chapter 12 products for consumers

7/21/2019 Chapter 12 Products For Consumers

http://slidepdf.com/reader/full/chapter-12-products-for-consumers 1/21

Copyright 2012 McGraw-Hill Australia Pty LtdPPTs t/a International Marketing 2e by Cateora

12-1

Chapter 12

P!"#CT$ %!C!&$#M'$




12-2

Chapter Lear(i(g !b)ecti*es

1. The importance of analysing the product

components2. Physical, mandatory and cultural requirements

for product adaptation

3. The relationship between product acceptance

and the market into which it is introduced

4. The need to iew all attributes of a product in

order to oercome resistance to acceptance

!. The special issues in global marketing forserices




12-+

Global Perspecti*e$ha(ghai,"is(ey olls the "ice Agai(

" Tokyo #isneyland $ successful" %uro#isney $ disaster " &ong 'ong #isneyland $ open for business

$ (uthentic #isney but distinctly )hinese

" The opportunities and challenges for international

marketers of consumer goods and serices todayhas neer been greater or more dierse $ *arket offerings $ +usinesstoconsumer marketing.

" -uality products and serices that meet the needsand wants of consumers at an affordable priceshould be the goal of any marketing firm.

" )ompanies must hae a global mindset.



Copyright 2012 McGraw-Hill Australia Pty LtdPPTs t/a International Marketing 2e by Cateora 12-

.hat is a Product

" ( miture of tangible and intangible attributes

that proide a benefit to consumers." )an be broken into three components/

$ core component

$ actual component

$ supporting serices component.

" 0irm must determine what need the product

fulfils, what benefit and satisfaction it proides

to the user and if they hae a competitieadantage.




Product Copo(e(t Model




Product $trategies

" Three stages of compleity/

$ product etension $ product adaptation

$ product inention.

" (s competition for world markets intensifies

and market preferences become more global,

selling what is produced for the domestic

market in the same manner as at home

becomes less effectie.



Copyright 2012 McGraw-Hill Australia Pty LtdPPTs t/a International Marketing 2e by Cateora 12-3

Products a(d Culture" ( product is the sum of the physical and

psychological satisfactions it proides the user,such as a car $ primary function $ psychological attributes.

" The need for cultural adaptation is often necessary,

affected by how the product conforms with/ $ norms $ alues $ behaiour patterns.

" The etent of product adaptation depends on

cultural differences in product use and perceptionbetween the market the product was originallydeeloped for and the new market.




Product 5((o*atio( a(d "i66usio( o65((o*atio(

" #etermining the degree of newness as perceied bythe intended market.

" 'nowledge regarding diffusion of innoation ishelpful in deeloping a successful product strategy.

" %ffect on established patterns of consumption andbehaiour.

" 0oreign marketing goal/ gaining the largest numberof consumers in the market in the shortest span oftime

$ Probable rate of acceptance.

A(y idea percei*ed as (ew by a group o6 people isa( i((o*atio(7




"i66usio( o6 5((o*atio(s

" )rucial elements in the diffusion of new ideas/

$ (n innoation hich is communicated through certain channels

er time

(mong the members of a social system.

" The element of time" ariables affecting the rate of diffusion of an

obect/

$ the degree of perceied newness

$ the perceied attributes of the innoation

$ the method used to communicate the idea.




%i*e Characteristics o6 a( 5((o*atio(

" 5elatie adantage

" )ompatibility" )ompleity

" Trialability

" bserability" Perception of product characteristics by the

potential adopter, not the marketer, is crucial to

ealuation.




Cou(try a(d Culture a(d 5((o*atio(s

" 6nentieness of companies and countries

" %penditures" 7apanese solutions $ (mericanstyle education programs $ (merican design centres

" 8ew ideas come from a growing ariety of sources,

countries, acquisitions and een globalcollaborations.

" 6nfluence of culture on adoption of innoations canbe studied using &ofstede9s dimensions of/ $ Power distance

$ :ncertainty aoidance $ 6ndiidualism;collectiism $ *asculinity;femininity.




