Section 7 - Brand and Product Decisions

Question 1

The Product

Answer 1

A good, service, or idea. Tangible attributes and intangible attributes. B2B products and B2C products.

Question 2

Products and Culture

Answer 2

The following ‘product features’ change (subject to cultural preferences):

• Taste, colour, odour, and texture.
• Perceived function.
• Package and label.
• Warranty, manufacturer’s and retailer’s servicing agreements.
• Perceived brand recognition (and the manufacturer’s reputation).
• Country of origin.

Question 3

Packaging: B2C: Consumer Packaging

Answer 3

It must be functional and attractive.
It communicates information that promotes a purchase.
It must engage the senses to make an emotional connection and enhance the ‘experience’.
Eco-packaging is marketing for environmental reasons. It is made to be visually obvious to the end user, but exists only because of an economic justification. It helps your product sell better even if it isn’t really that environmentally friendly.

Question 4

Packaging: B2B: Business Packaging

Answer 4

It must be functional (external protection for shipping) as well as attractive for presentation (if shipped to retailers for end-user sales).
Emotions are not relevant for the external (B2B) application; the key issue are function and efficiency.

Question 5

Labeling

Answer 5

The intent is to provide consumers with information required to initiate a desire to obtain the product and meet legal requirements.
Packaging regulations include:
-Weights and measures
-Languages permitted.
-Health warnings.
-Country of origin (and final assembly point).
-Material sources.
-Food sources or processes (such as genetically modified crops).

Question 6

Aesthetics

Answer 6

Global marketers must understand the importance of visual aesthetics on a package or in an advertisement.
Some common aesthetic style preferences include:
The degree of complexity found on a label: minimal (art is the key focus) or detailed (technical components are the key focus).
A logo or graphic symbol: examples: Coke’s white on red label, McDonald’s golden arches.
Colours: Caterpillar’s distinctive yellow colour on all of their earthmoving equipment.

Question 7

Brand Equity Benefits

Answer 7

Investment in brand loyalty (and the subsequent increased equity) often results in:
-Less risk of ‘substitution’.
-Less risk of losing sales to competitors who are making marketing changes (in terms of the 4Ps.)
-Increased margins.
-Inelastic consumer response to price increases. (You’ll keep buying if the price increases).
-Elastic consumer response to price decreases. (You’ll buy more if they’re on sale).
Think of if you love Pepsi!

Question 8

Local Products and Brands

Answer 8

Local products that are successful need to be protected because they finance all international expansion activities.

Question 9

International Products and Brands

Answer 9

Offered to several markets in similar segments.
Modern international shipping doesn’t require these markets to be geographically close.
May have to alter promotion to suit each segment.
Marketing a car two different ways in two different markets.

Question 10

Global Products and Brands

Answer 10

The world is viewed as one large market with slightly varied segments.
The same products are offered in all world regions to similar segments.
Products are adjusted to suite local tastes (food), but the same global market message/logo/symbol is applied (McDonalds).

Question 11

Quality Defined

Answer 11

Two quality definitions in marketing:
Market-perceived: this is the client’s understanding.
Performance: this is the product’s true (technical) capability.
B2B: 80/20 performance/market-perceived quality.
B2C: 20/80 performance/market-perceived quality.

Question 12

Global Brand Development

Answer 12

1. Identify core competencies.
2. Identify parts that give superior position.
3. Test names and features in different countries.
4. Develop a consistent planning process across markets and products.
5. Provide a standardized format for the marketing staff in the target countries.

Question 13

Product/Promotion Matrix

Answer 13

Different Promotion, Same Product: Modified Promotion
Same Promotion, Same Product: Standardization
Different Promotion, Different Product: Dual Modification
Same Promotion, Different Product: Modified Product

Question 14

Innovation:

Answer 14

The success of innovative products that are focused on reaching mass markets in less industrialized nations don’t need to be innovate in terms of the home country’s perspective. The product only has to be new to the market you are moving into.
Innovation is often:
The combination of existing technologies.
The combination of existing chemicals to create a new product (common in the pharmaceutical industry).
New to those who use or buy it.
New to a specific market.

Question 15

Innovation Evolution

Answer 15

Continuous innovations —> Dynamically continuous innovations —> Discontinuous innovations.
Goes from minimal disruptive influence on market’s expectations to requiring the education of new previously unknown products.

Question 16

Innovation Acceptance

Answer 16

Acceptance or resistance is affected by a product’s:
Obvious advantage: a perceived increased value of the new product compared to the old.
Compatibility: will it fit with my existing equipment and needs?
Sample: can I try a sample before purchasing? Helps close a deal.

Promotion:
How well are the advantages explained and/or demonstrated?
The communication channel effectiveness.
The amount of repeat advertising.
Perception by social structure. This is a power distance issue; does the product imply prestige, power, status (for an individual culture), or well-being, compatibility, harmony (for a collective culture)?

Question 17

Testing New Products

Answer 17

New products should be tested whenever a product will interact with the target audience because there are mechanical or chemical elements that have a potential for unexpected incompatibility issues.
Being unaware of undesirable side effects is not a defendable position in the legal system.
Current laws in many countries allow a product to be sold even if it has negative side effects as long as a warning has been provided prior to purchase.
Current laws in some countries are so weak that the penalties related to selling dangerous products are much less than the profit opportunity.