is, the name must go according to the product and must know how to combine the most sonorous letters according to the meaning that is; If it is heavy, great to use letters that give firmness to the name such as K, T, all the attributes that are given to a product must be compensated with the name, when they are names that are a little difficult to pronounce, so that's where Marketing creates symbols that allow to identify the brand and attract the attention of the consumer.

According to our author, the brand "is not born" but "is made" over time due to the work carried out by the company and the quality of the product they offer at the image level, there are three types of images on which the emblem of the company depends. brand:

1. Rational image: It is expressed through graphic diagrams, and it extends to various aspects of everyday life, ranging from citizen signage to reading for young children, in a few words, the image is related to reason, that is, we can visualize a certain image with the meaning, the clearest example is the Red Cross. Expressive Image: It tends to create emotion, this reaction is immediate and we move to the magical, they are easily identifiable. Conative Image: It is parallel in the linguistic plane to the grammatical forms, the idea of ​​this image is to motivate the consumer and explode in the feeling of desire and intend an attitude of possession.

The brand image is the creation of a character, a psychology and a history of the product that clearly differentiates it in the market. This means that each brand acts with great particularity making it different and original, a psychology since once a certain brand is established in the market, it will identify the product and at the same time attract customer attention, making it last in the memory of the consumer and is easily identifiable, and it will always remain in your mind every time the consumer sees it, always remember it.

CONTAINER

The packaging is a Marketing instrument of the first magnitude that ultimately becomes a true intermediary between the producer and the consumer of the merchandise. The word packaging has been abolished and it has been replaced by a more modern word "packaging", although we know it as packaging, this word is analyzed in Marketing, encompassing what design is and all the actions that interact in consumer emotion. It contains and maintain its loyalty to the brand printed on it. It is important to know that in most packaged products the consumer does not see the product, but he gets an idea and associates the container with its content, the container can be said to be the seller of the product.

The packaging is an attribute of the product that the consumer values ​​when purchasing them, the packaging is the heart of a company because it depends on it to go with the way of being or with an expectation that the consumer expects it to be according to their style of life to the time, that is to say, as time goes by, the containers must become more practical, disposable without losing the aesthetic beauty of the presentation, depending on whether a product is well accepted in the market, it must be in bright colors, colors that motivate the consumer, without losing the sobriety and relaxation that characterizes this product. The packaging can also be used as an instrument of promotional action,the container can be by itself the design of this container according to the product must be very representative also the container can be a useful object that is to say we can reuse it in whatever we want making it more practical and decorative. Our life, the container can also be an incentive, that is, the container has no rhyme, so take this a different product than the container contains.

PRODUCT QUALITY

It is the attribute most used in Marketing in terms of competitive struggle, the consumer when purchasing a product according to their social class, according to culture they have a different concept in terms of quality. The lower class is more focused on quality, while the upper class is not fixed on price but on quality, that is why companies have made quality the response of consumer experiences regarding the product and how it satisfies their needs. The quality makes the product durable both physically and when satisfying a need, the products must always be evaluated for their constant progression in the market and their improvement or simply their improvement is always expected.

THE PRODUCT

It is a set of tangible and intangible attributes or characteristics in an easily recognizable and identifiable form that the buyer can accept to satisfy his needs.

The consumer notices three characteristics in a product.

• Tangibles such as color, weight or size. Psychological is the use or enjoyment given to a product. Those that provide the intended utility. For example a radio that allows to capture all kinds of frequencies.

It is enough to change one of the attributes of the product so that it can be presumed as a new one, a 500 cc can of Coca Cola is a different product from the same soft drink packaged in an “igloo” bottle, although the drink is identical. The consumer perceives attributes or utilities that are different.

LESSONS

Products can be classified in various criteria. Products are classified into consumer goods and industrial goods. Consumer goods, according to consumer buying habits, are classified into:

• Assets of Conscience: These are products whose acquisition is carried out frequently out of habit, they can be current goods, acquired with great regularity, such as the newspaper, impulse purchasing goods (a cake seen in a bakery and emergency purchasing goods that are acquired in special and sudden circumstances. Purchase Goods: In this type of product, the client looks at four essential characteristics: the quality of the product, its price, its design or style and its exclusive character. This is the case of a sports car, clothing Haute couture or high-priced jewelry. Specialty Goods: These are those whose characteristics require a special effort to purchase. This is the case of a sound system or clothing of a certain quality. Unexpected Goods: These are those that are not known or that being one does not wish to buy,although sometimes the consumer has no choice but to do it. For example, a hearing aid, contact lenses etc.

Industrial Goods are classified into:

• Raw Materials Semi-finished products for example a cast iron block with which a motor will be manufactured or a copper tube to be incorporated into a gas heater Spare parts, or parts of goods susceptible to wear, which must be replaced. This is the case of spark plugs or brake pads. Equipment goods intended for the manufacture of consumer goods or other capital goods.

PRODUCT RANGE AND LINE

It is the set of articles or services that the company is capable of providing to consumers. Four characteristics are considered in the product range:

• The breadth that measures the number of product lines that are marketed. For example, a manufacturer that offers a video line and an audio line will say that it works with two product lines. The depth or number of references offered by each product line. For example, in the video line the different models that can be offered for televisions, videos and camcorders. Range consistency - These products must have a homogeneous relationship. A clothing store that sells power drills and bathroom cabinets does not maintain a consistent range. Range Length - This is the result of multiplying the range width by the reference number of each. It measures the number of total products that can be sold.

