Transcript No Slide Title

Product Policy and Planning
Major Categories U.S. Exports
13-2
Category
Services Total
Travel (hotels, etc)
Percentage
28.5
8.7
Transportation (fares, freight, and port services)
7.5
Commercial, professional, and technical services (advertising,
accounting, legal, construction, engineering)
1.7
Financial services (banking and insurance)
1.5
Education and training services (most foreign student tuition)
1.0
Entertainment (movies, books, records)
0.8
Other categories (telecommunications, information, health care)
7.3
Irwin/McGraw-Hill
Source: U.S. Department of Commerce, http://www.doc.gov. 2001
Major Categories U.S. Exports
13-3
Category
Merchandise Total
Food, feeds, and beverages (wheat, fruit, meat)
Industrial supplies (crude oil, plastics, chemicals, metals)
Percentage
71.5
4.8
15.1
Capital goods (construction equipment, aircraft, computers
telecommunication)
32.1
Automotive vehicles, engines, and part
7.7
Consumer goods (pharmaceuticals, tobacco, toys, clothing)
8.2
Other categories
3.6
Irwin/McGraw-Hill
Source: U.S. Department of Commerce, http://www.doc.gov. 2001
“Companies must learn to
operate as if the world was one
large market.”
- Theodore Levitt (1983)
I.
Global vs. International Marketing
II. Standardization vs. Adaptation
Controversy
A. Benefits of Standardization
1) Cost Saving
2) Levitt’s Argument
3) Uniform Brand Image
4) Improved Coordination
II. Standardization vs. Adaptation
Controversy
B. Advantages of Adaptation
1) Differing Use Conditions
2) Legal/Regulatory Factors
3) Different C.B. Patterns
4) The Marketing Concept
Creating Products for Consumers
in Global Markets
III. The Product Components Model
IV. Country of Origin Effects
V. Methods of Naming Brands
Product Component Model
SUPPORT SERVICES
COMPONENT
PACKAGING
COMPONENT
Repair and
maintenance



Brand name


Other related
services


Instructions
Legal

CORE
COMPONENT
Trademark
Installation




Product platform
Deliveries
Price


Quality
Warranty
Design features
Functional features


Package

Legal

Spare parts
Styling

Legal
Product Variables
• The Core Product
– a product or services that is essentially the same as
that of competitors
• The Tangible Product
– a product or service that is differentiated composition,
origin, or tangible features from competing products
• The Augmented Product
– a product or service which is serviced after the sale
and carries a warrantee from the producer, producing
a continuing relationship with the seller.
Would They Sell in the United States?
• Alu-Fanny: French Foil wrap
• Atum Bom: Portuguese tuna
• Crapsy Fruit: French cereal
• Kack: Danish sweets
• Kum Onit: German pencil
sharpeners
• Mukk: Italian yogurt
• Plopp: Scandinavian chocolate
• Pocari Sweat: Japanese sport
drink
• Poo: Argentine curry powder
• Pschitt: French lemonade
Methods of Naming Brands
1)
2)
3)
4)
Translation
Transliteration
Transparency
Trans-culture
VI. New Product Development
1) Idea generation
2) Screening
3) Evaluation
4) Market Testing
5) Entry / Launch
VII. Product Elimination
Creating Products for Consumers
in Global Markets
VIII. International Services
1) Growth of the Service Sector
i) Deregulation / Privitization
ii) Technological Advancements
Unique Characteristics of Services
1. Inseparable in that its creation cannot be separated
from its consumption.
12-8
2. Heterogeneous in that it is individually produced and
is thus virtually unique.
3. Perishable in that once created it cannot be stored
but must be consumed simultaneously whit its
creation.
Irwin/McGraw-Hill
Top Consumer Services Exports
12-9
1. Tourism
5. Telecommunications
2. Transportation
6. Entertainment
3. Financial Services
7. Information
4. Education
8. Health Care
Irwin/McGraw-Hill
Creating Products for Consumers
in Global Markets
2) Difficulties in Marketing Services Internationally
i) Protectionism
ii) Controls on Transborder Data Flow
iii) Protection of Intellectual Property
iv) Cultural Requirements for Adaptation
3) U.S. Strengths in Marketing Services
i) High Service Expectations
ii) Experience with Tough Regulations
“I search the room but you’re
not there. Your perfume
lingers everywhere.”
A global appeal???