International marketing mix: global products and services takes into account what are the characteristics that companies must consider in order to satisfy the local customer's needs.

1. International Marketing Mix –
Global Products and Services

2. Objectives
• To learn the importance of offering a product
suitable for the intended market.
• To determine the importance of quality and how
quality is defined.
• To distinguish the physical, mandatory and
cultural requirements for product adaptation.
• To understand the need to view all attributes of a
product to overcome resistance to acceptance.
• To be aware of country-of-origin effects on
product image.

3. Quality
• Market-Perceived quality, or
• Performance quality

4. Homologation
Global Strategy
perspective
Standardization?
Localization
Versus
Adaptation?

5. Standardization
PROS
• Cost savings
• Improved quality
(functioning)
• Enhanced customer
preference
• Global customers
• Global segments
CONS
• Off target (diverse tastes
and needs)
• Lack of uniqueness (Being
special?)
• Vulnerable to trade barriers
• Strong local competitors
that offer customized
products

6. Standardization of Products

7. Localization versus Adaptation
• Localization
– Changes required for a
product or service to
function in a new country
(telephone jack in different
countries)
• Adaptation:
– Changes are made to
match customer tastes or
preferences
12-7

8. Global Brands
• A global brand is the
worldwide use of a
name, term, sign,
symbol, design, or
combination
• The brand is the
most valuable
company resource

9. Products and Culture
Cultural adaptation affected by
how the product conforms
norms, values and behavior
patterns

10. Innovative Products
and Adaptation
• Determining the degree of
newness as perceived by the
intended market
• Established patterns of
consumption and behavior
• Foreign marketing goal is
gaining the largest number of
consumers in the market, in
the shortest span of time
Probable rate of acceptance

11. Product Component Model
Cateora, P., & Gilly, M. (2011). International marketing
(15th ed.).New York, NY: McGraw-Hill/Irwin.

12. Core Component
• Product platform
• Design features
• Functional
features

13. Packaging Component
• Price
• Quality
• Packages
• Styling
• Trademark
• Brand name

14. Support Services Component
• Deliveries
• Warranty
• Spare parts
• Repair and maintenance
• Installation
• Instructions
• Other related services

15. Top Ten World Brands 2014
Source: http://www.brandz100.com/

16. Country-of-Origin Effects
and Global Brands
Countries are stereotyped
– Has on a consumer’s
positive or negative
perception of a product
Ethnocentrism

17. Marketing Consumer
Services Globally
• Consumer services
characteristics
– Intangibility
– Inseparability
– Heterogeneity
– Perishability

18. Summary
• The growing globalization of markets must be
balanced with the continuing need to assess all
markets for those differences that might require
adaptation for successful acceptance
• In spite of the forces of homogenization,
consumers also see the world of global symbols,
company images, and product choice through the
lens of their own local culture and its stage of
development and market sophistication

19. Summary
• Each product must be viewed in light of how it
is perceived by each culture with which it
comes in contact
• Analyzing a product as an innovation and
using the Product Component Model may
provide the marketer with important leads for
adaptation