9ra(ds i( 5(ter(atio(al Mar:ets

" ery important

" *ost aluable resource a company has" +rand image is at core of business identity and

strategy

( global bra(d is defined as the worldwide use of aname, term, sign, symbol, design, or combination

thereof intended to identify goods or serices of one

seller and to differentiate them from those of

competitors.



Copyright 2012 McGraw-Hill Australia Pty LtdPPTs t/a International Marketing 2e by Cateora 12-1+

Top Te( 9ra(ds - 2010a(:

2010

9ra(d C!! 9ra(d;alue <=>

Cha(ge i(9ra(d *alue

1 )oca )ola :< =>,4!2 2?

2 6+* :< @4,=2= =?

3 *icrosoft :< @>,AB! =?

4 Coogle :< 43,!!= 3@?

! C% :< 42,A>A D1>?

@ *c#onalds :< 33,!=A 4?

= 6ntel :< 32,>1! 4?

A 8okia 0inland 2B,4B! D1!?

B #isney :< 2A,=31 1?

1> &ewlettPackard

:< 2@,A@= 12?

Source: www.interbrand.com/en/best-global-brands/Best-Global-Brands-2010.aspx




9ra(ds i( 5(ter(atio(al Mar:ets<co(t7>" The 6nternet and other technologies accelerate

the pace of the globalisation of brands.

" Clobal brand gies the company a uniform

worldwide image.

" +alance benefits of a global brand against therisk of losing the benefits of an established

brand.

" The brand allows the firm to differentiate

" (bility to translate

" 8ationalistic pride




&estle 9ra(di(g Tree




Cou(try-o6-!rigi( '66ects" )onsumers hae broad but somewhat ague stereotypes

about specific countries and specific product categories

that they udge Ebest9." %thnocentrism" )ountries stereotyped on the basis of whether they are

industrialised, in the process of industrialising, ordeeloping. %.g. %nglish tea, 0rench perfume, )hinese silk

" The more technical the product, the less positie is theperception of one manufactured in a lessdeeloped ornewly industrialiFing country.

" 0oreignmade products generally preferred oer domesticmade in less deeloped countries.

Cou(try-o6-origi( e66ect <C!'> can be defined as any

influence that the country of manufacture, assembly ordesign has on a consumer9s positie or negatieperception of a product.




Cou(try-o6-!rigi( '66ects <co(t7>

" 0ads often surround product from particular

countries or regions." Poor country image can be compensated for by

lower prices, longer warranties or sellingthrough high quality retailer.

" )% and it underlying country image operate ata direct leel to affect consumer decisionmaking.

" E)ountry brand9 enhancing strategies.%.g. 1>>? Pure, newFealand.com

" hy are )hina buying brands from the :< and%uropeG




Mar:eti(g Co(suer $er*icesGlobally" )onsumer serices characteristics/

$ 6ntangibility

$ 6nseparability

$ &eterogeneity

$ Perishability." ( serice can be marketed both as an industrial

HbusinesstobusinessI or a consumer serice.




!pportu(ities 6or $er*ices i(5(ter(atio(al Mar:ets"

Tourism" Transportation

" 0inancial serices

" %ducation

" Telecommunications

" %ntertainment

" 6nformation

" &ealth care.




9arriers to '(teri(g 5(ter(atio(al Mar:ets6or Co(suer $er*ices

" Protectionism

" 5estrictions on transborder data flows" Protection of intellectual property

" )ultural barriers and adaptation.




$uary" The growing internationalisation of markets

proides the impetus to adopt a global mindset." :nderstanding that an established product in one

culture may be considered an innoation in anotheris critical in planning and deeloping consumerproducts.

" %porting products requires awareness of factorsthat affect diffusion of innoation and the effect ofculture.

" )ountryoforigin effects and international brandsare important areas of marketing focus.

"<erices hae been showing strong positie growthas eports and pose special challenges tointernational marketers.

chapter 12 products for consumers

Documents