PRODUCT RANGE DESIGN

The set of products that the company markets can be configured by choosing combinations that perform certain functions in the sales strategy, these products receive the following names:

• Head of line: They are the ones that provide the greatest benefits to the company. Attraction products that arouse interest and induce to obtain more information, ending the client with the acquisition of another more expensive product. Regulatory products. Its mission is to dampen seasonal variations in demand. A sporting goods manufacturer will sell swimwear especially in the summer and skis in the winter. Without white marks, or unbranded items. They are generic products (rice, sardines, oils, etc.). In their packaging, they refer to the content that has a minimal characteristic.

PRODUCT LIFE CYCLE

Changes in products must adapt to the changing needs of the market due to the imperative of changes in sales of the goods offered and which by analogy with living beings is called the life cycle.

To make changes in the products are due to circumstances that at a certain moment the product life cycle enters a saturation phase in its sales that forces it to incorporate new attributes in order to try to maintain its position in the market. The product life cycle model is a useful instrument to know the importance in each phase, the different Marketing instruments of the company have.

The most complete product life cycle is the one that considers five stages or phases: launch, growth, maturity, saturation and decline. The launch phase is characterized because what is important is the degree of technical perfection with which the product goes to market, that is, the quality it requires for the first users to acquire the product and make a positive evaluation of it.

In this phase, the company devotes its efforts basically to the technical development of the product and to establishing marketing networks. In the growth phase, the product is produced on a large scale in order to supply the market since the company focuses on two sources: On the one hand, the high levels of production that force us to pay attention to the industrial aspects of its manufacture, on the other Market breadth requires spreading commercial messages to motivate potential consumers.

The maturity phase with the product already introduced in the market is the stage of competitive struggle, there are companies that offer similar products. The company will tend to develop actions on the market attracting customers through commercial or price tactics. In the saturation phase, sales have reached their ceiling and the product stumbles on a bar that can break the company with a rethink of the product to enhance the market through a different presentation. In the decline phase, the decline in sales of the product can only be stopped by improving its quality, which can lead to its appearance on the market as if it were a new product in which a different life cycle will begin. G.Mickwitz allows us to know the importance of the different Marketing instruments in each of the product stages. 5 basic instruments are considered: Price, advertising, service, quality and packaging.

In the launch phase, the most important element is quality, the product should be tested by the first consumers, after the publicity is to inform the market of the existence of the product, and then the price should not be exaggerated, but too low to avoid deteriorate the product. In growth, advertising becomes very important, it is necessary to attract more customers with qualities of the product. After the quality the new buyers must check the qualities spread by the advertising and then comes the price that must be the same without promotions.

The maturity phase involves fighting in the market with competing companies and forcing price to come to the fore as a strategic instrument. However, soccer balls or squash rackets are sold throughout the year. These products buffer the seasonality of sales. Tactical products. They serve to hinder the performances of the competition or to respond quickly to a performance of it. Products that prepare the future. They are those that due to their advanced characteristics and an image of modernity and technological advancement allow the company a privileged position in the market in the near future. For example cars with four steering wheels (Honda) with special safety systems and intelligent dampers etc.

THE CONTAINER

It constitutes the wrapping or protection that accompanies the product, but at the same time it is part of its attributes or characteristics.

PURPOSE OF THE CONTAINER

Product protection during transport or storage until sale. Comfort, facilitates the acquisition of the product, its transport and conservation in the consumer's home. Promotion, since the design of the container allows the product to be distinguished from other competitors. Communication, since on the packaging the manufacturer can summarize or review the characteristics of the product. Association to a new product in the event that the packaging experiences substantial changes.

PACKAGING STRATEGIES

Companies in the design of their packaging can choose: Identical packaging for products from the same line. Packaging for later use, which allows the product to be used for other uses once the product is exhausted. Multiple packaging, those that offer several units of product at a lower price than they would have if purchased individually.

CONTAINERS AND ECOLOGY

The container for liquids has been glass for many years. The current trend is the tetrabrick or prism-shaped cardboard container covered internally with polyethylene and aluminum sheets that are almost unbreakable, offering ecological advantages. In addition, the use of the tetrabrick saves energy. At equal volume it is 52 times lighter than glass, which lowers transport costs.

THE BRAND

It is the name of a product or service that allows it to be distinguished from others. Its influence affects the corporate identity or personality of the company. The corporate image of the company by the general public. The corporate design of visual identity that distinguishes the company. The visual identity, made up of symbols, logos, colors, anagrams and standard typography.

The brand gives advantages to the manufacturer or the seller since through it the product is differentiated from the others, it facilitates the purchase several times, the promotion and the introduction of new products under the same name.

BRAND ELEMENTS

The symbol that identifies the product. For example, Ford with an oval, Renault with a diamond, Honda a wing, Ferrari a horse, etc. Logo or nominal identification of the company. For example, prized galleries, el corte ingles, ero ski, PRYCA etc. Anagram or abbreviation of the logo for example. BBV instead of Banco Bilbao Vizoaya. Color, the marks are identified with colors. Coca cola is associated with red, IBM with blue, Kodak with yellow, Telefónica with green and blue.

CHOICE OF BRAND NAME

The designation of the brand of the product is usually made based on the names of people, they can be that of the founder of the company, that of the manufacturer or that of the distributor, for example Ford, Persche, Pryca. Geographical names such as Ponda Marbella, Ford Granada, Opel Jaca. Names from the usual language: They can be simple like Royal Kaiku, Artua etc, or composed like white hen, the beautiful easo; or contracted like Bollycao colacao, nerquick etc. Made-up words like Kodak, Nylon etc. Technical source words such as rayon, pvc etc. Acronyms like R21, BMW, IBM etc.

To choose the brand name it must be done following a series of rules. You should suggest the benefits that the product can provide. For example, nutriben brand baby foods highlight "Nourish well". The brand name must refer to the characteristics of the product, for example Bollycao is the brand name of a bun with cocoa inside. It must be individual, that is, it must have few common elements with other brands to focus confusion. Furthermore, the expression must be short. A temporary. To be able to last in time and not respond to fads. Easy to pronounce, to remember and with a universal meaning. For example Clio is the name of a Greek muse and a model name for a Renault car, it is pronounced the same in all languages ​​and means the same thing.

