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Slide 13.1
Lecture Week 4
Managing and Developing the
Brand
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.2
Lecture questions
1. What are the challenges for managing global
brands?
2. What are the contemporary global consumption
issues (brand communities and brand tribes)?
3. What is branding within an ICT-based or digital
environment?
4. How is branding accomplished in the developing
world?
5. What is country/place and celebrity branding?
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.3
European Brands
A range of European brands
Source: Courtesy of the companies shown
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.4
Global brands
Global brands are brands that customers can
find under the same name in multiple countries
with generally similar and centrally coordinated
marketing strategies.
The Guinness brewery at St
James’s Gate, Dublin, Ireland
has been exporting Guinness
around the world since 1811
Source: Sari Gustafsson/Rex Features
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.5
H&M’s expansion
Figure 13.1
The expansion of Swedish fashion retailer H&M from 1974 to 2006
Source: H&M (2006) H&M Annual Report 2006, Stockholm: H&M Hennes & Mauritz AB, p. 10. Reproduced with permission
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.6
The top 100 global brands many of
which are iconic brands
This video reviews the world’s top 100
brands
www.youtube.com/watch?v=pizQnyH_TMQ&
feature=PlayList&p=280CB899DC4145F9&pl
aynext=1&playnext_from=PL&index=3
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.7
Iconic brands
• Target national contradictions and challenge
anxieties and desires in society
• Create myths that lead culture
• Speak with a rebel’s voice
• Draw on political authority to rebuild the myth
• Draw on cultural knowledge
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.8
Factors leading to increased
global branding
• Cultural and media globalisation
• Oversaturation within certain markets
• Fall of communism opened up new markets
• Growing love of western popular culture
• Global competitors
• Population explosions and the increased wealth
of nations
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.9
Why global brands work?
Same positioning worldwide
Category focus
Company is the brand name
Consuming brand equals club
membership
Action on corporate social
responsibility
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.10
Pre-requisites of
taking a brand global
Valuable intangible asset
Solid demand for product
Ability to reproduce consumer
experience in new market
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.11
Benefits of
global marketing strategies
Standardisation
Homogenisation
Integration of
marketing activities
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.12
Weaknesses of
standardised global marketing
No variations in
• consumer needs and wants
• consumer values, attitudes and behaviour;
economies, politics and cultures;
• consumer responses to marketing mix elements
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.13
Glocal marketing brand adaptations
• Regions
• Countries
• Cities
• Retailers
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.14
What is consumer culture?
Consumer culture is the set of basic
values, perceptions, wants and behaviours
in a society.
Each country has its own traditions, norms
of behaviour and taboos.
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.15
Can the brand expression be used
in the new market?
Consider questions such as:
• What is the desired brand experience that the brand
expression is meant to achieve in the new market?
• Does management in the new market understand
the brand as well as the home market management
does?
• What is the role of the brand for the organisation in
the new market?
• Does the brand expression in the new market need
to be the same as the one in the home country?
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.16
Are marketing mix changes
required?
Product
Service
Distribution
Promotion
Service process
Physical evidence
People
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.17
Commandments of global
branding
1. Understand similarities and differences in the
global branding landscape
2. Do not take short cuts in brand building
3. Establish a marketing team and infrastructure
4. Integrate all the marketing mix variables
5. Establish brand partnerships
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.18
Commandments of global
branding (continued)
6. Balance standardisation and customisation
7. Balance global and local control
8. Establish global brand operable guidelines
9. Implement a global brand equity
measurement system
10.Leverage brand elements
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.19
Global consumer groups
Global citizens
55%
Global
dreamers
23%
Anti-globals
13%
Global
agnostics
8%
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.20
Characteristics of global brands and
determinants of
global brand preferences
Quality signals
Global myths
Social responsibility
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.21
Characteristics of brand communities
Consciousness of kind
Rituals and traditions
Sense of moral responsibility
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.22
A Typology of consumer
behaviour in online communities
A typology of the different ways consumers behave as participatory,
creative collectives in online communities
Figure 13.2
Source: R. V. Kozinets, A. Hemetsberger and H. J. Schau (2008) The wisdom of consumer crowds: collective innovation in the age of networked marketing, Journal of
Macromarketing. Copyright © 2008 Sage Publications, Inc. Reprinted with permission
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.23
Digital branding online
• Promise of convenience
• Promise of achievement
• Promise of fun and adventure
• Promise of self-expression and recognition
• Promise of belonging
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.24
Table 13.4
Brand perceptions by global region
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.25
Strategy choices for marketers
considering developing economy
markets
Adapt
to the
strategy
Change
the
contexts
Stay
away
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.26
How to use celebrity branding
• Clear and popular
image
• High perceived
credibility
• Good match with
target audience and
brand
In the 1800s Pope Leo XIII and Emile
Zola (pictured left) both endorsed a
wine tonic. Celebrity endorsement is
now a global phenomenon
Source: The Advertising Archives
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.27
Advantages of celebrity endorsers
• Enhance both the company’s image and brand
attitudes
• ‘Breathe new life’ and add character to a brand
• Lead to increased profits and sales
• Benefit from publicity from media when
celebrities use brand
• Make the advertisement campaigns stand out
from the clutter
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.28
Issues arising from
celebrity endorsements
• Multiple brand
endorsers
• Image
considerations
• Celebrities as
brands
Celebrity endorsements of products and
services is a major branding development.
European stars who have become global
brands are Germany’s Claudia Schiffer,
Spain’s Penelope Cruz and from Wales,
Catherine Zeta-Jones.
Sources: David Fisher/Rex Features (left); Most Wanted/Rex Features (centre); Carolyn
Contino/BEV/Rex Features (right)
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.29
Countries and places as brands
The branding of countries is a contemporary branding challenge
Source: Courtesy of the organisations shown
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.30
Effective country brand management
• Carrying out an analysis to determine the country’s
chief strengths, weaknesses, opportunities and threats
• Selecting some industries, personalities, natural
landmarks and historical events that could provide a
basis for strong branding and storytelling
• Developing an umbrella concept of the country brand;
• Allocation of sufficient national funds to carry out the
branding strategy
• Through export controls, making sure that every
exported product or service is reliable and delivers the
promised level of performance.
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 13.31
Recap: can you explain?
• What are the challenges for managing global
brands?
• What are the contemporary global consumption
issues (brand communities and brand tribes)?
• What is branding within an ICT-based or digital
environment?
• How is branding accomplished in the
developing world?
• What is country/place and celebrity branding?
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009