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In this chapter, students will be able to understand: The importance of derived demand in industrial markets, how demand is affected by technology levels, characteristics of an industrial product, the importance of ISO 9000 certification, the growth of business services and nuances of their marketing, the importance of trade shows in promoting industrial goods.
International Marketing 15th 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 Roy 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 Roy 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 Roy 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 Roy Philip Five Characteristics of an Innovation • • • • • Relative advantage Compatibility Complexity Trialability Observability Roy Philip Product Component Model Exhibit 13.1 Roy Philip 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 (businesstobusiness) – A consumer service Roy Philip Services Opportunities in Global Markets • • • • • • • • Tourism Transportation Financial services Education Communications Entertainment Information Health care Roy 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 Roy Philip 10 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 Roy Philip 11 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 Roy Philip 12 CountryofOrigin Effects and Global Brands (1 of 2) • CountryofOrigin 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 Roy Philip 13 CountryofOrigin Effects and Global Brands (2 of 2) • 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 Roy Philip 14 ... Roy Philip Five Characteristics of an Innovation • • • • • Relative advantage Compatibility Complexity Trialability Observability Roy Philip Product Component Model Exhibit? ?13. 1 Roy Philip Marketing? ?Consumer ... crucial in delivering quality Roy Philip Green? ?Marketing? ? and Product Development • Green? ?marketing? ?concerns the environmental consequences of a variety of? ?marketing? ?activities • Critical issues affecting product development... 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