CHAPTER 14: MANAGING BRANDS OVER GEOGRAPHIC BOUNDARIES AND MARKET SEGMENTS

D S Hwang From Kevin Lane Keller

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Regional Market Segments g g

Regionalization is an important recent trend that, perhaps on the surface, seems to run counter to g globalization. Reasons for regional marketing
Need for N d f more focused targeting f d i The shift from national advertising to sales promotions

Drawbacks
Production headaches Marketing efficiency may suffer and costs may rise
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Other Demographic and Cultural Segments

For example, the importance f marketers to l h for k consider age segments and how younger consumers can be brought into the consumer franchise As another example, the 2000 census revealed that Asians and Hispanics accounted for 79 p million of 281 million people in the United States and an estimated $1 trillion in annual purchasing power.
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Rationale for Going International g

Perception of slow growth and increased competition in domestic markets Belief in enhanced overseas growth and profit opportunities Desire to reduce costs from economies of scale Need to diversify risk Recognition of global mobility of customers

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Advantages of Global Marketing Programs

Economies of scale in production and distribution Lower marketing costs Power and scope Consistency in brand image Ability to leverage good ideas quickly and efficiently Uniformity of marketing practices

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Disadvantages of Global Marketing Programs

Differences in consumer needs, wants, and usage patterns for products Differences in brand and product development Diff i b d d d d l and the competitive environment Differences in the legal environment Differences in marketing institutions instit tions Differences in administrative procedures

14.6

Standardization vs. Customization

According to Levitt, because the world is shrinking shrinkingdue to leaps in technology, communication, and so forthwell-managed , forthwellg companies should shift their emphasis from customizing items to offering globally standardized products that are advanced, functional, reliable, and l priced f all. f i l li bl d low i d for ll

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Standardization vs. Customization

Blending global objectives with local or regional concerns Think global. Act local. Think global local A global brand has a clear consistent equity across geographies: same positioning, same benefits plus local tailoring if needed g

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Global Brand Strategy g

To build brand equity, it is often necessary to create equity different marketing programs to address different market segments. m t Identify differences in consumer behavior How they purchase and use products h h d d What they know and feel about brands Adjust branding program Choice of brand elements Nature of supporting marketing program Leverage of secondary associations
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Building a Global Brand

How valid is the mental map in the new
What is the level of awareness? How valuable are the associations?

market?

What changes need to be made to the mental map? p By what means should this new mental map be created? d?

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Global Customer-Based Brand CustomerEquity

To build customer-based brand equity, customermarketers must:
1. 2. 2 3. 4.

Establish breadth and depth of brand awareness Create points-of-parity and points-of-difference points-ofpoints-ofElicit positive, accessible brand responses Forge intense, active brand relationships

Achieving these four steps, in turn, requires c ev g t ese ou tu , equ es establishing six core brand building blocks.
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Core Brand Building Blocks

Creating brand salience Developing brand performance Crafting brand image Eliciting brand responses. Example: positive j g brand judgments Creating brand feelings Cultivating resonance
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Questions for Global Branding Positioning

How lid is h H valid i the mental map i the new market? H l in h k ? How appropriate is the positioning? What is the existing level of awareness? How valuable are the core brand associations, points-of-parity, and points-of-difference? points-ofpoints-ofWhat changes should we make to the positioning? Do g p g we need to create any new associations? Should we not rere-create any existing associations? Should we modify any existing associations? How should we create this new mental map? Can we still use the same marketing activities? What changes should we make? What new marketing activities are necessary?
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Building Global Customer-Based CustomerBrand Equity

In designing and implementing a marketing p g program to create a strong global brand, gg , marketers want to realize the advantages of a global marketing program while suffering as few of its disadvantages as possible

14.14

Ten Commandments of Global Branding g

1. 2. 3. 4. 5. 6. 7. 8. 8 9. 10.

Understand similarities and differences in the global branding landscape b di l d Dont take shortcuts in brand building Establish marketing infrastructure Embrace integrated marketing communications g g Cultivate brand partnerships Balance standardization a d c s o a o a a ce s a da d a o and customization Balance global and local control Define operable guidelines Implement a global brand equity measurement system Leverage brand elements L b d l
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