Powerpoint from International Marketing Unit 7.01

1. Discuss standardization-versus-adaptation
decisions, and how companies create global
brand positions & equity

2. 
Something offered to an international market
that satisfies a want or a need. Products can
contain both tangible and intangible parts
◦ Tangible: Parts of a product that can be seen and
felt
 i.e. packaging, brand name, quality, design
◦ Intangible: Parts of a product that cannot be seen
or felt.
 i.e. warranty, delivery, credit, installation; services are
mostly intangible

3. 
Four choices for marketers when moving
products into new markets
◦
◦
◦
◦
keep their home country products the same
adapt an existing product for new markets
design new products for new markets
design one product for a global marketplace

4. ◦ Standardized products can create economies of
scale in research & development, production, and
marketing
◦ A global product with a global brand image
allows companies to compete against other
global marketers

5. ◦ Products may be used in different political & legal
environments
◦ Consumers may have different cultural needs
◦ Local competition in foreign markets may be
different than domestic
◦ Product customization may be necessary

6. 
Companies need to evaluate the following in
order to make choice between standardizationverses-adaptation
◦ market characteristics:
 political and legal regulations, customer characteristics
and preferences, purchasing patterns, and distribution
systems
◦ product characteristics:
 nature of the product, the ability to create a global brand,
and the purpose for which the product is used,
perception of product quality, perception of the product’s
country of origin, and required after-sale service.
◦ company characteristics:
 financial resources, international orientation of
management

7. ◦ Brand: name, word, or design that identifies a
product, service, or company
◦ Creates a certain expectation in the minds of
customers
◦ Global brands need a competitive advantage
when competing with local brands in local
markets
◦ Can be subject to country-of-origin effect
 i.e., in the 1950’s “Made in Japan” meant lowquality to consumers
 Today “Made in China” can mean low quality,
while Japanese products signal high quality

8. 
Using a brand to create an image
 BMW usually signifies quality engineering, and a
fast, sporty automobile
 Disney suggests wholesome family
entertainment
 Companies used to rely on TV advertising to
create brand image
 Today they are shifting to the Internet, live
events, cell phones, and movies

9. 
The additional value that a brand name brings to a
product or company
 Coca-cola estimated at over $67 billion
 Counterfeits, forgeries, and grey markets can
diminish brand equity—may cause product to
be viewed as cheap/poor quality
 Grey markets exist when products are sold
outside an authorized distribution system

10. 
Can have a strong impact on product image
◦ Logos and trademarks are intangible assets with
a dollar value or brand equity
 Should translate well across cultures

11.  Must be unique to the product and its market
 May not be used by any other product or
company
 Should not have undesirable meaning across
languages
 Family brand: typically the brand name of a
company that also have individual product
brands
 Ford Motor Company (family) sells Mustang (individual)
 Kelloggs (family) sells Rice Krispies (individual)