Products and Culture
As a marketer, we all know that a product is more than a physical item: It is a bundle of satisfactions (or utilities) that the buyer receives. These utilities include its form, taste, colour, odour, and texture; how it functions in use; the package; the label; the warranty; and any other symbolic utility received from the possession or use of the goods. In short, the market relates to more than a product’s physical form and primary function. The values and customs within a culture confer much of the importance of these other benefits. In other words, a product is the sum of the physical and psychological satisfactions it provides the user.
A product’s physical attributes generally are required to create its primary
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The problems illustrated in the cake mix example have little to do with the physical product or the user’s ability to make effective use of it and more with the fact that acceptance and use of the cake mixes would have required upsetting behaviour patterns considered correct or ideal. Finally, there are some interesting surprises in the area of adaptation. An interesting example is Harry Potter. About 20 percent of the sales of his last adventure book in Japan were in English. Japanese consumers were looking for ways to augment English lessons, and the books and associated audiotapes filled that particular need very well. For them Potter is not just entertainment; it’s education.
Innovative Products and Adaptation An important first step in adapting a product to a foreign market is to determine the degree of newness as perceived by the intended market. How people react to newness and how new a product is to a market must be understood. In evaluating the newness of a product, the international marketer must be aware that many products successful in the United States, having reached the maturity or even decline stage in their life cycles, may be perceived as new in another country or culture and thus must be treated as innovations. From a sociological viewpoint, any idea perceived as new by a group of people is an innovation.
Whether or not a group accepts an innovation, and the time it takes to do so,
1. Should he pay the “commission” and, if so, to whom? Explain your reasoning. If he pays, how should he handle the situation with the sales manager and the vice president of sales? In your answer, include a discussion of the arguments in favor of paying and the arguments in favor of not paying.
A firm 's international marketing program must generally be modified and adapted to foreign markets. This international marketing program uses strategies to accomplish its marketing goals. Within each foreign nation, the firm is likely to find a combination of marketing environment and target markets that are different from those of its own home country and other foreign countries. It is important that in international marketing, product, pricing, distribution and promotional strategies be adapted accordingly. In order for an international firm to function properly, cultural, social, economic, and legal forces within the country must be clearly understood.
As variety and option tend to lead to the peaking of consumer interest since human nature inevitably values choice and the allure of something being new or revolutionary, it is easy to see how interest can be closely linked with consumption. Singer stated that, “In its first 24 hours, the app was downloaded more than one million times” (2015: 1). This points to the universal nature of the product stemming largely from the ease at which the product can be accessed. Also, Boush and Loken pointed out that a sense of familiarity with the product regarding the brand largely contributed to the consumption adding to the fact that the product is already highly convenient to purchase (1991: 16). Boush and Loken stated, “Capitalizing on an established brand name is a growth strategy that seems destined to increase in popularity,” which accentuated the idea that convenience in the use of a product strongly linked with a brand not only involved the product itself yet involved the brand as well (1991: 16). Thus, it is seemingly clarified that convenience in use helped to make products, brands, and trends beyond culture, for the appeal to innate human tendencies in clinging to what is comfortable, known, or familiar is beyond cultural norms. Allison further clarifies that convenience in use is a key component for making a product, brand, or
After reading the "Direct Mail" article posted in our course, discuss three things you learned related to online giving trends of donors from different generations.
developed based on consumer need. If a consumer puts the idea out there that they
International marketing is the export, franchising, joint venture or full direct entry of a marketing organization into another country. • To bring countries closer for trading purpose and to encourage large scale free trade among the countries of the world. • To bring integration of economies of different countries and there by to facilitate the process of globalization of trade. • To establish trade relations among the nations and thereby to maintain cordial relations among nations for maintaining world peace. • To facilitates and encourage social and cultural exchange among different countries of the world. • To provide better life and welfare to people from different countries of the world. • To provide assistance
The data suggested in the cultural analysis includes information that helps the marketer make market-planning decisions. However, its application extends beyond product and market analysis to being an important source of
1. Many U.S. firms do exceedingly well in the global arena. Which of the following organizations is considered to be the U.S. leader with global revenues approximated at $285 billion annually? (Points: 1)
Investment on packaging may be cheaper or as expensive in price with traditional mass media and public relation, but the return is far more pleasant. Underwood et al., (2001) and Underwood (2003) also mentioned another reason to why packaging as become so significant. There is an increase in recognition that packaging can bring out point of differences and disparity of brand identity. There are many factors marketers have to study upon in maximizing its ability to differentiate its brand among the others for consumers to notice. Therefore, it is important to take in consideration how consumers perceive a product when they stand in front of the shelf. The five senses, which are the most important sense to focus on. Things like colours, do consumer take colours of packaging differently when it comes to culture difference? Do consumer retrieve memory of product packaging when its unplanned purchase or incidental purchase? Consumers with different level of involvement, would they view packaging differently? The impact of packaging to consumer buying behavior lies in many
Aesthetic pinpoints the product subjectivity brunt on the human senses, such as its appearance, and tastes (Paraschivescu & Caprioara, 2014, p 25).
Though change is constant, most people are not used to welcoming it with eagerness and enthusiasm. So too with new products. It would take much effort and creativity for new products to penetrate a market that already consists of similar merchandise. How a new product will fare would rely highly on several factors such as quality, design, features, brand name, packaging, and services offered.
Indulgence versus Restraint (IND). It demonstrates a high versus low from each country in various cultures.
The original formula for Red Bull was developed in 1964; however, the Red Bull company was not founded until 1984 after a merger between Dietrich Mateschitz, marketing guru, and Chaleo Yoovidhya, the owner of the Red Bull formula. Categorized as an energy drink, Red Bull was initially designed to “treat jet lag and boost energy for truck drivers” (Hollensen, 2012). In today's era, Red Bull is commonly used as an energy drink; like coffee, and as a mixer in alcoholic drinks, like Red Bull Wings and the Jägerbomb. This aligns with the company's focus on the younger generations of partygoers and post-secondary students.
International Retailing has existed and gained market in the past decades. There has been a financial boom in many countries. International Retailers are the companies who are dealing with the retails in the Countries abroad, i.e. far from the countries of the company’s origin. Earlier they were just Domestic Retailers covering their domestic market in the country of their respective origin, but with the elapse of time the demands of people rise in various items and in various countries. It was not possible for them to fulfill the demand of their domestic market and other countries at the same time. So with a risk they started to increase their retails shops within the origin country to have a look at the response of the people. But their sole purpose was to internationalize their retails shops. With time they opened the same retail shops with the same fashion quality but in increased quantity. This is how they became International Retailers. When we talk about International Retailing, the most common names that we come across are K-mart, PAK’nSAVE, Walgreen, Woolworths Ltd, etc. But the leading names of the Retailers that have covered most of the countries are Wal-Mart, Carrefour and Tesco, with their net sales turnover running are $374.5 billion, $130 billion and $102.6 billion, respectively. There are 2 types of International retailers in the industry, i.e. - international Grocery retailers and International fashion retailing. The products of International
Beliefs, values and customs are the three components of culture which influence the international adaptation of products (Usunier, 1993). These three components have an effect on the individual’s consumption behaviours and the buying pattern. Individuals purchase products due to some references from their own culture. Beliefs, values and customs send direct and indirect messages to customers concerning the assortment of products and services; it is known as the cultural message (Doole & Lowe, 2001). The culture a customer portrays determines and affects their decision process. Organisations must adapt their product to meet the requirements of that specific area of operation. (Usunier, 1993)