International Marketing Chapter 13 Key Concepts u Issues to consider in the industrial product market u Stage of Economic Development u Technology and Market Demand u Attributes of Product Quality u Quality Defined by the Customer u Lack of Universal Standards u ISO 9000 Certification u Importance of Trade Shows

The Ongoing Marketing Debate: Adaptation or Standardization u ADAPTATION u Consumer Products –More sensitive –More likely to change existing consumption patterns u STANDARDIZATION u Industrial Products –Less sensitive –Less likely to change existing consumption patterns

The Industrial Product Market: Issues to Consider u Stage of Economic Development u Technology and Market Demand u Quality Defined by the Customer u Lack of Universal Standards

The Stages of Economic Development  Preindustrial/Precommercial Stage  Preconditions for Take-Off  Take-Off  Drive to Maturity  Age of Mass Consumption

Technology and Market Demand u Economic growth and expansion –Asia –Newly Independent States (former USSR) –Eastern Europe –BEMs u Privatization of government industries –Many opportunities for foreign investors

Product Quality is Defined by the Customer! u Level of Technology –Appropriate level u Compliance with Standards –As defined by the customer u Support Services & Follow-Through –Comprehensive after-sales service

Requirements of Effective Global Competition u Effective After Sales Service u Prompt Delivery u Available Spare and Replacement Parts u Proper Installation and Training

Lack of Universal Standards u Major Challenge for All Companies u Extra Challenge for American Companies u The Global Harmonization Task Force

ISO 9000 Certification u Registration and certification standard u Applies to production processes only u Manufacturer’s quality control system u An important competitive marketing tool

Reaching Industrial Customers  Print Advertising  Catalogs (now online)  Websites  Direct Mail  Trade Shows/Fairs