1. International Marketing
Chapter 13
Products and Services for Consumers
MKT 425
International Marketing

2. Global Perspective Hong Kong – Disney Rolls the Dice Again
Tokyo Disneyland – successful
EuroDisney – disaster
Hong Kong Disneyland – open for business
Opportunities and challenges for international marketers of consumer goods and services are great and diverse
Any marketing firm’s goal should be quality products and services that meet the needs and wants of consumers at an affordable price

3. Market offerings: the product or service that is sold into the marketplace.

4. Quality Why is Quality so important? Shift to a customer’s market
Increased customer knowledge
The customer defines quality
The cost and quality of a product
Among the most important criteria by which purchases are made
Quality can be defined on two dimensions
Market-perceived quality
Performance quality
Most consumers expect performance quality

5. Maintaining 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

6. Green Marketing and Product Development
Green marketing concerns the environmental consequences of a variety of marketing activities
Critical issues affecting product development
Control of the packaging component of solid waste
Consumer demand for environmentally friendly products
European Commission guidelines for ecolabeling

7. Products and Culture
A product is the sum of the physical and psychological satisfactions it provides the user
Primary function
Psychological attributes
The need for cultural adaptation is often necessary, affected by how the product conforms
Norms
Values
Behavior patterns

8. Innovative Products and Adaptation
Determining the degree of newness as perceived by the intended market
Diffusion
Foreign marketing goal
Gaining the largest number of consumers in the market In the shortest span of time
Probable rate of acceptance

9. Diffusion of Innovations
Variables affecting the rate of diffusion of an object
Degree of perceived newness
Perceived attributes of the innovation
Method used to communicate the idea

10. Characteristics of Diffusion
Analyzing five characteristics of diffusion helps in determining the kind of resistance and or acceptance of the market of a product.
A product’s relative advantage (the perceived marginal value of the new product relative to the old one).
Compatibility (its compatibility with acceptable behavior, norms, values and so forth)
Complexity (the degree of complexity associated with product use)
Trialability (the degree of economic/social risk associated with the product use)
Observability (the ease with which the product benefits can be communicated)

11. 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

12. Difference between a global product and a global brand
A product is not a brand.
A global product differs from a global brand in one important respect: it does not carry the same name and image from country to country.

13. Global Brands Guided by same strategic principles
Same name, similar image
Similar positioning
Marketing mix (Product, Price, Place, Promotion) may vary
Mars Snickers & Marathon
Raider & Twix

14. Global Brands
The Internet and other technologies accelerate the pace of the globalization of brands
Ideally gives the company a uniform worldwide image
Balance-the countries with successful country-specific brand names must balance the benefits of a global brand against the risk of losing the benefits of an established brands.

15. National Brands Acquiring national brand names
Using global brand names
Nationalistic pride impact on brands
Use global brands where possible and national brands where necessary

16. Country-of-Origin Effects and Global Brands
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

17. Country-of-Origin Effects and Global Brands
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

18. Private Brands Growing as challengers to manufacturers’ brands
Private labels
Provide the retailer with high margins
Receive preferential shelf space and in-store promotion
Are quality products at low prices
Manufacturers brands must be competitively priced and provide real consumer value