global marketing 10

7/29/2019 Global Marketing 10

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Brand andPro uct

Global Marketing

Global Marketing

Global EditionChapter 10

1

Chapter topics: Branding concepts Local international & lobal brands Country-of-origin effect Strategic alternatives New products

Brand Asset Valuator (BAV) BCG Product Portfolio Protectin successful brand names

2011 Pearson Education, Inc.

10-2110v or 220v?

A roduct is a ood

service, or idea

Intangible Attributes

Product classification

Industrial goods


10-3

p pe s an examp eof an industrial product

Express Warranty is a written guarantee that

for or provides a remedy in case of a producta ure

Warranties can be used as a com etitive tool


10-4


2/12

Consumer Packaged Goods refers to productsw ose pac ag ng s es gne to protect orcontain the product during shipping, at retail,or po nt o use

Eco-packaging is key because packagedesigners must address environmental issues

Offers communication cues that rovideconsumers with a basis for making aurchase decision


10-5

rov es consumers w t

various types of information egu at ons er y country

regarding various products ea warn ngs on o acco

products

clarifies the country of origin and

final assembly point European Union requires labels on

all food products that include


10-6

modified crops

Global marketers must

understand theimportance of visualaesthetics

Aesthetic st les de reeof complexity found on alabel differ around the

world


10-7

Buyer orientation

Amount of effort

expended Level of risk

Buyer involvement

Bu er orientationframework

Convenience

Preference


10-8 Specialty


3/12

Bundle of images and experiences in thecustomer s m n

A promise made by a particular companyabout a particular product

A ualit certification

Differentiation between competing products

Brand Image


10-9


10-10

product as a result of investments ine mar e ng o e ran

An asset that re resents the value

created by the relationship between the


10-11

Greater loyalty

Less vulnerability to marketing crises

arger marg ns

More inelastic consumer response to pricencreases

More elastic consumer response to price

ecreases Increased marketing communication


10-12

e ec veness


4/12

Brands that have achieved success in asingle national market

epresen e e oo o omes ccompanies

Entrenched local products/brands can

global companies


10-13

Offered in severalmar e s n aparticular regionEuro-brands

Honda 5-doorhatchback auto is

known as Fit inapan an azz nEurope The Smart car was developed by

DaimlerChrysler for the European


10-14

market and is now sold in the US

Global products meet the wants and needs of a

o a ran s ave t e same name an s m arimage and positioning throughout the world

Harley Davidson has dealers inover 60 countries


10-15

Quality signal allows a company to charge

a premium price in a highly competitivemarket

Global myth marketers can use globalconsumer culture ositionin to link the brandidentity to any part of the world

addresses social problems


10-16


5/12

Global brands are not the

iPod = brand

mp3 p ayer = pro uct

Brand Asset Valuator

worlds most powerful


10-17

ran s

Combination or tiered branding allows

marketers to levera e a com an s re utationwhile developing a distinctive identity for aline of roducts

Sony Walkman

-or product brands

-

Intel Inside


10-18CPU

Brand acts as an umbrella for new products

Virgin Entertainment: Virgin Mega-stores and MGM Cinemas

Vir in Tradin : Vir in Cola and Vir in Vodka

Virgin Radio

Virgin Rail (UK only)

Virgin Media Group: Virgin Publishing, Virgin Television,Virgin Net (UK only)

Virgin Travel Group: Virgin America Airways, Virgin Holidays,Virgin Galactic


10-19

Worlds Most ValuableBrands (2010)



6/12

Minor variants of a single

EXTENSIONproduct are marketed underthe same brand name

Extensions of the brand

EXTENSION

name o o er pro uccategories

----Dissimilar


10-21

LINE EXTENSIONS BRAND EXTENSIONS

HorizontalExtension

VerticalExtension

AnotherProductClass

RangeBrand

Co-Branding

Up from

Core

Down from

CoreBrand Brand


10-22

Questions to ask when management seeks to

u a g o a ran : Does this move fit the company and/or its markets?

Will anticipated scale economies materialize?

How difficult will it be to develop a global brandteam?

Can a single brand be imposed on all markets

success u y


10-23

Global Brand Leadership

Using organizational structures, processes,and cultures to allocate brand-buildingresources globally, to create globalsynergies, and to develop a global brandstrategy that coordinates and leveragescountry brand strategies


10-24


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.

2. Think about all elements of brand identity and selectnames marks and s mbols that have the otential forglobalization

3. Develop a company-wide communication system to shareeverage now e ge n o

4. Develop a consistent planning process across markets

5. Assign specific responsibility for managing branding

best practices

-


10-25

. strengths and respond to relevant local differences

Country-of-Origin asBrand Element

Perceptions about and attitudes toward

products and brands known to originaten ose coun r es

Japan French perfume

Germany

Italy


10-26

Stereotyped attitudes toward foreign products &

serv ces can avour or n er mar e ng e or s If the quality is perceived to be low

Foreign origin of the product can be disguised

Foreign identification of the product can becontinued & consumer attitudes towards theproduct can be changed

In some market segments foreign productshave a substantial advantage because they are


