Final answer:
Companies changing product names to suit local languages engage in product differentiation to meet market needs, enhance marketing effectiveness, and cater to cultural sensitivities.
Step-by-step explanation:
When companies change product names to be meaningful in the local language as a way to meet market needs, this is an example of a company using a product differentiation strategy. This approach is part of broader marketing and branding efforts that factor in cultural sensitivities and language to connect with local consumers effectively. By making product information available in multiple languages and adjusting product names to suit local vernaculars, companies can enhance their reach and appeal to a larger audience, fostering a culture of bilingualism.