BRAND STRATEGIES

Unique Brand

It is when all products are marketed under the same name. For example cars such as ford, honda, Renault Clío, is used when the products are homogeneous they share the same market, with similar price-quality ratios. This strategy facilitates the introduction of new products because the brand is already known.

Individual brands

The products are marketed under different names Proter and Gamble manufactures Ariel. The brands are individual when the products are heterogeneous or are sold in different markets or if the products do not have the same name because it can damage the image of the company. Freskies is a pet food that Nestle makes. The manufacturer's name does not appear on the packaging, as it would harm its image as a food product intended for human consumption.

Brand of product lines

Line products have the same generic brand names, but there are specific differences that refer to the nature of the product, for example soft drinks such as Coca Cola, Light Coca Cola, caffeine-free and link (orange, apple, lemon, tangerine).

This brand strategy facilitates the introduction of new products within the line.

Second brand

Associated with the name of the prestigious company that manufactures them. For example Pulsar is a brand of watches produced by Seiko, Tab is a soft drink made by Coca Cola, Lincoln is a luxury car made by Ford. This strategy aims to segment the market and expand it. This is done by the company when it believes that one of its products does not have the same quality as the rest of the line.

Dealer brands

They are those that are called by the name of the distributor. Private brands carry the distributor's name, but it is made by a manufacturer that also markets the same product under its own name. If the distributor gets loyal consumers to his brand, he is not so exposed to losing them in the event that they were to another brand that for some reason disappeared.

THE PRODUCT

Product variables the essence of the international operations of a company or a product or service, which is defined as the complex of tangible or intangible elements that distinguish the market from other entities. The success of the company depends on the quality of its product or service and how well the company is able to differentiate it from the offerings of its competitors. Teodoro Levitt affirms that there is no such thing as a basic product. All goods or services are differential. The products are distinguished by their composition, by their country of origin, by their tangible characteristics such as packaging or quality, or by their improved characteristics as guarantees.

Also the positioning of the product in the minds of consumers. The essential product for example, the bioskom component of a personal computer to the recipe for a soup is true that it can be the same or quite similar to that of the competitors and the marketer is left with the other improved and tangible characteristics of the product to achieve the differentiation. A product is, for the potential buyer, a complete group of value satisfiers.

A customer relates a value to a product in proportion to its perceived ability to help solve problems or meet needs. Charles Revlon of Revlon sums it up best by holding that the cosmetics factory but sells hope.

STANDARDIZATION AGAINST ADAPTATION

The first aspect that must be addressed after having made the decision to internationalize. Refers to product modifications that are necessary or justified, a company has four basic alternatives to focus on international markets. 1 Sell the product as it is in the international market 2 Modify the products for the different countries and / or regions 3 Design new products for foreign markets and 4 Incorporate all the differences in a product design and introduce a global product. Companies identify potential target markets and then choose products that can be easily traded there with little or no modification.

The dilemma between standardizing or adapting Marketing programs in each country continues to give problems to practitioners and academics alike and has produced many and varied opinions. In the early 1960s Robert Buzzell claimed that it depends on the forces that impede standardization, such as national differences in consumer preferences and legal restrictions, and on the potential trade-offs of the standardized Marketing strategy.

Studies of companies' consideration of standardization have found that the arguments for it whenever possible fall into two categories: Better Marketing Performance and Lower Marketing Cost - the general benefits and disadvantages of standardization. or adaptation.

The benefits of standardization, selling the same product worldwide are savings in Marketing and production quotas. In addition to economies of scale, many point to economic integration as a driving force to make markets more unified. In response to global integration efforts, especially in Europe, many international marketers are beginning to standardize many of their Marketing approaches, such as branding and packaging across markets. Having to face the same competitors in the world's major markets will add to the pressure of a global approach to International Marketing. However, in many cases the demand and conditions of use vary enough to require some changes in the product or service.

Factors that affect adaptation: When deciding how the product will be marketed abroad, the company must consider three series of factors:

1. The market or markets that have been targeted The product and its characteristics The characteristics of the company, such as resources and policy.

In a survey of companies as products or services in the international market, 40% said that the adaptation aspect arises frequently while another 40% reported that the issue sometimes arises for many companies the key question in adaptation is yes the Effort is worth it, given the cost, for example, adjusting production runs, stock or service control, and the research involved in the determination.

Of the features that would be most attractive. A detailed examination of 174 packaged consumer goods destined for developing countries has shown that, on average, 4 - 1 changes per product were made in terms of brand name, packaging, units of measurement, component labeling, product characteristics and instructions for use. Only one in ten products was transferred without modification. All products are made in accordance with the prevailing environmental conditions, over which the marketer has no control. These conditions are related to the legal, economic and climatic conditions of the market.

MARKET ENVIRONMENT

Government Regulations: Government regulations have the most demanding requirements. Some of them serve no other purpose than the political (such as protection of national industry or political response or pressure). Due to the sovereignty of the countries. Individual companies must comply although they can influence the situation through direct lobbying or by their industry associations.

Government regulations can be understood, but companies need to always be vigilant in terms of changes and exceptions. For example, Sweden was the first country in the world to enact legislation against many atomizers, on the grounds that they can harm the atmosphere. The ban, which went into effect on January 1, 1979, covers thousands of hair sprays, deodorants, flavors, insecticides, paints, waxes, and sprays that use Freun gases as propellants.

