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1、Chapter 13Products and Services for CustomersLearning Objectives 13-1 The importance of offering a product suitable for the intended market13-2 The importance of quality and how quality is defined13-3 Physical, mandatory, and cultural requirements for product adaptation13-4 The need to view all attr

2、ibutes of a product to overcome resistance to acceptance13-5 Country-of-origin effects on product imageInternational MarketersEmerging Opportunities and ChallengesNew consumers in emerging marketsDistinction between products and servicesMarket offerings and business-to-consumer (B2C) marketingProduc

3、t adaptationQuality 1 of 5 Product life cycles becoming shorter and focusing on:Importance of qualityCompetitive pricesInnovative productsPower is shifting from seller to buyerCustomer defines quality in terms of own needs and resourcesCost and quality among most important criteria for purchases in

4、most global marketsQuality 2 of 5Quality DefinedMarket-perceived qualityConsumer perceptions of qualityPerformance qualityFirms perception of qualityExpected as a given in competitive marketFirms often misrepresent performance qualityCustomer satisfaction indexes“Fair trade” designationMalcolm Baldr

5、ige Quality AwardQuality 3 of 5Maintaining QualityPerformance quality is criticalMay be damaged as product passes through distribution chainChallenge for global brands; long distribution chains, less controlMarket-perceived quality matters Quality 4 of 5Physical or Mandatory Requirements and Adaptat

6、ionProduct homologationChanges mandated by local product and service standardsMost often reason for adaptation; not out of choiceOther factorsLess economically developed markets require greater degree of adaptation for acceptanceClimate differences must be accommodatedLaw, politics, technologyQualit

7、y 5 of 5Green Marketing and Product DevelopmentImpacts product developmentControl of packaging component of solid wasteConsumer demand for environmentally-friendly productsEurope at the forefrontEcolabeling guidelines passed by European Commission in 1992EU law requires recycling or reuse of all pac

8、kaging materialProducts and Culture 1 of 7 Product is more than physical itemBundle of satisfactions or utilities a buyer receivesSum of physical and psychological satisfactions, and cultural influencesPsychological aspects may require adaptation of productProblems of adapting a product to sell abro

9、ad similar to those associated with introducing new product domesticallyProducts and Culture 2 of 7 Innovative Products and AdaptationFirst step to adaptation: consider innovationDetermine perceived newness of product in intended marketDiffusion of innovation Goal is product acceptance by largest nu

10、mber of consumers in the shortest span of timeNew products not always readily accepted by cultureMay ultimately be accepted, but takes time and effortDiffusion research shows that probable rate of acceptance can be predicted and accelerated if necessaryProducts and Culture 3 of 7 Diffusion of Innova

11、tionsDiffusion according to Edward Rogers An innovation communicated through certain channels over time among members of a social systemElement of time unique to diffusion researchGoal to shorten lag between introduction and widespread adoption of idea or productRates of product acceptance and diffu

12、sion varyImpacted by culture, technology, adoption from neighboring countriesProducts and Culture 4 of 7 Diffusion of Innovations continuedDiffusion theory knowledge beneficialPredict diffusion time before making financial commitmentIdentify product features that provoke resistanceProvide opportunit

13、y to lessen resistance and hasten acceptanceExtraneous variables that affect rate of diffusionDegree of perceived newnessPerceived attributes of the innovationMethods used to communicate the dataProducts and Culture 5 of 7 Rate of acceptance or resistance can be predictedFive characteristics of inno

14、vation basisRelative advantageCompatibilityComplexityTrialabilityObservabilityAnalysts self-reference criterion may cause bias when interpreting characteristics of productProducts and Culture 6 of 7 Production of InnovationsDiversity good for innovation; higher creative outputLong-term study on the

15、long-term impact on work team performanceDiverse groups initially disadvantaged by communication issuesOnce issues overcome, diverse groups produced more ideasExhibit 13.1 Average Number of Ideas Put on the TableJump to long description.Products and Culture 7 of 7 Production of Innovations continued

16、Conflicting opinions on cultures role in innovationOne study suggests that individualism enhances creativityAnother suggests that corporate culture, training more importantResearch on “conversion-ability”Degree of success firms have when taking inventions to marketThree factors: patience, focus on f

17、ew important innovations, experienceAnalyzing Product Components for Adaptation 1 of 4 A product is multidimensionalSum of all its features determines the bundle of satisfactions (utilities) received by consumerProduct Component ModelHelps to determine how product might be adapted to marketSeparates

18、 many dimensions into three distinct componentsSupport services, packaging, and core componentEffects of cultural, physical, and mandatory factors can be focused on each componentExhibit 13.3 Product Component ModelJump to long description.Analyzing Product Components for Adaptation 2 of 4 Core Comp

