International Marketing15th edition

Philip R. Cateora, Mary C. Gilly, and John L. Graham

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

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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