It does not apply to certain medical sprays, especially those used by people with asthma, sometimes it is in the marketer's best interest to get government approval for a product, when it may not be required. Testing by a government institution or an independent testing laboratory (equivalent to an underwriters Laboratory) may facilitate the acceptability of the product in the foreign market.

Government regulations are the single most important factor contributing to product adaptation, and due to red tape, often the most annoying and frustrating factor to deal with. In some cases, these regulations have been authorized to serve as non-tariff barriers to trade. To facilitate the situation, some industries follow international standards with which they agree.

Non-tariff barriers: Non-tariff barriers include product standards, testing or approval procedures, subsidies for local products, and red tape. The barriers required by the product adjustments refer to elements external to the essential product, for example France requires the use of the French language in any offer, presentation or announcement whether written or spoken, in the instructions for use and in the specification or term guarantee of products or services, as well as invoices and receipts.

Because non-tariff barriers are in place to alienate foreign products and / or protect domestic producers, avoiding them may be the most difficult problem for the international marketer. The expense of complying with government regulations is high, for example Mack International has to pay $ 10,000 to $ 25,000 for a typical European motor certification. The brake system changes to conform to other countries' regulations governing around $ 1,500 to $ 2,500 per vehicle. Wheel kit changes will cost up to $ 1,000 per vehicle.

Small companies, with limited resources, simply give up in the face of blatantly arbitrary harassment - for example, product testing and certification requirements have complicated, if not made impossible, the entry into Japanese markets of many foreign companies. Japan requires testing all pharmaceuticals in Japanese laboratories on the grounds that these tests are necessary because the Japanese have psychological differences compared to the Americans or the Swiss, in contrast to a substantial decrease in tariff barriers, non-tariff forms of protectionism have increased.

In volume, the agricultural sector dominates the list. In 1989, for example, the United States and the EU fought for beef produced with the help of hormones. The hormones that the Europeans banned on imports of beef to the EU are almost undetectable and were declared safe by the United Nations health authorities in 1987

THE PACKAGING

Packaging serves three main functions: User protection, promotion and convenience. The main consideration for the international marketer is to ensure that the product reaches the end user in the intended manner. Packaging will vary depending on the means of transport, transit conditions and duration of time in transit, because the products spend more time in the distribution channels, companies in the international market, especially those that export food products, have Having had to use packaging materials and the most expensive means of transportation, the solution for food processors has been to use airtight containers that can be opened and closed and that reject moisture from contaminants.

The promotional aspect of the packaging is mainly related to labeling, the main adjustments are when two languages ​​are legally required, as in the case of Canada (French and English), Belgium (French and Flemish) and Finland (Finnish and Swedish) others Government requirements include more informative labeling on products, inadequate identification, failure to use required languages, or inadequate or incorrect company descriptions on labels cause problems.

Packaging aesthetics should be a consideration in terms of the promotional role of packaging that primarily involves the prudent choice of packaging colors and shapes - for example, African countries often prefer strong colors, but flag colors may be preferred or be banned, red is associated with death and witchcraft and the colors on the packaging are capricious.

CHARACTERISTICS, EXPECTATIONS AND CLIENT PREFERENCES

In the decision to adapt the product, the characteristics and behavior of the projected customer groups are as important as government influences. Although the benefits sought are very similar, the physical characteristics of the clients dictate the adaptation of the product. For example, Erno Lazlo in the United States tried to market the same skin care product to "white-skinned Australians, dark Italians, and delicate Asian women" and failed in his effort. The company later found that skin care customs in Asia vary greatly from region to region.

Marketers' decisions about the consumer product are especially influenced by local behavior, tastes, attitudes, and traditions, reflecting their need for customer approval. This group of variables is very important in that it is the most difficult to quantify; however, it is essential to make a decision to proceed / not proceed. The reason why many Europeans wear cowboy boots bought in Spain, it may be that the American shoe manufacturers are not aware of the European preference for the style with pointed toes and narrow heels. They consider the American boots as "practical, but not interesting", as described in the international market.

Three factors determine the cultural and psychological specificity of products and services: consumption patterns, psychosocial characteristics and general cultural criteria. The type of questions asked in the table must be systematically answered and registered for each product considered. Using the list of questions will guide the international marketer in the analysis, ensuring that all necessary points are considered before making a decision.

Often it is not necessary to make specific changes to the product, it is enough with a change in the positioning of the product. Positioning is the perception of the brand that consumers have compared to the brands of competitors, that is, the mental image that a brand, or the company as a whole, evokes.

The Coca-Cola company took the risk in marketing Diet Coke in Japan, because trying to sell a diet soda is difficult in a country where "diet" is a rude word and the population is not overweight by Western standards.. The problem was solved by changing the name of the soft drink to Coca-Cola Light, in addition to a subtle change in the promotional theme from "weight loss" to "figure preservation". Japanese women do not like to admit that they are on a diet owing something obviously classified as a diet.

CULTURE

Cultural variables, already discussed in this book, affect product decisions. Culture reflects the country's social, political and religious heritage, it presents the most difficult variable for any company to try to change it. American and European marketers have been accused of equating Japan's modernization with westernization. It is true that more and more universal values ​​are seen, but these are interpreted differently in each country. A good example is symbols. If the woman in Unilever's Surf detergent commercial in India hadn't worn a “mangalsutra” necklace, many would have taken her white sari as a sign that she was a widow. Because the word “yellow” in Thai means “pus”,Coca-Cola shortened the product name from Mello Yellow to Mello when the drink was introduced in Thailand. The correct interpretation of a culture in terms of languages, religion, aesthetics, values, and attitudes, and education requires the help of people experienced in the particular area of ​​the market.

Products that are heavily dependent on written or spoken language must be adapted for better market penetration. For example, SPSS Inc., The Statistical Software Marketer, ranks both DOS and Windows for German, English, Kanji, and Spanish. Producing software in the local language has also proven to be an excellent weapon in the fight against software piracy.

