CHAPTER:14 MANAGING BRANDS OVER GEOGRAPHIC BOUNDARIES AND MARKET SEGMENTS

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Learning Objectives

Understand the rationale for developing a global brand Outline the main advantages and disadvantages of developing a standardized global marketing program Define the strategic steps in developing a global brand positioning Describe some of the unique characteristics of brand building in developing markets like India and China
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Regional Market Segments

A regionalization strategy can make a brand more relevant and appealing to an individual Downsides:
Marketing

efficiency may suffer and costs may rise with regional marketing Regional campaigns may force local producers to become more competitive

Upside:
Marketing

can have a stronger impact

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Other Demographic and Cultural Segments

Demographic differences often serve as the rationale for a separate branding and marketing program Younger generation may be more easily influenced by trends and broad cultural movements due to media exposure
Brands

can tap into global sensibilities of the youth market

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Other Demographic and Cultural Segments

Some consumers may not like being targeted on the basis of their being different
Since

that reinforces their image as outsiders or a minority They may feel alienated or distanced from the company and brand

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Rationale for Going International

Forces that have encouraged many firms to market their brands internationally:
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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Rationale for Going International

The marketing program for a global brand consists of:

Product

formulation Package design Advertising program Pricing schedule Distribution plan

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Advantages of Global Marketing Programs

Economies of Scale in Production and Distribution Uniformity of Marketing Practices Lower Marketing Costs

Advantages Ability to Leverage Good Ideas Quickly and Efficiently Consistency in Brand Image

Power and Scope

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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 and the Competitive Environment Differences in Consumer Response to Branding Elements Differences in Consumer Responses to Marketing Mix Elements

Differences in the Legal Environment

Differences in Marketing Institutions

Differences in Administrative Procedures

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Global Brand Strategy

Global CustomerBased Brand Equity

Global Brand Positioning

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Global Customer-Based Brand Equity

Creating brand salience Crafting brand image Eliciting brand responses Cultivating resonance

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Global Brand Positioning

Because the brand is at an earlier stage of development when going abroad:

Awareness

and key points-of-parity need to be established first

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Standardization and Customization

Product Strategy

Communication Strategy

Distribution Strategy

Pricing Strategy

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Developing Vs. Developed Markets

BRICS (Brazil, Russia, India, China and South Africa)

Most

important developing markets They do not yet have the infrastructure, institutions, and other features that characterize more fully developed economies in North America and Western Europe

The product category itself may not be well developed

The

marketing program must operate at a very fundamental level

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Figure 14.4 - Ten Commandments of Global Branding

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To Sum Up

Marketers are blending global objectives with local or regional concerns Some of the biggest differences in global marketing occur between developed and developing or emerging markets In entering a new market of any kind, it is necessary to identify differences in consumer behavior and adjust the branding program accordingly
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