Download Global brands

Chapter 11
Product
Management and Global Brands
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Product Variables
• Product/service – Complex combination
of tangible and intangible elements
distinguishing it from others in the
market
• Core product
•
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Product Variables
• Standardization versus adaptation
• 4 basic alternatives for international markets
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• Product standardization is increasing
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The Market Environment
• Government regulations
• Nontariff barriers
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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Market Environment
• Customer characteristics, expectations,
and preferences
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• Positioning:
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Market Environment
• Economic development
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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Market Environment
• Competitive offerings
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• Climate and geography
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Product Characteristics
• Product constituents and content
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• Branding
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• Trademark • Indicated by
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Product Characteristics
• Packaging
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• Appearance
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• Quality
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• Country-of-origin effects
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Company Considerations
• Product adaptation depends on the firm’s
ability to:
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• Decision to adapt should be preceded by
a thorough analysis of the market
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Global Product Development
• Essential for catering to new or changing
customer needs on a global basis
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• Build adaptability into products and
product lines to achieve worldwide appeal
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Product Development
• Stages of the product development
process
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Global Product Development
• Sources for idea generation
• Company
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• Lead users:
• Procurement requisitions from governments
and supranational organizations
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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Product Development
• Open innovation:
• Global companies have an advantage in
being able to utilize resources from
around the world
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Product Development
• Computer aided design (CAD) allows
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Product Development
• Time lag between product development
and introduction into the market depends
on:
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Global Product Development
• Reasons for investing in R&D activities
abroad
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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Product Development
• Center of excellence:
• The set of capabilities have been identified as
an important source of value creation
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Product Development
• Organization of global product
development
• Product development activity is undertaken
by specific teams to:
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Global Product Development
• Representatives of all the affected functional
areas serve on each team to ensure the
integrity of the project
• Multidisciplinary teams in an organization
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Global Product Development
• Companies focus on reducing the language
and cultural barriers among R&D teams
• ___________ have been established to
develop technologies ranging from artificial
intelligence to those in semiconductor
manufacturing
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Product Development
• Testing of new product
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• Reasons for product failure
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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Product Development
• Market testing techniques
• Controlled market tests:
• Simulated test markets:
• Vitality lab:
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Product Development
• Global product launch
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• Measures undertaken for successful launches
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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Product Development
• Benefits of a successful global launch
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Managing the Brand Portfolio
• Managing the brand portfolio
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• Brands help to:
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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managing the Brand Portfolio
• Co-branding –
• Global marketers have three choices of
branding
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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managing the Brand Portfolio
• Brand strategy decisions
• Global brands:
• Some are completely standardized, but some
elements may be adapted to local conditions
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managing the Brand Portfolio
• Characteristics of global brands
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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managing the Brand Portfolio
• Brand strategy decisions
• Three main implications for the marketing
manager to consider:
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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managing the Brand Portfolio
• The SBU and general management establish a
planning policy document with respect to:
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Managing the Brand Portfolio
• Carefully crafted brand portfolios allow
marketers to serve defined parts of specific
markets
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• Before disposing a brand, managers need to
assess it in terms of current sales, loyalty,
potential, and trends
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managing the Brand Portfolio
• Private brand policies
• Private brands:
• Methods used for private branding:
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Product Counterfeiting
• Counterfeit goods –
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Product Counterfeiting
• Types of actions that can be taken
against counterfeiting
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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Product Counterfeiting
• Companies are taking measures to help
protect their products against
counterfeits
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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.