The influence of culture is of special interest where society can restrict the purchase of the product or when the product or one of its characteristics is subject to stigma. Uncle Ben, s, Australia's leading producer of pet food, produces pork-free pet products in Muslim markets. A symbol on the packaging seems entirely appropriate in one culture and an insult in another. For example, the dogs were alleged to have eaten one of Mohammed's regiments and are therefore considered signs of bad luck and filth in parts of North Africa.

Another cultural consideration is the perception of numbers. In the West, 7 is considered good luck, while 13 is considered the opposite. However, in Japan, the ideogram for number 4 can also be read as "death". Therefore, consumer goods shipped to Japan in packages of four have experienced limited sales. On the other hand, 3 and 5 are considered as good luck numbers.

ECONOMIC DEVELOPMENT

Management must consider the current stage of economic development of the foreign market. As a country's economy moves forward, buyers find themselves in a better position to buy and demand more refined products and versions of the product. Only with broad considerations about the country, the company can determine potentials for the sale of certain kinds of products and services. In some cases, the situation of a developing market requires adverse innovation; that is, the market requires a simplified version of the product due to the lack of purchasing power or conditions of use.

Economic conditions will affect packaging in terms of size and units sold in a package. In developing markets, products like cigarettes and razors are sold piece by piece, so that consumers with limited incomes can buy them.

COMPETITIVE OFFERS

It is important to monitor the characteristics of the product, as well as to determine the best way to face and overcome them. Competitive offerings provide a basis against which a company's resources can be measured, for example, an analysis of competitive offers reveals gaps in the market or suggests avoiding certain market segments. American Hospital Suplí, a producer of medical equipment in Chicago, adjusts its products in a preferential way that makes it very difficult to duplicate them. As a result, the company achieved annual increases of around 40% in sales and profit in Japan over a period of ten years.

In many markets, the international marketer competes with local manufacturers and must overcome traditional purchasing relationships and the certainty they provide. BBN, a highly interactive data processing equipment and support services dealer, faces $ 30 million in export sales. Giants like Siemens and Philips.

BBN must demonstrate not only that its products are competitive in price and quality, but also that the company will honor its commitments and provide any necessary post-sale services.

CLIMATE AND GEOGRAPHY

Climate and geography generally influence the total product offering: the essential product, tangible items, mainly packaging, and the enhanced features. The international marketer must consider two, sometimes contradictory, aspects of packaging for the international market. On the one hand, the product has to protect against longer transit times and possibly for a longer shelf life; on the other hand, care must be taken in the use of prohibited preservatives.

PRODUCT CHARACTERISTICS

They are the inherent characteristics of the product offering, real or perceived. These product characteristics and the benefits they provide to consumers in various markets make certain products good candidates for standardization, others do not. Perishable products, such as food products, show the highest amount of sensitivity to differences in national tastes and habits. Non-perishables, such as cameras and household appliances, are subject to much more consistent demand and more predictable adjustment (for example, adjustment to a technical system other than television sets and VCRs).

PRODUCT COMPONENTS

The international marketer must ensure that the products do not contain ingredients that violate legal requirements or social religious customs. For example, DEP corporation, a Los Angeles manufacturer with annual sales of $ 19 million in hair and skin products, went through particular penalties to ensure that no Japan-related product contained formaldehyde, an ingredient used in the United States. But illegal in Japan to ensure that Japanese consignments are not contaminated, the company repeatedly cleans and sterilizes chemical containers, checks all ingredients for traces of formaldehyde, and rechecks the finished product before shipping it.

BRAND

The brand names convey the image of the product or service. The term trademark refers to a name, term, symbol, sign or design used by a company to differentiate its offerings from those of its competitors. Brands are one of the most standardizable aspects in the offer of the product: They allow a subsequent standardization of other marketing elements such as promotional aspects. The brand name is the vocalizable part of the brand, the representation of the brand is the uncallable part (for example, the “camel” of camels). Brand representation becomes invaluable when the product itself cannot be promoted but the symbol can be used. For example, Marlboro cannot be advertised in many European countries due to legal restrictions on cigarette advertising;however, Philip Morris presents ads that show only the Marlboro cowboy, known throughout the world.

The international marketer has a number of options for choosing a brand strategy. You can choose to be a contract manufacturer to a distributor or establish national, regional or global brands.

Establishing globally recognized brands is difficult; How can you establish a global brand consumer products merchant when you sell 800 products in more than 200 countries, most of them under different names? This is Gillette's situation. A typical example is Silkience Hair Conditioner, which is sold as Soyance in France, Sientel in Italy, and Silkience in Germany. Despite this, Gillette has announced a standardization program for brand names, packaging and advertising. Standardizing names to reap promotional benefits can be difficult because a particular name may already be established in each market and the action results in objections from local administrators.

The psychological power of brands is enormous. American consumer product surveys have shown that the number one brand in a product category will be earning a 20% return, the number two brand about 5% and the rest will be losing money.

Brand loyalty translates into profits despite the fact that the favored brands are not superior by any tangible measure.

It is difficult and expensive to structure new brands and as a result, the company may seek a bond with something that the customer feels positively about. For example, a small company in Hong Kong markets a product line called American No. 1, this is because the market prefers American products.

To avoid problems with brand names in foreign markets, Name lab, a California laboratory for name development and testing, suggests these approaches:

1. Translation. Little PEN inc. it would be for example the Petite Plume, SA Transliteration. Requires proof that an existing brand does not have an implicit meaning in the language of the intended market. Transparency. It can be used to develop a brand new name, basically meaningless to lessen the trademark complexities, transliteration problems and translation complexities. Cross-cultural. It means using a name in a foreign language for a brand.

