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In this chapter, students will be able to understand: How global marketing management differs from international marketing management, the need for planning to achieve company goals, the important factors for each alternative marketentry strategy, the increasing importance of international strategic alliances. | Products and Services for Consumers Chapter 13 Learning Objectives LO1 The importance of offering a product suitable for the intended market LO2 The importance of quality and how quality is defined LO3 Physical, mandatory, and cultural requirements for product adaptation LO4 The need to view all attributes of a product to overcome resistance to acceptance LO5 Country-of-origin effects on product image 2 International Consumer Product Trends: Opportunities and Challenges New consumers are springing up in many emerging markets In the more mature markets consumers’ tastes are more sophisticated and complex due to increases in purchasing power The trend for larger firms is toward becoming global in orientation and strategy 3 Product Adaptation Product adaptation is important for both small and larger global companies As competition for world markets intensifies selling what is produced for the domestic market is less effective Some products cannot be sold at all in foreign markets without modification Others may be sold as is, but their acceptance is greatly enhanced when tailored specifically to market needs 4 Quality Intense global competition is placing new emphasis on manufacturing quality products Product life cycles are becoming shorter focusing on: Quality products Competitive prices and Innovative products The power is shifting from seller to the buyer Customers have more choices with more companies competing for their attention More competition and more choices means more power in the hands of the customer, driving the need for quality 5 Quality Defined Quality, as a competitive tool, is the deciding factor in world markets Quality can be defined on two dimensions: market-perceived quality and performance quality 6 Quality Defined Quality is associated with customer satisfaction Quality is also measured in many industries by objective third parties such as JD Power and Associates Customer satisfaction indexes developed are now being used to measure . | Products and Services for Consumers Chapter 13 Learning Objectives LO1 The importance of offering a product suitable for the intended market LO2 The importance of quality and how quality is defined LO3 Physical, mandatory, and cultural requirements for product adaptation LO4 The need to view all attributes of a product to overcome resistance to acceptance LO5 Country-of-origin effects on product image 2 International Consumer Product Trends: Opportunities and Challenges New consumers are springing up in many emerging markets In the more mature markets consumers’ tastes are more sophisticated and complex due to increases in purchasing power The trend for larger firms is toward becoming global in orientation and strategy 3 Product Adaptation Product adaptation is important for both small and larger global companies As competition for world markets intensifies selling what is produced for the domestic market is less effective Some products cannot be sold at all in foreign markets without
