global marketing chapter 10

buyer orientation

Convenience Preference Shopping Specialty

alternatives in GM: adaptation

changing elements of design, function, and packaging according to needs of different country markets

Global brands are not the same as global products

iPod - brand Mp3 - product

discontinuous innovation

requires new consumption patterns and the creation of previously unknown products

Product Warranties

written guarantee that assures the buyer is getting what they paid for or provides a remedy in case of a product failure

alternatives in GM: creation

- developing new products for the world market

Strategy 3: Product Adaptation-Communications Extension

Adapt the product to local use but the message stays the same oreos in china failed until they were reformulated to be less sweet and expensive

brand extension

Brand acts as an umbrella for new products Example: The Virgin Group

Local Products and Brands

Brands that have achieved success in a single national market Represent the lifeblood of domestic companies

packaging

Consumer Packaged Goods refers to products whose packaging is designed to protect or contain the product during shipping, at retail, or point of use eco packaging is key

Strategy 4: Product- Communications Adaptation

Dual Adaptation Both may need to change for legal, cultural or other environmental reasons Nike global shoes and "Just Do It" approach didn't work in China Less expensive shoes created in country and ads featuring Chinese athletes in line with cultural principles of harmony and respect for authority

aesthetics

Global marketers must understand the importance of visual aesthetics differs around the world

Global Products and Brands

Global products meet the wants and needs of a global market and are offered in all world regions Global brands have the same name and similar image and positioning throughout the world GE BMW

Strategy 5: Innovation

Important for reaching mass markets in less industrialized nations and certain segments in industrialized countries Hand-cranked radios for areas with no electricity

International Products and Brands

Offered in several markets in a particular region

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

Strategy 2: Product Extension-Communications Adaptation

Products may serve the same or different needs in different markets No product changes reduce expense Ben& Jerry's changed packaging color in the U.K

labeling

Provides consumers with various types of information Regulations differ by country regarding various products

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

brand equity

The added value that accrues to a product as a result of investments in the marketing of the brand asset represents value created by brand/customer relationship

brand

The sum of impressions about a brand is the Brand Image

Combination or tiered branding

allows marketers to leverage a company's reputation while developing a distinctive identity for a line of products `

continuous innovations

least disrupting influence on established consumption patterns

alternatives in GM: extension

offering product virtually unchanged in markets outside of home country

strategy 1: dual extension

product-communication extension almost no adaptation phone microsoft windows 7

dynamically continuous innovation

some disrupting influence on established consumption patterns