Product Decisions
Chapter 11
Global Marketing
Product Concepts
• A product is a good, service, or idea
– Tangible Attributes
– Intangible Attributes
• Product classification
– Consumer goods
– Industrial goods
Keegan and
Green, Chapter 11
2
Consumer Goods Classification
• Buyer orientation
– Amount of effort expended on purchase
– Level of risk
– Level of involvement
• Product life span
Keegan and
Green, Chapter 11
3
Buyer Orientation Based Product
Classification
•
•
•
•
Convenience
Preference
Shopping
Specialty
Keegan and
Green, Chapter 11
4
Life Span Based Product
Classification
Durable
Non-Durable
Disposable
Keegan and
Green, Chapter 11
5
Brands
• Bundle of images and experiences in the
customer’s mind
• A promise made by a particular company
about a particular product
• A quality certification
• Differentiation between competing products
• The sum of impressions about a brand is the
Brand Image
Keegan and
Green, Chapter 11
6
Brand Equity
• The added value that accrues to a product as
a result of investments in the marketing of
the brand
• An asset that represents the value created by
the relationship between the brand and
customer over time
Keegan and
Green, Chapter 11
7
Global Products and Brands
• Global products meet the wants and needs
of a global market and is offered in all
world regions
• Global brands have the same name and
similar image and positioning throughout
the world
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Green, Chapter 11
8
Branding
• Combination or tiered branding: allows
marketers to leverage a company’s
reputation while developing a distinctive
identity for a line of products
– Sony Walkman
• Co-branding features two or more company
or product brands
– Nutrasweet and Coca-Cola
– Intel Inside
Keegan and
Green, Chapter 11
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Brand Extensions
• Brand acts as an umbrella for new products
– Example: The Virgin Group
• Virgin Entertainment: Virgin Megastores and MGM
Cinemas
• Virgin Trading: Virgin Cola and Virgin Vodka
• Virgin Radio
• Virgin Media Group: Virgin Publishing, Virgin
Television, Virgin Net
• Virgin Hotels
• Virgin Travel Group: Virgin Atlantic Airways,
Virgin Holidays
Keegan and
Green, Chapter 11
10
The Most Valuable Brands
RANK
Value
RANK
Value
(billions)
(billions)
1. Coca-Cola
69.9
7. Disney
32.6
2. Microsoft
65.1
8. Ford
30.1
3. IBM
52.8
9. McDonald’s 25.3
4. GE
42.4
10. AT&T
22.8
5. Nokia
35.0
11. Marlboro
22.0
6. Intel
34.7
12. Mercedes
21.7
Keegan and
Green, Chapter 11
11
Global Brand Leadership
• Using organizational structures, processes,
and cultures to allocate brand-building
resources globally, to create global
synergies, and to develop a global brand
strategy that coordinates and leverages
country brand strategies
Keegan and
Green, Chapter 11
12
Guidelines for Developing
Global Brand Leadership
• Create a compelling value proposition
• Think about all elements of brand identity
and select names, marks, and symbols that
have the potential for globalization
• Research the alternatives of extending a
national brand versus adopting a new brand
identity globally
• Develop a company-wide communication
system
Keegan and
Green, Chapter 11
13
Guidelines (cont.)
• Develop a consistent planning process
• Assign specific responsibility for managing
branding issues
• Execute brand-building strategies
• Harmonize, unravel confusion, and
eliminate complexity
Keegan and
Green, Chapter 11
14
A Needs-Based Approach:
Maslow’s Hierarchy of Needs
Self-actualization
External/Internal
Esteem
Social
Safety
Physiological
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Green, Chapter 11
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Maslow’s Hierarchy:
The Asian Equivalent
Status
Admiration
Affiliation
Safety
Physiological
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Green, Chapter 11
16
Strategic Alternatives in Global
Marketing
• Extension – offering product virtually
unchanged in markets outside of home
country
• Adaptation – changing elements of design,
function, and packaging according to needs
of different country markets
• Creation – developing new products for the
world market
Keegan and
Green, Chapter 11
17
Global Product Planning:
Strategic Alternatives
Product
Communication
Different
Same
Keegan and
Green, Chapter 11
Same
Strategy 2:
Product Extension
Communication
Adaptation
Strategy 1:
Dual Extension
Different
Strategy 4:
Dual Adaptation
Strategy 3:
Product Adaptation
Communication
Extension
18
Factors Affecting Choice of
Product/Communication Strategy
• Product
• Market
• Costs of adaptation
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Green, Chapter 11
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