Posted in Marketing and Strategy Terms, Total Reads: 341
Definition: Global Product
Global products are those products that are marketed internationally under the same brand name, features and specifications across countries. These are different from regional products or brands, which are specific to a particular region.
One of the main advantages of global products is the achievement of economies of scale on the basis of production, i.e., it becomes easier and the per unit cost required to produce the product decreases, as the number increases. Economies of scope can also be achieved. Global brand recognition is another advantage.
Positioning a global product is a complex task. The promotion strategies that are used for such products should ideally remain more or less similar across all regions. This could prove to a problem, since customers of different regions might have different needs. Different Government rules and regulations in different countries also may force these companies to slightly tweak the features of the global product. While developing these marketing strategies, another thing that has to be kept in mind is the culture and other politically sensitive issues for different regions. In reality, some features such as the packaging may be localized to suit the particular region.
Global products may also face tough competition from local competitors.
For example, Apple is a producer of electronic gadgets such as the iPhone, and it markets all its products under the same name internationally. So these may be called a global product.