Straight product extension

Definition (1):

Straight product extension means marketing a product in a foreign market without any change. Top management tells its marketing people. “Take the product as is and find customers for it.” The first step, however, should be to find out whether foreign consumers use that product and what form they prefer.

Definition (2):

“A straight product extension is presenting your product to a global marketplace without any changes.” There are some products that are globally renowned and require no extra production or promotional changes. Individuals want those globally, and once those are available to them, they purchase those products and the companies don’t require making any extra promotion or marketing strategies for it.

Definition (3):

Companies thinking of marketing their products in various countries generally have three strategies to follow. Straight product extension is the first among them. It means to take the company’s present products and to sell them in different countries without making alterations to those products. This strategy has some merits such as the companies don’t require investing in new manufacturing, research, or development. They may make changes in labeling and packaging, but these are regulated by local legal requirements. The demerits of this strategy are that the products might not be suitable for meeting up the local needs and those may be more costly because of the higher labor and manufacturing costs in the home country.

Share it:  Cite

More from this Section

  • Trading stamps
    Stamps given by retailers to customers based on the dollar amount spent; can be saved ...
  • Derived demand
    Derived demand refers to a business demand that ultimately comes from (derives from) the ...
  • Spam filter
    Spam filter is a program that has the capability of blocking unsolicited e-mails. ...
  • Geographical pricing
    Geographical pricing refers to set prices for customers located in different parts of ...
  • Parallel pull
    Parallel pull is the technology that shopping agents employ in which what appear to the ...