MKT300

International Marketing
-Global marketing product decisions-
 -Learning objectives-

0 Review the basic product concepts that underlie a

successful global marketing product strategy.
0 Compare & contrast local products & brands,
international products & brands, and global products &
brands.
 -basic product concept-

0 A product is a good, service, or idea

0 Tangible Attributes
0 Intangible Attributes
0 Product types
0 Consumer goods
0 Industrial goods
-product levels-

Core Product
‘Benefit’

Actual Product
‘Packaging’ ‘Quality’
‘Labelling’ ‘Branding’
‘Aesthetics/Style’
…

Augmented Product
‘Warranties’
‘After sales service’
‘Delivery’
…
 -packaging-

0 Consumer Packaged Goods are a variety of products

whose packaging protects or contains the product
from production to the end user
0 Eco-packaging addresses environmental issues like
recycling, biodegradability, & sustainable forestry
0 Must engage the senses, make an emotional connection,
& enhance the brand experience
0 Requirements vary across countries2
0 Follow for WTO discussions: https://www.wto.org/english/tratop_e/envir_e/labelling_e.htm
 -labelling-
0 Provides consumers with various types of information
0 Regulations differ by country regarding various
products
0 Health warnings on tobacco products
0 Most countries require clarity on the country of
origin, and final assembly point
0 European Union requires labels on all food products
that include ingredients from genetically modified
crops
 -aesthetics-
0 Global marketers must understand the importance of
visual aesthetics
0 Aesthetic styles (degree of complexity found on a label)
differ around the world
0 it has been said that German wines would be more
appealing in export markets if the labels were simplified
0 In some cases, a standardized color can be used in all
countries; examples include the distinctive yellow color on
Caterpillar’s earthmoving equipment
0 …In other instances, color choices should be changed in
response to local perceptions.
 -product warranties-
0 An Express Warranty is a written guarantee that assures
the buyer is getting what he or she paid for or provides a
remedy in case of a product failure
0 Warranties can be used as a competitive tool
0 Late 1990s, Hyundai (Korean brand) was doing bad in America…
0 …perceived as cheap…
0 …made significant improvements in pdt quality…
0 …consumer perceptions did not change
0 introduced a 10-year, 100,000-mile warranty program…
0 most comprehensive coverage in the auto industry… launched several new
vehicles and increased expenditures for advertising.
0 …impressive results… sales increased from about 90,000 in 1998
to nearly 500,000 in 2011.
 -basic brand concepts-
0 What is a brand?
0 Bundle of images and experiences in the customer’s mind
0 A promise made by a particular company about a
particular product
0 A quality certification
0 Differentiation between competing products

0The sum of impressions about a brand

is the Brand Image
 -brand equity-
0 The total value that accrues to a product as a result of
investments in the marketing of the brand

0 An asset that represents the value created by the

relationship between the brand and customer over time

0 …Warren Buffet uses brand equity as one of the criteria

for making investment decisions…
 -brand equity benefits-
0 Greater loyalty
0 Less vulnerability to marketing actions
0 Less vulnerability to marketing crises
0 Larger margins
0 More inelastic consumer response to price increases
0 More elastic consumer response to price decreases
0 Increased marketing communication effectiveness
 -international products and
brands-
0 Products and brands offered in several markets in a
particular region
0 ‘Euro-brands’
0 Honda 5-door hatchback auto is known as Fit in Japan
and Jazz in Europe
0 Adapted the brand name due to close association
between the original name ‘fitta’ with the scandanavian
slang for female genitals – Honda Jazz in Europe
0 The slogan is ‘small on the outside but big on the inside’
- Good day -