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Chapter 12 Global Marketing of Services

Chapter 12 Global Marketing of Services. Differences Between Services and Goods. Goods are Services are Goods are fixed in form and require physical distribution. Differences Between Services and Goods. Services differ from goods most strongly in their intangibility

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Chapter 12 Global Marketing of Services

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  1. Chapter 12 Global Marketing of Services

  2. Differences Between Services and Goods • Goods are • Services are • Goods are fixed in form and require physical distribution

  3. Differences Between Services and Goods • Services differ from goods most strongly in their intangibility • Linkage between services and goods

  4. Differences Between Services and Goods • Stand-alone services • Services have high _________ • Services present problems in • Production and consumption of services requires _____________

  5. 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–

  6. Differences Between Services and Goods • Services require new channels of distribution • Cultural sensitivity

  7. 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

  8. The Role of Services in the U.S Economy • The leading U.S. services exported in 2010

  9. 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:

  10. 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

  11. Global Transformation of Services • Deregulation: • Decreased regulation of service industries by industry groups • Primary deregulated industries in the United States

  12. Global Transformation of Services • Technological advancement is another major factor in increasing service trade

  13. International Trade Problems in Services • Data collection problems

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

  15. Corporate Involvement in International Services Marketing • Services and e-commerce • Note of caution

  16. 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

  17. 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

  18. Corporate Involvement in International Services Marketing • Services and academia

  19. Corporate Involvement in International Services Marketing • Typical international services • Financial services • Legal and accounting services • Management consulting

  20. 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

  21. Corporate Involvement in International Services Marketing • Services which are independent of goods • Identify and understand transition points abroad

  22. Corporations and Involvement in International Services Marketing • Strategic implications for international services marketing

  23. 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

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