By James M. Livingstone (auth.)
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As well as its visual attraction. after four or five years in storage. Instructions on the package to the effect that a product must be used within a certain period is not always taken seriously by customers overseas. THE COMPLICATIONS OF A MULTIPLE-PRODUCT RANGE An illustration of the problem of reconciling the ideal product marketing policy with the realities in a multiproduct firm may be found in complications involving distribution channels for new products. Some aspects of distribution policy have already been outlined in Chapter 2.
In addition, any system of 'drawback' or a similar tax rebate on exports may complicate the calculation. The typical industrial firm is a multiproduct one, and any allocation of costs between the various items produced and sold must be fairly arbitrary. If there is a certain degree of arbitrariness on the allocation of costs, as between the various product lines, there can also be a degree of arbitrariness in the allocation of costs between home sales and export sales, or even as between different export markets.
If, however, the -product or the market chosen is such that the decision is going to be costly, whether or not the market choice turns out to be appropriate, then a more systematic search for markets is only common sense - the stakes are too high for anything else. Market research is sometimes seen as a panacea: it can however go badly awry, even in the domestic market. where else. This is particularly the case when the political or cultural background is significantly different. Formal market research methods can be used fairly easily in the industrial developed countries of the West.