The global marketer may design and introduce new products for foreign markets in addition to the firm’s relatively standardized “flagship” products and brands
Country-of-origin of a product has a considerable influence on the quality perceptions of a productThe manufacture of products in certain countries is affected by a built-in positive or negative stereotype of product qualityCountry-of-origin effects lessen as customers become more informed
Read article. Discuss in pods products / countries that carry clout or negative appeal. Why do companies do this? Put answers on flipchart paper and present.
Services tend to be more intangible, personalized and custom-made than goodsServices are also marketed differently from goods – the service provider can be transferred to the customer or the customer can be transferred to the service territoryServices also typically use a different approach to customer satisfaction
Low entry barriers
intangibility inseparability (cannot be separated from the provider)heterogeneity (precise standardisation is difficult)perishability (cannot be stored e.g. hotel rooms)ownership (does not result in a property transfer)
Mental = services directed a people’s minds (music concerts, therapy)People = customers need to enter service factory for it to happen (air canada)Information = provide value based on customer input (accounting, banking)
Global product and service decisions
1. How should the global marketer adjust the firm’s offer in the marketplace?2. How should the global marketer balance the advantages of product standardization those of adaptation? In other words... HOW SHOULD YOU GLOCALIZE?
Four Alternatives:Selling the product as is in theinternational marketplaceModifying products for differentcountries and/or regionsDesigning new products forforeign marketsIncorporating all the differencesinto one product design andintroducing a global product products
Factors forStandardization1. Economies of scale in production2. Economies in marketing3. Shrinking of the world marketplace4. Global competition products
Factors forAdaptation1. Different use conditions2. Government and regulation influences3. Different consumer behaviors4. Local competition products
Country of OriginEffects:Country-of-origin of a producthas a considerable influence onthe quality perceptions of aproduct. products