International Marketing - Chapter 13: Products and Services for Consumers

Chapter 13Products and Services for ConsumersInternational Marketing15th edition Philip R. Cateora, Mary C. Gilly, and John L. GrahamMaintaining QualityDamage in the distribution chainRussian chocolateQuality is essential for success in today’s competitive global marketThe decision to standardize or adapt a product is crucial in delivering quality2Roy Philip Green Marketing and Product DevelopmentGreen marketing concerns the environmental consequences of a variety of marketing activities Critical issues affecting product developmentControl of the packaging component of solid wasteConsumer demand for environmentally friendly productsEuropean Commission guidelines for ecolabelingLaws to control solid waste3Roy Philip Innovative Products and AdaptationDetermining the degree of newness as perceived by the intended marketDiffusionEstablished patterns of consumption and behaviorForeign marketing goalGaining the largest number of consumers in the market In the shortest span of timeProbable rate of acceptance4Roy Philip Diffusion of InnovationsCrucial elements in the diffusion of new ideasAn innovationWhich is communicated through certain channelsOver timeAmong the members of a social systemThe element of timeVariables affecting the rate of diffusion of an objectDegree of perceived newnessPerceived attributes of the innovationMethod used to communicate the idea5Roy Philip Five Characteristics of an InnovationRelative advantageCompatibilityComplexityTrialabilityObservability6Roy Philip Product Component ModelRoy Philip 7Exhibit 13.1Marketing Consumer Services GloballyMore than half of Fortune 500 companies are primarily service providersConsumer services characteristicsIntangibilityInseparabilityHeterogeneityPerishabilityA service can be marketed As an industrial (business-to-business) A consumer service8Roy Philip Services Opportunities in Global MarketsTourismTransportationFinancial servicesEducationCommunicationsEntertainmentInformationHealth care9Roy Philip Barriers to Entering Global Markets for Consumer ServicesFour kinds of barriers face consumer service marketers: ProtectionismRestrictions on transborder data flowsProtection of intellectual propertyCultural barriers and adaptation10Roy Philip Brands in International MarketsA 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 competitorsImportance is unquestionableMost valuable company resource 11Roy Philip Global BrandsThe Internet and other technologies accelerate the pace of the globalization of brandsIdeally gives the company a uniform worldwide imageBalanceAbility to translate12Roy Philip Country-of-Origin effectInfluences that the country of manufacture, assembly, or design Has on a consumer’s positive or negative perception of a productConsumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge “best”EthnocentrismCountry-of-Origin Effects and Global Brands (1 of 2)13Roy Philip Countries are stereotyped On the basis of whether they are industrializedIn the process of industrializingIn process of developingTechnical productsPerception of one manufactured in a less-developed or newly industrializing country less positive Fads often surround product from particular countries or regionsCountry-of-Origin Effects and Global Brands (2 of 2)14Roy Philip