1. Marketing of Products and Services
Stephen A. Oyewole
Northcentral University
Prescott Valley, Arizona USA

2. Presentation Outline
 Evolution of Product and Service
 Global Service Marketing
 Legal Issues on Marketing of Products and Services
 Culture and Society Relationship.
 Global Economic/Cultural factors.
 Role of Culture in Consumers’ Service.
 Self-Reference Criterion/Ethnocentrism.
 Benefits of Global Service Marketing.
 Environmental Adaptation.
 Resources.

3. Evolution of Product
[Goods→ Product→ Service]
Goods: objects having the requisites of utility,
materialness, limitedness and accessibility.
Product: set of tangible and intangible attributes for
procuring a benefit to a user/consumer.
Service: capacity for orienting the information variety of
a context to the advantage of the interlocutor (Vargo
& Lusch, 2010).

4. What is Product?
Product is anything that can be offered in a market for attention,
acquisition, use, or consumption that might satisfy a need or want.
 Product Design
 Product Quality
 Product Features
 Product Branding
What is Service ?
Service’ is recognized as the common denominator of
exchange.
 Service Design/Quality/Features/Branding

5. Product/ Service Design Logic (SDL)
Service design addresses the functionality and form of services
from the perspective of clients. It aims to ensure that service
interfaces are useful, usable, and desirable from the client’s point
of view and effective, efficient, and distinctive from the supplier’s
point of view.
 Services Marketing
 Internal marketing
 Managing service quality
SDL is the innovation model governed by different service
categories and points out the roles of corresponding service
design based on the statement that service innovation is the
process of value creation.

6. Legal Issues on Marketing of Products and Services
Issues over Truth and Honesty
 In the 1940s and 1950s, tobacco used to be advertised as
promoting health. Today an advertiser who fails to tell the truth
not only offends against morality but also against the law.
Issues with Violence, Sex and Profanity
 Sexual innuendo is a mainstay of advertising content (Hawkins,
Best, & Coney, 2004, p.732), and yet is also regarded as a form of
sexual harassment.
 Violence is an issue especially for children's advertising and
advertising likely to be seen by children.

7. Legal and Ethical Issues Continue
Issues with Taste and Controversy
 The advertising of certain products may strongly offend some
people while being in the interests of others (Waller, 2003).
Examples include: feminine hygiene products, hemorrhoid and
constipation medication.
 The advertising of condoms has become acceptable in the
interests of AIDS-prevention, but are nevertheless seen by some
as promoting promiscuity.
Negative Advertising
 Negative advertising techniques, such as attack ads. In negative
advertising, the advertiser highlights the disadvantages of
competitor products rather than the advantages of their own.
 The methods are most familiar from the political sphere.
Democrats and Republicans

8. Establishing Culture of Legal and Ethical
Data Stewardship
 Senior managers such as board members, presidents,
Chief Information Officers (CIOs), and data
administrators are increasingly finding themselves liable
for any violations of these laws.
 Steps to consider include -
 Develop an organization-wide policy for legal and ethical
behavior.
 Professional organizations and codes of ethics.
 Intellectual Property (IP)

9. International Marketing Service
 International marketing service is defined as the
performance of business activities designed to plan,
price, promote, and direct the flow of a company’s
goods and services to consumers or users in more
than one nations for a profit (Alahmad, 2010).
 The difference in an online, interstate, and export
marketing is the “environment”
 Competition, legal restraints, government controls,
weather, fickle consumers, economic conditions,
technological constraints, infrastructure concerns, culture,
and political situations.

10. Culture and Society Relationship
Culture
 Societal forces affecting the values, beliefs, and actions of a distinct
group of people.
 Society is a broad group of people and other organizations, interest
groups, a community, a nation. Business and society interrelate in a macro
environment as stakeholders.
Society as the Macro-environment Culture
Four segments of the Macro-environment Culture
 Social environment culture focuses on demographics, lifestyles and social
values.
 Economic environment culture focuses on the economy.
 Political environment culture focuses on the legislative process, election
process and the interaction between firms, politics and government.
 Technological environment culture focuses on the changes in
technological advancement.

11. Global Economic Factors Sources of Economic Factors
 Differences in economic, political, legal, and cultural
systems.
 Global Economic Interdependence
 Regional trade and political alliances
 NAFTA, EU, WTO
 Global Productivity and Strategic Management
 Issue: How to increase organizational effectiveness and
performance (productivity) in the face of global
influences and foreign competition.

