International Marketing15th edition

Philip R. Cateora, Mary C. Gilly, and John L. Graham

Maintaining Quality

• Damage in the distribution chain– Russian chocolate

• Quality is essential for success in today’s competitive global market

• The decision to standardize or adapt a product is crucial in delivering quality

2Roy Philip

Green Marketing and Product Development• Green marketing concerns the environmental

consequences of a variety of marketing activities

• Critical issues affecting product development– Control of the packaging component of solid

waste– Consumer demand for environmentally

friendly products

• European Commission guidelines for ecolabeling

• Laws to control solid waste

3Roy Philip

Innovative Products and Adaptation

• Determining the degree of newness as perceived by the intended market

• Diffusion• Established patterns of consumption and

behavior• Foreign marketing goal– Gaining the largest number of consumers

in the market • In the shortest span of time

– Probable rate of acceptance

4Roy Philip

Diffusion of Innovations

• Crucial elements in the diffusion of new ideas– An innovation– Which is communicated through certain channels– Over time– Among the members of a social system

• The element of time• Variables affecting the rate of diffusion of an

object– Degree of perceived newness– Perceived attributes of the innovation– Method used to communicate the idea

5Roy Philip

Five Characteristics of an Innovation

• Relative advantage• Compatibility• Complexity• Trialability• Observability

6Roy Philip

Product Component Model

Roy Philip 7

Exhibit 13.1

Marketing Consumer Services Globally

• More than half of Fortune 500 companies are primarily service providers

• Consumer services characteristics– Intangibility– Inseparability– Heterogeneity– Perishability

• A service can be marketed – As an industrial (business-to-business) – A consumer service

8Roy Philip

Services Opportunities in Global Markets

• Tourism• Transportation• Financial services• Education• Communications• Entertainment• Information• Health care

9Roy Philip

Barriers to Entering Global Markets for Consumer

Services• Four kinds of barriers face consumer

service marketers: – Protectionism– Restrictions on transborder data flows– Protection of intellectual property– Cultural barriers and adaptation

10Roy Philip

Brands in International Markets

• A global brand is the worldwide use of a name, term, sign, symbol, design, or combination – Intended to identify goods or services of

one seller – To differentiate them from those of

competitors

• Importance is unquestionable• Most valuable company resource

11Roy Philip

Global Brands

• The Internet and other technologies accelerate the pace of the globalization of brands

• Ideally gives the company a uniform worldwide image

• Balance• Ability to translate

12Roy Philip

• Country-of-Origin effect– Influences that the country of

manufacture, assembly, or design • Has on a consumer’s positive or

negative perception of a product

• Consumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge “best”

• Ethnocentrism

Country-of-Origin Effects and Global Brands (1 of 2)

13Roy Philip

• Countries are stereotyped – On the basis of whether they are

industrialized– In the process of industrializing– In process of developing

• Technical products– Perception of one manufactured in a less-

developed or newly industrializing country less positive

• Fads often surround product from particular countries or regions

Country-of-Origin Effects and Global Brands (2 of 2)

14Roy Philip