Chapter 10 Product and Brand Decisions
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Transcript of Chapter 10 Product and Brand Decisions
Chapter 10 Product and Brand Decisions
10-2
Introduction to Brands and Products
Brand and product conceptsLocal, international, and global brandsProduct design issuesAttitudes toward foreign productsStrategic alternativesNew product issues
10-3
Basic Product Concepts
A product is a good, service, or idea
Tangible attributesIntangible attributes
Product classificationConsumer goodsIndustrial goods
10-4
Product Types
Buyer orientationAmount of effort expended on purchaseConveniencePreferenceShoppingSpecialty
10-5
Brands
Bundle of images and experiences in the customer’s mindA promise made by a particular company about a particular productA quality certificationDifferentiation between competing productsThe sum of impressions about a brand is the brand image
10-6
Brand Equity
The added value that accrues to a product as a result of investments in the marketing of the brandAn asset that represents the value created by the relationship between the brand and customer over time
10-7
Local Products and Brands
Brands that have achieved success in a single national marketRepresent the lifeblood of domestic companiesEntrenched local products/brands can be a significant competitive hurdle to global companies
10-8
International Products and Brands
Offered in several markets in a particular region
Euro brands
The Smart car was developed by DaimlerChrysler for the European market.
10-9
Global Products and Brands
Global products meet the wants and needs of a global market and are offered in all world regionsGlobal brands have the same name and similar image and positioning throughout the world
10-10
Global Brand Characteristics
Quality signal—allows a company to charge a premium price in a highly competitive marketGlobal myth—marketers can use global consumer culture positioning to link the brand identity to any part of the worldSocial responsibility—shows how a company addresses social problems
10-11
Global Products and Brands
Global brands are not the same as global products
iPod = brandMp3 player= product
10-12
Branding Strategies
Combination or tiered branding allows marketers to leverage a company’s reputation while developing a distinctive identity for a line of products
Sony Walkman
Co-branding features two or more company or product brands
NutraSweet and Coca-ColaIntel Inside
10-13
Brand Extension
Brand acts as an umbrella for new products
Ex: The Virgin Group• Virgin Entertainment: Virgin Mega-stores and MGM
Cinemas• Virgin Trading: Virgin Cola and Virgin Vodka• Virgin Radio• Virgin Media Group: Virgin Publishing, Virgin
Television, Virgin Net• Virgin Hotels• Virgin Travel Group: Virgin Atlantic Airways, Virgin
Holidays
10-14
World’s Most Valuable Brands, 20061. Coca-Cola2. Microsoft3. IBM4. GE5. Intel6. Nokia7. Toyota8. Disney
17. Louis Vuitton18. Cisco19. Honda20. Samsung21. Merrill-Lynch22. Pepsi23. Nescafe24. Google25. Dell
9. McDonald’s10.Mercedes-Benz11.Citi12.Marlboro13.Hewlett-
Packard14.American
Express15.BMW16.Gillette
10-15
Global Brand Development
Questions to ask when management seeks to build a global brand
Does this move fit the company and/or its markets?Will anticipated scale economies materialize?How difficult will it be to develop a global brand team?Can a single brand be imposed on all markets successfully?
10-16
Global Brand Development
Global brand leadershipUsing organizational structures, processes, and cultures to allocate brand-building resources globally, to create global synergies, and to develop a global brand strategy that coordinates and leverages country brand strategies
10-17
Global Brand Development
Create a compelling value propositionThink about all elements of brand identity and select names, marks, and symbols that have the potential for globalizationResearch the alternatives of extending a national brand versus adopting a new brand identity globallyDevelop a company-wide communication system
10-18
Global Brand Development
Develop a consistent planning processAssign specific responsibility for managing branding issues Execute brand-building strategiesHarmonize, unravel confusion, and eliminate complexity
10-19
Slide 11-90
Big brand requires less brain work (top) than weaker one.
This Is Your Brain . . . .
10-20
Local versus Global Products and Brands: A Needs-Based Approach
Physiological
Safety
Social
External/Internal Esteem
Self-actualization
Maslow’s hierarchy of needs
10-21
Asian Hierarchy of Needs
10-22
Packaging
Consumer packaged goods refers to products whose packaging is designed to protect or contain the product during shipping, at retail, or point of useEco-packaging is key because package designers must address environmental issuesOffers communication cues that provide consumers with a basis for making a purchase decision
10-23
Labeling
Provides consumers with various types of informationRegulations differ by country regarding various products
Health warnings on tobacco productsAmerican Automobile Labeling Act clarifies the country of origin and final assembly pointEuropean Union requires labels on all food products that include ingredients from genetically modified crops
10-24
AestheticsGlobal marketers must understand the importance of visual aestheticsAesthetic styles (degree of complexity found on a label) differ around the worldAesthetic elements that are deemed appropriate, attractive, and appealing in one’s home country may be perceived differently elsewhere.
Red: South Africa = mourning; India = purity; China = celebration, good luck; Russia = Bolsheviks, communism; Western = excitementYellow: China = nourishing; Egypt = mourning; India = merchants; Western = hazard, warning, hope
10-25
Green: China = exorcism; India = Islam; Ireland = the country; Western = Spring, rebirth, go, ecologyBlue: Iran = heaven and spirituality; Western = depression, sadness, “something blue” bridal tradition, conservativePurple: Thailand = mourning; Western = royalty
10-26
White: Japan white carnation = death; Eastern = funerals; Western = brides, angels, good guys, hospitals, doctors, peace
10-27
10-28
Product Warranties
Express warranty is a written guarantee that assures the buyer is getting what he or she paid for or provides a remedy in case of a product failureWarranties can be used as a competitive tool
10-29
Extend, Adapt, Create: Strategic Alternatives in Global Marketing
Extension—offering product virtually unchanged in markets outside of home countryAdaptation—changing elements of design, function, and packaging according to needs of different country marketsCreation—developing new products for the world market