10-27

ore gn

Strategic Alternatives inGlobal Marketing

unchanged in markets outside of home

Adaptation changing elements of design,,

of different country markets

rea on eve op ng new pro uc s or eworld market


10-28


8/12

Global Product Planning:Strategic Alternatives

ProductSame Different

Strategy 2:Product extensionCommunication

adaptation

Dual adaptation

Communication

Strategy 3:Same

Dual extensionProduct adaptation

Communicationextension


10-29

Strategy 5: Innovation Important for reaching mass markets in less

industrialized nations and certain segments inn ustr a ze countr es

Hand-cranked radios for areas with no electricity

segmentation

Product ualit is essential but must besupported with imaginative, value-creatingadvertising & marketing communication


10-30

Two errors that management makes in

c oos ng a s ra egy NIH (not invented here) syndrome means

managers gnore t e a vancements osubsidiaries overseas

Managers impose po icies upon su si iariesbecause they assume what is right for

market


10-31

function or need it serves

,under which the product is used, preferences

,product

ap a on an manu ac ur ng cos s ecompany will incur


10-32


9/12

Pursue o ortunities in com etitive arenasof global marketplace

Active involvement from senior management

y o recru an re a n es emp oyees

Understand the importance of speed inbringing product to market


10-33

What is a new product?

New to those who use it or bu it New to the organization

New to a market


10-34

The InternationalNew Product Department

How big is the market for this product at

What are the likely competitive moves in

Can we market the product through existing

Can we source the product at a cost that will

Does product fit our strategic development


10-35

Whenever a product interacts with human,mec an ca , or c em ca e emen s ecausethere is the potential for a surprising andunexpec e ncompa y

Test could simply be observing the product

being used within the market


10-36


10/12

2011 Pearson Education, Inc.Happy Year of the Dragon (http://landor.com/#!/locations/hong-kong/gong-xi-fa-cai/)


10-38


10-39

An Examination o t e IPLC an its App ication wit in Mar etingOnkvisit & Shaw

- diffusion of innovations across national boundaries (e.g., semiconductors,y wr r , ru r r u , r

- incorporates supply-side variables (comparative advantages)

1. overseas innovation (pioneering or international introduction stage)2. maturity.

4. reversal (product standardization and comparative disadvantage)

1. USA (initiating country)2. MDCs (other advanced nations)3. LDCs lesser develo ed countries


10-40Applies to prods which satisfy basic homogeneous needs and have functional utility


11/12

Stage Import/Export Target Market Competitors Prodn. Costs

0) local none USA few: local firms initially highinnovation

1) overseas increasing export USA & advanced few: local firms decline due toinnovation nations econ. o sca e

2) maturity stable export advanced nations advanced nations stable& LDCs

3) worldwide declining export LDCs advanced nations increase due toimitation lower econ. of

scale

4) reversal increasing import USA& LDCs advanced nations increase due tocomparativedisadvantage


10-41

1. Product policy

continue innovating (high quality & sophisticated models in

produce diff. components in diff. countries to best use comparativeadvantage

use pa en s me a van age2. Pricing policy

high introductory price to recoup R&D costs lower prices in middle stages (maintain market share) skim in reversal

3. Promotion policy non-price promotioni.e., promote premium product with high quality image

4. Distribution olic


10-42

build strong dealer network

Hi h Low

Relative Market Share

ate

High

thR

Gro

Low

dustr


10-43In

- ra eg c us ness nz key business unit within diversified firmsz a division, product line, or single product may define an SBUz

firms may redefine their SBUs as market conditions dictate

Relationships among three characteristics of each product:(1) market share relative to that of largest competitor

high vs. low (dividing line at 1x, arbitrary).

(2) growth rate in market (corrected for inflation). ,

growth vs. maturity stages of PLC


10-44

pro uc s con r u on o organ za on n erms o o ar sa esrepresented by area or diameter of circle


12/12

Strategic implications of matrix interpreted according to

followin rules of thumb:

margins and cash generated are a function of market share(experience curve effect)

growth requires cash input to finance added assetsno product market can grow indefinitely

Relative market share cash generated


10-45

Protecting SuccessfulBrand Names

Strong brand name is one of most valuable assetsthat company possesses

ra emar reg s ra on:Lodge application at Trade Marks Registry in country

Separate application in every country

Specify category of goods to which registrationwill relate (e.g., Ray-Ban sunglasses will notprotect use of mark on shorts)


10-46


Name pirates register others famous trademarks,

large profit

Some countries (e.g., Indonesia) operate trademarkregistration system based on first to file application,ra er an rs o use sys em a op e n ; on y wayto get it back is by buying it

Legislative Council of HK introduced bill for servicemarks (e.g., insurance companies, banks, accountants,


10-47retail shops)


Not always possible to transliterate words made up of lettersin Roman alphabet into Chinese characters; not problem incoun r es w p one c oca a p a e , e a an , orea,Japan

In countries like HK, Taiwan and China, local populationinsists that products have Chinese names; nicknames maydevelop (not always desirable) e.g., Quaker Oats old manbrand (laoren pai), Polo three legged horse (santui ma)

Chinese character trademarks should be developed and


10-48

Club Volvo

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