Ch 12 International Marketing

Ranging from simple pachaging changes to total redesign of the physical core product.

Used to describe the changes mandated by local product and service standards

* mandatory adaptation are more frequently the reason for product adaptation than the cultural reasons, legal or economic.
ex: Electrolux offers a cold-wash only washing machine in Asian countries where electric power is expensive or scarce.

the EU law requires that packaging material through all levels of distribution be recycled or resused.

Market-perceived quailty: quality is defined by the buyer.

performance quailty:

: It is a bundle of satisfactions (or utilities) that the buyer receives. These include its form, taste, color, odor, and texture; how it functions in use; the package; the label; the warranty; the manufacturer’s and retailer’s servicing; the confidence or prestige enjoyed by the brand; the manufacturer’s reputation; the country of origin; and any other symbolic utility received from the possession or use of the goods.

The process by which innoviation spreads.

The introduction of the product and its widespread adoption

The goal of a foreign marketer is to gain product acceptance by the largest number of consumers in the market in the shortest span of time. The question comes to mind of whether the probable rate of acceptance can be predicted before committing resources and, more critically, if the probable rate of acceptance is too slow, whether it can be accelerated.

1) is the perceived attributes of the innovation and the 2) is the method used to communicate the idea 3) the degree of perceived newness

Relative advantage: the perceived marginal value of the new product relative to the old/ compatibility: its compatibility with acceptable behaviors/ norms. Complexity: the degree of complexity associated with the product. Triability: the degree of economic and social risk. observability: the ease with which the product benifits can be communication.

By using this model, the impact of the cultural, physical, and mandatory factors that affect a market’s acceptance of a product can be focused on the core component, packaging component, and support services component.

Consists of the physical product- the platform that contains the essential technology( it is on the product platform that product variations can be added or deleter to satisfy local differences)- and all it's design & functional features.
major adjustments in the platform aspects of the core component may be costly because a change in the platform can affect product process and thus require additional capital investment. However, alterations in design, functional features, flavors, color, and other aspects can be made to adapt the product culture variations.

Includes style features, packaging, labeling, trademarks, brand name, quality, price. ect.

Repair & maintence, installation, warranties, deliveries, and the availability to spare parts.
in some countries, the concept of routine maintenance or preventive maintenance is not a part of the culture. as a result, products may have to be adjusted to require less- frequent maintenance, and special attention must be given to features that may be taken for granted in the US.

Literacy rates and educational levels of a country may require a firm to change a product's instructions. A simple tern in one country may be incomprehensible in another.

Intangible: characteristics unique to a service. inseparable: it's creation cannot be seperated from it's consumption.
Heterogeneous: in that it is individually produced, thus unique. perishable: once created, it can not be stored, but must be consumed simultaneously with it's creation.

Protectionism: the EU is making modest progrress toward establishing a single market for service reciproity& harmonization, key concepts in the single european act, possible will be used to control the entrance of some service industries into europe. restrictions on trans border data flows: the european commission is concerned that data on individuals (such as income, spending prefrences, debt repayment history) are being collected, manipulated, and transferred between companies with little regard to the privacy of the individual.