CHAPTER:14 Managing Brands Over Geographic Boundaries and Market Segments

1. CHAPTER:14Managing Brands OverGeographic Boundaries and Market Segments

2. 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

3. 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

4. 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

5. 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

6. 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

7. Rationale for Going International • The marketing program for a global brand consists of: • Product formulation • Package design • Advertising program • Pricing schedule • Distribution plan

8. Advantages of Global Marketing Programs

9. Disadvantages of Global Marketing Programs

10. Global Brand Strategy

11. Global Customer-Based Brand Equity • Creating brand salience • Crafting brand image • Eliciting brand responses • Cultivating resonance

12. 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

13. Standardization and Customization

14. 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

15. Figure 14.4 - Ten Commandments of Global Branding

16. 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