CHAPTER 11BUILDING BRANDS WITH THE INTERNATIONAL MARKETING MIX

part four: managing marketing

an opening challenge

You are the marketing manager for a well-known designer fashion brand. A chain store has approached your company with a view to placing a large order. The finance manager is delighted and is prepared to discount the price. However, the managing director has some concerns. Do you think this order should be accepted? Do you want to impose any special terms and conditions?

agenda

• marketing mix objectives• revisiting the marketing mix

– integrating the marketing mix– internationalising the marketing mix

• packaging• branding

a hierarchy of objectivescorporate objectives

marketing objectives

product objectives

e.g. to develop a new range

promotion objectives

e.g. to change

attitudes to a brand

place objectives

e.g. to recruit new dealers

price objectives

e.g. to undercut

competitors

the extended marketing mix

7Ps

a well‐designed marketing mix should:

• achieve marketing objectives• meet customers’ needs • create competitive advantage• be well integrated (with each element

supporting the others)• fit within the available marketing resources

integration exampleupmarket clothing brand

• high-quality products• premium prices• for sale in exclusive stores

– grand servicescapes• smart, fashionably dressed sales staff • alterations service available• tasteful, creative adverts in style magazines

– and magazine spreads

product

core

basic

augmented

perceived

features quality

service

support

image value

peripheral products

delivery

brand identity

products sold internationally

• basic, augmented and perceived products may vary– core is often the same

• may be at different product life cycle stages • are affected by country-specific PRESTCOM +

CCC factors– especially laws and regulations, cultural factors

influencing product use, income levels, availability of support services

promotion: major tools

• advertising• PR• wom/viral• sales promotion• personal selling• packaging• direct marketing communications• sponsorship

international promotion

• strategy may be global– details may need to be country-specific

• local scenes and actors may help audience relate to the product advertised

• affected by country-specific PRESTCOM + CCC factors– especially language and other cultural factors,

laws and regulations, the availability of technology, media habits

example marketing channel

fabric and trim

suppliersmanu-

facturerimport agent

customer fashion stores

wholesaler

international distribution

• export or manufacture abroad?– indirect or direct export?

• appointment of intermediaries– agents, distributors, licensees, franchisees

• affected by country-specific PRESTCOM + CCC factors– especially different infrastructures, distribution

networks, logistics, transport facilities

price: a measure of value?

goods/services

buyer seller

price

value

opportunity cost

international prices

• currency– fluctuations can cause significant losses or gains

• additional costs– export, transport, agents’ fees

• affected by country-specific PRESTCOM + CCC factors– especially income levels, inflation/deflation, import

laws, financial regulations, competitors’ pricing, currencies

packaging: the 5th P?

• multi function– protection– adding value to product– communication– the silent salesman on the shelf

• the brand’s visual identity• a valuable asset• an environmental nightmare

the fifth P?

PACKAGING

product

price

promotion place

international packaging considerations include:

• laws and regulations– e.g. composition, recycling

• culture– e.g. language, common usage, colours

• education and literacy levels– e.g. impact on instructions

• protection during transport– maybe over longer distances

services marketing mix

PHYSICAL EVIDENCEPEOPLE

PROCESS

branding

• brand image- identity, personality, values

• brand equity• brand types• branding strategies• brand loyalty

the brand’s personality

brand identity

brand image

shapes its

which helps create a

brand equity

• a good brand is a valuable asset– but the value is hard to measure– takeover bids, price premiums

• indicators of high brand equity include:– high price, high distribution intensity, a

pleasant shopping environment , a large advertising budget (Yoo et al., 2000)

brand types

corporate umbrella

all products use corporate name

e.g. Heinz

range groups of products share a brand name

e.g. Taste the Difference (Sainsbury’s)

individual each product has its own brand name

e.g. Bold (Procter & Gamble)

own-label (private)

products bear the retailer’s (or wholesaler's) name

e.g. Tesco

generic product name only e.g. aspirin

brand architectures and strategies

• branded house– single master brand, e.g. Virgin

• house of brands– suite of stand-alone brands, e.g. Diageo

• new product launches– line extension– brand extension– brand stretch

• co-branding

brand loyalty

• loyal customers consistently choose the brand– and go out of their way to buy it

• they are more valuable than repeat customers– positive word of mouth– longevity

• loyalty has to be earned– an emotional bond based on trust– customer satisfaction is essential

summary

• is packaging the 5th P?– or does it cut across the marketing mix?

• marketing mix may need to be varied overseas– the core benefit may be the same

• well-integrated 7Ps can help build brands– brand image– brand loyalty– brand longevity and profitability

reference

• Yoo, B., Donthu, N. and Lee, S. (2000) 'An examination of selected marketing mix elements and brand equity', Academy of Marketing Science, 28(2): 195–211.