Global Marketing- Chapter 10 Tompkins UARK

What are brand extensions?

Brand acts as an umbrella for new products

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

What is the brand image?

The sum of impressions about a brand

What is a product?

a good, service, or idea that can be - tangible - intangible

What are some product types?

- Consumer goods -Industrial goods

Self-actualization (Maslow's Hierarchy of Needs)

-Art, flowers and beautiful things -Travel for enjoyment -Charity items and spontaneous gifts to feel joy when other people are happy

What are some basic brand concepts?

-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

What are some branding strategies?

-Combination or tiered branding allows marketers to leverage a company's reputation while developing a distinctive identity for a line of products -Co-branding features two or more company or product brands

Physiological needs (Maslow's Hierarchy of Needs)

-Food, shelter and transportation -Cheaper affordable things

What are some benefits of brand equity?

-Greater loyalty -Less vulnerability to marketing actions -Less vulnerability to marketing crises -Larger margins -More inelastic consumer response to price increases -More elastic consumer response to price decreases -Increased marketing communication effectiveness

Love and belonging needs (Maslow's Hierarchy of Needs)

-Magazines and things to keep them updated -Name brand items to help them fit -Perfumes, make-up and clothes to attract and gain love -Self-improvement books to avoid criticism and be accepted

Safety needs (Maslow's Hierarchy of Needs)

-Retirement funds, self-defense classes and self-defense videos and books -Nanny cameras, guns and alarm systems

Esteem needs (Maslow's Hierarchy of Needs)

-Work-out equipment; healthy foods -Books to gain power and control -Online financial investments to have control over money -Anti-ageing cosmetics to look younger -Expensive clothes, cars, etc. to feel superior

Global Brand Characteristics

-quality signal -global myth -social responsibility

what are local products and brands?

Brands that have achieved success in a single national market

Questions to ask when management seeks to build global brand:

Does this move fit the company and/or its markets? Will anticipated scale economies materialize? How difficult will it be to develop a global brand team? Can a single brand be imposed on all markets successfully?

What are global brands?

Global brands are not the same as global products iPod = brand mp3 player= product -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

Global Product Planning: Strategic Alternatives 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 -Thermax, an Indian producer of small industrial boilers, created new products for industrialized countries

Global Product Planning: Strategic Alternatives- Strategy 1: Dual Extension

Product-Communication Extension -May be very profitable, simple -Almost no adaptation -Same advertising and promotional appeals -Used with B2B or industrial products

What are International Products and Brands?

Products and brands offered in several markets in a particular region

what is the purpose of labeling?

Provides consumers with various types of information Language, Nutritionals, GMO - regulations differ by country

What are aesthetics?

The term that addresses cultural concepts of beauty and art, Global marketers must understand the importance of visual aesthetics Standardized - Caterpillar( yellow), Marlboro (Red) Changed to adapt (Tiffany's)

What is brand equity?

The total value tied to a brand that is the 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

What is 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

What are product warranties?

a written guarantee that assures the buyer is getting what he or she paid for or provides a remedy in case of a product failure -Can be used as a competitive tool

What is eco-packaging?

addresses environmental issues like recycling, biodegradability, & sustainable forestry

quality signal

allows a company to charge premium price in a highly competitive market

What are consumer packaged goods?

are a variety of products whose packaging protects or contains the product from production to the end user

What is an Adaptation (Strategic Alternatives in Global Marketing)?

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

What is product invention Strategic Alternatives in Global Marketing)?

developing new products for the world market

Packaging must...

engage the senses, make an emotional connection, & enhance the brand experience-

What does Maslow's Hierarchy of Needs do?

helps marketers understand how & why local products go beyond the home-country Needs and wants aren't the same thing

global myth

marketers can use global consumer culture positioning to link the brand identity to any part of the world

What is an extension (Strategic Alternatives in Global Marketing)?

offering product virtually unchanged in markets outside of home country

social responsibility

shows how a company addresses social problems

Global Product Planning: Strategic Alternatives Strategy 3: Product Adaptation-Communications Extension

•Adapt the product to local use but the message stays the same •Cadillac BTS in Sweden is 6" shorter that the CTS; available in diesel •Oreos in China failed until they were reformulated to be less sweet and expensive

Global Product Planning: Strategic Alternatives Strategy 4: Product- Communications Adaptation

•Dual Adaptation -Both may need to change for legal, cultural or other environmental reasons -Regional managers may simply act independently •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

Global Product Planning: Strategic Alternatives Strategy 2: Product Extension-Communications Adaptation

•Products may serve the same or different needs in different markets •No product changes reduce expense •Costs in market research advertising, sales promotion, point-of-sale material