The brand must be protected by registering it in any market where there is not even a remote opportunity to use it. This requires constant vigilance, which McDonald discovered, s pinned the name on Valencia and Maracaibo, two of the largest cities, for their fast food restaurants featuring a plastic cup with bow-shaped straws like the American logo and a Advertising slogan that says "Millions and millions will be served".

In some markets the government requests changes to the brand name. In Correa, unnecessary foreign words are excluded; for example, Sprite has been renamed Kin. The same situation has arisen in Mexico, where the local brand is mainly used to control foreign companies in terms of the marketing leverage they would have with a universal brand.

PRESENTATION

Adaptations in product style, color, size, and other presentation characteristics are more common in consumer marketing than in industrial marketing. Color plays a huge role in how consumers perceive a product, and marketers need to be aware of the signal it sends through the color of the product.

Color can be used for brand identification eg yellow for hertz, red for bird and green for national. It serves to reinforce the characteristic; For example, Honda adopted the color black to give their motorcycles a Darth Vader appearance, while the Rolls Royce used a dazzling silver paint that indicates luxury.

PRODUCT USES

The international marketer must be open to ideas that propose new uses for the offered product. New uses can substantially expand the product's potential.

For example, Turbo Tek inc, which produces a car wash accessory, has found that foreign customers have expanded the product's functionality.

In Japan, Turbo-Wash is used to clean bamboo, and the Dutch use is to wash windows, plants, and house coatings.

METHOD OF OPERATION

The product as offered in the domestic market may not be functional in the foreign market. One of the main differences faced by home appliance manufacturers is the electrical power systems. There are variations within a country, like Brazil. An exporter may know about these differences from local government representatives or various trade publications such as Electric Current Abroad from the United States Department of Commerce. Exporters must determine for themselves what adjustments are required by looking at competitive products or have a local entity test their product.Many complicating factors can be eliminated in the future through the standardization effort made by international organizations and the conversion of many countries to the metric system.

Some companies have adjusted their products to work on different systems; for example, the VCR equipment that will record and play in different color systems.

The most obvious mistakes in international marketing result from the failure of exporters to adjust their products to local systems. But different systems and operating environments also provide opportunities. When Canada adopted the metric system in 1977-1978, many American companies were affected. For example, Perfect Measuring Tape Company in Toledo had to convert to the metric system if it wanted to continue selling disposable paper measuring tape for textile companies in Canada. Once the conversion was done, the company uncovered a whole untapped market world. Soon he began to ship almost 30% of his tape to foreign markets as different as Australia and Zimbabwe.

QUALITY

Many western exporters emphasize quality in their strategies because they cannot compete only on price. Many new exporters compete on value in the particular segments in which they have chosen to compete. In some cases, manufacturers of cheaper Asian product manufacturers have forced international marketers to reexamine their strategies, allowing them to secure contracts based on technical advantage. To maintain a position of product superiority, exporting companies must invest in research and development for new products as well as manufacturing methods. For example, Sargent and Burton, a small Australian producer of high-tech racing boats,He invested in technology to develop state-of-the-art race boats that have proven successful in international competition against complex entries from abroad.

An important aspect of quality improvement is an emphasis on design. Some countries, such as Singapore and Taiwan, provide financial assistance to help companies improve product design. Cash grants help defer design costs, and programs geared toward editorial advertising increase total design awareness. Increasingly, many exporters are realizing that they must meet ISO standards to compete for business abroad and secure contracts from multinational corporations.

SERVICES

When a product is sold abroad that requires repairs, parts, or services, the problem of obtaining, training, and maintaining specialized engineering and maintenance personnel is not an easy one. If the product breaks down and the repair agreements are not up to standard, the image of the product will be affected. In some cases, overseas products are not used for their intended purpose and thus may require modifications not only in the product configuration, but also in the frequency of service.

For example, snowplows exported from the United States are used to remove sand from sidewalks in Saudi Arabia. Closely related to service is the aspect of product warranties. Warranties are not only instructions to customers on what to do if the product fails within a specified period, but are also effective promotional tools.

EFFECTS OF THE COUNTRY OF ORIGIN

The country of origin of a product, generally reported, has a considerable influence on the quality perceptions of a product. In the international market, a study of buyers of power tools found that the United States and West Germany were ranked higher than Japan, with Brazil below three. These types of results indicate that the international marketer must take the necessary steps to overcome or, at least, neutralize deviations. This aspect may be particularly important for developing countries, which need to increase exports, and for importers, who supply products from countries other than those where they are sold.

Some products have done well in the international market despite negative operations in the country of origin. For example, Belarus tractors (made in both Belarus and Russia) have done well in Europe and the United States not only because of their reasonable prices, but also because of their strength.

Country of origin effects lessen as clients become more informed. As more countries develop the necessary bases to manufacture the points, the origin of the products becomes less important. This is already seen with so-called hybrid products (for example, an American multinational company that manufactures the product in Malaysia).

COMPANY CONSIDERATIONS

Before launching a product on the international market, the marketer should consider the organizational capabilities, as well as the nature of the product and the level of adaptation necessary to accommodate the various related differences between national and international markets.

The adaptation of the product reaches the climax in the question: "Is it worth it?" the answer depends on the Company's ability to control costs, correctly estimate market potential and, finally, ensure profitability, especially in the long term.

From a financial point of view, some companies have very specific levels of investment recovery, with which they must comply before adaptation, while some allow it to vary as a function of the considered market and also of time in the market, it is that is, profitability can be compromised at the beginning by the appropriate entry to the market. Many companies aspire to consistency in their marketing efforts. Which translates into the requirement that all products are adjusted in terms of quality, price and user perceptions. An example where consistency can be difficult to control is the area of ​​guarantees.

