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The product communication mixHaving decided upon the optimum standardization/adaptation route and the newness of the product, the next most important (and culturally sensitive) factor to be considered is that of international promotion. Product and promotion go hand in hand in foreign markets and together are able to create or destroy markets in very short order. We have considered above the factors that may drive an organization to standardize or adapt its product range for foreign markets.Equally important are the promotion or the performance promises that the organization makes for its product or service in the target market. As with product decisions, promotion can be either standardized or adapted for foreign markets. Keegan (1995) has highlighted the key aspects of marketing strategy as a combination of standardization or adaptation of the product and promotion of elements of the mix, and offers five alternative and more specific approaches to product policy. These approaches are shown in Figure 14.13.Straight extensionThis involves introducing a standardized product with the same promotion strategy throughout the world market (one product,one message worldwide).By applying this strategy successfully major savings can be made on market research and product development. Since the 1920s Coca-Cola has adopted a global approach,which has allowed the company to make enormous cost savings and benefits from continual reinforcement of the same message.While a number of writers have argued that this will be the strategy adopted for many products in the future, in practice only a handful of products might claim to have achieved this already. A number of firms have tried and failed. Campbell’s soups, for example, found that consumers’taste in soup was by no means international. An example of successful extension is Unilever’s worldwide introduction of Organics Shampoo,which was first launched in Thailand in late 1993 after joint development work by Unilever’s Hair Innovation Centres in Bangkok and Paris. By 1995 the brand was sold in over 40 countries, generating sales of £170 million. In the two-page advertisement from a magazine shown here and used during the product’s introduction into Argentina, the basic advertising concept all over the world (including Argentina) has been ‘Organics – the first ever root-nourishing shampoo’.
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