Issues in Global Branding

Global brands like ______________ or ______________ can find themselves in the epicenter of social issues like ______________ and increasing ______________ ______________ ______________

McDonalds or Camel; obesity; health care costs

The fact of being global adds to the ______________ of a brand, which is known as the ______________ ______________

allure; prestige factor

Consumers use a product's country of origin as an important cue to ______________ its ______________

assess its quality

Some global brands have ______________ ______________ that are larger than many developing nation's ______________

brand equities; budgests

It is advisable that global companies ______________ and ______________ local brands to maintain a ______________ ______________ in foreign markets

buy and keep; healthy portfolio

Another way of dealing with counterfeit products is ______________ ______________

continuously innovating

When consumers extend their long held beliefs about a country to its products' quality or performance, this is called a:

country of origin effect (COO)

"How Global Brands Compete": Anti-globals are highly ______________ of transnational corporations and they don't ______________ global companies to behave ______________ or ______________

critical; trust; ethically or responsibly

Iconic Brands, or Lovemarks, can attract ______________ thanks to their ______________

criticism; ubiquity

Focusing on high quality and cutting edge ______________ or ______________ is a way to combat COO effects

design or technology

A company can work with respected ______________ ______________ or ______________ and bolster its image through marketing communications to deal with COO effects

distribution channels or retailers

Prospective customers who travel around may be exposed to a global brand both in their home country and in the countries they visit; therefore, it is typically ______________ to build up ______________ ______________ for a global brand than for a local brand

easier; brand awareness

It is important to respect the ______________ and ______________ ties consumers might have developed with local brands

emotional and historical

"How Global Brands Compete": Critical consumers associate transnational corporations with:

exploitative wages, pollution, and cultural imperialism

Counterfeit products can be ______________ to other countries, posing an even greater threat to legitimate businesses

exported

COO effects are most likely to occur/influence purchase decisions when consumers are not ______________ with the brand name and/or are ______________, ______________, and ______________ ______________

familiar; older, conservative, and less educated

Corporations prefer to enter ______________ ______________ with global brands rather than creating a ______________ ______________ for each local market

foreign markets; local brand

"How Global Brands Compete": Another reason explaining the popularity of global brands is the prevailing belief that consuming a global brand would render one a ______________ ______________, part of a ______________ ______________

global citizen; world community

Low/high pricing is especially effective for product categories such as wine and cosmetics, for which price serves as a decision ______________, ______________ quality

heuristic, signaling

"How Global Brands Compete": Global brands, due to their high virility and high equity, inevitably become the target of:

large-scale consumer protests

Although the advantages of a global brand are numerous, there could also be substantial benefits of creating or acquiring a ______________ ______________

local brand

In countries where patriotism or buy-local attitudes matter, the local brand names offer a cue that the company cares about ______________ ______________

local sensitivities

Kevin Roberts, the CEO of Saatchi & Saatchi calls iconic brands:

lovemarks

If a company has cost advantages, it can also use ____-__________ to deal with negative COO effects and attract value conscious customers or try ______________ ______________ to counteract such biases

low-pricing; premium pricing

In many cases, counterfeits dress the MNC's profits indirectly because companies are forced to ______________ ______________ ______________ to defend their market share against these counterfeit competitors

lower their prices

Scale economies arise in ______________, ______________, and possibly ______________ of a single-brand product

manufacturing, distribution, promotion

Starbucks is also criticized for encouraging ______________ ______________ and ______________ ______________

mindless consumerism; gentrifying neighborhoods

When things start going downhill for an emotional brand, marketers have to carefully ______________ and ______________ cultural clues to understand what is wrong with the brand story

monitor and study

Local branding is useful in countries where ______________ or _____-__________ attitudes matter

patriotism; buy-local

"How Global Brands Compete": Since global brands are perceived as higher quality and innovative, they are often able to demand a ______________ ______________ that many consumers are ______________ ______________ ______________

