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Marketing of products and services

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Marketing of products and services

  1. 1. Marketing of Products and Services Stephen A. Oyewole Northcentral University Prescott Valley, Arizona USA
  2. 2. Presentation Outline  Evolution of Product and Service  Global Service Marketing  Legal Issues on Marketing of Products and Services  Culture and Society Relationship.  Global Economic/Cultural factors.  Role of Culture in Consumers’ Service.  Self-Reference Criterion/Ethnocentrism.  Benefits of Global Service Marketing.  Environmental Adaptation.  Resources.
  3. 3. Evolution of Product [Goods→ Product→ Service] Goods: objects having the requisites of utility, materialness, limitedness and accessibility. Product: set of tangible and intangible attributes for procuring a benefit to a user/consumer. Service: capacity for orienting the information variety of a context to the advantage of the interlocutor (Vargo & Lusch, 2010).
  4. 4. What is Product? Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want.  Product Design  Product Quality  Product Features  Product Branding What is Service ? Service’ is recognized as the common denominator of exchange.  Service Design/Quality/Features/Branding
  5. 5. Product/ Service Design Logic (SDL) Service design addresses the functionality and form of services from the perspective of clients. It aims to ensure that service interfaces are useful, usable, and desirable from the client’s point of view and effective, efficient, and distinctive from the supplier’s point of view.  Services Marketing  Internal marketing  Managing service quality SDL is the innovation model governed by different service categories and points out the roles of corresponding service design based on the statement that service innovation is the process of value creation.
  6. 6. Legal Issues on Marketing of Products and Services Issues over Truth and Honesty  In the 1940s and 1950s, tobacco used to be advertised as promoting health. Today an advertiser who fails to tell the truth not only offends against morality but also against the law. Issues with Violence, Sex and Profanity  Sexual innuendo is a mainstay of advertising content (Hawkins, Best, & Coney, 2004, p.732), and yet is also regarded as a form of sexual harassment.  Violence is an issue especially for children's advertising and advertising likely to be seen by children.
  7. 7. Legal and Ethical Issues Continue Issues with Taste and Controversy  The advertising of certain products may strongly offend some people while being in the interests of others (Waller, 2003). Examples include: feminine hygiene products, hemorrhoid and constipation medication.  The advertising of condoms has become acceptable in the interests of AIDS-prevention, but are nevertheless seen by some as promoting promiscuity. Negative Advertising  Negative advertising techniques, such as attack ads. In negative advertising, the advertiser highlights the disadvantages of competitor products rather than the advantages of their own.  The methods are most familiar from the political sphere. Democrats and Republicans
  8. 8. Establishing Culture of Legal and Ethical Data Stewardship  Senior managers such as board members, presidents, Chief Information Officers (CIOs), and data administrators are increasingly finding themselves liable for any violations of these laws.  Steps to consider include -  Develop an organization-wide policy for legal and ethical behavior.  Professional organizations and codes of ethics.  Intellectual Property (IP)
  9. 9. International Marketing Service  International marketing service is defined as the performance of business activities designed to plan, price, promote, and direct the flow of a company’s goods and services to consumers or users in more than one nations for a profit (Alahmad, 2010).  The difference in an online, interstate, and export marketing is the “environment”  Competition, legal restraints, government controls, weather, fickle consumers, economic conditions, technological constraints, infrastructure concerns, culture, and political situations.
  10. 10. Culture and Society Relationship Culture  Societal forces affecting the values, beliefs, and actions of a distinct group of people.  Society is a broad group of people and other organizations, interest groups, a community, a nation. Business and society interrelate in a macro environment as stakeholders. Society as the Macro-environment Culture Four segments of the Macro-environment Culture  Social environment culture focuses on demographics, lifestyles and social values.  Economic environment culture focuses on the economy.  Political environment culture focuses on the legislative process, election process and the interaction between firms, politics and government.  Technological environment culture focuses on the changes in technological advancement.
  11. 11. Global Economic Factors Sources of Economic Factors  Differences in economic, political, legal, and cultural systems.  Global Economic Interdependence  Regional trade and political alliances  NAFTA, EU, WTO  Global Productivity and Strategic Management  Issue: How to increase organizational effectiveness and performance (productivity) in the face of global influences and foreign competition.
