International Marketing

15th edition

Philip R. Cateora, Mary C. Gilly, and John L. Graham

 Maintaining Quality
• Market perceived quality vs performance quality
• Damage in the distribution chain
– Russian chocolate
• Quality is essential for success in today’s
competitive global market
• The decision to standardize or adapt a product is
crucial in delivering quality
• Quality as a competitive tool

Roy Philip 2
 Green Marketing
and Product Development
• Green marketing concerns the environmental
consequences of a variety of marketing activities-
cradle to grave approach
• Critical issues affecting product development
– Control of the packaging component of solid
waste
– Consumer demand for environmentally friendly
products
• Ecolabeling: Voluntary method to show
product’s environmental performance
• Laws to control solid waste
Roy Philip 3
• Market Perceived Quality

Roy Philip 4
 Innovative Products
and Adaptation
• Determining the degree of newness as perceived
by the intended market is important for
companies
• Diffusion of Innovation
• Established patterns of consumption and
behavior
• Foreign marketing goal
– Gaining the largest number of consumers in the
market
• In the shortest span of time
– Probable rate of acceptance
Roy Philip 5
 Innovative Products
and Adaptation
• Standardization vs Adaptation
• https://www.youtube.com/watch?
v=U48nmKPJclA

• Type approval is the confirmation that

production samples of a design will meet
specified performance standards. The
specification of the product is recorded and
only that specification is approved.
Roy Philip 6
 Discretionary and
Mandatory Adaptation
• https://www.youtube.com/watch?
v=U48nmKPJclA

• Need to rewire goods for a different voltage

electric system
• Print multilingual labels
• Smaller packets of snacks, bottles of
beverages
Roy Philip 7
 Homologation
• Changes mandated by local products and
service standards, laws, political factors

• Example: for cars it is the process of certifying that

a particular car is roadworthy and matches certain
specified criteria laid out by the government for all
vehicles made or imported into that country.
• https://www.ib-lenhardt.com/en/type- approval.php?
country=Pakistan
• http://www.pta.gov.pk/index.php?Itemid=180
Roy Philip 8
 Diffusion of Innovations
• Crucial elements in the diffusion of new ideas
– An innovation
– Which is communicated through certain channels
– Over time
– Among the members of a social system
• The element of time
• Variables affecting the rate of diffusion of an object
– Degree of perceived newness: e.g. Alternate fuel cars
– Perceived attributes of the innovation
– Method used to communicate the idea

Roy Philip 9
 Five Characteristics
of an Innovation
• Relative advantage
• Compatibility
• Complexity
• Trialability
• Observability

Roy Philip 10
 Product Component Model

Exhibit 13.1

Roy Philip 11
 Marketing Consumer
Services Globally
• More than half of Fortune 500 companies are
primarily service providers
• Consumer services characteristics
– Intangibility
– Inseparability
– Heterogeneity
– Perishability
• A service can be marketed
– As an industrial (business-to-business)
– A consumer service
Roy Philip 12
 Services Opportunities
in Global Markets
• Tourism
• Transportation
• Financial services
• Education
• Communications
• Entertainment
• Information
• Health care

Roy Philip 13
 Barriers to Entering Global
Markets for Consumer Services
• Four kinds of barriers face consumer service
marketers:
– Protectionism
– Restrictions on transborder data flows
– Protection of intellectual property
– Cultural barriers and adaptation

Roy Philip 14
 Brands in
International Markets
• A global brand is the worldwide use of a name,
term, sign, symbol, design, or combination
– Intended to identify goods or services of one
seller
– To differentiate them from those of competitors
• Importance is unquestionable
• Most valuable company resource

Roy Philip 15
 Global Brands
• The Internet and other technologies accelerate
the pace of the globalization of brands
• Ideally gives the company a uniform worldwide
image
• Balance
• Ability to translate

Roy Philip 16
 Country-of-Origin Effects
and Global Brands (1 of 2)
• Country-of-Origin effect
– Influences that the country of manufacture,
assembly, or design
• Has on a consumer’s positive or negative
perception of a product
• Consumers have broad but somewhat vague
stereotypes about specific countries and specific
product categories that they judge “best”
• Ethnocentrism

Roy Philip 17
 Country-of-Origin Effects
and Global Brands (2 of 2)
• Countries are stereotyped
– On the basis of whether they are industrialized
– In the process of industrializing
– In process of developing
• Technical products
– Perception of one manufactured in a less-
developed or newly industrializing country less
positive
• Fads often surround product from particular
countries or regions
Roy Philip 18
 What you learnt
• The importance of offering a product suitable for the
intended market
• The importance of quality and how quality is
defined
• Physical, mandatory, and cultural requirements for
product adaptation
• The need to view all attributes of a product to
• overcome resistance to acceptance
• Country-of-origin effects on product image
Roy Philip 19