ch 11 kotabe pi

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Chapter 12 Copyright (c) 2007 John Wiley & Sons, Inc. 1

Global Marketing Management, 4e

Chapter 12

Global Product PolicyDecisions II:

Marketing Products andServices


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Chapter Overview

1. Global Branding Strategies

2. Managing Multinational Product Lines

3. Product Piracy4. Country-of-Origin (COO) Effects

5. Global Marketing of Services


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Introduction

Companies that brand their products havevarious options when they sell their goods inmultiple countries.

More and more companies see global (or atleast regional) branding as a must.


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Introduction

Multinational product line management entailsissues such as: What product assortment should the company

launch when it first enters a new market? How should the firm expand its multinational

product line over time? What product lines should be added or

dropped? Global marketers also face the issue of global

piracy. In global marketing, firms have to use a multitude

of strategies to handle the negative country-of-origin stereotypes.


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Global Brands (see Exhibit 12-1)

A truly global brand is one that has a consistentidentity with consumers across the world.

The development costs for products launchedunder the global brand name can be spreadover large volumes.

A global brand has much more visibility than a

local brand. The fact of being global adds to the image of a

brand country.


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Global brands are also able to leverage thecountry association for the product. The value of a global brand (brand equity) usually

varies a great deal from country to country (threekey value dimensions: quality signal, global myth,and social responsibility).

Inter-country gaps in brand equity may be due toany following factors: History Competitive climate Marketing support Cultural receptivity to brands Product category penetration


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Local Branding

Examples: Coca Cola owns numerous local andregional brands across the globe; Mecca Cola fromFrance

Global or Local Brands? Solo branding, hallmark branding, family branding, and

extension branding.

A firms global brand is shaped by three types of factors:

Firm-based drivers Product-market drivers

Market dynamics


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Brand Name Changeover Strategies

Fade-in/fade-out

Co-branding

Umbrella branding

Transparent forewarning

Summary axing


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Private Label Branding (Store Brands): Factors explainingsuccess of private labels:

1.Improved quality of private-label products

2. Development of premium private-label brands A system where a single banner brand is used worldwide, often

with a sub-brand name, for almost the entire product mix of thecompany.

3. Shift in balance of power between retailers andmanufacturers

4. Expansion into new product categories

5. Internationalization of retail chains

6. Economic downturns


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Umbrella (Corporate) Branding

Umbrella branding facilitates brand-buildingefforts over a range of products.

Umbrella branding makes it easier to add ordrop new products.

Protecting Brand Names

Brands are vital assets to brand owners.


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In the area of brand protection, the oldest treatyis the Paris Convention for the Protection ofIntellectual Property.

The difference in opinion held by industrializedand developing countries on intellectualproperty (see Exhibit 12-5)

Many elements of the brand franchise mayrequire protection.


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2. Management of Multinational ProductLines

The product assortment is usually described ontwo dimensions: the width and the length.

Drivers affecting the composition of a firms

international product line: Customer Preference

Price Spectrum

Competitive Climate Organizational Structure

History


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2. Management of Multinational ProductLines

Categories of product lines:

Core products

Niche products

Seasonal products

Filler products


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2. Management of Multinational

Product Lines


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2. Management of Multinational

Product Lines


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3. Product Piracy

Any aspect of the product is vulnerable topiracy, including the brand name, the logo,the design, and the package (see Exhibit 12-8).

Strategic Options Against Product Piracy: Lobbying Activities

Legal Action

Customs

Product Policy Options

Distribution

Communication Options


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4. Country-of-Origin (COO) Stereotypes

Country-of-Origin (COO) Influences onConsumers

For many products, the made in labelmatters a great deal to consumers.

Key research findings of COO effects:COO effects are not stable

Consumers prefer domestic productsover imports

Both the country of design and thecountry of manufacturing/assembly playa role in consumer attraction.


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COO particularly influences the elderly, lesseducated, and politically conservative;consumer expertise also makes a difference.

Cultural orientation play a role.

Consumers are likely to use the origin of aproduct as a cue when they are unfamiliar

with the brand name carried by the product.COO effects depend on the product category.


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Strategies to Cope with COO Stereotypes:

Product Policy

Pricing

Distribution

Communication

C f O i i (COO)


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4. Country-of-Origin (COO)

Stereotypes

4 C f O i i (COO)


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4. Country-of-Origin (COO)

Stereotypes


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Challenges in Marketing Services Internationally:

Protectionism

Immediate Face to Face Contacts with ServiceTransactions

Difficulties in Measuring Customer SatisfactionOverseas

Opportunities in the Global Service Industries:

Deregulation of Service Industries Increasing Demand for Premium Services

Increased Value Consciousness


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Global Service Marketing Strategies:

Capitalize on Cultural Forces in the HostMarket

Standardize and Customize Give Information Technologies (IT) a

Central Role

Add Value by Differentiation

Establish Global Service Networks

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