ADEX 528 Part II Lecture Notes #4 GLOBAL PRODUCT ANALYSIS Tangible Product Branding Packaging and Labeling After Sale Services 1 Global Product Planning: Strategic Alternatives Product Same Communication Different Same Strategy 2: Product Extension Communication Adaptation Strategy 1: Dual Extension Different Strategy 4: Dual Adaptation Strategy 3: Product Adaptation Communication Extension 2 Marketing Standardization by MNCs in Turkey Similarity of Marketing Programs:(1=different; 7=similar) Product Attributes Brandname Positioning Packaging Media Allocation Customer Service Sales Promotion Role of Salesforce Advertising Copy Retail Price Type of Middlemen Total Marketing Program 3.48 3.97 3.88 3.71 3.71 3.67 3.33 3.24 3.12 3.10 2.96 2.59 3 Similarity in Market Conditions Target Consumers Use Patterns Nature of Competition Media Availability Retail Structure Marketing Legislation Market Share Position PLife Cycle Stage 3.38 3.22 3.03 2.84 2.79 2.79 2.78 2.62 4 Centralization in Marketing Decisions How much direction do executives receive from Headquarter? (0=no direction; 5= very much direction) Product design Market share objectives Branding Package design Ad message Saleforce mngmt Price guidelines 4.26 4.26 4.05 3.69 2.83 2.24 1.47 5 Branding and Brandnames Brandname registration and renewal Linguistic barriers Strategies Unbranded Products Family brandnames Dual or multiple brandnames 6 Global Brand Characteristics Quality signal—allows a company to charge premium price in a highly competitive market Global myth—marketers can use global consumer culture positioning to link the brand identity to any part of the world Social responsibility—shows how a company addresses social problems 7 Country of Origin as Brand Element Perceptions about and attitudes toward particular countries often extend to products and brands known to originate in those countries Japan Germany France Italy 8 Packaging and Labeling Packaging Protectional aspects Promotional aspects Labeling Multilingual labels Government requirements 9 After Sale Services Warranties Service availability Uniform vs. adapted 10 International Marketing: Avoiding The Seven Deadly Traps Kenneth Simmonds (1999) 11 Seven Deadly Traps Entering into markets in order of demand size Underestimating existing competition Expectation that customer motivations and benefits will be similar worldwide Entering markets at the wrong price Market entry without planning the expansion process Association with poor partners Losing brand exclusivity 12 What are the trends in internationalization of services? Entertainment Airlines and transportation Professional Retailing Hotels Banking, credit cards and insurance Construction and engineering 13 Some Generalizations High foreign market growth Less experienced domestic competition High government regulation Cultural issues Use of technology for service delivery 14 15