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Chapter 10
Product and Brand Decisions
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Introduction to Brands andProductsBrand and productconcepts
Local, international,and global brands
Product design issues
Attitudes toward
foreign productsStrategic alternatives
New product issues
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Basic Product ConceptsA product is a good, service, oridea
Tangible attributes
Intangible attributes
Product classication
Consumer goods
Industrial goods
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Product TypesBuer orientation
Amount of e!ort e"pended onpurc#ase
Convenience
Preference
S#opping
Specialt
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BrandsBundle of images and e"periences in t#ecustomer$s mind
A promise made b a particular companabout a particular product
A %ualit certication
&i!erentiation between competingproducts
T#e sum of impressions about a brand ist#e brand image
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Brand EquityT#e added value t#at accrues to aproduct as a result of investmentsin t#e mar'eting of t#e brand
An asset t#at represents t#e valuecreated b t#e relations#ipbetween t#e brand and customerover time
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Local Products and BrandsBrands t#at #ave ac#ieved successin a single national mar'et
(epresent t#e lifeblood of domesticcompanies
)ntrenc#ed local products*brandscan be a signicant competitive#urdle to global companies
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International Products and Brands
+!ered inseveral mar'etsin a particularregion
)uro brands
T#e Smart car wasdeveloped b&aimlerC#rsler for t#e
)uropean mar'et
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Global Products and Brands-lobal products meet t#e wantsand needs of a global mar'et andare o!ered in all world regions
-lobal brands #ave t#e samename and similar image andpositioning t#roug#out t#e world
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Global Brand Characteristics.ualit signal/allows a compan toc#arge a premium price in a #ig#l
competitive mar'et-lobal mt#/mar'eters can useglobal consumer culture positioningto lin' t#e brand identit to an partof t#e world
Social responsibilit/s#ows #ow acompan addresses social problems
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Global Products and Brands-lobal brands arenot t#e same as
global productsiPod 0 brand
1p2 plaer0product
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Branding StrategiesCombination or tiered branding allowsmar'eters to leverage a compan$s
reputation w#ile developing a distinctiveidentit for a line of products
Son 3al'man
Co-branding features two or morecompan or product brands
NutraSweet and Coca4Cola
Intel Inside
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Brand ExtensionBrand acts as an umbrella for new products
)"5 T#e 6irgin -roup
7 6irgin )ntertainment5 6irgin 1ega4stores and 1-1Cinemas
7 6irgin Trading5 6irgin Cola and 6irgin 6od'a
7 6irgin (adio
7 6irgin 1edia -roup5 6irgin Publis#ing, 6irgin
Television, 6irgin Net7 6irgin 8otels
7 6irgin Travel -roup5 6irgin Atlantic Airwas, 6irgin8olidas
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Worlds ost !aluable Brands" #$$%
9 Coca4Cola
: 1icrosoft
2 IB1
; -)
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Global Brand &e'elop(ent.uestions to as' w#en managementsee's to build a global brand
&oes t#is move t t#e compan and*or itsmar'ets
3ill anticipated scale economies materialie
8ow diDcult will it be to develop a global
brand teamCan a single brand be imposed on allmar'ets successfull
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Global Brand &e'elop(ent-lobal brand leaders#ip
Esing organiational structures,processes, and cultures to allocatebrand4building resources globall, tocreate global snergies, and to
develop a global brand strateg t#atcoordinates and leverages countrbrand strategies
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Global Brand &e'elop(entCreate a compelling value proposition
T#in' about all elements of brand identit
and select names, mar's, and smbolst#at #ave t#e potential for globaliation
(esearc# t#e alternatives of e"tending anational brand versus adopting a new
brand identit globall&evelop a compan4wide communicationsstem
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Global Brand &e'elop(ent&evelop a consistent planningprocess
Assign specic responsibilit formanaging branding issues
)"ecute brand4building strategies8armonie, unravel confusion, andeliminate comple"it
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Slide 11-90
Big brand re%uires less brain wor' FtopG t#an wea'e
This Is Your Brain . . . .
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Local 'ersus Global Products and
Brands) * +eeds,Based *pproach
Physiological
Safety
Social
External!nternalEstee"
Self-act#ali$ation
1aslow$s #ierarc# of needs
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*sian -ierarchy o. +eeds
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Pac/agingConsumer packaged goodsrefers toproducts w#ose pac'aging is designed to
protect or contain t#e product durings#ipping, at retail, or point of use
)co4pac'aging is 'e because pac'agedesigners must address environmental
issues+!ers communication cues t#at provideconsumers wit# a basis for ma'ing apurc#ase decision
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LabelingProvides consumers wit# various tpes ofinformation
(egulations di!er b countr regardingvarious products
8ealt# warnings on tobacco products
American Automobile Labeling Act claries
t#e countr of origin and nal assembl point)uropean Enion re%uires labels on all foodproducts t#at include ingredients fromgeneticall modied crops
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*esthetics-lobal mar'eters must understand t#eimportance of visual aest#etics
Aest#etic stles Fdegree of comple"itfound on a labelG di!er around t#e world
Aest#etic elements t#at are deemedappropriate, attractive, and appealing in
one$s #ome countr ma be perceiveddi!erentl elsew#ere
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(ed5 Sout# Africa 0 mourningHIndia 0 puritH C#ina 0 celebration,good luc'H (ussia 0 Bols#evi's,communismH 3estern 0
e"citementellow5 C#ina 0 nouris#ingH )gpt0 mourningH India 0 merc#antsH
3estern 0 #aard, warning, #ope
10-25
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-reen5 C#ina 0 e"orcismH India 0 IslamH
Ireland 0 t#e countrH 3estern 0 Spring,rebirt#, go, ecolog
Blue5 Iran 0 #eaven and spiritualitH3estern 0 depression, sadness,
Jsomet#ing blueK bridal tradition,conservative
Purple5 T#ailand 0 mourningH 3estern
0 roalt
10-26
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3#ite5 apan w#ite carnation 0deat#H )astern 0 funeralsH 3estern0 brides, angels, good gus,#ospitals, doctors, peace
10-27
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Product Warranties)"press warrant is a writtenguarantee t#at assures t#e bueris getting w#at #e or s#e paid foror provides a remed in case of aproduct failure
3arranties can be used as acompetitive tool
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Extend" *dapt" Create) Strategic
*lternati'es in Global ar/eting)"tension%o!ering product virtuallunc#anged in mar'ets outside of #ome
countrAdaptation%c#anging elements ofdesign, function, and pac'agingaccording to needs of di!erent countrmar'ets
Creation%developing new products fort#e world mar'et