An important element of the adaptation decision has to be the consideration of human resources, that is, the people who make the appropriate decisions. People who are willing to make risky decisions and who know about existing market conditions are needed. A feature of the US export boom in the late 1980s was that foreigners and immigrants were the first to see opportunities abroad. Foreign-born managers look for products that many Americans overlook or consider too difficult for the international market.

COUNTERFEITING OF THE PRODUCT

Counterfeit products are those that have an unauthorized presentation of a registered trademark, patented invention or copyrighted work that is legally protected in the country where it is marketed. The International Trade Commission estimates that US companies lose a total of $ 60 billion each year from product counterfeiting and other intellectual property violations. The industries most affected are the fastest growing and most innovative, such as computer software, pharmaceuticals and entertainment.

The practice of product counterfeiting has been extended to high-tech products and services of traditionally counterfeited products: high visibility consumer goods and strong brand name.

DECISIONS REGARDING THE BRAND

When developing a marketing strategy for individual products, the seller has to make brand decisions. Brand establishment is an important issue in product strategy. On the one hand, the development of a product brand requires a large amount of expenses in long-term investments, especially in advertising, promotion and packaging. it would be easier for the manufacturer to make the product for other brands. This was what happened with Taiwan manufacturers, which make a lot of clothing, electronics and computers, but not under nominal brands.

Moreover, these manufacturers note that the power is along with the companies with nominal brands. They can replace their manufacturers in Taiwan with cheaper suppliers in Malaysia or elsewhere. By contrast, Japanese and South Korean companies did not make this mistake. They spend generously to create nominal brands for their products at home, the brands continue to enjoy customer loyalty.

A powerful name brand is said to have consumer preference. This is evident when a sufficient number of customers demand that brand and reject a substitute, even if it is cheaper. Companies that develop a brand with strong consumer preference are somewhat isolated from the promotional strategy of competitors.

Companies like Procter & Gamble, Caterpillar, IBM, and Sony have achieved remarkable brand strength in the company. This is measured by the proportion of markets / products where the company is a leader or co-leader. Thus, the remarkable reputation of its P&G marketing lies in the fact that it is a leader in a large proportion of its markets / product it serves.

Before proceeding, we should familiarize ourselves with the terms related to the brand.

• Brand, is a name, term, sign, symbol, design or a combination of these with which it is intended to identify the goods or services of a seller or group of sellers and differentiate them from those of competitors. Nominal Brand. It is the part of the brand that can be vocalized - the pronounceable part, such as: Avon, Chevrolet, Disneyland, American Express and UCLA. Brand logo. It is the part of the mark that can be recognized but is not pronounced, such as a symbol, a design, a combination of colors or different letters. Example the play boy bunny. Registered trademark. It is a brand or part of it to which legal protection is given, by virtue of which it can be owned exclusively.A registered trademark protects the seller's exclusive rights for the use of the nominal brand and / or the brand logo. Copyright. It is the exclusive legitimate right to reproduce, publish and sell the matter and form of a literary, musical or artistic work.

DECISION REGARDING THE BRAND

The first decision to be made is whether the company should put a nominal brand on its product. In the past, most products were unbranded. Producers and intermediaries sold their products in barrels, chests, or boxes without any supplier identification. The first hints of branding occurred in the efforts of medieval communities that required artisans to put trademarks on their products to protect themselves and consumers against their inferior quality. Likewise, in the fine arts, the works began to be marked, when they were signed by the artists.

In the United States, the first promoters of the brand were producers of patent medicines, but the actual development of the brand occurred after the Civil War with the growth of national firms and national advertising media. Some of the top brands still survive, such as Borden condensed milk, Quaker oatmeal, vaseline, and Ivory soap. Today, the brand is so strong that it is difficult for something not to have it.

In some, there has been a return to the practice of "not branding" certain consumer goods or pharmaceuticals. Correfour, the famous French hypermarkets, introduced a “no brand” line in the early 1970s. In 1977, Jewel Food Sotres, a large Chicago-based supermarket chain introduced a "generic" line of forty items. Generic products are unbranded, have a simple packaging, and are less expensive versions of products that are typically purchased in supermarkets, such as spaghetti, paper towels, and canned peaches. They offer standard or lower grades at a price that may be 30 to 50 percent lower than that of the retailer's own brand items. It is possible to offer a lower price due to the lower quality ingredients,the cost of labeling and packaging is less and with minimal advertising. However, generic products are satisfactory for more than 70 percent of consumers who have purchased them to say they would buy them again. Generic products pose a great challenge to high-priced brands and weak brands in the food industry, household goods, and the pharmaceutical industry. National brands have struggled in different ways against generic products.Generic products pose a great challenge to high-priced brands and weak brands in the food industry, household goods, and the pharmaceutical industry. National brands have struggled in different ways against generic products.Generic products pose a great challenge to high-priced brands and weak brands in the food industry, household goods, and the pharmaceutical industry. National brands have struggled in different ways against generic products.

Other companies have simply reduced their prices to compete with generic products, but even so, generic products have continued to increase their market share, from 1.1% in 1979 to 4.1% in 1982. Why do sellers prefer to brand their brands? products despite the fact that this clearly represents a cost, basis, labeling, legal protection and a risk in case the product is not satisfactory for the user. It turns out that putting a brand provides several advantages to the seller.

