ch 11 kotabe pi
TRANSCRIPT
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Chapter 12 Copyright (c) 2007 John Wiley & Sons, Inc. 1
Global Marketing Management, 4e
Chapter 12
Global Product PolicyDecisions II:
Marketing Products andServices
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Chapter 12 Copyright (c) 2007 John Wiley & Sons, Inc. 2
Chapter Overview
1. Global Branding Strategies
2. Managing Multinational Product Lines
3. Product Piracy4. Country-of-Origin (COO) Effects
5. Global Marketing of Services
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Chapter 12 Copyright (c) 2007 John Wiley & Sons, Inc. 3
Introduction
Companies that brand their products havevarious options when they sell their goods inmultiple countries.
More and more companies see global (or atleast regional) branding as a must.
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Chapter 12 Copyright (c) 2007 John Wiley & Sons, Inc. 4
Introduction
Multinational product line management entailsissues such as: What product assortment should the company
launch when it first enters a new market? How should the firm expand its multinational
product line over time? What product lines should be added or
dropped? Global marketers also face the issue of global
piracy. In global marketing, firms have to use a multitude
of strategies to handle the negative country-of-origin stereotypes.
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Chapter 12 Copyright (c) 2007 John Wiley & Sons, Inc. 5
1. Global Branding Strategies
Global Brands (see Exhibit 12-1)
A truly global brand is one that has a consistentidentity with consumers across the world.
The development costs for products launchedunder the global brand name can be spreadover large volumes.
A global brand has much more visibility than a
local brand. The fact of being global adds to the image of a
brand country.
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1. Global Branding Strategies
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Chapter 12 Copyright (c) 2007 John Wiley & Sons, Inc. 7
1. Global Branding Strategies
Global brands are also able to leverage thecountry association for the product. The value of a global brand (brand equity) usually
varies a great deal from country to country (threekey value dimensions: quality signal, global myth,and social responsibility).
Inter-country gaps in brand equity may be due toany following factors: History Competitive climate Marketing support Cultural receptivity to brands Product category penetration
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Chapter 12 Copyright (c) 2007 John Wiley & Sons, Inc. 8
1. Global Branding Strategies
Local Branding
Examples: Coca Cola owns numerous local andregional brands across the globe; Mecca Cola fromFrance
Global or Local Brands? Solo branding, hallmark branding, family branding, and
extension branding.
A firms global brand is shaped by three types of factors:
Firm-based drivers Product-market drivers
Market dynamics
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1. Global Branding Strategies
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Chapter 12 Copyright (c) 2007 John Wiley & Sons, Inc. 10
1. Global Branding Strategies
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Chapter 12 Copyright (c) 2007 John Wiley & Sons, Inc. 11
1. Global Branding Strategies
Brand Name Changeover Strategies
Fade-in/fade-out
Co-branding
Umbrella branding
Transparent forewarning
Summary axing
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Chapter 12 Copyright (c) 2007 John Wiley & Sons, Inc. 12
1. Global Branding Strategies
Private Label Branding (Store Brands): Factors explainingsuccess of private labels:
1.Improved quality of private-label products
2. Development of premium private-label brands A system where a single banner brand is used worldwide, often
with a sub-brand name, for almost the entire product mix of thecompany.
3. Shift in balance of power between retailers andmanufacturers
4. Expansion into new product categories
5. Internationalization of retail chains
6. Economic downturns
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Chapter 12 Copyright (c) 2007 John Wiley & Sons, Inc. 13
1. Global Branding Strategies
Umbrella (Corporate) Branding
Umbrella branding facilitates brand-buildingefforts over a range of products.
Umbrella branding makes it easier to add ordrop new products.
Protecting Brand Names
Brands are vital assets to brand owners.
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Chapter 12 Copyright (c) 2007 John Wiley & Sons, Inc. 14
1. Global Branding Strategies
In the area of brand protection, the oldest treatyis the Paris Convention for the Protection ofIntellectual Property.
The difference in opinion held by industrializedand developing countries on intellectualproperty (see Exhibit 12-5)
Many elements of the brand franchise mayrequire protection.
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1. Global Branding Strategies
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2. Management of Multinational ProductLines
The product assortment is usually described ontwo dimensions: the width and the length.
Drivers affecting the composition of a firms
international product line: Customer Preference
Price Spectrum
Competitive Climate Organizational Structure
History
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2. Management of Multinational ProductLines
Categories of product lines:
Core products
Niche products
Seasonal products
Filler products
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2. Management of Multinational
Product Lines
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2. Management of Multinational
Product Lines
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3. Product Piracy
Any aspect of the product is vulnerable topiracy, including the brand name, the logo,the design, and the package (see Exhibit 12-8).
Strategic Options Against Product Piracy: Lobbying Activities
Legal Action
Customs
Product Policy Options
Distribution
Communication Options
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Chapter 12 Copyright (c) 2007 John Wiley & Sons, Inc. 21
4. Country-of-Origin (COO) Stereotypes
Country-of-Origin (COO) Influences onConsumers
For many products, the made in labelmatters a great deal to consumers.
Key research findings of COO effects:COO effects are not stable
Consumers prefer domestic productsover imports
Both the country of design and thecountry of manufacturing/assembly playa role in consumer attraction.
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Chapter 12 Copyright (c) 2007 John Wiley & Sons, Inc. 22
4. Country-of-Origin (COO) Stereotypes
COO particularly influences the elderly, lesseducated, and politically conservative;consumer expertise also makes a difference.
Cultural orientation play a role.
Consumers are likely to use the origin of aproduct as a cue when they are unfamiliar
with the brand name carried by the product.COO effects depend on the product category.
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4. Country-of-Origin (COO) Stereotypes
Strategies to Cope with COO Stereotypes:
Product Policy
Pricing
Distribution
Communication
C f O i i (COO)
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4. Country-of-Origin (COO)
Stereotypes
4 C f O i i (COO)
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4. Country-of-Origin (COO)
Stereotypes
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5. Global Marketing of Services
Challenges in Marketing Services Internationally:
Protectionism
Immediate Face to Face Contacts with ServiceTransactions
Difficulties in Measuring Customer SatisfactionOverseas
Opportunities in the Global Service Industries:
Deregulation of Service Industries Increasing Demand for Premium Services
Increased Value Consciousness
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5. Global Marketing of Services
Global Service Marketing Strategies:
Capitalize on Cultural Forces in the HostMarket
Standardize and Customize Give Information Technologies (IT) a
Central Role
Add Value by Differentiation
Establish Global Service Networks