Lecture, Ch 15 - Managing Brands Over Geographic Boundaries & Market Segments

Regional Market Segments

•Can make brand more relevant and appealing

•Marketing efficiency may suffer and costs may rise

Other Demographic and Cultural Segments

•Marketing based on age

•Marketing based on ethnicity

Advantages of Global Marketing (6)

•Economies of scale in production and distribution

•Lower marketing costs

•Power and scope

•Consistency in brand image

•Ability to leverage good ideas quickly and efficiently

•Uniformity of marketing practices

Disadvantages of Global Marketing (7)

•Differences in consumer needs, wants, and usage patterns for products

•Differences in consumer response to branding elements

•Differences in consumer responses to marketing mix elements

•Differences in brand and product development and the competitive environment

•Differences in the legal environment

•Differences in marketing institutions

•Differences in administrative procedures

Strategies for Creating & Managing Global Brands

•Most experts agree that to be regarded as a successful global brand:

–A company should derive at least half of the revenue outside their domestic market

–Have much of their growth derived from these global markets

Creating Global Brand Equity (4)

1.Establishing breadth and depth of brand awareness

2.Creating points-of-parity and points-of-difference

3.Eliciting positive, accessible brand responses

4.Forging intense, active brand relationships

Global Brand Positioning

•Brand is at an earlier stage of development

•Awareness and key points-of-parity need to be established

What should we consider when “Customizing Marketing Mix Elements
in Local Markets for Global Brands“? What model?

Marketing Mix:

• Product

• Price

• Place

• Promotion