© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 12 Global Marketing of Services

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Differences Between Services and Goods Goods are Services are Goods are fixed in form and require physical distribution

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Differences Between Services and Goods Services differ from goods most strongly in their intangibility Linkage between services and goods

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Differences Between Services and Goods Stand-alone services Services have high _________ Services present problems in Production and consumption of services requires _____________

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Differences Between Services and Goods Services are custom-made Quality perception of service customers is largely determined by the behavior of the employees they contact Market transparency: Service heterogeneity –

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Differences Between Services and Goods Services require new channels of distribution Cultural sensitivity

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Role of Services in the U.S Economy Infrastructure services comprises of telecommunications, insurance, banking, and logistics Cross-border transactions: Total U.S. service exports grew from $6 billion in 1958 to $560 billion in 2010

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Role of Services in the U.S Economy The leading U.S. services exported in 2010

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Role of Services in the U.S Economy The United States had a trade surplus of around ____ billion in 2009 Trade surplus: Trade deficit:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Role of Services in the World Economy According to the WTO, cross-border exports of services globally totaled $3.6 trillion in 2010 The impact of the service sector is also evident on some smaller countries of the world

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Transformation of Services Deregulation: Decreased regulation of service industries by industry groups Primary deregulated industries in the United States

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Transformation of Services Technological advancement is another major factor in increasing service trade

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Trade Problems in Services Data collection problems

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Trade Problems in Services Regulation and service trade negotiations Barriers to entry

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Corporate Involvement in International Services Marketing Services and e-commerce Note of caution

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Corporate Involvement in International Services Marketing Need for a multilingual website: Facilitate a shift toward non-English- speaking Internet users Access new customers Demonstrate that company is customer- centric

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Corporate Involvement in International Services Marketing Generate trust by providing services in a customer’s native language Beat competition Be picked up by more search engines

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Corporate Involvement in International Services Marketing Services and academia

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Corporate Involvement in International Services Marketing Typical international services Financial services Legal and accounting services Management consulting

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Corporate Involvement in International Services Marketing Combining international advantages in services help to develop newer and drastic comparative lead Various starting points for marketing services internationally

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Corporate Involvement in International Services Marketing Services which are independent of goods Identify and understand transition points abroad

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Corporations and Involvement in International Services Marketing Strategic implications for international services marketing

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Corporations and Involvement in International Services Marketing Train the organizational personnel to convey the spirit, values, and attitudes of the corporation Consider the distribution implications of international services