1. Products and Services for Businesses
International Marketing
15th edition
Chapter 14
Products and Services for Businesses
Philip R. Cateora, Mary C. Gilly, and John L. Graham

2. Introduction Issues of standardization versus adaptation
Opening Side
Introduction
Issues of standardization versus adaptation
Less relevance to marketing industrial goods than consumer goods
Factors accounting for greater market similarities in customers of industrial goods versus consumer goods
The inherent nature of the product (industrial products and services are used in the process of creating other goods and services)
The motive or intent for the user differs (industrial consumers are seeking profit, whereas the ultimate consumer is seeking satisfaction)
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3. Major Categories U.S. Exports
Exhibit 14.1
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4. Demand in Global Business-to-Business Markets
Three factors affect the demand in industrial markets differently than in consumer markets. They are:
Volatility of industrial demand (demand in industrial markets is by nature more volatile)
Stages of economic development (stages of industrial and economic development affect demand for industrial products)
Technology and market demand (the level of technology of products and services make their sales more appropriate for some countries than others)
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5. The Volatility of Industrial Demand
Cyclical swings in demand
Professional buyers tend to act in concert
Derived demand accelerates changes in markets
Derived demand can be defined as demand dependent on another source
Minor changes in consumer demand mean major changes in related industrial demand
Boeing
Worldwide demand for travel services related to demand for new airplanes
Commercial aircraft industry one of the most volatile
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6. Quality and Global Standards
Perception of quality rests solely with the customer
Level of technology reflected in the product
Compliance with standards that reflect customer needs
Support services and follow-through
Price relative to competitive products
Quality standards vary with level of country’s industrialization
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7. ISO 9000 Certification – An International Standard of Quality (1 of 2)
Positively affects the performance and stock prices of firms
Certification of the existence of a quality control system a company has in place to ensure it can meet published quality standards
Describes three quality system models
Defines quality concepts
Gives guidelines for using international standards in quality systems
Generally voluntary
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8. ISO 9000 Certification – An International Standard of Quality (2 of 2)
EU Product Liability Directive
Now a competitive marketing tool in Europe and around the world
The ACSI approach
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9. Business Services
For many industrial products the revenues from associates services exceed the revenues from the products
Cellular phones
Printers
Leasing capital equipment
Services not associated with products
Boeing at-sea-satellite-launch services
Ukrainian cargo company space rental on giant jets
Professional services (advertising, banking, healthcare, etc.)
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10. After-Sale Services Installation Training Spare and replacement parts
Delivery time
Cost of parts
Service personnel
Almost always more profitable than the actual sale of the machinery or product
Crucial in building strong customer loyalty
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11. Other Business Services
Client followers
Mode of entry
Licensing
Franchising
Direct investment
Protectionism
Restrictions on cross-border data flows
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12. Trade Shows: A Crucial Part of Business-to-Business Marketing (1 of 4)
Secondary methods for marketing:
Advertising in print media
Catalogs
Web sites
Direct mail
Trade shows have become the primary and most important vehicle for doing business in many foreign countries
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13. Trade Shows: A Crucial Part of Business-to-Business Marketing (2 of 4)
Total annual media budget spent on trade events:
Europeans – 22 percent
Americans – 5 percent
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14. Trade Shows: A Crucial Part of Business-to-Business Marketing (3 of 4)
Provide the facilities for a manufacturer to exhibit and demonstrate products to potential users
Allow manufacturers to view competitors products
Are an opportunity to create sales and establish relationships with agents, distributors, franchisees, and suppliers
Online trade shows
Become useful in difficult economic and/or political circumstances
Are obviously a less than adequate substitute for live trade shows
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15. Trade Shows: A Crucial Part of Business-to-Business Marketing (4 of 4)
Not a matter of selling the right product the first time instead selling a continuously changed the product to keep it right over time
The objective of relationship marketing
To make the relationship an important attribute of the transaction
Differentiating oneself from competitors
Using the Internet to facilitate relationship building and maintenance
Cisco Systems
Solar Turbines Inc.
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