At the AMA Educators’ Conference this summer,
a colleague and fellow member of the Product Development
& Management Association (PDMA) asked
the question – “What connections do you see between global marketing and
product development?” After providing a short list of top-of-the-mind
topics where the two areas interact, and thinking there must be more, I
told him I would get back to him. Here is an expanded answer.
The initial response was (1) country of origin,
(2) global strategic alliances, and (3) co-located global teams.
The common element among these concepts is that each looks for differences
that can be applied to gain strategic advantage when making product-related
decisions. With country of origin, a characteristic trait or traits associated
with perceptions about a country affects the image of a product, perhaps
leading to unique positioning. When arranging strategic alliances,
the ability of partnering organizations to jointly launch a new product
can be enhanced by combining the resources, knowledge, and situational
advantages of the interacting companies. When a single company’s
co-located product development team is spread across several countries,
effective collaboration among members depends on blending cultural pre-dispositions,
specialized knowledge (which can have cultural foundations), and functional
responsibilities.
These are all fruitful areas for research that
contributes
to integrating global marketing (GM) and product
development and management (PDM). Methodological approaches from
global market research, such as regional studies and inter-country cultural
comparisons, are useful for investigating strategic product adaptations
that deliver improved performance in the international marketplace.
But this approach overlooks an equally promising
outcome. In addition to looking for differences that require local
adjustment, there is also value in research that identifies common characteristics
across several country markets. The customary behavior of looking
for significant differences when analyzing data reduces the chances of
seeing value in the bigger picture. Statistical results that indicate
differences in countries are usually more
interesting to investigators, but they do
not always indicate the best financial opportunity. “Go global, act
local”
is still an actionable phrase, but standardization
can
improve the bottom line.
With PDM efforts, there are operative forces
that favor offerings that have common appeal across countries.
There is considerable uncertainty in product
decision making, and most new products fail to achieve substantial long-term
return on investment. PDM has focused on this problem, and success
rates have improved through use of multi-stage processes and cross-functional
teams. In these phase-review processes, such metrics as market potential
and expected financial performance are estimated at
several stages, with updated information,
as development moves toward commercialization. If individual countries
are targeted with differentiated products,
these indicators
of project acceptability will suffer.
When the scope of the product market effort is narrowed too far, the project
is unlikely to be favorably evaluated in comparison to a product that meets
a need in several countries. Analysis and planning based on combined
versus individual country markets is a topic global marketers’ and product
decision makers’ should explore, both conceptually and empirically.
A “best” practice recommendation would be helpful.
The changing nature of both fields should also
be
considered jointly. One area that presents
an opportunity for application of GM perspective to PDM is the electronic
marketplace. This field, despite its recent dismal commercial results,
provides many opportunities for GM and PDM proponents to collaborate and
improve applications.
Electronic markets are global markets.
The Internet
allows interaction with customers all over
the world, in
real time. PDM requires speed.
The connection seems obvious, yet how many PDM teams include an
international market research specialist,
an emerging
field that requires Internet and information
technology expertise? The opportunity to provide useful information
and market test results to PDM teams is substantial. World-wide databases
can be mined for quantitative
results that link attribute preferences to
cultural, demographic, and lifestyle characteristics. Chat rooms
can provide global voice of the customer insights.
Internet panels with international customers can provide a valuable source
of novel product ideas and unique perspectives on concepts, designs, and
prototypes in development. These applications represent the initial
footsteps of an emerging information leap forward. Integration is
the facilitator.
Back to the original question—What are the
connections between GM and PDM? Product developers consider technology
integration a key to innovation, as new knowledge that serves a useful
purpose is created when
two or more diverse fields are combined.
A variation of technology integration, where the merger is between intellectual
domains of marketing thought, holds similar promise. GM and PDM connections
are limitless, as long as scholars and practitioners maintain an open mind
to the possibilities of collaboration. Keep the dialogue going. |