How Product Decision Is Made In International Business?


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Lily James Profile
Lily James answered

A product can be any need satisfying good or service that is offered to a market. While launching a product in the international market, many things have to be planned and analyzed.

First of it, it is seen that whether the intended market has demand for the product or not. Then, it must also be analyzed that what are the current trends in the same product category. This will help in setting the price , promotion, distribution etc for the product.

Then, it must also be seen how and when to advertise the product. Another important thing is the product itself. The new market might require changes in the product itself. So while making product decisions for the international market, all these factors must be catered to.
Robert Lamp Profile
Robert Lamp answered

Four factors influence the product design decisions of international marketers: Preferences, cost, laws & regulations, and compatibility. International product mix is a set of all product lines & items meant for sale in overseas markets. The issues that need to be addressed while taking decisions on the international product mix are, the number of product lines, the degree of consistency in these product lines, and their length and depth. The major characteristics of services are intangibility, inseparability, heterogeneity, and perishability.

Many factors, such as innovation, excellence in customer service, and efficient operations contribute to the success of an organization at the global level. Before entering a foreign country, a service organization needs to check if it has sufficient resources to venture into the market, whether the mode of entry is appropriate, the demand in the market is adequate, the management style is appropriate, and it has the right people to deal with suppliers and the local authorities.

Takeovers, Joint ventures, and Contractual agreements are some of the ways in which international R&D capabilities can be acquired. International diffusion process involves shifting of products to overseas markets. Several factors influence the speed with which diffusion takes place. These are: Nature of the product, characteristics of the overseas markets, strategy of the firm, competition, degree of product adaptation necessary, and propensity of consumers to change from the current pattern of consumption to a new pattern of consumption.

A product suitable for one market may not be suitable for other markets. Factors that encourage or restrain product adaptation in different countries are: Different use conditions, other market factors, and influence of government. International Product Life Cycle describes international trade and production patterns. According to this concept, products have to go through a trade cycle where a country is initially an exporter, then loses its export markets, and then becomes an importer of the product

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