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Chapter 13 Products and Services for Consumers

International Marketing 15 th edition . Chapter 13 Products and Services for Consumers. Philip R. Cateora , Mary C. Gilly , and John L. Graham. Maintaining Quality. Damage in the distribution chain Russian chocolate Quality is essential for success in today’s competitive global market

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Chapter 13 Products and Services for Consumers

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  1. International Marketing 15th edition Chapter 13 Products and Services for Consumers Philip R. Cateora, Mary C. Gilly, and John L. Graham

  2. 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 Roy Philip

  3. 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 • Laws to control solid waste Roy Philip

  4. Innovative Products and Adaptation • Determining the degree of newness as perceived by the intended market • Diffusion • 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 Roy Philip

  5. 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 • Perceived attributes of the innovation • Method used to communicate the idea Roy Philip

  6. Five Characteristics of an Innovation • Relative advantage • Compatibility • Complexity • Trialability • Observability Roy Philip

  7. Product Component Model Exhibit 13.1 Roy Philip

  8. 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 Roy Philip

  9. Services Opportunities in Global Markets • Tourism • Transportation • Financial services • Education • Communications • Entertainment • Information • Health care Roy Philip

  10. 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 Roy Philip

  11. Brands in International Markets • Aglobal 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 Roy Philip

  12. 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 Roy Philip

  13. Country-of-Origin Effects and Global Brands (1 of 2) • 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 Roy Philip

  14. Country-of-Origin Effects and Global Brands (2 of 2) • 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 Roy Philip

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