Chapter 10 - Brand and Product Decisions in Global Marketing Flashcards
Review the basic product concepts that underlie a successful global marketing product strategy.
Product Warranties, Packaging, Labeling, Aesthetics, product types
Define local products & brands
Local P&B:
- Brands that have achieved success in a single national market
- represent the lifeblood of domestic companies
- entrenched local products and brands can be a significant competitive hurdle to global companies (eingeschweißte lokale Marken können große Hürde für global player sein)
Explain how Maslow’s needs hierarchy helps global marketers understand the benefits sought by buyers in different parts of the world.
- helps marketers to understand how & why local products go beyound the home-country
- needs and wants aren’t the same
- companies like CocaCola, McD and Sony bold local products that fulfill social functions
Maslows Hierarchy of Needs:
physiological -> safety -> social -> external and internal esteem -> sefl-actualisation
Outline the importance of the “country of origin” as a brand element.
Perceptions about and attitudes towards particula countires often extend to products and brands known to originate in those countries
- Japan
- Germany
- France
- Italy
List the five strategic alternatives that marketers can utilize during the global product planning process.
Strategy 1: Dual Extension - Product-Communication Extension
- may be very profitable, simple
- almost no adaption
- same advertising and promotional appeals
- used with B2B or industrial products
(Apple iPhone, Microsoft Windows 7)
Strategy 2: Product Extension - Communications Adaption
- products may serve the same or different needs in different markets
- no product changes reduce expense
- costs in market research advertising, sales promotion, point-of-sale material
(Ben&Jerry’s changed packaging colour in UK)
Strategy 3: Product Adaption - Communications Extension
- Adapt te product to local use but the message stays the same
(Oreos in China failed until they were reformulated to be less sweet and expensive)
Strategy 4: Dual Adaption (Product & Communications A)
- both may need to change for legal, cultural or other environmental reasons
- regional managers may simply act independently
(Nike global shoes and Just do it didnt work in China)
Strategy 5: Innovation
- important for reaching mass markets in less industrialised nations and certain segments in industrialised countries
(e.g. Hand-cranked radios for areas with no electricity)
Explain the new‐product continuum and compare and contrast the types of innovation.
continuous innovations -> dynamically continuous innovations -> discontinuous innovations
- Continuous innovations:
- least disrupting influence on established consumption patterns - Dynamically continuous innovations
- Some disrupting influence on established consumption patterns - Discontinuous innovations
- requires new consumption patterns and the creation of previously unknown products
Products can be new to those who use or buy it, to the organisation or to the market
Explain Basic Product Concepts (What is a product, how can it be described, what product types can be differed?)
Product is a good, service or idea
- tangible and intangible attributes
Product types: industrial and consumer goods
Define (express) warranties (ausdrückliche Garantie)
Express warranty: written guarantee that assures the buyer gets what he or she paid for or provides a remedy in case of product failure
Warranties can be used as a competitive tool
Define consumer packaged goods and eco-packaging and explain what is important to consider regarding packaging
CSP: variety of products whose packaging protects or contains the product from production to the end user
Eco-P: addresses envirnomental issues such as recycling, biodegradability & sustainable forestry
Packaging must engage senses, make an emotional connection & enhance the brand experience
What is the purpose of labelling? Name examples of regulations regarding labelling
- Provides consumers with variois types of information
- regulations differ by country regarding various products
- Health warnings on tobacco products
- American Automobile Labeling Act clarifies the country of origin and final assembly point (Sammelplatz)
- EU requires labels on all food products that include ingredients from genetically modified crops (Ernte)
Exlain the role of aesthetics?
Global marketers must understand th importance of visual aesthetics
Aesthetic styles (degree of complexity found on a label) differ around the world
How can you differ between product types?
Buyer orientation:
- Amount of effort expended
- Level of risk
- buyer involvement
Buyer orientation framework
- Convenience goods (Waren des täglichen Bedarfs, Impulsprodukte, Gegenstände für den Notfall)
- preference goods
- shopping goods (bewusst ausgewählte Güter)
- specialty goods (Spezialerzeugnisse)
Explain basic brand concepts and what they stand for
- bundle of images ad experiences in the customer’s mind
- a promise made by a particular company about a particular product
- a quality certification
- differentiation between competing products
Sum of impressions about a brand = Brand Image
Explain Brand Equity (Markenwert)
- Total value that accrues to a product as a result of investments in the marketing of the brand
- Asset that represents the value created by the relationship between te brand and customer over time
What are brand equity (Markenwert) benefits?
- greater loyalty
- less vulnerability to marketing actions
- less vulnerability to marketing crises
- larger margins
- more inelastic consumer response to price increases
- more elastic consumer response to price decreases
- increased marketing communication effectiveness
