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International Marketing
15th edition
Philip R. Cateora, Mary C. Gilly, and John L. Graham
Maintaining Quality
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• 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
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Green Marketing
and Product Development
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• 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
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Innovative Products
and Adaptation
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• Determining the degree of newness as perceived
by the intended market
• Diffusion
• 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
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Diffusion of Innovations
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• Crucial elements in the diffusion of new ideas
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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
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Five Characteristics
of an Innovation
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Relative advantage
Compatibility
Complexity
Trialability
Observability
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Product Component Model
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Exhibit 13.1
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Marketing Consumer
Services Globally
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• More than half of Fortune 500 companies are
primarily service providers
• Consumer services characteristics
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Intangibility
Inseparability
Heterogeneity
Perishability
• A service can be marketed
– As an industrial (business-to-business)
– A consumer service
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Services Opportunities
in Global Markets
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Tourism
Transportation
Financial services
Education
Communications
Entertainment
Information
Health care
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Barriers to Entering Global 13
Markets for Consumer Services
• Four kinds of barriers face consumer service
marketers:
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Protectionism
Restrictions on transborder data flows
Protection of intellectual property
Cultural barriers and adaptation
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Brands in
International Markets
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• 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
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Global Brands
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• 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
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Country-of-Origin Effects
and Global Brands (1 of 2)
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• 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
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Country-of-Origin Effects
and Global Brands (2 of 2)
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• 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
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