Country-of-Origin Effects and Global Brands
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Transcript Country-of-Origin Effects and Global Brands
International Marketing
14th Edition
P h i l i p R. C a t e o r a
M a r y C. G i l l y
John L. Graham
Products
and Services
for Consumers
Chapter 12
McGraw-Hill/Irwin
International Marketing 14/e
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
What Should You Learn?
The importance of offering a product suitable for
the intended market
The relationship between product acceptance
and the market into which it is introduced
The importance of quality and how quality is
defined
Country-of-origin effects on product image
Physical, mandatory, and cultural requirements
for product adaptation
The need to view all attributes of a product in
order to overcome resistance to acceptance
12-2
Global Perspective Hong Kong –
Disney Rolls the Dice Again
Tokyo Disneyland – successful
EuroDisney – disaster
Hong Kong Disneyland – open for business
Opportunities and challenges for international
marketers of consumer goods and services are
great and diverse
Any marketing firm’s goal should be quality
products and services that meet the needs and
wants of consumers at an affordable price
12-3
Hongkong Disneyland
12-4
Case Study—Disney Rolls the dice again
Where and when did Disneyland open?
What are the different marketing strategies between
Tokyo Disneyland and EuroDisney?
Why did it fail? What did EuroDisney do in order to save
EuroDisney?
What about Hongkong marketing strategies?
12-5
Quality
Shift to a customer’s market
Increased customer knowledge
The customer defines quality
Quality can be defined on two dimensions
Market-perceived quality
Performance quality
Most consumers expect performance quality
In many industries quality is measured by third
parties
JD Power and Associates
12-6
Maintaining Quality
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
12-7
Physical or Mandatory
Requirements and Adaptation
Product homologation(认证)
(means “accreditation or certified") is
used to describe the changes
mandated by local product and service
standards
Product adaptation
requirements
Legal
Economic
Political
Technological
Climate
12-8
12-9
Green Marketing
and Product Development
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
12-10
Low-carbon economy and Product Development
A Low-Carbon Economy (LCE) or LowFossil-Fuel Economy (LFFE)is an economy
which has a minimal output of greenhouse
gas (GHG) emissions into the biosphere(生物
圈), but specifically refers to the greenhouse
gas carbon dioxide(二氧化碳 ).
Globally implemented LCE‘s therefore, are
proposed as a means to avoid catastrophic
climate change, and as a precursor(先导) to
the more advanced, zero-carbon society and
renewable-energy economy.
12-11
太阳能光伏
12-12
Poyang Lake Ecological Economic Zone
12-13
Products and Culture
A product is the sum of the physical and
psychological satisfactions it provides the
user
Primary function
Psychological attributes
The need for cultural adaptation is often
necessary, affected by how the product
conforms
Norms
Values
Behavior patterns
12-14
Innovative Products
and Adaptation
Determining the degree of newness
as perceived by the intended market
Diffusion
the process by which innovation spreads
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
12-15
Diffusion of Innovations
Crucial elements in the diffusion of new ideas
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
12-16
Case: Japanese toilet
Japanese toilets have
long - and famously dominated the world
of bathroom hygiene
with their array of
functions, from
posterior shower jets
to perfume bursts and
noise-masking audio
effects for the easilyembarrassed.
12-17
Five Characteristics
of an Innovation
Relative advantage
The perceived marginal value of the new product relative to the old
Compatibility
Its compatibility with acceptable behavior, norms, values and so on
Complexity
Degree of complexity associated with product use
Trialability(试验能力)
Degree of economic and /or social risk associated with product use
Observability(可观察性)
The ease with which the product benefits can be communicated
12-18
Production of Innovations
Inventiveness of companies and countries
Expenditures
Japanese solutions
American-style education programs
American design centers
New ideas come from a variety of sources
Countries,
Acquisitions
Global collaborations
12-19
Analyzing Product
Components for Adaptation
Product is multidimensional
Sum of its features determines the bundle of
satisfactions (utilities) received by consumer
Three distinct components
Core
Packaging
Support services
12-20
Product Component Model
Exhibit 12.1
12-21
Core Components
Product platform
Design features
Functional features
12-22
Packaging Component
Price
Quality
Packages
Styling
Labeling
Trademark
Brand name
12-23
Support Services Component
Deliveries
Warranty
Spare parts
Repair and maintenance
Installation
Instructions
Other related services
12-24
Marketing Consumer
Services Globally
Consumer services
characteristics
Intangibility
Inseparability
Heterogeneity (异质性)
Perishability
A service can be marketed
As an industrial (business-to-business)
A consumer service
12-25
Services Opportunities
in Global Markets
Tourism
Transportation
Financial services
Education
Communications
Entertainment
Information
Health care
12-26
Barriers to Entering Global Markets
for Consumer Services
Globally, consumer
services marketers face
the following four
barriers:
Protectionism
Restrictions on transborder data
flows
Protection of intellectual property
Cultural barriers and adaptation
E-trade barriers
(Need Further research)
12-27
Brands in International Markets
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
12-28
Top Ten Brands
Exhibit 12.2
12-29
Global Brands
The Internet and other
technologies accelerate the
pace of the globalization of
brands
Ideally gives the company a
uniform worldwide image
Balance
Country-specific brand name vs global
band name
Ability to translate
(E-branding building)
12-30
National Brands
Acquiring national brand
names
Using global brand names
Nationalistic pride impact on
brands
Use global brands where
possible and national brands
where necessary
12-31
Country-of-Origin Effects
and Global Brands
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”
Ethnocentrism12-32
Country-of-Origin Effects
and Global Brands
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
12-33
Private Brands
Growing as challengers to
manufacturers’ brands
Private labels
Provide the retailer with high margins
Receive preferential shelf space and in-store
promotion
Are quality products at low prices
Manufacturers brands must be
competitively priced and provide
real consumer value
12-34
Summary
The growing globalization of markets must
be balanced with the continuing need to
assess all markets for those differences that
might require adaptation for successful
acceptance
In spite of the forces of homogenization,
consumers also see the world of global
symbols, company images, and product
choice through the lens of their own local
culture and its stage of development and
market sophistication
12-35
Summary
Each product must be viewed in light of how
it is perceived by each culture with which it
comes in contact
Analyzing a product as an innovation and
using the Product Component Model may
provide the marketer with important leads for
adaptation
12-36