International Marketing

•Product and Brand Management

Robert Moussetis

Global Product Development

• The key to global marketing success!

• The Product Development Process:The main goal is to build adaptability into products and product lines for worldwide appeal.

Robert Moussetis

PROCESS• Idea Generation• Screening• Product and Process Development• Scale-up • Commercialization• Location of R&D Activities• Host Governments Desire R&D centers• Organization of Global Product Development• Testing of New Products• Global Product Launch Robert Moussetis

Management of the Product Portfolio

• Analyzing the Product Portfolio– Growth– Market Position

• Advantages– A global view of competitive

structures– Global strategy based on

allocation of scarce resources– Marketing objectives based

on product lines in markets served

– A convenient visual communication goal

• Disadvantages of the Product Portfolio Approach– Foreign competition does

not follow the same rules as domestic competition

– Relationships between market share and profitability may vary

– Government regulations– Local content laws– Different production sites

may impact perceptions of risk and quality

• Managing the Brand Portfolio

Robert Moussetis

Top Global Brands• Brand Stature

– Coca-Cola– Kodak– Sony– Mercedes-Benz– Pepsi-Cola– Nestle– Gillette

• Brand Vitality– Coca-Cola– Nike– Adidas– Sony– Ferrari– Reebok– Disney

Private Brand Policies: Intermediaries own branded products or “store brands”

Robert Moussetis

International Marketing

Services Marketing

Differences Between Services and Goods

• “…a good is an object, a device, a thing; a service is a deed, a performance, an effort...”

The main difference between goods and services is intangibility.

Services are the Fastest Growing Sector of World Trade

• Banking and Financial Services

• Construction, Design, and Engineering Services

• Legal and Accounting Services• Communication Services• Teaching and Training

Services• Management Consulting

Linkage between Services and Goods

Services compliment goods

Goods compliment services

• Services compete with goods• Services compete with other services• Services are perishable. • Consumption of services requires

customer involvement.• Service consistency is required!• Customer Problems with Services–Market transparency–Service heterogeneity

The Role of Services in the U.S. and World Economy

• The service sector produces 75% of U.S. GNP and employs 79% of the workforce.

• Services contribute more than 60% of GNP in all industrial nations.

• Trade in services is about 25% of all world trade.

• Prediction for 2000: More than 50% of all multinational enterprises will be service corporations.

Global Transformation of Services

• Deregulation of services by government

• Decreased regulation of services by their industry groups.

• Technology is increasing service trade.

• Both labor-intensive and technology-intensive services are expanding.

International Trade Problems in Services

•U.S. Disincentives to International Services: State and federal regulations are formidable barriers to entry.•Data Collection Problems•Obstacles to service trade abroad are:

barriers to entryperformance

Government’s Justification for Barriers: National SecurityEconomic SecurityProtect Infant Industries

•Discriminatory and Nondiscriminatory Regulations

• For Services Tied to Goods:“...follow the path of the good”

• For Services Independent of Goods: Identify market situations abroad similar to the domestic market

Starting to Market Services Internationally

Strategic Implications of International Services Marketing

• Identify the nature and aim of the services offering core.

• Communicate the performance of the service on both mass levels and personal levels.

• Train personnel to convey the spirit, values, and attitudes of the service corporation.

• Address issues of pricing and financing.• Consider the distribution implications of

international services.