INTERNATIONAL MARKETING MIX â€“ PRODUCT POLICY:Issues in labeling, Pricing, Distribution

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International Marketing MKT630

Lesson # 40

INTERNATIONAL MARKETING MIX PRODUCT POLICY

Packaging, Labeling and Warranties

Product packaging:

Product packaging is the art and science of creating boxes, covers, tubes, bags and other containers that

are sturdy enough to protect the product inside, and that are effective promotional pieces in themselves.

To a very large degree, the quality of design work on the package affects how well your products sell.

When shopping, you reach for products whose packaging is attractive and looks professional, and you

instinctively shy away from unattractively packaged products. The design of the container along with

the images, logos, marketing text, ingredients and fine print, all go into creating something people will

feel confident to buy. Therefore it is essential that packaging be of the highest quality so that it acts as

your in-store salesperson.

Issues in packaging in international markets:

International marketers need to take into account the following factors for deciding appropriate

packaging in various international markets;

changes in climates across countries

lengthy & difficult transportation

lengthy periods on shelves

varying sizes of packaging

different consumer preferences in packaging

some standardization needed to make the product recognizable

growing environmental consciousness

different types of channels of distribution

different cost pressures

environmental concerns

Issues in labeling:

International marketers also need to design appropriate labeling for various markets, to cater for the

market differences as well as to adhere to regulations. In the following are the list of issues marketers

face in labeling in international markets;

different languages of foreign markets

information details to be provided

instructions for use

different price or currencies

different promotions

consumer preferences in various markets (color, wording style etc..)

rules and regulations of foreign countries

Issues in warranty and service policies:

International marketers also face issues, whether to standardize or to localize warranty and service

policies in international markets. Factors favoring standardization or localization of warranty and

service policies in international markets are listed below;

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International Marketing MKT630

· Factors favoring standardization

presence of multinational customer

goods purchased in one market but consumed elsewhere

products affecting human health and safety

standardized products

· Factors favoring localization

different competitive situation

different quality levels in different markets

different use conditions

lack of international service network

stronger guarantees when the company is entering in new market (marketing tactic)

barriers to import of replacement parts and traveling of foreign staff

availability of human resources & ability of local distributors

Strategies to cope with negative country of origin (COO) stereotypes:

Marketers of products from developing world often face negative attitudes from the customers in

developed countries. There are ways in which international marketers attempt to address this issue

though product policy, pricing, distribution and communication;

Product Policy:

- Select a brand name that disguises the country of origin or even involves a favorable COO (Giordano

Bossini)

- Sheer innovation & drive for superior quality also help firms to overcome COO biases in the long

run.

Pricing:

- Selling the product at a relatively low price will attract value-conscious customers who are less

concerned about the brand's country of origin.

- For product categories where price plays a signal of quality - high price may help.

Distribution:

- Companies could influence consumer attitudes by using highly respected retailers.

Communication:

- Firm can use communication strategy to

1. Improve the country image.

2. Bolster the brand image.

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