Chapter 13 Products and Services for Consumers International Marketing 15th 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 The decision to standardize or adapt a product is crucial in delivering quality Roy Philip

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

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

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

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

Product Component Model Exhibit 13.1 Roy Philip

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

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

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

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 Roy Philip

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

Country-of-Origin Effects and Global Brands (1 of 2) 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

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