International Marketing

• Product and Brand
Robert Moussetis
Global Product Development
• The key to global
marketing success!
• The Product Development
Process:The main goal is
to build adaptability into
products and product
lines for worldwide
Robert Moussetis
• Idea Generation
• Screening
• Product and Process Development
• Scale-up
• Commercialization
• Location of R&D Activities
• Host Governments Desire R&D centers
• Organization of Global Product Development
• Testing of New Products
• Global Product Launch
Robert Moussetis
Management of the Product Portfolio
• Analyzing the Product Portfolio
– Growth
– Market Position
• Advantages
– A global view of competitive
– Global strategy based on
allocation of scarce resources
– Marketing objectives based on
product lines in markets served
– A convenient visual
communication goal
• Disadvantages of the Product
Portfolio Approach
– Foreign competition does not
follow the same rules as
domestic competition
– Relationships between market
share and profitability may
– Government regulations
– Local content laws
– Different production sites may
impact perceptions of risk and
• Managing the Brand Portfolio
Robert Moussetis
Top Global Brands
• Brand Stature
– Coca-Cola
– Kodak
– Sony
– Mercedes-Benz
– Pepsi-Cola
– Nestle
– Gillette

• Brand Vitality
– Coca-Cola
– Nike
– Adidas
– Sony
– Ferrari
– Reebok
– Disney
Private Brand Policies: Intermediaries own branded
products or “store brands”
Robert Moussetis
International Marketing

Services Marketing
Differences Between Services
and Goods
• “…a good is an object, a device, a thing; a service
is a deed, a performance, an effort...”
The main difference between
goods and services is intangibility.
Services are the Fastest Growing Sector of
World Trade
• Banking and Financial Services
• Construction, Design, and
Engineering Services
• Legal and Accounting Services
• Communication Services
• Teaching and Training Services
• Management Consulting
Linkage between Services
and Goods
Services compliment goods
Goods compliment services
• Services compete with goods
• Services compete with other services
• Services are perishable.
• Consumption of services requires
customer involvement.
• Service consistency is required!
• Customer Problems with Services
– Market transparency
– Service heterogeneity

The Role of Services in the U.S.
and World Economy
• The service sector produces 75% of U.S. GNP
and employs 79% of the workforce.
• Services contribute more than 60% of GNP in
all industrial nations.
• Trade in services is about 25% of all world
• Prediction for 2000: More than 50% of all
multinational enterprises will be service

Global Transformation of
• Deregulation of services by government
• Decreased regulation of services by
their industry groups.
• Technology is increasing service trade.
• Both labor-intensive and technology-
intensive services are expanding.

International Trade Problems
in Services
•U.S. Disincentives to International Services: State and federal
regulations are formidable barriers to entry.
•Data Collection Problems
•Obstacles to service trade abroad are:
barriers to entry
Government’s Justification for Barriers:
National Security
Economic Security
Protect Infant Industries
•Discriminatory and Nondiscriminatory Regulations

• For Services Tied to Goods:“...follow the path of
the good”
• For Services Independent of Goods: Identify
market situations abroad similar to the domestic

Starting to Market
Services Internationally
Strategic Implications of
International Services Marketing
• Identify the nature and aim of the services
offering core.
• Communicate the performance of the service
on both mass levels and personal levels.
• Train personnel to convey the spirit, values,
and attitudes of the service corporation.
• Address issues of pricing and financing.
• Consider the distribution implications of
international services.