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1、Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, Products and Services: Branding Decisions in International MarketsDana-Nicoleta LascuChapter 7Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200Chapter Objectives Describe the drivers for international stand

2、ardization and offer and overview of the international standardization local adaptation continuum and related strategies. Examine country-of-origins effects on brand evaluations in relation to product stereotypes and consumer ethnocentrism. Examine the challenges faced by service providers in intern

3、ational markets. Address issues related to brand-name protection and reasons behind international counterfeiting. Address the marketing of industrial products and services and related product and service standards.Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200Global Standa

4、rdization Standardization of products across markets and of the marketing mix worldwide. Advantages:Allows for economies of scaleEncourages global brandingGlobal branding involves using the same brand name, logo, image, and positioning everywhere in the worldGlobal brands are more prestigious, signa

5、ling that the company has the resources to back the brandEffective in meeting the needs of global consumersEffective in meeting consumer needs of higher quality and lower priceFacilitated by international travel Disadvantage: Cannot perfectly meet the needs of all target consumersCopyright Atomic Do

6、g Publishing, 2008Copyright Atomic Dog Publishing, 200Regional Standardization Standardization of products across regions and of the marketing mix within the region.Advantages:Allows for economies of scale.Addresses consumer preferences for higher quality and lower price.Facilitated by international

7、 travel within the region.Disadvantage: Cannot perfectly meet the needs of all target consumers in the region.Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200Global LocalizationGlobal branding with localized marketing adaptation to differences in local culture, production ca

8、pabilities, governmental restrictions, etc.Types:Modular Adaptation: Offer parts (modules) that can be assembled worldwide in different configurations, depending on market needs.Core Product Strategy: Involves using a standardized strategy for the core product worldwide, but varying certain aspects

9、of the offering (product ingredients, advertising, for example) from market to market. Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200Mandatory Adaptation Involves adapting products to local requirements so that they can legally and physically operate in the respective coun

10、tries.Examples: Left-hand driving in the United Kingdom220 volt appliances in Europe, 110 volt appliances in the U.S.NTSC analog television in some countries in the Americas including the U.S.; SECAM analog color television used in francophone countries and Russia.Copyright Atomic Dog Publishing, 20

11、08Copyright Atomic Dog Publishing, 200Non-Mandatory Adaptation Adapting a product to better meet the needs of the local market, or developing new brands for individual local markets, even though such adaptation is not required.Examples:Fast-food traditional hamburger places selling vegetarian burger

12、s in India and falafel sandwiches in the Middle East.Disneyland Resort Paris offering rides that emphasize European storybook characters. Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200Adaptation: Non-Mandatory ExampleThe Smart car, developed by Mercedes for the narrow Euro

13、pean streets. This automobile can easily fit up on narrow sidewalks and allow sufficient room for passers-by.Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200Private Label (Retailer) Brands Compete effectively with multinational brands. Often, premium store brands are perceiv

14、ed by local markets as high-quality, on par with multinational brand. Retailer brands are also innovative and high quality. They appeal to consumers during economic downturns. They have greater appeal as consumers today demand high quality at lower prices.Copyright Atomic Dog Publishing, 2008Copyrig

15、ht Atomic Dog Publishing, 200Global Branding Country of Origin Country with which good/service is associated. Country of Manufacture Country where the product is manufactured (for products).Country where the headquarters are located (for services). In the absence of other product information, countr

16、y of origin impacts consumers product evaluations.Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200Product Stereotypes Product-specific stereotypes that associate the country of origin as a certification of quality. Examples product-country stereotypes:French perfumeKenyan co

17、ffeeChinese silkItalian coutureCopyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200Service Stereotypes Example of service-country stereotype:French waiters have been unfairly associated with poor service; in this photograph, a French waiter delivers beer with a smile on the Cham

18、ps Elyses.Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200Ethnocentrism The belief that purchasing foreign products hurts the local economy by causing loss of jobs, and that it is morally wrong and unpatriotic. Leads to the rejection of foreign products. To market to ethnoce

19、ntric consumers, companies may present the product as a local offering.Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200Service Entry Barriers Represent a manifestation of protectionism at theFirm level.Government level.Consumer level. Examples:Requirement to use national ser

