Keegan11 Product Decisions
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Transcript of Keegan11 Product Decisions
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Product Decisions
Chapter 11
Global Marketing
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Product Concepts
A product is a good, service, or idea
Tangible Attributes
Intangible Attributes
Product classification
Consumer goods
Industrial goods
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Consumer Goods Classification
Buyer orientation
Amount of effort expended on purchase
Level of risk
Level of involvement
Product life span
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Life Span Based Product
Classification
Durable
Non-Durable
Disposable
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Brands
Bundle of images and experiences in the
customers mind
A promise made by a particular companyabout a particular product
A quality certification
Differentiation between competing products The sum of impressions about a brand is the
Brand Image
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Brand Equity
The added value that accrues to a product as
a result of investments in the marketing of
the brand
An asset that represents the value created by
the relationship between the brand and
customer over time
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Global Products and Brands
Global products meet the wants and needs
of a global market and is offered in all
world regions
Global brands have the same name and
similar image and positioning throughout
the world
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Brand Extensions
Brand acts as an umbrella for new productsExample: The Virgin Group
Virgin Entertainment: Virgin Megastores 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
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The Most Valuable Brands
RANK Value(billions)
RANK Value(billions)
1. Coca-Cola 69.9 7. Disney 32.6
2. Microsoft 65.1 8. Ford 30.1
3. IBM 52.8 9. McDonalds 25.3
4. GE 42.4 10. AT&T 22.8
5. Nokia 35.0 11. Marlboro 22.0
6. Intel 34.7 12. Mercedes 21.7
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Guidelines for Developing
Global Brand Leadership
Create a compelling value proposition
Think about all elements of brand identity
and select names, marks, and symbols that
have the potential for globalization
Research the alternatives of extending a
national brand versus adopting a new brand
identity globally
Develop a company-wide communication
system
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Guidelines (cont.)
Develop a consistent planning process
Assign specific responsibility for managing
branding issues
Execute brand-building strategies
Harmonize, unravel confusion, and
eliminate complexity
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A Needs-Based Approach:
Maslows Hierarchy of Needs
Physiological
Safety
Social
External/InternalEsteem
Self-actualization
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Maslows Hierarchy:
The Asian Equivalent
Physiological
Safety
Affiliation
Admiration
Status
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Strategic Alternatives in Global
Marketing Extensionoffering product virtually
unchanged in markets outside of home
country Adaptationchanging elements of design,
function, and packaging according to needs
of different country markets Creationdeveloping new products for the
world market
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Global Product Planning:
Strategic Alternatives
Product
Same DifferentCommunication
Different
SameStrategy 1:
Dual Extension
Strategy 2:
Product ExtensionCommunication
Adaptation
Strategy 4:
Dual Adaptation
Strategy 3:Product Adaptation
Communication
Extension
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Factors Affecting Choice of
Product/Communication Strategy
Product
Market
Costs of adaptation