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Prof. to edit Master Click Murali Murti subtitle style Feb Jun 2011 Module 8 Lecture 1

Strategic brand management

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CHAPTER 14: MANAGING BRANDS OVER GEOGRAPHIC BOUNDARIES AND MARKET SEGMENTS

Kevin Lane Keller Tuck School of Business Dartmouth College

214.

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summary
1.

Brand management issues over regional, demographic and cultural market segments Basic rationale for taking brands into the international market Broad issues in developing a global brand strategy : Pros and cons of developing a global standardized marketing program Specific strategic and tactical issues in building global brand equity the ten commandments of global branding

1.

1.

1.

Regional Market Segments

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Regionalization is an important recent trend that, perhaps on the surface, seems to run counter to globalization. for regional marketing

Reasons

Need for more focused targeting shift from national advertising to sales promotions headaches

The

Drawbacks
Production Marketing

efficiency may suffer and costs 414.

Other Demographic and Cultural Segments

For

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example, the importance for marketers to consider age segments and how younger consumers can be brought into the consumer franchise As another example, the 2000 census revealed that Asians and Hispanics accounted for 79 million of 281 million people in the United States and an estimated $1 trillion in annual purchasing power.
514.

Rationale for Going International

Perception

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of slow growth and increased competition in domestic markets in enhanced overseas growth and profit opportunities to reduce costs from economies of scale to diversify risk of global mobility of
614.

Belief

Desire Need

Recognition

customers

3/20/12 Advantages of Global Marketing Programs

Economies

of scale in production and

distribution
Lower Power

marketing costs and scope in brand image

Consistency Ability

to leverage good ideas quickly and efficiently of marketing practices

714.

Uniformity

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Differences Differences

in consumer needs, wants, and usage patterns for products in brand and product development and the competitive environment in the legal environment in marketing institutions in administrative
814.

Differences Differences Differences

procedures

Standardization vs. Customization

According

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to Levitt, because the world is shrinkingdue to leaps in technology, communication, and so forthwell-managed companies should shift their emphasis from customizing items to offering globally standardized products that are advanced, functional, reliable, and low priced for all.

914.

Standardization and Customization

Blending Think
Coca

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global objectives with local or regional concerns global. Act local.

Cola 1999 :: Think Local, Act Local subsequently scrapped !!

global brand has a clear consistent equity across geographies: same positioning, same benefits plus local tailoring if needed
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Global Brand Strategy

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To build brand equity, it is often necessary to create different marketing programs to address different market segments.

Identify differences in consumer behavior

How

they purchase and use products they know and feel about brands of brand elements
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What

Adjust branding program

Choice

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Building a Global Brand

How

valid is the mental map in the new market?

What How

is the level of awareness?

valuable are the associations?

What By

changes need to be made to the mental map? what means should this new mental map be created?
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Global Customer-Based Brand Equity

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To build customer-based brand equity, marketers must:

1.

Establish breadth and depth of brand awareness Create points-of-parity and points-ofdifference Elicit positive, accessible brand responses Forge intense, active brand relationships

2.

3. 4.

Achieving these four steps, in turn, requires establishing six core brand 13

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Core Brand Building Blocks

Creating

brand salience brand performance brand image

Developing Crafting Eliciting

brand responses. Example: positive brand judgments brand feelings resonance

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Creating

Cultivating

Questions for Global Branding Positioning

How valid is the mental map in the new market? How appropriate is the positioning? What is the existing level of awareness? How valuable are the core brand associations, points-of-parity, and points-of-difference? What changes should we make to the positioning? Do we need to create any new associations? Should we not re-create any existing associations? Should we modify any existing associations? How should we create this new mental map? Can we still use the same marketing activities? What changes should we make? What new marketing activities are 15

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Building Global Customer-Based Brand Equity

In

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designing and implementing a marketing program to create a strong global brand, marketers want to realize the advantages of a global marketing program while suffering as few of its disadvantages as possible

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3/20/12 Ten Commandments of Global Branding

1.

Understand similarities and differences in the global branding landscape Dont take shortcuts in brand building Establish marketing infrastructure Embrace integrated marketing communications Cultivate brand partnerships Balance standardization and customization Balance global and local control Define operable guidelines Implement a global brand equity
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2. 3. 4.

5. 6. 7. 8. 9.

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Seven rules for international distribution

1. 2.

3.

4.

5.

6.

7.

Select distributors don't let them select you Look for distributors capable of developing markets, rather than those with a few obvious customer contacts Treat the local distributors as long term partners, not temporary market entry vehicles Support market entry by committing money, managers, and proven marketing ideas From the start, maintain control over marketing strategy Make sure distributors provide you with detailed market and financial performance data Build links among national distributors at the earliest opportunities

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Cultivate brand partnerships

Criteria for evaluation Strategy Speed Control Investme nt Geograph Slow High Medium ic extension Brand Fast Medium acquisitio n Brand Moderate Low alliance High

Low