International Marketing

15th edition

Philip R. Cateora, Mary C. Gilly, and John L. Graham

 Maintaining Quality 13

• 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

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 Green Marketing 13
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

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 Innovative Products 13

and Adaptation
• Determining the degree of newness as perceived
by the intended market
• Diffusion
• 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
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 Diffusion of Innovations 13

• 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

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 Five Characteristics 13

of an Innovation
• Relative advantage
• Compatibility
• Complexity
• Trialability
• Observability

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 Product Component Model 13

Exhibit 13.1

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 Marketing Consumer 13

Services Globally
• More than half of Fortune 500 companies are
primarily service providers
• Consumer services characteristics
– Intangibility
– Inseparability
– Heterogeneity
– Perishability
• A service can be marketed
– As an industrial (business-to-business)
– A consumer service
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 Services Opportunities 13

in Global Markets
• Tourism
• Transportation
• Financial services
• Education
• Communications
• Entertainment
• Information
• Health care

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 Barriers to Entering Global 13
Markets for Consumer Services
• Four kinds of barriers face consumer service
marketers:
– Protectionism
– Restrictions on transborder data flows
– Protection of intellectual property
– Cultural barriers and adaptation

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 Brands in 13
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

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 Global Brands 13

• The Internet and other technologies accelerate

the pace of the globalization of brands
• Ideally gives the company a uniform worldwide
image
• Balance
• Ability to translate

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 Country-of-Origin Effects 13
and Global Brands (1 of 2)
• 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”
• Ethnocentrism

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 Country-of-Origin Effects 13
and Global Brands (2 of 2)
• 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 less-
developed or newly industrializing country less
positive
• Fads often surround product from particular
countries or regions
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