Global marketing - products & services for consumers
Transcript of Global marketing - products & services for consumers
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International Marketing15th edition
Philip R. Cateora, Mary C. Gilly, and John L. Graham
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Maintaining Quality• Market perceived quality vs performance
quality• Damage in the distribution chain– Russian chocolate
• Quality is essential for success in today’s competitive global market
• The decision to standardize or adapt a product is crucial in delivering quality
• Quality as a competitive tool
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Green Marketing and Product Development• Green marketing concerns the environmental
consequences of a variety of marketing activities- cradle to grave approach
• Critical issues affecting product development– Control of the packaging component of solid
waste– Consumer demand for environmentally friendly
products• Ecolabeling: Voluntary method to show
product’s environmental performance• Laws to control solid waste
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• Market Perceived Quality
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Innovative Products and Adaptation
• Determining the degree of newness as perceived by the intended market is important for companies
• Diffusion of Innovation• Established patterns of consumption and
behavior• Foreign marketing goal– Gaining the largest number of consumers in the
market • In the shortest span of time
– Probable rate of acceptance
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Innovative Products and Adaptation
• Standardization vs Adaptation• https://www.youtube.com/watch?
v=U48nmKPJclA
• Type approval is the confirmation that production samples of a design will meet specified performance standards. The specification of the product is recorded and only that specification is approved.
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Discretionary and Mandatory Adaptation
• https://www.youtube.com/watch?v=U48nmKPJclA
• Need to rewire goods for a different voltage electric system
• Print multilingual labels• Smaller packets of snacks, bottles of beverages
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Homologation• Changes mandated by local products and service
standards, laws, political factors
• Example: for cars it is the process of certifying that a particular car is roadworthy and matches certain specified criteria laid out by the government for all vehicles made or imported into that country.
• https://www.ib-lenhardt.com/en/type- approval.php?country=Pakistan
• http://www.pta.gov.pk/index.php?Itemid=180
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Diffusion of Innovations• Crucial elements in the diffusion of new ideas
– An innovation– Which is communicated through certain channels– Over time– Among the members of a social system
• The element of time• Variables affecting the rate of diffusion of an object
– Degree of perceived newness: e.g. Alternate fuel cars
– Perceived attributes of the innovation– Method used to communicate the idea
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Five Characteristics of an Innovation
• Relative advantage• Compatibility• Complexity• Trialability• Observability
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Product Component Model
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Exhibit 13.1
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Marketing Consumer Services Globally
• More than half of Fortune 500 companies are primarily service providers
• Consumer services characteristics– Intangibility– Inseparability– Heterogeneity– Perishability
• A service can be marketed – As an industrial (business-to-business) – A consumer service
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Services Opportunities in Global Markets
• Tourism• Transportation• Financial services• Education• Communications• Entertainment• Information• Health care
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Barriers to Entering Global Markets for Consumer
Services• Four kinds of barriers face consumer
service marketers: – Protectionism– Restrictions on transborder data flows– Protection of intellectual property– Cultural barriers and adaptation
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Brands in International Markets
• A global brand is the worldwide use of a name, term, sign, symbol, design, or combination – Intended to identify goods or services of
one seller – To differentiate them from those of
competitors• Importance is unquestionable• Most valuable company resource
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Global Brands• The Internet and other technologies
accelerate the pace of the globalization of brands
• Ideally gives the company a uniform worldwide image
• Balance• Ability to translate
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• Country-of-Origin effect– Influences that the country of
manufacture, assembly, or design • Has on a consumer’s positive or
negative perception of a product• Consumers have broad but somewhat
vague stereotypes about specific countries and specific product categories that they judge “best”
• Ethnocentrism
Country-of-Origin Effects and Global Brands (1 of 2)
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• Countries are stereotyped – On the basis of whether they are industrialized– In the process of industrializing– In process of developing
• Technical products– Perception of one manufactured in a less-
developed or newly industrializing country less positive
• Fads often surround product from particular countries or regions
Country-of-Origin Effects and Global Brands (2 of 2)
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What you learnt
• The importance of offering a product suitable for the intended market
• The importance of quality and how quality is defined• Physical, mandatory, and cultural requirements for
product adaptation• The need to view all attributes of a product to• overcome resistance to acceptance• Country-of-origin effects on product image
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