Managing Brands Over Geographic Boundaries

8/2/2019 Managing Brands Over Geographic Boundaries

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CHAPTER 14:CHAPTER 14:

BOUNDARIES AND MARKET SEGMENTSBOUNDARIES AND MARKET SEGMENTS

D S HwangD S Hwang

From Kevin Lane KellerFrom Kevin Lane Keller

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Regional Market SegmentsRegional Market Segments

Regionalization is an important recent trend that,Regionalization is an important recent trend that,

perhaps on the surface, seems to run counter toperhaps on the surface, seems to run counter to

lobalization.lobalization.

Reasons for regional marketingReasons for regional marketing

Need for more focused targetingNeed for more focused targetingThe shift from national advertising to sales promotionsThe shift from national advertising to sales promotions

DrawbacksDrawbacks

Marketing efficiency may suffer and costs may riseMarketing efficiency may suffer and costs may rise

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Other Demographic and CulturalOther Demographic and Cultural

SegmentsSegments

For example, the importance for marketers toFor example, the importance for marketers to

consider age segments and how youngerconsider age segments and how youngerconsumers can be brought into the consumerconsumers can be brought into the consumerfranchisefranchise

As another example, the 2000 census revealedAs another example, the 2000 census revealedthat Asians and His anics accounted for 79that Asians and His anics accounted for 79million of 281 million people in the Unitedmillion of 281 million people in the United

States and an estimated 1 trillion in annualStates and an estimated 1 trillion in annual

purchasing power.purchasing power.

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Rationale for Going InternationalRationale for Going International

Perception of slow growth and increasedPerception of slow growth and increased

competition in domestic marketscompetition in domestic markets

opportunitiesopportunities

Desire to reduce costs from economies of scaleDesire to reduce costs from economies of scale Need to diversif riskNeed to diversif risk

Recognition of global mobility of customersRecognition of global mobility of customers

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Advantages ofAdvantages of

Lower marketing costsLower marketing costs Power and scopePower and scope

Ability to leverage good ideas quickly andAbility to leverage good ideas quickly and

efficientlyefficiently

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Disadvantages ofDisadvantages of

Differences in consumer needs wants and usa eDifferences in consumer needs wants and usa e

patterns for productspatterns for products

erences n ran an pro uct eve opmenterences n ran an pro uct eve opment

and the competitive environmentand the competitive environment

Differences in the legal environmentDifferences in the legal environment

e ences n a e ng ns u onse ences n a e ng ns u ons

Differences in administrative proceduresDifferences in administrative procedures

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Standardization vs. CustomizationStandardization vs. Customization

According to Levitt, because the world isAccording to Levitt, because the world is

shrinkingshrinkingdue to leaps in technology,due to leaps in technology,

communication and so forthcommunication and so forthwellwell--mana edmana edcompanies should shift their emphasis fromcompanies should shift their emphasis from

standardized products that are advanced,standardized products that are advanced,

unct ona , re a e, an ow pr ce or a .unct ona , re a e, an ow pr ce or a .

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Standardization vs. CustomizationStandardization vs. Customization

Blending global objectives with local or regionalBlending global objectives with local or regional

concernsconcerns

. .. .

A global brand has a clear consistent equity acrossA global brand has a clear consistent equity across

geographies: same positioning, same benefits plusgeographies: same positioning, same benefits pluslocal tailoring if neededlocal tailoring if needed

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Global Brand StrategyGlobal Brand Strategy

,,

different marketing programs to address different marketdifferent marketing programs to address different marketsegmen s.segmen s.

Identify differences in consumer behaviorIdentify differences in consumer behavior

How they purchase and use productsHow they purchase and use productsWhat they know and feel about brandsWhat they know and feel about brands

Adjust branding programAdjust branding program

Choice of brand elementsChoice of brand elements Nature of supporting marketing programNature of supporting marketing program

Levera e f ec n ar a ciati nLevera e f ec n ar a ciati n

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How valid is the mental map in the new market?How valid is the mental map in the new market?

How valuable are the associations?How valuable are the associations?

What changes need to be made to the mentalWhat changes need to be made to the mentalma ?ma ?

By what means should this new mental map beBy what means should this new mental map be

createcreate

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Global CustomerGlobal Customer--Based BrandBased Brand

EquityEquity

To build customerTo build customer--based brand equity,based brand equity,

marketers must:marketers must:1.1. Establish breadth and depth of brand awarenessEstablish breadth and depth of brand awareness

.. -- -- -- --

3.3. Elicit positive, accessible brand responsesElicit positive, accessible brand responses

4.4. Forge intense, active brand relationshipsForge intense, active brand relationships

Achievin these four ste s in turn re uiresAchievin these four ste s in turn re uiresestablishing six core brand building blocks.establishing six core brand building blocks.

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Creating brand salienceCreating brand salience

Crafting brand imageCrafting brand image

Eliciting brand responses. Example: positiveEliciting brand responses. Example: positivebrand ud mentsbrand ud ments

Creating brand feelingsCreating brand feelings

Cultivating resonanceCultivating resonance

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Questions for Global BrandingQuestions for Global Branding

PositioningPositioning ow va s t e menta map n t e new mar et owow va s t e menta map n t e new mar et ow

appropriate is the positioning? What is the existing levelappropriate is the positioning? What is the existing level

associations, pointsassociations, points--ofof--parity, and pointsparity, and points--ofof--difference?difference?

What chan es should we make to the ositionin ? DoWhat chan es should we make to the ositionin ? Do

we need to create any new associations? Should wewe need to create any new associations? Should we notnotrere--create any existing associations? Should we modifycreate any existing associations? Should we modify

How should we create this new mental map? Can weHow should we create this new mental map? Can we

still use the same marketin activities? What chan esstill use the same marketin activities? What chan esshould we make? What new marketing activities areshould we make? What new marketing activities arenecessary?necessary?

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Building Global CustomerBuilding Global Customer--BasedBased

Brand EquityBrand Equity

In designing and implementing a marketingIn designing and implementing a marketing

ro ram to create a stron lobal brand,ro ram to create a stron lobal brand,marketers want to realize the advantages of amarketers want to realize the advantages of a

few of its disadvantages as possiblefew of its disadvantages as possible

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Ten Commandments of Global BrandingTen Commandments of Global Branding

1.1. Understand similarities and differences in the globalUnderstand similarities and differences in the globalran ng an scaperan ng an scape

2.2. Dont take shortcuts in brand buildingDont take shortcuts in brand building3.3. Establish marketing infrastructureEstablish marketing infrastructure

4.4. Embrace integrated marketing communicationsEmbrace integrated marketing communications

5.5. Cultivate brand partnershipsCultivate brand partnerships6.6. Balance standardization and customizationBalance standardization and customization

7.7. Balance global and local controlBalance global and local control

..

9.9. Implement a global brand equity measurement systemImplement a global brand equity measurement system

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10.10. Leverage ran e ementsLeverage ran e ements

Managing Brands Over Geographic Boundaries

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