Question

Consider the development of new products and pricing them for international (global) markets. (1) Describe and explain why some domestic products in the U.S. may be suitable for global markets, while others may require major changes to be successful in global markets. (2) Explain the reasons why a product that is successful in the U.S. may need to be re-priced for success in an international market.

Answer 1

1)

Global marketing is not as simple as domestic marketing. The firm has to plan, produce and market very carefully. some of the products of the US could be suitable for international customers. But other few products must be modified according to local needs.

For example, Cold drinks and energy drinks could be sold out globally in the same pattern and content. But certain products such as Coffee or Burgers can not be sold out in a similar manner. Local needs and cultures must be appropriately enshrined. McD sells its products by modifying its menu according to local needs.

2)

Pricing is the most critical part of any marketing action. incorrect pricing might cause massive losses to firms. Burger can not be sold at the same price in developing countries. Purchasing power developing countries's customers is very low.. Thus, products also must be priced based on the right assessments of purchasing power and potential competitor's pricing.

Burgers and Pizza are sold out at much lower prices in countries such as India and China relative to Developed countries such as US and UK.