Download Country-of-Origin Effects and Global Brands

International Marketing
14th Edition
P h i l i p R. C a t e o r a
M a r y C. G i l l y
John L. Graham
Products
and Services
for Consumers
Chapter 12
McGraw-Hill/Irwin
International Marketing 14/e
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
What Should You Learn?
 The importance of offering a product suitable for
the intended market
 The relationship between product acceptance
and the market into which it is introduced
 The importance of quality and how quality is
defined
 Country-of-origin effects on product image
 Physical, mandatory, and cultural requirements
for product adaptation
 The need to view all attributes of a product in
order to overcome resistance to acceptance
12-2
Global Perspective Hong Kong –
Disney Rolls the Dice Again
 Tokyo Disneyland – successful
 EuroDisney – disaster
 Hong Kong Disneyland – open for business
 Opportunities and challenges for international
marketers of consumer goods and services are
great and diverse
 Any marketing firm’s goal should be quality
products and services that meet the needs and
wants of consumers at an affordable price
12-3
Hongkong Disneyland
12-4
Case Study—Disney Rolls the dice again
Where and when did Disneyland open?
What are the different marketing strategies between
Tokyo Disneyland and EuroDisney?
Why did it fail? What did EuroDisney do in order to save
EuroDisney?
What about Hongkong marketing strategies?
12-5
Quality
Shift to a customer’s market
Increased customer knowledge
The customer defines quality
Quality can be defined on two dimensions
 Market-perceived quality
 Performance quality
Most consumers expect performance quality
In many industries quality is measured by third
parties
 JD Power and Associates
12-6
Maintaining 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
12-7
Physical or Mandatory
Requirements and Adaptation
Product homologation(认证)
 (means “accreditation or certified") is
used to describe the changes
mandated by local product and service
standards
Product adaptation
requirements





Legal
Economic
Political
Technological
Climate
12-8
12-9
Green Marketing
and Product Development
Green marketing concerns the environmental
consequences of a variety of marketing
activities
Critical issues affecting product
development
 Control of the packaging component of solid waste
 Consumer demand for environmentally friendly products
European Commission guidelines for
ecolabeling
Laws to control solid waste
12-10
Low-carbon economy and Product Development
A Low-Carbon Economy (LCE) or LowFossil-Fuel Economy (LFFE)is an economy
which has a minimal output of greenhouse
gas (GHG) emissions into the biosphere(生物
圈), but specifically refers to the greenhouse
gas carbon dioxide(二氧化碳 ).
Globally implemented LCE‘s therefore, are
proposed as a means to avoid catastrophic
climate change, and as a precursor(先导) to
the more advanced, zero-carbon society and
renewable-energy economy.
12-11
太阳能光伏
12-12
Poyang Lake Ecological Economic Zone
12-13
Products and Culture
A product is the sum of the physical and
psychological satisfactions it provides the
user
 Primary function
 Psychological attributes
The need for cultural adaptation is often
necessary, affected by how the product
conforms
 Norms
 Values
 Behavior patterns
12-14
Innovative Products
and Adaptation
Determining the degree of newness
as perceived by the intended market
Diffusion
 the process by which innovation spreads
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
12-15
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
 Perceived attributes of the innovation
 Method used to communicate the idea
12-16
Case: Japanese toilet
Japanese toilets have
long - and famously dominated the world
of bathroom hygiene
with their array of
functions, from
posterior shower jets
to perfume bursts and
noise-masking audio
effects for the easilyembarrassed.
12-17
Five Characteristics
of an Innovation
 Relative advantage
 The perceived marginal value of the new product relative to the old
 Compatibility
 Its compatibility with acceptable behavior, norms, values and so on
 Complexity
 Degree of complexity associated with product use
 Trialability（试验能力）
 Degree of economic and /or social risk associated with product use
 Observability(可观察性)
 The ease with which the product benefits can be communicated
12-18
Production of Innovations
Inventiveness of companies and countries
Expenditures
Japanese solutions
 American-style education programs
 American design centers
New ideas come from a variety of sources
 Countries,
 Acquisitions
 Global collaborations
12-19
Analyzing Product
Components for Adaptation
Product is multidimensional
Sum of its features determines the bundle of
satisfactions (utilities) received by consumer
Three distinct components
 Core
 Packaging
 Support services
12-20
Product Component Model
Exhibit 12.1
12-21
Core Components
Product platform
Design features
Functional features
12-22
Packaging Component
Price
Quality
Packages
Styling
Labeling
Trademark
Brand name
12-23
Support Services Component
Deliveries
Warranty
Spare parts
Repair and maintenance
Installation
Instructions
Other related services
12-24
Marketing Consumer
Services Globally
Consumer services
characteristics




Intangibility
Inseparability
Heterogeneity (异质性)
Perishability
A service can be marketed
 As an industrial (business-to-business)
 A consumer service
12-25
Services Opportunities
in Global Markets
Tourism
Transportation
Financial services
Education
Communications
Entertainment
Information
Health care
12-26
Barriers to Entering Global Markets
for Consumer Services
Globally, consumer
services marketers face
the following four
barriers:
 Protectionism
 Restrictions on transborder data
flows
 Protection of intellectual property
 Cultural barriers and adaptation
E-trade barriers
 (Need Further research)
12-27
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
12-28
Top Ten Brands
Exhibit 12.2
12-29
Global Brands
 The Internet and other
technologies accelerate the
pace of the globalization of
brands
 Ideally gives the company a
uniform worldwide image
 Balance
 Country-specific brand name vs global
band name
 Ability to translate
 (E-branding building)
12-30
National Brands
Acquiring national brand
names
Using global brand names
Nationalistic pride impact on
brands
Use global brands where
possible and national brands
where necessary
12-31
Country-of-Origin Effects
and Global Brands
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”
Ethnocentrism12-32
Country-of-Origin Effects
and Global Brands
 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 lessdeveloped or newly industrializing country
less positive
 Fads often surround product from
particular countries or regions
12-33
Private Brands
Growing as challengers to
manufacturers’ brands
Private labels
 Provide the retailer with high margins
 Receive preferential shelf space and in-store
promotion
 Are quality products at low prices
Manufacturers brands must be
competitively priced and provide
real consumer value
12-34
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
12-35
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
12-36