1. Welcome to class of Products and Services by Dr
Welcome to class of Products and Services by Dr. Satyendra Singh Professor, Marketing and International Business University of Winnipeg Canada

2. Product Components for Adaptation

3. Product Component for Adaptation
Core Component (Intrinsic)
Product platform (LHS driving, voltage, metric system)
Design Features (size problem EU/USA), Fish/rice b/fast in Japan; fruits…
Functional Features (KFC as American…)
Augmented Product Component (Features)
Packaging  High humidity, reuse of containers, more than one language requirements, font size, country-of-origin requirements, color compatible with culture, retail price must be shown.
Support Services Component (increase life)
Repair and Maintenance
Instruction Manuals characters
Installation instructions audio

4. Products Consumer Goods/services Industrial Goods/services
Large and small firms
Durable goods (cars, fridge, computer…)
Non-durables (foods, drugs, toys…)
Industrial Goods/services
Large firms
Few buyers; they act in synch
Driven demand (depends on source) swings market
High volatility
To Reduce Volatility
Broad product line
Spread risks across several markets
Demand is difficult to predict

5. Franck Muller: Master of Complications

6. 900 parts in luxury versus 90 in ordinary, or 0 in electronic watch

7. Services Product: value physical Appearance
Services (consumer/industrial): ValueProcess
Services are major of world business
Service/total export= 30% in UK--highest
CanadaAgri, eng, insurance, r&d, mgmt. Consulting…
Definition of Services
Intangibility
Insurance, dry cleaning, hotel
Inseparability
Production and consumption is simultaneous
Heterogeneity
Individually produced, slight variation
Perishability
Cannot be stored

9. Barriers to Entering International Services Markets
Protectionism
Professional pass certification exam in local language
Recognition of foreign credentials
Restricted movement of people
Intellectual Property
Trade-Related Intellectual Property Rights (TRIP)/GATTimplemented
Piracy—India, China
Data Transfer Across Borders
Individual data e.g. consumer preferences, insurance
Cultural Barriers
Smile while serving, talking in the class, tip x% in the USA, round fig. In EU, No tip in China! Long vacation packages for Japanese (10 days) vs. Las Vegas – 4 days

10. Factors Driving Int’l. Demand…
Technology
Demand latest technology to expand industrial base
Build/upgrade infrastructure (e.g., tel. Firms, ATMs, )
Demand for cars, toys, DVDs…
Demand , competition 
Industrial Products
GDP 
Industrialization
Product Quality
Value (cost/quality)
Better quality at competitive price
Phones with roaming feature
Define quality

11. Factors Driving Int’l. Demand…
Definition of Quality
Market perceived quality (tourist, emotion, linking…)
Performance Quality (technical – saving in power)
Price-quality relationship
Specification (Europeans—exact vs. Americans—more screws/more capacity than stated)
Maintain standards
Universal Standards
FPS/MKS (metric system in EU)
Different sizes– shoes, cloths
North American Industry Classification System (NAICS—6 digit)
Standard Industrial Classification (SIC—4 digit)
ISO 9000/14001 (Environment)/18001 (Health)

12. Factors Driving Int’l. Demand
Green Marketing
Demand for environmentally products
Follow guidelines for Eco-labeling (e.g., detergent should be biodegradable and non-polluting)
Systems to control solid waste
EU requires all packaging material to be recycled
Use of Eco-logo
3BL  customers interest in process

13. Universal Standards

14. Opportunities in International Services Markets
Insurance
ATM
Cable TV
Sports Events
Beijing Toronto International Hospital
Higher Education Demand (MBA) in India
Call Centres
After-Sales Services (SAS)
Standard Aero– spare engine while plane under repair!
P&G train superstore mgrs – ordering cycles and shelf stocking
Firms need to be responsive
Multi-site service centre – industrial products
Include local firms to improve SAS