price premium; willing to pay

Cultural Barriers: ______________ difficulties or ______________ problems

pronunciation; meaning

The prestige factor signals that the company has the ______________ to compete globally

resources

"How Global Brands Compete": Consumers expect global brands to have a special duty to address ______________ ______________, to act as good citizens

social issues

"How Global Brands Compete": Because transnational global corporations have more resources than local companies and sometimes even the local government, consumers look up to global brands to fix ______________ or ______________ ______________

social or environmental problems

In the Middle East, Starbucks is accused of ______________ the Palestine-Israel conflict and ______________ ______________ Israel

sponsoring; financially supporting

"How Global Brands Compete": Consumers look to global brands as ______________ of ______________ ______________

symbols; cultural ideals

Due to their quality, counterfeits can significantly ______________ the brand image of foreign companies entering local markets for the first time

tarnish

In the article, "How Global Brands Compete", Holt et al found that consumers prefer global brands over local ones because:

they are perceived to offer high quality and innovative solutions

Emotional brands are consumer-brand bonds that demonstrate a(n) ______________ of customers' ______________, ______________, and ______________ ______________

understanding; inspirations, aspirations, and life circumstances

Cultural Barriers: The foreign name might have ______________ ______________ in the local language

undesirable associations

In some cases, a local brand becomes necessary because the name is ______________ ______________ or ______________ ______________ within the country

very similar; already used

True or False: COO effects are stable

FALSE; COO effects are not stable and they change over time

True or False: By its nature, a local brand has much more visibility than a global brand

FALSE; a global brand has much more visibility than a local brand

True or False: Anti-corporate criticism does not vary

FALSE; anti-corporate criticism varies greatly

True or False: With emotional branding, marketers cultivate consumer passion through tangible benefits

FALSE; marketers cultivate consumer passion through consumer-brand bonds that demonstrate an understanding of customers' inspirations, aspirations, and life circumstances

True or False: "How Global Brands Compete": The authors advise managers to ignore acquisitions and try to fly their global brands under the radar by tonight down their visibility

FALSE; the authors advise managers to acknowledge and learn to deal with problems

True or False: Usually local brands are premium priced while global brands are positioned at the bottom or medium end

FALSE; usually, local brands are positioned at the bottom or medium end while global brands are usually premium priced

"How Global Brands Compete": Why do consumers love global brands?

Quality signal and innovation Global myth ("local brands show us what we are, global brands show what we want to be") Social responsibility (or power to do potential good)

True or False: Once the brand story is tainted, usually it is very difficult to reignite consumer passion with the same story so the brand needs to reinvent itself and move on by creating a new emotional branding story/myth

TRUE

True or False: The development costs for products launched under the global brand name can be spread over large volumes

TRUE

True or False: The local public and press can sometimes side with the counterfeiter and bash powerful global companies for going after small, local businesses

TRUE

True or False: The most hated brands are also the brands that are cherished and beloved by many consumers

TRUE

True or False: when emotional branding is done right, it works like a charm, but once consumers or activists start poking hole in that image then it is downhill from there

TRUE

______________ ______________ ______________ is another alternative to combat piracy

Taking legal action

True or False: Changing a country's image is not impossible, but it is expensive, requires long-term commitment, and even government involvement

TRUE

True or False: Companies can lobby both home and host governments to impose more sanctions on counterfeits

TRUE

True or False: Counterfeit pharmaceuticals or infant food can be dangerous to consumers and leave the pirated brand with a significant PR battle

TRUE

True or False: Global brands are immensely valuable for corporations but managing one can be quite challenging

TRUE

True or False: Global brands are often associated with sweatshops, oil spills, cultural imperialism, and even political conflicts

TRUE

What are the (5) marketing mix solutions to deal with COO effects?

1. Disguise the COO when selecting a brand name 2. Product innovation (design and quality) 3. Low/high price 4. Work with premium distributors 5. Bolster brand image through promotion

What are the four main reasons global brands are preferred?

