C H A P T E R 1 1

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International issues
Public Policy issues
Intellectual Property issues

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Product design for international markets
Management of global product development

 Five main strategies
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Straight extension – no change to the product
Communication adaptation – same product, only change the promotion aspects (color, language, name) – read examples page 206!
Product adaptation – adapting a product to meet local conditions
Dual adaptation – altering both communication and product
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Product invention – new product for the local market

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Different culture and language
Lens of company’s culture may alter their view
Five themes to consider
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Time – perception differs across cultures
Space – personal space, being alone or in groups
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Things – belongings, gifts
Friendships – personal relationships
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Agreements – the way contracts are executed

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A quarter of new product development teams are global in nature
Language or physical location challenges
Generation of trust among team members

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Product liability
Environmental concerns
Product/service performance
Morality
Other public policy issues

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Vulnerability of the company to litigation due to risks that the product contains
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Product design
Manufacturing defects
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Adequate instructions
After-use dangers
Legal bases
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Negligence
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Warranty
- Strict liability
- Misrepresentation

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Raw materials and processes in manufacture of the product
Disposal of products at the end of their life
EU particularly aggressive in this area

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Assurance that a product will perform as specified
Quality control and quality assurance programs
Recall programs

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“Sin” products – cigarettes, alcohol, guns
Different cultures have different restrictions and biases regarding “sin” products and types of advertising for them

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Politics, economic conditions, and media
Congressional hearings on HMO’s
Shifting value of the dollar relative to other currencies
Media coverage of specific products or categories may unfavorably raise awareness of potential problems

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The knowledge of a company
Can sometimes be protected by patent, trademark, or copyright
Different standards in different countries
Can’t patent a service

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Seven categories that can be patented
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An art or process or method of doing something
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A machine
A manufactured product
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A composition of matter
A new or useful improvement of the above
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A new variety of plant
A design of a product – a particular pattern, form, or contour of a product
Patent application has a petition, a specification, and an oath

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A trademark is a unique design identifying that company from another, and lasts for 20 years (can be renewed)
A copyright protects original works of authorship, and lasts for the author’s life plus 50 years