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