  12. 12. Global Cultural Factors  Geert Hofstede’s Culture Dimensions  Power Distance: the inequality among the people of a nation.  Individualism: the extent to which people prefer to act as individuals instead of members of groups.  Masculinity/Femininity: the degree to which “masculine” service values prevail over “feminine” service values.  Uncertainty Avoidance: the preference of people in a country for service structured rather than unstructured situations.  Long-Term Orientation: the preference for long-term service values emphasizing the future as opposed to short-term service values focusing on the present.
  13. 13. Role of Culture in Consumers’ Service National Culture (Cultural Dimensions) ● Hofstede’s ● Hall’s ● Hofstede and Bond’s ● Schwartz’s ● Others Consumer Service Experience Dimensions Service Expectations Evaluations of Service ● Confirmation/Disconfirmation ● Satisfaction/Dissatisfaction Reactions to Service ● Word of Mouth/Complaint behavior ● Loyalty/Switching behavior
  14. 14. Self-Reference Criterion/Ethnocentrism  Self-Reference Criterion (SRC) is an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decision.  Risk of SRC:  Prevent you from becoming aware of cultural differences.  Influence the evaluation of the appropriateness of a domestically designed marketing mix for a foreign market.  The notion that people in one’s own company, culture, or country know best how to do things.  Risk of Ethnocentrism:  Impedes the ability to assess a foreign market in its true light.  Ethnocentrism is generally a problem when managers from affluent countries work with managers and markets in less affluent countries. The risk of ethnocentrism is that it impedes the ability to assess a foreign market in its true light.
  15. 15. Benefits of Global Service Marketing  The role of world trade and international service marketing in producing peace. • International marketing promotes peace and prosperity through the marketing of products and services that meet the needs and wants of customers in other lands. • Two examples – Large Multinational – Boeing – Small Multinational – Peace Works
  16. 16. Environmental Adaptation  The most challenging and important adaptation international marketers must make is cultural adjustments.  Must establish a frame of reference.  Time-conscious Americans vs. Time-is-not-an- asset thinking Latin Americans.  Hand gestures vary between countries  “Cultural Conditioning” – be aware of home cultural references before making decisions.
  17. 17. Obstacles to Adaptation  Adaptation is a conscious effort on the part of the international marketer to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then to adjust the marketing mix to minimize the effects.  Two primary obstacles are:  Self-Reference Criterion (SRC)  Ethnocentrism
  18. 18. Summary • It is imperative for firms to pay attention to the global environment in the wake of intense globalization of service markets and competition. • The difference between domestic service marketing and global service marketing is the environment that consist of laws, customs, and cultural differences. • Key obstacles to successful international service marketing are self-reference criterion (SRC) and Ethnocentrism. • Global awareness and sensitivity are solutions to the obstacles of SRC and ethnocentrism. • Firms must have global orientation – the world is seen as one market.
  19. 19. References  Alahmad, A. (2010). To be ethical or not to be: An international code of ethics for leadership. Journal of Diversity Management, 5(1), 31-35. Retrieved from http://www.search.proquest.com.proxyl.ncu.edu  Executive concepts in business strategy (VitalSource Bookshelf electronic version). (2010). Boston, MA: Pearson Learning Solutions  Fugate, D. L. (2008). Marketing services more effectively with neuromarketing research: A look into the future. The Journal of Services Marketing, 22 (2), 170-173. http://search.proquest.com.proxy1.ncu.edu  Hamilton, J., Knouse, S., & Hill, V. (2009) Google in China: A manager- friendly heuristic model for resolving cross-cultural ethical conflicts. Journal of Business Ethics, 86(2), 143-157. Retrieved from http://www.proquest.com
  20. 20. References  Hawkins, D., Best, R., and Coney, K. (2004). Consumer behavior: Building marketing strategy (9th ed.). New York: McGraw-Hill Irwin.  Hofstede, G., Neuijen, B., Ohayv, K., Daval, D. & Sanders, G. (1990). Measuring organizational cultures: A qualitative and quantitative study across twenty cases. Administrative Science Quarterly, 35 (2), 286. Retrieved from http://proxy1.ncu.edu  Klinefelter, G. (2008). Corporate ethics: the business code of conduct for ethical employees. Review of Choice, 45(10), 1699. Retrieved from http://www.proquest.com  Vargo, S. and Lusch, R. (2010). It's all B2B…and beyond: Toward a systems perspective of the market. Retrieved from www.sciencedirect.com

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