10/20/2008 Chapter 10 Global Marketing Product Services Tangible Brand Brand Sterzing’s Complex bundle of images and experiences Image Ideas Intangible Potato Chips Clodhoppors Cookie’s Barbeque Sauce What Message does it give Brand Equity strongest global brands have tremendous equity Word Mark mark logo – brand symbol Non-word Sold in regional markets Cars Food Not available globally 1 10/20/2008 Global Global product Meets wants and needs of global market place Offered in ALL world regions, regardless of economic development Brand Three primary characteristics used by consumers Quality signal Global myth Social responsibility Use same name, imaging, and position throughout the world Product Local Local Local product/ local brand 1. Create compelling value proposition 2. Make sure brand identity elements “work” Global Global product/ local brand in other markets 3. Leverage company wide knowledge by providing networks for communication Brand Global Local Product/ Global brand 4. Consistent planning across all markets 5. Manage branding issues – business Global product/ global brand leadership 6. Execute strategy that support brand image Leverage strengths SelfActualiz ation Status SelfEsteem Admira tion Social Affiliation Safety Safety Physiological Physiological Traditional Version Impact of Country-of-Origin Dimensions on Product Quality and Design Quality Perceptions Paul Chaoa, * a University of Northern Iowa, Cedar Falls, Iowa USA Asian Equivalent 2 10/20/2008 Labeling “Beauty Language Visual- requirements Nutritional Requirements Country of Origin Health warnings in the eye of the beholder” Color Shape Labels Packaging Which is appropriate for your industry or product type???? Product Same Extension Adaptation Strategy 2: production extension Different Communication Adaptation Same Strategy 1: Dual Extension Strategy 2: Same Little product with virtually no adaptation Use same promotional appeals as in home market Message must be easily understood Most often in B2B product lines Strategy 1: Dual extension Different Strategy 4: Dual adaption Strategy 3: Product adaptation Communication Extension R&D, manufacturing setup expense is on adapting the communication of product to specific market Focus Distribution Advertising Sponsorship Point-of-sale Use of same product for multiple or different purposes than intended Arm & Hammer baking soda 3 10/20/2008 Strategy 3: Strategy 4: Dual Adaptation Same Adapting communication strategy through out markets Maintenance of brand equity and image Product adapted for local needs product to local conditions Size Taste Features Size of packages Communication is based on cultural values or views Don’t Fall prey NIH Third Strategic Option Strategy 5: Not all opportunities fit the adaption – extension strategic options Ground up development may be needed to reach developing regions for farmers in India for checking grain prices Micro-credit financing Product Kiosks Market Costs 4 10/20/2008 Identifying New ideas Discontinuous inventions Dynamically continuous innovations Continuous innovations Line extensions product development Single platform International Testing new product department new products 5