1. The nominal mark makes it easy for the seller to process orders and locate problems. Thus anheuser busch receives an order for one hundred cases of bottles of michelob beers instead of an order for “for some of their best beers”. What's more, the seller finds it easier to keep track of the order if a wrong shipment is made or determine the reason for the beer to be ripped off in case of customer complaint.The seller's trademark and registered trademark provide legal protection to Unique product features that would otherwise be copied by competitors. Branding gives the seller the opportunity to attract a group of loyal and profitable consumers.Brand loyalty provides some protection for sellers from competition and greater control in planning their marketing mix. The brand helps the seller segment markets. Instead of P&G selling a single detergent, it can offer eight brands of detergents, each with a slightly different formulation, and targeted at segments that are looking for a specific benefit. Good brands help build corporate image; By carrying the name of the company, they collaborate announcing the quality and size of the company. There is evidence that distributors want nominal brands as a means to further facilitate product handling, to identify suppliers, to maintain a certain level of quality in production, and to increase buyer preference.Consumers want nominal brands because they help them identify quality differences and shop more efficiently.

DECISION CONCERNING THE SPONSOR OF THE BRAND

When deciding to brand a product, the manufacturer has several options regarding brand sponsorship. The product may be released under the manufacturer's brand or under a licensed concession brand. Or, the manufacturer can supply the product to intermediaries who put a distributor brand on it. Also, the manufacturer may put their own name on some of their production that is sold under dealer labels.

Why do intermediaries worry about sponsoring their own brands? They have to find qualified suppliers who can deliver consistent quality. You have to order large quantities and entertain your inventory capital. They have to spend on promoting their private label. They have to take the risk that if the product that carries their label is not good, a negative attitude towards their other products will develop in the customer.

Despite these potential downsides, intermediaries develop private labels because they can be profitable. They are looking for manufacturers with excess capacity, who will make private label products at a low cost. Other costs, such as advertising and physical distribution, can also be low. This means that the owner of the private label is able to charge a reduced price and achieve a high profit margin. You can also develop store brands that attract customers to your stores. Competition between manufacturers' brands and those of intermediaries is called the brand war. In this confrontation, intermediaries have many advantages.

Intermediaries take special care to maintain the quality of their brands and in this way create consumer confidence. Store brands typically have lower prices than manufacturers' similar product brands, thus attracting budget-conscious shoppers, especially in times of inflation. Brokers display their products more prominently and make sure there is more existence. As a result of the above, the previous dominance of manufacturers is weakening. Some marketing commentators predict that middleman brands will eventually remove almost all of the strongest manufacturers' brands.

Manufacturers of national brands are frustrated and inclined to spend heavily on consumer-directed advertising and promotion to maintain a strong brand preference. Consequently, its price has to be somewhat higher to cover this promotion. At the same time, mass distributors are putting considerable pressure on them to spend more money promoting bonuses and gifts, if they want adequate shelf space. Once manufacturers start to budge they have fewer resources to spend on consumer promotion and their brand leadership begins to decline. This is the dilemma of national brand manufacturers.

DECISION ABOUT THE FAMILY BRAND

Manufacturers who brand their products face later tradeoffs. A distinction can be made of four strategies for the brand man:

1. Individual nominal marks. This policy is followed by procter & gamble and genesco, a family name that covers all products. This policy is followed by Heinz & General Electric. Family names separated by all products. This policy is followed by Sears. The registered company name in combination with individual product names. This policy is followed by Kellogg's.

Competitors in the same industry often adopt different strategies for the brand name. What are the advantages of the strategy of individual nominal brands? An important advantage is that the company does not link its prestige to product acceptance. If this fails or appears to be of poor quality, the manufacturer's name is not compromised. A high quality watch manufacturer like Seiko can introduce lower quality watch lines without weakening the Seiko name. The strategy of individual nominal brands allows the firm to search for the best name for each product. A new name allows the creation of a new emotion and a new conviction.

DECISION CONCERNING THE EXTENSION OF THE BRAND

The brand extension strategy is any effort made to extend a successful brand name for the launch of new or modified line products. Armor used its nominal Dial brand to launch a variety of new products that would not have been easily distributed without the Dial name. As a strategy, brand extension offers several advantages. The company can use a strong name brand to instantly recognize a new product. The company saves the advertising costs involved in familiarizing consumers with a new name.

But at the same time, the brand extension strategy carries some risk. Brand extensions such as Bic pantyhose and life Savers chewing gum found an early death. The nominal brand could be put on a product that would disappoint the consumer and hurt their estimate for other company products.

DECISIONS CONCERNING PACKAGING AND LABELS

Many of the physical products that come onto the market must be packaged and labeled. The packaging can play a secondary role (eg. Economic hardware parts) or an important role (eg. Cosmetics). Some containers such as the Coca-Cola bottle and the L'egg container are world famous. Many marketers have called packaging the fifth element, along with price, product, distribution, and promotion. However, most marketers refer to packaging as an element of product strategy.

Developing an effective packaging for a new product requires several decisions. The first task is to establish the packaging concept, which defines what the packaging should be or do for the specific product. Is the main function (s) of the packaging is to offer the product superior protection, introduce a new distribution method, suggest certain qualities about the product or the company or some other ?.

Decisions must be made about additional packaging elements, size, shape, materials, color, text. It must be decided whether the package has a lot of or little text, cellophane or other transparent films, a plastic or laminated plate, etc. The different elements of the packaging must also be in harmony with decisions about price, advertising and other marketing elements. Once the package is designed, it must be tested. Developing an effective packaging can cost a few hundred thousand dollars and take anywhere from a few months to a year. The importance of packaging cannot be overestimated when considering the functions it performs to attract and satisfy customers. However, companies must pay attention to growing environmental concerns regarding packaging and make decisions that serve the interests of society,as well as the immediate objectives of the client and the company.

Sellers must label their products. The label can be a simple label attached to the product or a very elaborate graphic design work that is part of the package. It can carry only the nominal mark or a large amount of information.

The label performs several functions. The label identifies the product to the brand, for example the name Sunkist stamped in oranges.

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In the following video lesson Professor Fernando Doral Fábregas makes a general review of the most important concepts of product strategies in marketing. A good complement for your learning on the subject.

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