2.
Something offered to an international market
that satisfies a want or a need. Products can
contain both tangible and intangible parts
◦ Tangible: Parts of a product that can be seen and
felt
i.e. packaging, brand name, quality, design
◦ Intangible: Parts of a product that cannot be seen
or felt.
i.e. warranty, delivery, credit, installation; services are
mostly intangible
3.
Four choices for marketers when moving
products into new markets
◦
◦
◦
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keep their home country products the same
adapt an existing product for new markets
design new products for new markets
design one product for a global marketplace
4. ◦ Standardized products can create economies of
scale in research & development, production, and
marketing
◦ A global product with a global brand image
allows companies to compete against other
global marketers
5. ◦ Products may be used in different political & legal
environments
◦ Consumers may have different cultural needs
◦ Local competition in foreign markets may be
different than domestic
◦ Product customization may be necessary
6.
Companies need to evaluate the following in
order to make choice between standardizationverses-adaptation
◦ market characteristics:
political and legal regulations, customer characteristics
and preferences, purchasing patterns, and distribution
systems
◦ product characteristics:
nature of the product, the ability to create a global brand,
and the purpose for which the product is used,
perception of product quality, perception of the product’s
country of origin, and required after-sale service.
◦ company characteristics:
financial resources, international orientation of
management
7. ◦ Brand: name, word, or design that identifies a
product, service, or company
◦ Creates a certain expectation in the minds of
customers
◦ Global brands need a competitive advantage
when competing with local brands in local
markets
◦ Can be subject to country-of-origin effect
i.e., in the 1950’s “Made in Japan” meant lowquality to consumers
Today “Made in China” can mean low quality,
while Japanese products signal high quality
8.
Using a brand to create an image
BMW usually signifies quality engineering, and a
fast, sporty automobile
Disney suggests wholesome family
entertainment
Companies used to rely on TV advertising to
create brand image
Today they are shifting to the Internet, live
events, cell phones, and movies
9.
The additional value that a brand name brings to a
product or company
Coca-cola estimated at over $67 billion
Counterfeits, forgeries, and grey markets can
diminish brand equity—may cause product to
be viewed as cheap/poor quality
Grey markets exist when products are sold
outside an authorized distribution system
10.
Can have a strong impact on product image
◦ Logos and trademarks are intangible assets with
a dollar value or brand equity
Should translate well across cultures
11. Must be unique to the product and its market
May not be used by any other product or
company
Should not have undesirable meaning across
languages
Family brand: typically the brand name of a
company that also have individual product
brands
Ford Motor Company (family) sells Mustang (individual)
Kelloggs (family) sells Rice Krispies (individual)