Chapter global product policy decisions. After studying this chapter you will be able to understand: The reasons for economic union, patterns of international cooperation, the evolution of the European Union, evolving patterns of trade as eastern Europe and the former Soviet states embrace free-market systems, strategic implications for marketing in the region, the size and nature of marketing opportunities in the European/African/Middle East regions.
Trang 1MARKETING
MANAGEMENT
Seventh Edition
MASAAKI KOTABKE | KRISTIAAN HELSEN
Global Product Policy
Decisions II: Marketing Products and
ServicesChapter 11 PowerPoint
Trang 2Chapter Overview
1 Global Branding Strategies
2 Management of Multinational Product Lines
3 Product Piracy
4 Country-of-Origin (COO) Effects
5 Global Marketing of Services
Trang 4• Multinational product line management entails
issues 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.
Trang 51 Global Branding Strategies
• Global Brands (Exhibit 11-1)
– A truly global brand is one that has a consistent
identity with consumers across the world
– The development costs for products launched under the global brand name can be spread over large
Trang 6Exhibit 11-1: World’s Top 20 Most Valuable
Brands (2012)
Trang 71 Global Branding Strategies
– Global brands are also able to leverage the country association for the product
– The value of a global brand (brand equity) usually
varies a great deal from country to country (three key value dimensions: quality signal, global myth, and
• Cultural receptivity to brands
• Product category penetration
Trang 81 Global Branding Strategies
• Local Branding
– Example: Coca Cola owns numerous local and
regional brands across the globe such as Thums Up
in India
• Global or Local Branding?
– Solo branding, hallmark branding, family branding,
and extension branding
– A firm’s global brand is shaped by three types of
factors:
• Firm-based drivers
• Product-market drivers
• Market dynamics
Trang 9Exhibit 11-2: Ab-Inbev’s Local Champions
Trang 10Exhibit 11-3: Dimensions of International
Brand Architecture
Trang 11Exhibit 11-4:
Nestlé
Branding
Tree
Trang 121 Global Branding Strategies
• Brand Name Changeover Strategies
Trang 13Exhibit 11-5: German Print Ad for
Raider/Twix Changeover
Trang 142 Management of Multinational
Product Lines
• Width of product line refers to the number of
different product lines of the firm
• Length of product line is the number of different
products within a single line
• Firms with a narrow product assortment usually
extend the domestic lines
• Large companies select a subset for international
dispersal
Trang 152 Management of Multinational
Product Lines
• Adaptations of products introduced in foreign
markets are driven by:
Trang 16Exhibit 11-6: How McDonald’s Customizes
Its Menu
Trang 17Exhibit 11-7: Coca Cola Local Brands in
Japan
Trang 19Exhibit 11-9: Guidelines for IP Protection in
China
Trang 203 Product Piracy
• Sales losses due to bogus products is staggering
• China is a major counterfeit product nation
• Counterfeiting depresses profits directly
• Bogus goods damage brand images
• Any aspect of the product is vulnerable to piracy,
including the brand name, the logo, the design, and the package
Trang 21– Product protection options like holograms
– Change the distribution strategy
– Cut prices
– Launch educational campaigns against piracy
Trang 22Exhibit 11-10: Quality Image of Products
Made in Various Countries
Trang 234 Country-of-Origin (COO) Effects
• Country-of-Origin (COO) Influences
– Product quality
– Symbolic or emotional sentiments
– Normative: doing the “right” thing
Trang 24Exhibit 11-11: Product-Country Matches and
Mismatches: Examples and Strategic
Implication
Trang 254 Country-of-Origin (COO) Effects
– Key research findings of COO effects:
• COO effects change over time
• Both the country of design and the country of manufacturing/assembly play a role in consumer attraction.
• COO influences are greater among elderly, less educated and politically conservative
• Emotions affect COO use
• Culture affects COO outcomes
• Brand-name familiarity
• COO varies with product category
Trang 264 Country-of-Origin (COO) Effects
• Strategies to Cope with COO Stereotypes:
• Product Policy
– Pricing
– Use highly respected distribution channels
– Communication
• Improve the country image
• Bolster the brand image
Trang 275 Global Marketing of Services
• Challenges Marketing Services Internationally
• Opportunities for Global Services
– Deregulation of Service Industries
– Increasing Demand for Premium Services
– Increased Value Consciousness
Trang 285 Global Marketing of Services
• Global Service Marketing Strategies:
– Capitalize on Cultural Forces in the Host Market
– Standardize and Customize
– Give Information Technologies (IT) a Central Role
– Add Value by Differentiation
– Establish Global Service Networks