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Chapter 12 Global Marketing of Services

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Differences Between Services and Goods

• Goods are

• Services are

• Goods are fixed in form and require physical distribution

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Differences Between Services and Goods

• Services differ from goods most strongly in their intangibility•

• Linkage between services and goods•

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Differences Between Services and Goods• Stand-alone services•

• Services have high _________• Services present problems in

• Production and consumption of services requires _____________

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Differences Between Services and Goods

• Services are custom-made•

• Quality perception of service customers is largely determined by the behavior of the employees they contact• Market transparency:

• Service heterogeneity –

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Differences Between Services and Goods

• Services require new channels of distribution•

• Cultural sensitivity•

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The Role of Services in the U.S Economy

• Infrastructure services comprises of telecommunications, insurance, banking, and logistics

• Cross-border transactions:

• Total U.S. service exports grew from $6 billion in 1958 to $560 billion in 2010

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The Role of Services in the U.S Economy• The leading U.S. services exported in

2010•

•

•

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The Role of Services in the U.S Economy

• The United States had a trade surplus of around ____ billion in 2009• Trade surplus:

• Trade deficit:

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The Role of Services in the World Economy

• According to the WTO, cross-border exports of services globally totaled $3.6 trillion in 2010

• The impact of the service sector is also evident on some smaller countries of the world

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Global Transformation of Services

• Deregulation:

• Decreased regulation of service industries by industry groups

• Primary deregulated industries in the United States• • •

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Global Transformation of Services

• Technological advancement is another major factor in increasing service trade•

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International Trade Problems in Services

• Data collection problems•

•

•

•

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International Trade Problems in Services• Regulation and service trade negotiations• Barriers to entry

• • • • • •

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Corporate Involvement in International Services Marketing

• Services and e-commerce•

•

• Note of caution•

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Corporate Involvement in International Services Marketing

• Need for a multilingual website:• Facilitate a shift toward non-English-

speaking Internet users• • Access new customers• • Demonstrate that company is customer-

centric

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Corporate Involvement in International Services Marketing

• Generate trust by providing services in a customer’s native language• • Beat competition• • Be picked up by more search engines

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Corporate Involvement in International Services Marketing

• Services and academia•

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Corporate Involvement in International Services Marketing

• Typical international services• Financial services• • Legal and accounting services• • Management consulting•

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Corporate Involvement in International Services Marketing

• Combining international advantages in services help to develop newer and drastic comparative lead

• Various starting points for marketing services internationally• •

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Corporate Involvement in International Services Marketing

• Services which are independent of goods•

• Identify and understand transition points abroad

•

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Corporations and Involvement in International Services Marketing

• Strategic implications for international services marketing•

•

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Corporations and Involvement in International Services Marketing

• Train the organizational personnel to convey the spirit, values, and attitudes of the corporation

•

• Consider the distribution implications of international services