MGMC11H3 Chapter Notes - Chapter 14: Brand Equity, Marketing Communications, Digital Marketing

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MGMC11 – Chapter 14: Managing Brands Over Geographic Boundaries and Market Segments:
Regional Market Segments:
-Regionalization – opposite of globalization
- Interested in regional marketing:
oMass markets are splintering
oSales data from scanners can reveal regional sales’ strengths and weaknesses
oMarketing communications make possible more focused targeting of consumer groups defined along
virtually any line
- Regionalization strategy can make a brand more relevant and appealing to any one individual  stronger impact
- Disadvantages of regionalization:
oMarketing efficiency can suffer
oCosts may rise with regional marketing
oMay force local producers to become more competitive
oBlur a brand’s national identity
Other Demographic and Cultural Segments:
- Any market segments may be a candidate for a specialized marketing and branding program
- Differences in demographics and psychographics can serve as the basis for a separate branding and marketing
program
- Lifestyles are fast becoming more similar across countries within sociodemographic segments than they are
within countries across sociodemographic segments
oi.e. teenagers in other cities across the world have more in common than with their own parents
- Brands that can tap into the global sensibilities of the youth market may be better prepared to adopt a
standardized branding program and marketing strategy
- Various ethnic, racial, or cultural groups may require different marketing programs
oSpecialized marketing programs with different products, advertising, promos, etc. to better reach and
persuade this market
- Targeting on the basis of being different may reinforce their image as outsiders or a minority
- Consumers not in the targeted segment may feel alienated or distanced from the company and brand
Rationale for Going International:
- Reasons to marketing brands internationally:
oPerception of slow growth and increased competition in domestic markets
oBelief in enhanced overseas growth and profit opportunities
oDesire to reduce costs from economies of scale
oNeed to diversify risk
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oRecognition of global mobility of customers
- Ability to establish a global profile is becoming a prereq for success
- Effective marketing program for a global brand consists of (rarely possible):
oOne product formulation
oOne package design
oOne advertising program
oOne pricing schedule
oOne distribution plan, etc.…
- Advantages of Global Marketing Programs:
-Economies of scale in production and distribution
oStronger experience curve exists  drives costs down with increases in production
-Lower marketing costs
oUniformity in packaging, advertising, promotion, and other marketing communication activities
oMore uniform  greater potential savings
-Power and scope
oGlobal brand profile can communicate credibility
oManufacturer gained much experience and acceptance  high quality and convenient to use
oSignal social status and prestige
-Consistency in brand image
oCommon marketing platform  consistency of brand and company image
oImportant where customers move often or media exposure transmits images across national boundaries
-Ability to leverage good ideas quickly and efficiently
oIncrease sustainability and “facilitate continued development of core competencies which enhances the
company’s ability to compete”
oNo strict limit to develop local versions  spends brand’s market entry
oLeverage good ideas as long as the right knowledge transfer systems are used
-Uniformity of marketing practices
oMay simplify coordination and provide greater control of communications in different countries
oCan pay greater attention to making refinements across markets over time to improve effectiveness
- Disadvantages of Global Marketing Programs:
-Differences in consumer needs, wants, and usage patterns for products
oDifferences in cultural values, economic development, and etc. across nationalities  behave differently
oProduct strategies that work in one country may not work in another
-Differences in consumer response to branding elements
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oLinguistic differences can twist/change meaning of a brand name
oSound systems differ across dialects  problematic word in one country but not another
oCultural context is key
oHow widespread the association is, how immediate it is, and how problematic it actually would be
-Differences in consumer response to marketing mix elements
oU.S. consumers  cynical toward advertising VS. Japanese  more positive towards advertising
oDifferences in advertising style:
Japanese  softer and more abstract in tone
U.S.  richer in product info
oPrice sensitivity, promo responsiveness, sponsorship support, etc. all may differ by country
oDifferences motivate differences in consumer behaviour and decision making
-Differences in brand and product development and the competitive environment
oMay be at different stages of PCLs in different countries
oPerceptions and positions of particular brands may differ considerably across countries (i.e. top brands
can vary significantly by geographic region)
oNature of competition may also differ
Europeans encounter more competition  ease of shipping products across borders
-Differences in the legal environment
oChallenges in developing global ad campaign  changing legal restrictions from country to country
-Differences in marketing institutions
oCosts for all marketing institutions may vary significantly from country to country
oImplementation of the same marketing strategy difficult
-Differences in administrative procedures
oDifficult to achieve the control necessary to implement a standardized global marketing program
oMay resist having autonomy threatened (locals)
o“not invented here” syndrome and raise objections about missing some key dimension of local market
oMay lose motivation and feel doomed to failure with reduction of autonomy
- Global Brand Strategy:
- To build global brand equity, must create different marketing programs to satisfy different market segments:
oIdentify differences in consumer behaviour in each market  how consumers purchase and use products
and what they know and feel about brands
oAdjust the branding program accordingly through the choice of brand elements, the nature of the actual
marketing program and activities, and the leveraging of secondary associations
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Document Summary

Mgmc11 chapter 14: managing brands over geographic boundaries and market segments: Interested in regional marketing: mass markets are splintering, sales data from scanners can reveal regional sales" strengths and weaknesses, marketing communications make possible more focused targeting of consumer groups defined along virtually any line. Regionalization strategy can make a brand more relevant and appealing to any one individual stronger impact. Disadvantages of regionalization: marketing efficiency can suffer, costs may rise with regional marketing, may force local producers to become more competitive, blur a brand"s national identity. Any market segments may be a candidate for a specialized marketing and branding program. Differences in demographics and psychographics can serve as the basis for a separate branding and marketing program. Lifestyles are fast becoming more similar across countries within sociodemographic segments than they are within countries across sociodemographic segments: i. e. teenagers in other cities across the world have more in common than with their own parents.

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