Welcome to class of Products and Services by Dr Welcome to class of Products and Services by Dr. Satyendra Singh Professor, Marketing and International Business University of Winnipeg Canada s.singh@uwinnipeg.ca http://abem.uwinnipeg.ca www.abem.ca/conference

Product Components for Adaptation

Product Component for Adaptation Core Component (Intrinsic) Product platform (LHS driving, voltage, metric system) Design Features (size problem EU/USA), Fish/rice b/fast in Japan; fruits… Functional Features (KFC as American…) Augmented Product Component (Features) Packaging  High humidity, reuse of containers, more than one language requirements, font size, country-of-origin requirements, color compatible with culture, retail price must be shown. Support Services Component (increase life) Repair and Maintenance Instruction Manuals characters Installation instructions audio

Products Consumer Goods/services Industrial Goods/services Large and small firms Durable goods (cars, fridge, computer…) Non-durables (foods, drugs, toys…) Industrial Goods/services Large firms Few buyers; they act in synch Driven demand (depends on source) swings market High volatility To Reduce Volatility Broad product line Spread risks across several markets Demand is difficult to predict

Franck Muller: Master of Complications

900 parts in luxury versus 90 in ordinary, or 0 in electronic watch

Services Product: value physical Appearance Services (consumer/industrial): ValueProcess Services are major of world business Service/total export= 30% in UK--highest CanadaAgri, eng, insurance, r&d, mgmt. Consulting… Definition of Services Intangibility Insurance, dry cleaning, hotel Inseparability Production and consumption is simultaneous Heterogeneity Individually produced, slight variation Perishability Cannot be stored

Barriers to Entering International Services Markets Protectionism Professional pass certification exam in local language Recognition of foreign credentials Restricted movement of people Intellectual Property Trade-Related Intellectual Property Rights (TRIP)/GATTimplemented Piracy—India, China Data Transfer Across Borders Individual data e.g. consumer preferences, insurance Cultural Barriers Smile while serving, talking in the class, tip x% in the USA, round fig. In EU, No tip in China! Long vacation packages for Japanese (10 days) vs. Las Vegas – 4 days

Factors Driving Int’l. Demand… Technology Demand latest technology to expand industrial base Build/upgrade infrastructure (e.g., tel. Firms, ATMs, ) Demand for cars, toys, DVDs… Demand , competition  Industrial Products GDP  Industrialization Product Quality Value (cost/quality) Better quality at competitive price Phones with roaming feature Define quality

Factors Driving Int’l. Demand… Definition of Quality Market perceived quality (tourist, emotion, linking…) Performance Quality (technical – saving in power) Price-quality relationship Specification (Europeans—exact vs. Americans—more screws/more capacity than stated) Maintain standards Universal Standards FPS/MKS (metric system in EU) Different sizes– shoes, cloths North American Industry Classification System (NAICS—6 digit) Standard Industrial Classification (SIC—4 digit) ISO 9000/14001 (Environment)/18001 (Health)

Factors Driving Int’l. Demand Green Marketing Demand for environmentally products Follow guidelines for Eco-labeling (e.g., detergent should be biodegradable and non-polluting) Systems to control solid waste EU requires all packaging material to be recycled Use of Eco-logo 3BL  customers interest in process

Universal Standards

Opportunities in International Services Markets Insurance ATM Cable TV Sports Events Beijing Toronto International Hospital Higher Education Demand (MBA) in India Call Centres After-Sales Services (SAS) Standard Aero– spare engine while plane under repair! P&G train superstore mgrs – ordering cycles and shelf stocking Firms need to be responsive Multi-site service centre – industrial products Include local firms to improve SAS