20、vice providers.Prohibition against employment of foreign nationals.Direct competition from government providers.Restrictions on movement.Tariffs on international services. These barriers are aimed at favoring local over international service providers. Copyright Atomic Dog Publishing, 2008Copyright

21、Atomic Dog Publishing, 200Products, Services, CultureIt is important for international service providers to understand the factors that affect customer considerations in service evaluations and to then emphasize the various dimensions of service quality accordingly. Culture also influences the perce

22、ption and evaluation of a brand in a particular country, along with determining the degree of brand loyalty.Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200Protecting Brand Names Companies pay millions to protect brand names from dilution. Counterfeiting involves the unautho

23、rized copying of brands and selling them as originals. The Uruguay round of the General Agreement on Tariffs and Trade addressed standardizing global trademark legislation that is now incorporated under the World Trade Organization umbrella. Types of Counterfeiting: Design counterfeiting: Copying de

24、signs or scents, which is very common and risk free since companies cannot be prosecuted.Brand-name counterfeiting: Selling counterfeit products as original products bearing the respective brand name.Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200Counterfeiting Factors Cons

25、umer Factors: Willingness to purchase counterfeit goods because risk is low and prestige gains are high.Willingness to purchase counterfeit goods products that are consumed publicly.Consumers and retailers might not notice the difference. Technology factors Affordable, quality copying technology.Loc

26、al partners of multinational firm have access to know-how.Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200Counterfeiting Factors (contd.) Distribution factors Supply chains are not adequately controlled.Traders may use Internet chat rooms and unauthorized dealerships. Local

27、government factors Governments may not interfere; even the government may run counterfeiting operations.Cracking down would lead to loss of jobs and unrest.Customs representative and other enforcement officials may not be familiar with authentic brands.Copyright Atomic Dog Publishing, 2008Copyright

28、Atomic Dog Publishing, 200Combating Counterfeiting Multinational companies have used several strategies to fight counterfeiting:Lobbying the U.S. government.Lobbying other governments involved.Change products appearance to differentiate the authentic brands from copies.Better control of distribution

29、 chain operations.Key: Cooperation with the local government.Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200How Are Industrial Products and Services Different from Consumer Products and Services? Culture does not play as important a role for industrial products. The decisio

30、n to purchase industrial products rests with management, often with top management at the companys headquarters. The purchase process often takes several months. In many countries, local government has substantial input in the supplier decision, favoring national suppliers. For professional services

31、, the local government can directly restrict the company to local suppliers, or require local licenses/credentials. Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200Industrial vs. Consumer Products and Services (contd.) Industrial consumers are businesses. Business-to-busines

32、s markets are characterized by fewer buyers and a larger purchase volume. The business-to-business market is geographically concentrated. Demand for industrial products is derived from demand for consumer products and thus is much more volatile. Decision processes are different and involve many deci

33、sion makers and influencers in the country of operation and in the home country.Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200Product Standards: ISO 9000 Quality standards for each industry set by the International Organization for Standardization (ISO). ISO 9000 certifica

34、tion: quality in product features that are required by the customer:Implies that the firm ensures that its offerings satisfy customer requirements and comply with regulations.Specifies that the firm meets customer and regulatory requirements and follows its policies and procedures while advancing qu

35、ality through continuous improvement. Addresses the phases of product development and requires performance measurement throughout the process through internal audits, monitoring customer satisfaction, and corrective action.Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200Prod

36、uct Standards: ISO 14000 Environmental management system standards that help business reduce its environmental impact, facilitate sustainable development, and foster international trade. Discourage firms from engaging in hazardous practices in countries where policies are lax. Promote efficient envi

37、ronmentally sound policies that have innovative technologies and processes. To receive this certificationFirms must develop EMS similar to the ISO 9000 standards and a policy stressing commitment to continual improvement and prevention of pollution.Firms provide assurances of compliance, and provide

38、 a framework for setting and reviewing objectives and targets.Copyright Atomic Dog Publishing, 2008Copyright Atomic Dog Publishing, 200Standards for Production, Rather Than Product Both ISO 9000 and ISO 14000 address the production process, rather than the product. But it is implied that the process affects the product In the context of both, certification refers to the issuing of a certificate by an independent external body that has audited the organizations management system and verified that it conforms to the requirements of the

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