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Chapter Twelve

Chapter Twelve Global Products and Services 11-2 Advantages and Drawbacks of Standardization Advantages of Standardization • Cost Reduction • Enhanced Customer Preference • Improved Quality • Global Customers • Global Segments Drawbacks of Standardization

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Chapter Twelve

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  1. Chapter Twelve Global Products and Services

  2. 11-2 Advantages and Drawbacks of Standardization Advantages of Standardization • Cost Reduction • Enhanced Customer Preference • Improved Quality • Global Customers • Global Segments Drawbacks of Standardization • Missed Targets • Lack of Uniqueness • Sensitive to Protectionism • Strong Local Competitors

  3. 12-2 The Tradeoff Between Standardization and Adaptation Incremental manufacturing cost Combined costs Cost of lost sales Fully adapted Fully standardized Exhibit 12.1

  4. Standardization and its Problems • Standardization • advantages: cost, customer preference, quality, global customer/segments • disadvantages: of-target, lack of uniqueness, protectionism, local competitors • Globalization limits and pitfalls • limits:industry, resource, marketing mixes • pitfalls: research, overstandardization, poor follow-up, narrow vision, rigid implementation • Standardization research • Observation/focus groups, target product, test markets

  5. Global Brand Management • Brand Management • Brand equity, global brands, the brand portfolio • Brand globalization potential, changeover tactics • Counterfeit products • Counterfeit vs gray trade • Actions against counterfeit goods

  6. Global Services Marketing • Components of services (and products) • Core, formal service package (tangible product) , augmented • Service quality • subjective definition and evaluation, greater variation than products • Globalization potential • life cycle (maturity), infrastructure, localization of FSA’s • Fast food franchising - localizing key processes • Professional services - convergence and alliances

  7. 12-7 The Service “Product” Provider’s behavior Features Price Packaging Physicalsurroundings Provider’s appearance Generic benefits After-salessupport Warranty Quality Brand image Core service Formalservice package Augmentedservice Exhibit 12.7

  8. Chapter Terms and Essay • Terms • Brand eequity, brand changeover, counterfeit, global brand/management, globalization potential, target product research • Essay • Using KFC as an example, explain: • The advantages and disadvantages of standardization • Localization vs adaptation of product components • Standardization vs adaptation of service components

  9. KFC in Japan video • Which aspects of KFC's marketing strategy in Japan are global? which are local? • How has the firm adapted to the patterns of Japanese etiquette and business practices? • Using examples from the video, explain the concepts of localization and adaptation. • Which aspects of KFC' service component have been standardized? adapted?

  10. Chapter Twelve Global Products and Services

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