Identification of products for the international market â€“ The international market in which the product is to be launched should be surveyed properly before introducing the product. A poorly conceived decision for the product may lead to market failures.
Developing products for the international market-Should adopt various market research techniques to identify the needs of the potential customers in the international market. Should develop the product after considering these factors.
Market segment decision â€“ The organization should identify the segment for whom the product is meant. It should create sales and marketing campaigns targeting these segments.
Product mix decisions â€“Should carefully consider the elements of the product mix related to a particular item before launching the product in the global market.
Product specifications â€“ The attributes and traits of the product should be communicated to the target customers in the international market through sales and marketing campaigns. It should also specify the comparative advantage of using the product over that of the competitors.
Factors Affecting Product Decisions
The various factors that affect the decisions taken in association with a product or service are as follows:
Economic factors â€“ This factor relates to the level of income of the consumers and lays the foundation of a purchasing decision. This is because people will buy those products which they can afford.
Functional factors â€“ This factor is related to the needs and requirements of the consumers. People will buy those goods which will satisfy their desires.
Personal factors â€“ These factors include age, lifestyle, gender, social and economic status of the consumers. Market segments are based on these factors, which also help the organization to categorize its products. These factors also affect the buying decision to a great extent.
Types of Product Decisions
The various types of product decisions are as follows:
Product design decisions â€“ In the initial stages, the product design should be unique to distinguish it from the competitors. It will also help to gain profitability. In the subsequent stages, when the product has made a position in the market, the design should concentrate on improving the sales prospects and retaining its position in the market for a long time.
Production decisions â€“ This relates to the longevity of the product in the market. The organization should continuously keep track of the changing needs of the consumers. Production decisions are based on this aspect. Should change the technology and quality of the product from time to time to suit the marketâ€™s demands.
Launching decisions – This relates to whether the products should be launched in the local market, nationally or globally. Should adopt different strategies for different types of market launches. Market research techniques are a great help in this purpose.
Product mix decisions â€“ This relates to the decisions made by the management about the product line. It includes the number of products to be launched in a single product line, the total number of product lines, and the relation between two product lines.
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