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Chapter 11

From Value Paradox to Strategy

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Introduction

Brand value means mindshare: the position the brand has in the mind of the consumer

Reach global mindshare, a brand must fit in the minds of the consumer in different cultures and countries

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Introduction

In global brand strategy, the choice is not between global and local but between ineffective global standardization and effective cultural segmentation strategy

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Introduction

Common perception is that a strategy can be global, but execution must be local

AT the centre of strategy is culture Both mission statement and brand

positioning statements appear to be culture-bound because they reflect the philosophy of a company’s leaders

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Company mission and vision

• Mission statement is an explicit formulation of what the company stands for

• Vision states where the company wants to be in the future

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Company mission and vision

• Practice is of Western origin, self-analysis and statement of uniqueness

• Mission statements reflect culture• Implicit or explicit statements or no

statements at all

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Company mission and vision

• The concept of mission and vision are western inventions

• It has become a global management practice to provide statements expressing a company's strategic intent, its philosophy, values and ethics or operational effectiveness

Yet the form and content are not similar

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Company mission and vision

• Japanese statements reflect harmony, all people (kyose)

• American statement reflect the need for performance, leadership, greatness and growth

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Corporate identity• Corporate identity is the “self” of the

organization, is unique, must be consistent: reflection of individualism

• Collectivist’s identity can change according to varying social positions and situations

• The task of creating a corporate identity begins with the selection of an appropriate corporate name

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Corporate identity• Uniqueness and consistency of corporate

identity in individualistic cultures is opposed to collectivist’s identity, which can change according to varying social positions and situations

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Int’l Marketing Communication Strategies

5. One or different brand names, one concept, different executions, based on

6. culture-fit advertising styles

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Stages of global market development

1. Global products, global marcom

• Advertising at level of product attributes, generic

2. Global products, adapted marcom

• Usage of global product varies by culture

• Market saturation, competition

• Differentiation: benefit/value level

3. Local products, local marcom

• Competition drives further differentiation

• Localization or cultural segmentation

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Example: Mobile communications

Attributes Connecting people

Benefit Control, efficiency

Value Freedom

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Work where you want

• Both ads reflect the concept “work where you want”, frequently used by IT and telecom companies of the North-West of Europe

• In IDV cultures people like to have the freedom to work where they want. This is even stronger when IDV is combined with FEM (Scandinavia), where it reflects the need for quality of life.

• In COL cultures, and particularly when combined with MAS (Japan, Italy) there is a strong distinction between work life and private life and the concept of “work where you want” is not appealing.

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Values in international advertising

• Products are not culture-free No global consumers for global products People use the same product in different ways

• There are no global values Global advertising can reinforce differences

• Global communities? Young people vary as much as general publics