1. Economies of Scale 2. Brand awareness, visibility, and positive spillover 3. Prestige and credibility both at home and abroad 4. Match between product and country of origin

By closely monitoring the doppelgänger image, marketers can (3):

1. Learn a great deal about the cultural contradictions that undermine the perceived authenticity of the brand 2. Understand if the emotional-branding story is beginning to lose it's value and appeal 3. Assess if a brand story can be reconfigured to fit better with changing cultural times and shifting consumer outlooks

Course of Action when dealing with counterfeit products (5):

1. Lobbying (legislation, sanctions) 2. Legal action 3. Product modification 4. Distribution 5. Public education

"How Global Brands Compete": How can managers steer global brands in hostile and turbulent environments/learn to manage rather than ignore global characteristics?

1. Think globalness 2. Manage the dark side 3. Build credible* myths 4. Treat anti-globals as customers 5. Turn social responsibility into entrepreneurship

"How Global Brands Compete": How much (%) of consumers surveyed were identified as "Anti-globals"

13%

"How Global Brands Compete": How many consumer segments were identified based on their attitudes toward global brands?

4

"How Global Brands Compete": Global brands are under threat by this segment:

Anti-globals

Examples of brands that use emotional branding:

Apple, Nike, Cheerios, McDonalds, Starbucks, Tide, Lexus, IBM

Anti-brands are also known as:

Doppelgängers

True or False: Global brands are usually premium priced, this way a global company that has a mix portfolio may have appropriate offerings for all segments within a foreign market

TRUE

______________ ______________ ______________ or ______________ ______________ ______________ about the consequences of purchasing counterfeit merchandize can also help in the fight against piracy

Changing distribution strategy or educating the public

Piracy is:

Counterfeit products

What does COO stand for?

Country Of Origin

______________ ______________ also often justify local branding

Cultural barriers

True or False: If a company enters a foreign market by acquiring a local brand, sometimes it is advisable to keep the local brand name

TRUE

A family of disparaging images and stories about a brand that are circulated in popular culture by loosely organized network of activists, bloggers and opinion leaders:

Doppelgänger Brand Image

______________ ______________ is described as a consumer-centric, relational, and story-driven approach to forging deep and enduring effective bonds between consumers and brands

Emotional Branding

______________ also play an important role in changing around their country's image across the world

Governments

True or False: In the article, "How Global Brands Compete", a recent study confirms why global branding came to be such a popular managerial practice

TRUE

True or False: Legal action can be costly and time consuming

TRUE

______________ ______________ is on of the most common courses of action that firms use to protect themselves against counterfeiting

Lobbying government

What are some consequences to counterfeit products?

Lost revenue Brand image Pricing Export of fake products

True or False: Any aspect of a product is vulnerable to piracy including the brand name, logo, design, and packaging

TRUE

What are two major challenges in branding?

Piracy Coo Effects

______________ ______________ is one of the significant challenges that global marketers face in managing their brands worldwide

Product piracy

______________ of ______________ for the global brand name may already be owned by another company in the foreign market, making it necessary for a brand to go local

Right of trademark

True or False: COO effects can sometimes be challenging for managers when a company's products are not positively associated with the reputation of the country

TRUE

In the US and Europe, this company is blamed for a variety of issues from debasing the authentic coffee house culture to selling over-roasted coffee for excessive prices

Starbucks

______________ is one of the global companies that faces a great deal of criticism both at home and abroad

Starbucks

True or False: "How Global Brands Compete": Considering that the need to belong is a universal cultural ideal, global brands, through their aspirational qualities, offer consumers the myth of belonging

TRUE

True or False: "How Global Brands Compete": the anti-global segment is important in drawing our attention to the kind of image crisis and threat that the global brands are facing

TRUE

Can we learn anything from doppelgänger brands?

Yes