19、onentConsists of physical productIts design and functional featuresVariations can be added or deleted for different marketsAlteration in design and function to fit cultural tastesMay affect product processes; requires additional costsSome alterations may be mandated by marketAnalyzing Product Compon

20、ents for Adaptation 3 of 4 Packaging ComponentFrequently requires mandatory adaptationsCountry-of-origin labeling for food, size stipulationsLaws vary from country to countryDiscretionary adaptations should be consideredCheck trademark for unintended symbolic meaningPay attention to translation of b

21、rand names and color useConsider climate of marketAnalyzing Product Components for Adaptation 4 of 4 Support Services ComponentImportant not to neglectMany otherwise successful marketing programs fail hereRepair and maintenance a challenging featureNot as accessible or common in other countries Inst

22、ruction manuals may need to be adaptedCountries have varying literacy and education levelsMarketing Consumer Services Globally 1 of 3 Adaptation of ServicesMuch of advice used for products can still be appliedBut, services are different because they are intangibleIntangibility results in three other

23、 important characteristicsInseparable: creation cannot be separated from consumptionHeterogeneous: individually produced and is thus uniquePerishable: must be consumed simultaneously with creationMarketing Consumer Services Globally 2 of 3 Services Opportunities in Global MarketsTourismTransportatio

24、nFinancial servicesEducationTelecommunicationsEntertainmentInformationHealthcareMarketing Consumer Services Globally 3 of 3Barriers to Entering Global Markets Services inseparable; exporting not an entry optionLicensing, franchising, direct investment are main methodsFour barriers:ProtectionismRestr

25、ictions on transborder data flowProtection of intellectual propertyCultural barriers and adaptationBrands in International Markets 1 of 5Global BrandWorldwide use of name, term, sign, symbol, designUsed to identify goods and services of one sellerDifferentiates seller from its competitorsBrand most

26、valuable resource a company hasName encompasses years of advertising, goodwill, quality evaluations, product experience, and other attributesImage at very core of business identity and strategyImportance and impact varies by cultureExhibit 13.4 Top Twenty Brands 1 of 2RankBrandCountrySector1AppleU.S

27、.Technology2GoogleU.S.Technology3MicrosoftU.S.Technology4Coca-ColaU.S.Beverages5AmazonU.S.Retail6SamsungSouth KoreaTechnology7ToyotaJapanAutomotive8FacebookU.S.Technology9Mercedes-BenzGermanyAutomotive10IBMU.S.Business servicesSource: “Best Global Brands 2017,”/best-brands/best-global-brands, online

28、.Exhibit 13.4 Top Twenty Brands 2 of 2RankBrandCountry Sector11GEU.S.Diversified12McDonaldsU.S.Restaurants13BMWGermanyAutomotive14DisneyU.S.Media15IntelU.S.Technology16CiscoU.S.Technology17OracleU.S.Technology18NikeU.S.Sporting Goods19Louis VuittonFranceLuxury20HondaJapanAutomotiveSource: “Best Glob

29、al Brands 2017,”/best-brands/best-global-brands, online.Brands in International Markets 2 of 5Global BrandsCompanies with strong brands try to globalize themIdeally gives company uniformly positive association worldwideEnhances efficiency and cost of introducing new productsInternet and technology a

30、ccelerates brand globalizationNot all companies believe single global approach is bestThose with already established country-specific brands might not want to abandon them; risky and costlyBrand extensions in global markets are sometimes difficultBrands in International Markets 3 of 5National Brands

31、Country-specific brandsMultinationals must consider cultural factorsIncreased nationalism in some countries impacts brandAcceptance varies across regions, within countries, and depending on knowledge of brandMany companies mix national and global brandingBrands in International Markets 4 of 5Country

32、-of-Origin Effect (COE) and Global BrandsInfluence that country of manufacture, assembly, or design has on consumers perception of productReaction influenced by country, product, and image of brandsEthnocentrism impacts attitudes toward foreign productsStereotypes against status of economy: industri

33、al, developingFads for attractiveness; “xenocentrism” Good marketing can overcome a negative COEBrands in International Markets 5 of 5 Private BrandsFormidable competitors to manufacturers brandsParticularly during recessions in target marketsConsumers prefer less expensive, “more local” private bra

34、ndsGlobal brands must be priced competitively to be successfulBenefits to retailersProduction outsourced while still getting advantages of local brandRetailer is provided with high margins, preferential shelf space and strong in-store promotions, quality products at low pricesAppendix of Image Long DescriptionsAppendix 1 Exhibit 13.1 Average Number of Ideas Put on the TableData from the four-mon

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