The International Marketing Mix: Products and Services International demand and competitive advantage Global demand: the special case of industrial markets Derived demand – demand dependent on another source International demand and product quality Quality defined Quality – market-perceived quality and performance. Both are important concepts but consumer perception of a quality product often has more to do with the market perceived quality, and quality perceptions vary across markets.
Price-quality legislations – is an important factor in marketing in developing economies, especially those in the first three stages of economic development, it does not deliver what is being asked Universal standards ISO 9000 Certification: An international standard of quality ISO 9000 is a certification that a company has in place a quality control system to ensure it meets published quality standards Green marketing and product development Which refers to concerns with the environmental consequences of marketing and consumption activities, Europe is the forefront of the “green movement” Locating
Business customers ‘SIC – international standard industrial classification North American industry classification system Consumer Adoption to Innovative Products Marketers as cultural change agents A product may be mature in the home market, but from a sociological viewpoint any idea perceived as new by a group of people is an innovation Diffusion of innovation – the process by which innovation spreads is helpful in developing a successful product strategy Analyzing product components for adoption A product is multidimensional, and the sum of all its features determines the bundle f satisfactions (utilities) received by the consumer.
To identify all the possible ways a product may be adapted to a new market, it helps to separate its many dimensions into three distinct components as illustrated in the product component model By using this model, the impact of the cultural, physical, and mandatory factors that affect a markets acceptance of a product can be focused in the core component or the products intrinsic characteristics, and two components that comprise its extrinsic characteristics – the augmented product component, which consists of product- elated features that serve to pack-age it for presentation to the target market, and the associated support services component which is necessary to enable to the buyer to begin and continue using the product satisfactorily.
Therefore, three parts Core components Product platform, design features, functional features Augmented product component Trademark, price, brand name, quality, package, and styling International Marketing Notes By Seminary Repair and maintenance, deliveries, warranty, spare parts, installation, instructions, other related services Marketing services globally Barriers to entering global services markets Protectionism Restrictions on Transponder data flows Protection of Intellectual property Cultural barriers and adoption Services opportunities in global consumer markets Top services include: financial services, education, telecommunications, entertainment, information, health care, tourism and leisure Service opportunities in global business markets After sales service Other business services Client followers – businesses that follow clients to their new markets to better serve them. E marketing agencies following their clients to places like Mexico to offer revise there Brands in international markets Global brands – as the worldwide use of a name, term, sign, symbol (visual or auditory), design, or combination thereof intended to identify goods or services of one seller and to differentiate them from those of competitors National brands – brands sold not global but country specific or region specific Country image effects on international brands Product country image (PC) – effect on the markets perception of the product Private brands – owned by retailers are growing as challenges to manufacturers brands whether global or country specific