Ch 12 The Exporting Process

1
Products and Services for Consumers
Chapter
9
2
Concepts

• A product is a good, service, or idea
• Tangible Attributes
• Intangible Attributes
• Product classification
• Consumer goods
• Industrial goods

3
Buyer Orientation Based Product Classification

• Convenience
• Preference
• Shopping
• Specialty

4
Unique Characteristics of Services

• Inseparable in that its creation cannot be
  separated from its consumption.
• Heterogeneous in that it is individually produced
  and is thus virtually unique.
• Perishable in that once created it cannot be
  stored but must be consumed simultaneously whit
  its creation.

12-8
Irwin/McGraw-Hill
5
Top Consumer Services Exports

• Tourism 5. Telecommunications
• Transportation 6. Entertainment
• Financial Services 7. Information
• Education 8. Health Care

12-9
Irwin/McGraw-Hill
6
Product Component Model
SUPPORT SERVICESCOMPONENT
PACKAGING COMPONENT
? Repair and maintenance
? Deliveries
12-6
CORE COMPONENT
? Trademark
? Price
? Product platform ? Design features ? Functional
features ? Legal
? Warranty
? Installation
? Quality
? Brand name
? Package
? Instructions
? Spare parts
? Legal
? Styling
? Other related services
? Legal
Irwin/McGraw-Hill
7
Product Component Analysis for Adaptation
? Core Component ? Physical Product ?
Features ? Design ? Packaging Component ?
Style ? Brand Name ? Packaging ?
Quality ? Labeling ? Price ? Trademarks ?
Support Services Component ? Repair ?
Warranties ? Maintenance ? Deliveries ?
Instructions ? Spare Parts ? Installation
12-7
Irwin/McGraw-Hill
8
Products and Culture

• ? Cultural Influences
• ? Innovative Products and Adaptation
• ? Diffusion of Innovations
• ? Degree of Perceived Newness
• ? Perceives attributes of Innovation
• ? Communication Methods

12-3
9
Characteristics of Innovations
? Relative Advantage ? Compatibility ? Complex
ity ? Trialability ? Observability
12-5
Irwin/McGraw-Hill
10
Brands

• Bundle of images and experiences in the
  customers mind
• A promise made by a particular company about a
  particular product
• A quality certification
• Differentiation between competing products
• The sum of impressions about a brand is the Brand
  Image

11
Brand Equity

• The added value that accrues to a product as a
  result of investments in the marketing of the
  brand
• An asset that represents the value created by the
  relationship between the brand and customer over
  time

12
Brand Strategies
Global Brands
12-11
National Brands
Global/National Brand Mix
Private Brand
Irwin/McGraw-Hill
13
Global Products and Brands

• Global products meet the wants and needs of a
  global market and is offered in all world regions
• Global brands have the same name and similar
  image and positioning throughout the world

14
Branding

• Combination or tiered branding allows marketers
  to leverage a companys reputation while
  developing a distinctive identity for a line of
  products
• Sony Walkman
• Co-branding features two or more company or
  product brands
• Nutrasweet and Coca-Cola
• Intel Inside

15
Brand Extensions

• Brand acts as an umbrella for new products
• Example The Virgin Group
• Virgin Entertainment Virgin Megastores and MGM
  Cinemas
• Virgin Trading Virgin Cola and Virgin Vodka
• Virgin Radio
• Virgin Media Group Virgin Publishing, Virgin
  Television, Virgin Net
• Virgin Hotels
• Virgin Travel Group Virgin Atlantic Airways,
  Virgin Holidays

16
The Most Valuable Brands
17
Guidelines for Developing Global Brand Leadership

• Create a compelling value proposition
• Think about all elements of brand identity and
  select names, marks, and symbols that have the
  potential for globalization
• Research the alternatives of extending a national
  brand versus adopting a new brand identity
  globally
• Develop a company-wide communication system

18
Guidelines (cont.)

• Develop a consistent planning process
• Assign specific responsibility for managing
  branding issues
• Execute brand-building strategies
• Harmonize, unravel confusion, and eliminate
  complexity

19
A Needs-Based Approach Maslows Hierarchy of
Needs
20
Maslows Hierarchy The Asian Equivalent
21
Strategic Alternatives in Global Marketing

• Extension offering product virtually unchanged
  in markets outside of home country
• Adaptation changing elements of design,
  function, and packaging according to needs of
  different country markets
• Creation developing new products for the world
  market

22
Global Product Planning Strategic Alternatives
Product
Communication
Same Different
Strategy 2 Product Extension Communication
Adaptation
Strategy 4 Dual Adaptation
Different Same
Strategy 3 Product Adaptation Communication Exten
sion
Strategy 1 Dual Extension
23
Evaluating Potential of a New Product

• How big is the market for this product at various
  prices?
• What are the likely competitive moves in response
  to our activity?
• Can we market the product through existing
  structure?
• Can we source the product at a cost that will
  yield an adequate profit?
• Does product fit our strategic development plan?

24
International Product Trade Cycle