Exam 10: Brand and Product Decisions in Global Marketing

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The essence of marketing is finding consumer needs and fulfilling them.As an individual fulfills needs at each level of the hierarchy,he or she progresses to the higher level.At the most basic level of human existence,physiological and safety needs must be met.Basic needs include that of food,clothing,shelter and other basic survival needs.However,one has to understand that the basic human need to consume food and drink is not the same as wanting or preferring a Big Mac or a Coke.After Coca-Cola and McDonald's were established at home,they entered the international arena since they are fulfilling the basic needs.These needs are deeply ingrained in the culture,and so they are different in different countries.Responding to these differences has meant creating local products and brands that suit the tastes and preferences of different countries.Although the first two levels in Maslow's hierarchy are similar all over the world,the mid-level needs which include self-respect and self-esteem are different for different consumers in other countries.Products can therefore fulfill different needs in different countries.For example,refrigeration is not very common in India since fresh produce is purchased on a daily basis,and most of the products are not frozen.Also,due to the intermittent supply of electric current,it is not a very popular appliance.However,it is a status symbol.Similarly,a flush toilet is considered as a status symbol.Thus,the upper level of hierarchy does not fit in a similar fashion between Western cultures and other cultures.Considering all these aspects,Hellmut Schutte proposed a modified hierarchy to explain the needs and wants of Asian consumers.Although the two lower-level needs are the same in the international as the traditional hierarchy,the three highest levels emphasize social needs.Affiliation needs in Asia are satisfied when an individual has been accepted by a group.The next level is admiration,a higher level need that can be satisfied through acts that command respect within a group.At the top of the Asian hierarchy is status,the esteem of society as a whole.Thus,the hierarchy segments different levels,all of which should be considered by marketers taking into account the differences in cultures.