Download Chapter 14 - the blog of Tran Bao Thanh

CHAPTER:14
MANAGING BRANDS OVER
GEOGRAPHIC BOUNDARIES
AND MARKET SEGMENTS
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Learning Objectives



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Understand the rationale for developing a global
brand
Outline the main advantages and disadvantages of
developing a standardized global marketing
program
Define the strategic steps in developing a global
brand positioning
Describe some of the unique characteristics of
brand building in developing markets like India and
China
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Regional Market Segments


A regionalization strategy can make a brand more
relevant and appealing to an individual
Downsides:
 Marketing
efficiency may suffer and costs may rise with
regional marketing
 Regional campaigns may force local producers to
become more competitive

Upside:
 Marketing
can have a stronger impact
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Other Demographic and Cultural Segments


Demographic differences often serve as the
rationale for a separate branding and marketing
program
Younger generation may be more easily influenced
by trends and broad cultural movements due to
media exposure
 Brands
can tap into global sensibilities of the youth
market
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Other Demographic and Cultural Segments

Some consumers may not like being targeted on the
basis of their being different
 Since
that reinforces their image as outsiders or a
minority
 They may feel alienated or distanced from the
company and brand
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Rationale for Going International

Forces that have encouraged many firms to market
their brands internationally:
 Perception
of slow growth and increased competition in
domestic markets
 Belief in enhanced overseas growth and profit
opportunities
 Desire to reduce costs from economies of scale
 Need to diversify risk
 Recognition of global mobility of customers
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Rationale for Going International

The marketing program for a global brand consists
of:
 Product
formulation
 Package design
 Advertising program
 Pricing schedule
 Distribution plan
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Advantages of Global Marketing Programs
Economies of
Scale in
Production
and
Distribution
Uniformity of
Marketing
Practices
Lower
Marketing
Costs
Advantages
Ability to
Leverage
Good Ideas
Quickly and
Efficiently
Power and
Scope
Consistency in
Brand Image
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Disadvantages of Global Marketing
Programs
Differences in
Consumer Needs,
Wants, and Usage
Patterns for Products
Differences in
Consumer Response
to Branding Elements
Differences in
Consumer Responses
to Marketing Mix
Elements
Differences in Brand
and Product
Development and the
Competitive
Environment
Differences in the
Legal Environment
Differences in
Marketing Institutions
Differences in
Administrative
Procedures
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Global Brand Strategy
Global
CustomerBased
Brand
Equity
Global
Brand
Positioning
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Global Customer-Based Brand Equity
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Creating brand salience
Crafting brand image
Eliciting brand responses
Cultivating resonance
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Global Brand Positioning

Because the brand is at an earlier stage of
development when going abroad:
 Awareness
and key points-of-parity need to be
established first
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Standardization and Customization
Product
Strategy
Communication
Strategy
Distribution
Strategy
Pricing
Strategy
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Developing Vs. Developed Markets

BRICS (Brazil, Russia, India, China and South Africa)
 Most
important developing markets
 They do not yet have the infrastructure, institutions, and
other features that characterize more fully developed
economies in North America and Western Europe

The product category itself may not be well
developed
 The
marketing program must operate at a very
fundamental level
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Figure 14.4 - Ten Commandments of Global
Branding
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
To Sum Up…
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Marketers are blending global objectives with local
or regional concerns
Some of the biggest differences in global
marketing occur between developed and
developing or emerging markets
In entering a new market of any kind, it is necessary
to identify differences in consumer behavior and
adjust the branding program accordingly
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.