Products and Services for Consumers Chapter 12 McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

What is a Product? A product is the sum of the physical, social and psychological satisfactions it provides the user - - which may make adapting products to other cultures necessary.

Physical or Mandatory Requirements and Adaptation Legal, economic, political, technological, and climatic conditions of the local marketplace often dictate product adaptation. Products may have to change in a number of ways to meet the physical or mandatory requirements of a new market, ranging from simple package changes to total redesign of the physical core product. Product homologation is used to describe the changes mandated by local product and service standards. Products may have to change in a number of ways to meet the physical or mandatory requirements of a new market, ranging from simple package changes to total redesign of the physical core product. Product homologation is used to describe the changes mandated by local product and service standards.

Products and Culture 1.Facets of products include its form, taste, color, odor, and texture; how it functions in use; the package; the label; the warranty; manufacturer’s and retailer’s servicing; the confidence or prestige enjoyed by the brand; the manufacturer’s reputation. 2.The adoption of some products by consumers can be affected by how the product concept conforms with norms, values, and behavior patterns, thus many facets of products are influenced by culture.

Green Marketing and Product Development Europe is at the forefront of the “green movement,” with strong public opinion and specific legislation favoring environmentally friendly marketing and products. Green marketing is a term used to identify concern with the environmental consequences of a variety of marketing activities. In some countries each level of the distribution chain is responsible for returning all packaging, packing, and other waste materials up the chain.

Analyzing Product Components for Adaptation (1) core component; (2) packaging component, and; (3) support services component. A product is multidimensional, and the sum of all its features determines the bundle of satisfactions (utilities) received by the consumer. The many dimensions of products can be divided into three distinct components: These components include all a product’s tangible and intangible elements and provide the bundle of utilities the market receives from use of the product.

Product Component Model

Marketing Consumer Services Globally 1.intangibility, 2.inseparability, 3.heterogeneity, and 4.perishability. Advice regarding adapting products for international consumer markets also applies to adapting services or intangible products. However, many consumer services are distinguished by four unique characteristics: Advice regarding adapting products for international consumer markets also applies to adapting services or intangible products. However, many consumer services are distinguished by four unique characteristics: There are several services opportunities in global markets from travel and tourism, TV, and movies, to financial services.

Barriers to Entering Global Markets for Consumer Services protectionism, controls on transborder data flows, protection of intellectual property, and cultural requirements for adaptation. Most services are inseparable and require production and consumption to occur almost simultaneously; thus, exporting is not a viable entry method for them. Globally, consumer services marketers face the following four barriers:

Brands in International Markets Perceived brand “globalness” leads to increases in sales. A global brand is defined as the worldwide use of a name, term, sign, symbol (visual and/or auditory), design, or combination thereof intended to identify goods or services of one seller and to differentiate them from those of competitors. A successful brand is the most valuable resource of a company. Brand image is at the very core of business identity and strategy. A global brand is defined as the worldwide use of a name, term, sign, symbol (visual and/or auditory), design, or combination thereof intended to identify goods or services of one seller and to differentiate them from those of competitors. A successful brand is the most valuable resource of a company. Brand image is at the very core of business identity and strategy.

Country-of-Origin Effect and Global Brands Country-of-origin effect (COE) can be defined as any influence that the country of manufacture, assembly, or design has on a consumer’s positive or negative perception of a product. When the customer becomes aware of the country of origin, there is the possibility that the place of manufacture will affect product or brand image.