Debate the issue of global versus adapted products for the international marketer.

Global communication and other worldwide socializing forces have fostered a homogenization of tastes, needs, and values in a significant sector of the population across all cultures. This has resulted in a large global market with similar needs and wants that demands the same reasonably priced products of goods quality and reliability. Although recognizing some cultural variations, advocates of standardization believe that price, quality, and reliability will offset any differential advantages of a culturally adapted product. Product standardization leads to production economies and other savings that permit profits at prices that make a product attractive to the global market. Economies of production, better planning, more effective control, and better use of creative managerial personnel are the advantages of standardization. Such standardization can result in significant cost savings but it makes sense only when there is adequate demand for the standardized product.

Those who hold the opposing view stress that substantial cultural variation among countries dictates a need for differentiated products to accommodate the uniqueness of cultural norms and product use patterns.

The issue between these two extremes cannot be resolved with a simple either/or decision since the prudent position probably lies somewhere in the middle. The key issue is not whether to adapt or standardize, but how much adaptation is necessary and to what point a product can be standardized.

Define the country-of-origin effect and give examples.

Country-of-origin effect (COE) can be defined as any influence that the country of manufacture has on consumer’s positive or negative perception of a product. Feelings of national pride- the “buy American” effect, for example can influence attitudes toward foreign products. Honda, which manufactured one of its models almost entirely in the USA, recognized this phenomenon and points out how many component parts are made in America in some of its advertisements.

The text discusses stereotypes, ethnocentrism, and degree of economic development, and fads as the basis for generalization about country-of-origin effect on product perception. Explain each and give an example.

Ethnocentrism can also have country-of-origin effect: feelings of national pride- the “buy American” effect, for example can influence attitudes toward foreign products. Honda, which manufactured one of its models almost entirely in the USA, recognized this phenomenon and points out how many component parts are made in America in some of its advertisements.

Stereotypes about specific product categories that people judge “best”: English tea, French perfume, and Chinese silk, Italian leather…

Degree of economic development- Industrialized countries have the highest quality image, and there is generally a bias against products from developing countries. One study of COE between Mexico and Taiwan found that a microwave oven manufactured in Mexico was perceived as significantly more risky than an oven made in Taiwan. There is also the tendency to favor foreign-made products over domestic-made in less- developed countries.

Fads - often surround products from particular countries or regions in the world. These fads are most often product specific and generally involve goods that are themselves faddish in nature. European consumers are apparently enamored with a host of American-made products ranging from Jeep Cherokees, Budweiser beer, and Jim Beam bourbon, to Bose sound systems.

5) Discuss product alternatives and the three marketing strategies: domestic market extension, multidomestic markets, and global market strategies.

The marketer has only 3 alternatives when entering a new market:

- Domestic market - sell the same product presently sold in the home market

- Multidomestic market strategy- adapt existing products to the tastes and specific needs in each new country market

- Global market strategy- develop a standardized products for all markets

As its market share slipped, McDonald’s Corporation bowed to its growing Japanese competitors by launching the Teriyake McBurger

6) Discuss the different promotional/product strategies available to an international marketer.