Tutorial Notes for Marketing
MARK 343
1. WHAT IS STANDARDISATION VS CUSTOMISATION?
- should aim for a standardised or country tailored strategy
- standardisation: offering a uniform product regionally or worldwide
- this type of policy capitalises on the commonalties in customer’s needs across countries.
- Goals= minimize costs
- 5 forces for standardised approach; o Common customer needs o Global customers o Economies of scale o Time to market o Regional market agreements
- Customisation: a country- tailored product strategy. It helps to meet local needs.
- Eg. Pepsi has 13 different formulas for different areas.
- Overcustomisation: where nthere has been so much adaptation that the product looses differentiation from local brands.
- Need to regulate degree of the two conceptS
STANDARD ADAPTATED
STANDARD Dual Extension -
ADAPTATED Product Extension, Communication and Adaptation Dual Adaptation
2. WHAT IS MEANT BY UNCERTAINTY AVOIDANCE?
- How much people in a culture feel threatened by uncertainty and rely on mechanisms to reduce it.
- High UAI areas are Greece and Japan
- Risk aversion leads to different rates of diffusion.
- Have to customise your product to help ease the uncertainty.
(Brand Equity: collection of assets and accountabilities that a brand name invokes in consumers’ minds e.g. Slogans)
3. WHAT IS A COUNTRY OF ORIGIN STEREOTYPE?
- Means when people have an association of products with countries, e.g. France with wine.
- Powerful effect
- Effects are complex and require considerations examples are; o Country of origin effects not stable, different perceptions over time. o In general, consumers prefer domestic products over imports. o Research both country of design and manufacturing play a role. o Demographics make a difference e.g. stronger in older groups. o Consumer’s likely to use country of origin as a cue when unfamiliar with brand name. o Country of origin effects depends on the product strategy.
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1. WHAT IS STANDARDISATION VS CUSTOMISATION?
- should aim for a standardised or country tailored strategy
- standardisation: offering a uniform product regionally or worldwide
- this type of policy capitalises on the commonalties in customer’s needs across countries.
- Goals= minimize costs
- 5 forces for standardised approach; o Common customer needs o Global customers o Economies of scale o Time to market o Regional market agreements
- Customisation: a country- tailored product strategy. It helps to meet local needs.
- Eg. Pepsi has 13 different formulas for different areas.
- Overcustomisation: where nthere has been so much adaptation that the product looses differentiation from local brands.
- Need to regulate degree of the two conceptS
STANDARD ADAPTATED
STANDARD Dual Extension -
ADAPTATED Product Extension, Communication and Adaptation Dual Adaptation
2. WHAT IS MEANT BY UNCERTAINTY AVOIDANCE?
- How much people in a culture feel threatened by uncertainty and rely on mechanisms to reduce it.
- High UAI areas are Greece and Japan
- Risk aversion leads to different rates of diffusion.
- Have to customise your product to help ease the uncertainty.
(Brand Equity: collection of assets and accountabilities that a brand name invokes in consumers’ minds e.g. Slogans)
3. WHAT IS A COUNTRY OF ORIGIN STEREOTYPE?
- Means when people have an association of products with countries, e.g. France with wine.
- Powerful effect
- Effects are complex and require considerations examples are; o Country of origin effects not stable, different perceptions over time. o In general, consumers prefer domestic products over imports. o Research both country of design and manufacturing play a role. o Demographics make a difference e.g. stronger in older groups. o Consumer’s likely to use country of origin as a cue when unfamiliar with brand name. o Country of origin effects depends on the product strategy.
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