International MarketingChapter 13 Key Concepts

Issues to consider in the industrial product market Stage of Economic Development Technology and Market Demand Attributes of Product Quality Quality Defined by the Customer Lack of Universal Standards ISO 9000 Certification Importance of Trade Shows

The Ongoing Marketing Debate:Adaptation or Standardization

ADAPTATION

Consumer Products

– More sensitive

– More likely to change existing consumption patterns

STANDARDIZATION

Industrial Products

– Less sensitive

– Less likely to change existing consumption patterns

The Industrial Product Market:Issues to Consider

Stage of Economic Development Technology and Market Demand Quality Defined by the Customer Lack of Universal Standards

The Stages of Economic Development

Preindustrial/Precommercial Stage

Preconditions for Take-Off

Take-Off

Drive to Maturity

Age of Mass Consumption

Technology and Market Demand

Economic growth and expansion– Asia– Newly Independent States (former USSR)– Eastern Europe– BEMs

Privatization of government industries– Many opportunities for foreign investors

Product Quality is Defined by the Customer!

Level of Technology– Appropriate level

Compliance with Standards– As defined by the customer

Support Services & Follow-Through– Comprehensive after-sales service

Requirements of Effective Global Competition

Effective After Sales Service

Prompt Delivery

Available Spare and Replacement Parts

Proper Installation and Training

Lack of Universal Standards

Major Challenge for All Companies

Extra Challenge for American Companies

The Global Harmonization Task Force

ISO 9000 Certification

Registration and certification standard Applies to production processes only Manufacturer’s quality control system An important competitive marketing tool

Reaching Industrial Customers

Print Advertising

Catalogs (now online)

Websites

Direct Mail

Trade Shows/Fairs