Jain (1989)

Management > Global Marketing Management > Lectures > Independent Research > Jain > Target market > Market position > Nature/environment

Nature and environment

Nature of the Product. The nature of a product will determine if it can be standardised. The two product aspects on which to focus are:

1. Type of product. Standardisation is more feasible for industrial goods than for consumer goods. In consumer goods, durable products can be standardised more than non-durable ones, as the latter is more closely tied to cultural traditions and norms.
2. Product Positioning. This refers to how the product is “positioned” in the consumer’s mind. If a product can be positioned in the same way in different countries, then standardisation can occur effectively.

Environment. Marketing decisions about product, price, promotion, and distribution, apply in both global and domestic strategies. However, the specifics of each of these will vary between countries.

There are 4 types of environments:

1. Physical. The climate, topography and resources can affect standardisation.
2. Legal. Laws will affect product standards, taxes and tariffs.
3. Political. The government of a host country may intervene in the affairs of foreign firms, including strategies, operations and policies.
4. Marketing infrastructure. There needs to be the required “institutions and functions necessary to create, develop, and service demand”. These include retailers, transportation and media. The availability and cost of any of these will affect the standardisation of a product.

In terms of environmental factors, markets are rarely, if ever, exactly the same. The degree to which these factors differ however, will affect the extent of the ability to standardise.

Organisation