12. Global Cultural Factors
 Geert Hofstede’s Culture Dimensions
 Power Distance: the inequality among the people of a nation.
 Individualism: the extent to which people prefer to act as
individuals instead of members of groups.
 Masculinity/Femininity: the degree to which “masculine” service
values prevail over “feminine” service values.
 Uncertainty Avoidance: the preference of people in a country for
service structured rather than unstructured situations.
 Long-Term Orientation: the preference for long-term service
values emphasizing the future as opposed to short-term service
values focusing on the present.

13. Role of Culture in Consumers’ Service
National Culture
(Cultural Dimensions)
● Hofstede’s
● Hall’s
● Hofstede and Bond’s
● Schwartz’s
● Others
Consumer Service
Experience Dimensions
Service Expectations
Evaluations of Service
● Confirmation/Disconfirmation
● Satisfaction/Dissatisfaction
Reactions to Service
● Word of Mouth/Complaint
behavior
● Loyalty/Switching behavior

14. Self-Reference Criterion/Ethnocentrism
 Self-Reference Criterion (SRC) is an unconscious reference to
one’s own cultural values, experiences, and knowledge as a
basis for decision.
 Risk of SRC:
 Prevent you from becoming aware of cultural differences.
 Influence the evaluation of the appropriateness of a domestically
designed marketing mix for a foreign market.
 The notion that people in one’s own company, culture, or
country know best how to do things.
 Risk of Ethnocentrism:
 Impedes the ability to assess a foreign market in its true light.
 Ethnocentrism is generally a problem when managers from affluent
countries work with managers and markets in less affluent
countries. The risk of ethnocentrism is that it impedes the ability to
assess a foreign market in its true light.

15. Benefits of Global Service Marketing
 The role of world trade and international service
marketing in producing peace.
• International marketing promotes peace and
prosperity through the marketing of products
and services that meet the needs and wants of
customers in other lands.
• Two examples
– Large Multinational – Boeing
– Small Multinational – Peace Works

16. Environmental Adaptation
 The most challenging and important adaptation
international marketers must make is cultural
adjustments.
 Must establish a frame of reference.
 Time-conscious Americans vs. Time-is-not-an-
asset thinking Latin Americans.
 Hand gestures vary between countries
 “Cultural Conditioning” – be aware of home
cultural references before making decisions.

17. Obstacles to Adaptation
 Adaptation is a conscious effort on the part of the
international marketer to anticipate the
influences of both the foreign and domestic
uncontrollable factors on a marketing mix and
then to adjust the marketing mix to minimize
the effects.
 Two primary obstacles are:
 Self-Reference Criterion (SRC)
 Ethnocentrism

18. Summary
• It is imperative for firms to pay attention to the global
environment in the wake of intense globalization of service
markets and competition.
• The difference between domestic service marketing and
global service marketing is the environment that consist of
laws, customs, and cultural differences.
• Key obstacles to successful international service marketing
are self-reference criterion (SRC) and Ethnocentrism.
• Global awareness and sensitivity are solutions to the
obstacles of SRC and ethnocentrism.
• Firms must have global orientation – the world is seen as
one market.

19. References
 Alahmad, A. (2010). To be ethical or not to be: An international code of
ethics for leadership. Journal of Diversity Management, 5(1), 31-35.
Retrieved from http://www.search.proquest.com.proxyl.ncu.edu
 Executive concepts in business strategy (VitalSource Bookshelf
electronic version). (2010). Boston, MA: Pearson Learning Solutions
 Fugate, D. L. (2008). Marketing services more effectively with
neuromarketing research: A look into the future. The Journal of
Services Marketing, 22 (2), 170-173.
http://search.proquest.com.proxy1.ncu.edu
 Hamilton, J., Knouse, S., & Hill, V. (2009) Google in China: A manager-
friendly heuristic model for resolving cross-cultural ethical conflicts.
Journal of Business Ethics, 86(2), 143-157. Retrieved from
http://www.proquest.com

20. References
 Hawkins, D., Best, R., and Coney, K. (2004). Consumer behavior:
Building marketing strategy (9th ed.). New York: McGraw-Hill Irwin.
 Hofstede, G., Neuijen, B., Ohayv, K., Daval, D. & Sanders, G. (1990).
Measuring organizational cultures: A qualitative and quantitative study
across twenty cases. Administrative Science Quarterly, 35 (2), 286.
Retrieved from http://proxy1.ncu.edu
 Klinefelter, G. (2008). Corporate ethics: the business code of conduct
for ethical employees. Review of Choice, 45(10), 1699. Retrieved from
http://www.proquest.com
 Vargo, S. and Lusch, R. (2010). It's all B2B…and beyond: Toward a
systems perspective of the market. Retrieved from
www.sciencedirect.com