International Marketing Summary
Product: anything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or need. Products also include services, events,
persons, places, organizations, and ideas or a mixture of these.
Services: a form of product that consists of activities, benefits, or satisfactions offered for
sale that are essentially intangible and do not result in the ownership of anything (e.g.
banking, hotel, airline travel, retail, wireless communication, and home-repair services).
Levels of product and services (each level adds more customer value)
1. Core customer value (Most basic level. What is the buyer
really buying? Defining the core, problem-solving benefits
or services that consumers seek)
2. Actual product (Developing the product and service feature,
a design, quality level, brand name, and packaging)
3. Augmented product (Offering additional consumer services
Consumer products: products and services bought by final
consumers for personal consumption. Classified on how
consumers go about buying them.
Industrial products: purchased for further processing or for use in conducting a business.
o Materials and parts (raw materials, manufactured materials and parts)
o Capital items (industrial products that aid in the buyer’s production or
operations, including installations; buildings and fixed equipment, and accessory
equipment; portable factory equipment and tools, and office equipment)
o Supplies and services (operating supplies and repair and maintenance items)
‘Supplies are the convenience products of the industrial field because they are usually purchased with
a minimum of effort or comparison.’
‘The distinction between consumer and industrial products is based on the purpose for which the
product is purchased.’
Organizational marketing: activities undertaken to create, maintain, or change the attitudes
and behavior of target consumers toward an organization. Both profit and not-for-profit
organizations practice organization marketing.
o Corporate image marketing (market themselves or polish their image)
o People marketing (activities to create, maintain or change attitudes or
behavior toward particular people)
o Place marketing (activities to create, maintain or change attitudes or behavior
toward particular places)
o Ideas can also be marketed, in particular, social ideas. This area has been
called social marketing and consists of using traditional business marketing
concepts and tools to encourage behaviors that will create individual and
Marketers make product and service decisions at three levels: Individual product decisions, product
line decisions, and product mix decisions. Individual product and service decisions
1. Product and service attributes (defining the benefits that it will offer)
o Product quality; quality can be defined as ‘no defects’ or in terms of creating
customer value and satisfaction.
‘Quality is when our customers come back and our products don’t.’
• Total quality management (TQM) is an approach in which all of the
company’s people are involved in constantly improving the quality of
products, services, and business processes.
• Performance quality is the ability of a product to perform its
functions. Companies choose a quality level that matches target
market needs and the quality levels of competing products.
• Conformance quality means high levels of quality consistency and
freedom from defects.
o Product features; a competitive tool for differentiating the company’s
products from competitors products. Features that customers value highly in
relation to costs should be added.
o Product style and design; Style describes the appearance of a product. It
doesn’t necessarily make the product perform better. Design goes to the
very heart of a product and contributes to its usefulness as well to its looks. It
involves shaping the customer’s product-use experience.
2. Branding (the most distinctive skill of professional marketers)
3. Packaging (designing and producing the container or wrapper for a product. Good and
innovative packaging creates immediate consumer recognition of a brand and gives the
company an advantage over competitors, and boosts sales.)
4. Labeling and Logos (the label identifies the product or brand, describe several things about
the product, and promotes the brand and engages customers.) Labels and brand logos
support the brand’s positioning and add personality to the brand. It can become a crucial
element in the brand-customer connection.