Final Flashcards
Product
- bundle of satisfactions or utilities a buyer receives
- people use them to help achieve their lifestyle goals
- culture affects the consumers need
benefits of product standardization
- lower manufacturing costs
- lower inventory costs
- cost savings due to elimination of product adaptation efforts
- fast global roll-out possible
- can enhance consumers perception of a global brand
benefits of product adaptation
- mandatory adaptation allows products into otherwise closed markets
- products can be sold for different use in different climates/infrastructures
- modified products may perform better
- product costs may be decreased
- greater sales due to industry norms and cultural preferences
when entering a foreign market, should the company standardize its product marketing strategy or customize it?
most companies follow a strategy that is a combination of standardization and customization
mandatory product adaptation
necessary for product to be sold in a local market
California car emission standards
discretionary product adaptation
not necessary but may be beneficial
cultural color preferences
red and white have happy associations in Japan
green associated with jungle or sickness in Malaysia
cultural sound preferences
forces to eliminates “ping” noise from word processing in Japan because workers mortified when their mistakes were publicly obvious
cultural taste preference
what tastes good varies from country to country
physical realities of markets affect product decisions
- air conditioners in Saudi Arabia must be able to operate under hotter and dustier conditions
- paint must be adapted to various climactic conditions
infrastructures vary and people may use products differently in a market
- Cheer detergent adapted because Japanese consumers washed with cold tap water and liked to add fabric softeners
- Cadbury Dairy Milk shots designed for hot climates with no refrigeration
the physiological aspects of a product may need adaptation too
Frito Lay introduced a “cool lemon” chip packages in pastel shades because Chinese consumers associate fried foods with yang (which generates body heat and should be avoided in hot weather)
adapting to material culture
- small sized cars in Europe vs Hummers in the US
- smaller size appliances in Japan
different physical characteristics of conusmers
Swiss watch manufacturers learned to adapt their watchband to different wrist sizes (Japanese have smaller wrists than Americans)
cost and price considerations
lower available income may require smaller package sizes in developing countries
products designed in highly developed countries often exceed the performance needed in developing countries
customers in developing countries may prefer simpler products (to save costs and ensure better service over the products lifetime)
“good enough” products
try to optimize the price performance tradeoff (75% performance for a 25% price)
two types of national standards
voluntary and mandatory
size, shape, and materials adaptations
- product packaging norms
- existing standards
- economic development
- environmental concerns
color and text adaptations
- promotional strategy
- cultural meaning and implications
- language issues
- government regulations
law and politics adaptations
Green marketing and product development in Europe
- control of packaging components of solid waste
- consumer demand for environmentally friendly products
diffusion of innovations
rate of acceptance or resistance can be predicted
five characteristics of innovation basis
- relative advantage
- comparability
- complexity
- trialability
- observability
production of innovations using homogeneous and culturally diverse teams
- diversity groups for innovation; higher creative output
- long-term study on the long-term impact on work team performance