Chapter Twelve Global Products and Services
Advantages and Drawbacks of Standardization 11-2 Advantages of Standardization Cost Reduction Enhanced Customer Preference Improved Quality Global Customers Global Segments Drawbacks of Standardization Missed Targets Lack of Uniqueness Sensitive to Protectionism Strong Local Competitors
The Tradeoff Between Standardization and Adaptation 12-2 Fully standardized Exhibit 12.1 Fully adapted Incremental manufacturing cost Combined costs Cost of lost sales
Standardization and its Problems Standardization advantages: cost, customer preference, quality, global customer/segments disadvantages: of-target, lack of uniqueness, protectionism, local competitors Globalization limits and pitfalls limits:industry, resource, marketing mixes pitfalls: research, overstandardization, poor follow-up, narrow vision, rigid implementation Standardization research Observation/focus groups, target product, test markets
Global Brand Management Brand Management Brand equity, global brands, the brand portfolio Brand globalization potential, changeover tactics Counterfeit products Counterfeit vs gray trade Actions against counterfeit goods
Global Services Marketing Components of services (and products) Core, formal service package (tangible product), augmented Service quality subjective definition and evaluation, greater variation than products Globalization potential life cycle (maturity), infrastructure, localization of FSA’s Fast food franchising - localizing key processes Professional services - convergence and alliances
The Service “Product” 12-7 Exhibit 12.7 Generic benefits Provider’s behavior Physical surroundings Provider’s appearance Brand image Features Quality Packaging After-sales support Price Warranty Core service Formal service package Augmented service
Chapter Terms and Essay Terms Brand eequity, brand changeover, counterfeit, global brand/management, globalization potential, target product research Essay Using KFC as an example, explain: The advantages and disadvantages of standardization Localization vs adaptation of product components Standardization vs adaptation of service components
KFC in Japan video Which aspects of KFC's marketing strategy in Japan are global? which are local? How has the firm adapted to the patterns of Japanese etiquette and business practices? Using examples from the video, explain the concepts of localization and adaptation. Which aspects of KFC' service component have been standardized? adapted?
Chapter Twelve Global Products and Services