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