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Chapter 14 Managing Brand Over Geographic Boundaries and Marketing Segments.docx

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Ryerson University
MKT 510
Ida Berger

MKT510 Innovations In Marketing CHAPTER 14 Managing Brand Over Geographic Boundaries and Marketing Segments REGIONAL MARKET SEGMENTS  Regionalization: interest in regional marketing today, however, because mass markets are splintering, computerized sales data from supermarket scanner can reveal regional pockets of sales strengths and weaknesses, and marketing communications make possible more focused targeting for consumer groups defined along virtually any lines  Downside is marketing efficiency may suffer and costs may rise with regional marketing and regional campaigns may fore local producers to become more competitive or blur brand’s national identity OTHER DEMOGRAPHIC AND CULTURAL SEGMENTS  Because of increased consumer mobility, lifestyles are fast becoming more similar across countries within socio- demographic segments, than they are within countries across socio-demographic segments  Brands able to tap into global sensibilities of youth market may be better prepared to adopt standardized branding program and marketing strategy RATIONALE FOR GOING INTERNATIONAL  Successes among forces that have encouraged many firms to market brands internationally, include: o Perception of slow growth and increased competition in domestic markets o Belief in enhanced overseas growth and profit opportunities o Desire to reduce costs from economies of scale o Need to diversify risk o Recognition of global mobility of customers  Ideally, marketing program for global brand consists of one product formulation, one package design, one advertising program, one pricing schedule, one distribution plan, and so on that would prove the most effective and efficient option for every country in which brand was sold ADVANTAGES OF GLOBAL MARKETING PROGRAM  Economies of scale in production and distribution - Primary advantage are manufacturing efficiencies and lower costs that derive from higher volumes in production and distribution  Lower marketing costs – uniformity in packaging, advertising, promotion, and other marketing communication activities  Power and scope – consumers believe selling on many diverse markets is an indication that manufacturer has gained much expertise and acceptance, meaning product is high quality and convenient to use  Consistency in brand image – common marketing platform maintains consistency of brand and company image  Ability to leverage good ideas quickly and efficiently – globalization can increase sustainability and “facilitate continued development of core competencies with the organization in manufacturing, R&D, marketing and sales, and in less talked about areas such as competitive intelligence  Uniformity of marketing practices – marketers can pay greater attention to making refinements across markets and over time to improve its effectiveness DISADVANTAGES OF GLOBAL MARKETING PROGRAMS  Differences in consumer needs, wants, and usage patterns for products – differences in cultural values, economic development, and other factors across nationalities lead customers to behave differently  Differences in consumer response to branding elements – linguistic differences across countries can twist or change meaning of brand name  Differences in consumer response to marketing mix elements – price sensitivity, promotion responsiveness, sponsorship support, and other activities all may differ by country, and these differences can motivate differences in consumer behaviour and decision making  Differences in brand and product development and the competitive environment – products may be at different stages of their life cycle in different countries  Differences in the legal environment – consistently changing legal restrictions from country to country  Differences in marketing institutions – channels of distribution, retail practices, media availability, and media costs all may vary significantly from country to country, making implementation of same marketing strategy difficult MKT510 Innovations In Marketing  Differences in administrative procedures – difficult to achieve control necessary to implement standardized global marketing program GLOBAL BRAND STRATEGY  Create different marketing programs to satisfy different market segments 1. Identify differences in consumer behaviour – how consumers purchase and use products and what they know and feel about brands – in each market 2. Adjust branding program accordingly though choice of brand elements, nature of actual marketing program and activities, and leveraging secondary associations 3. Leverage secondary brand associations requires change across countries because entities linked to brand may take on very different meanings in different countries Global Brand Equity  Building brand resonance, marketers must (1) establish breadth and depth of brand awareness; (2) create POP and POD; (3) elicit positive and accessible brand response; (4) forge intense, active brand relationships  A
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