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Managing Brands Over Geographic Boundaries and Market Segments

This chapter discusses managing brands across geographic and demographic segments globally. It covers reasons for regional marketing like more focused targeting and shifts from national advertising to sales promotions. Drawbacks include production headaches and lower marketing efficiency. The chapter also discusses targeting other segments like age and cultural groups. Building global brands requires understanding differences in consumer behavior and adjusting branding programs while realizing advantages and disadvantages of global programs. Standardization and customization must be balanced to think globally but act locally.

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Syed Arslan
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58 views15 pages

Managing Brands Over Geographic Boundaries and Market Segments

This chapter discusses managing brands across geographic and demographic segments globally. It covers reasons for regional marketing like more focused targeting and shifts from national advertising to sales promotions. Drawbacks include production headaches and lower marketing efficiency. The chapter also discusses targeting other segments like age and cultural groups. Building global brands requires understanding differences in consumer behavior and adjusting branding programs while realizing advantages and disadvantages of global programs. Standardization and customization must be balanced to think globally but act locally.

Uploaded by

Syed Arslan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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CHAPTER 14:

MANAGING BRANDS OVER


GEOGRAPHIC BOUNDARIES AND
MARKET SEGMENTS

14.1
Regional Market

Segments
Regionalization is an important recent trend that,
perhaps on the surface, seems to run counter to
globalization.
 Reasons for regional marketing
 Need for more focused targeting
 The shift from national advertising to sales
promotions
 Drawbacks
 Production headaches
 Marketing efficiency may suffer and costs may rise
14.2
Other Demographic and
Cultural Segments
 For 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.
14.3
Rationale for Going

International
Perception of slow growth and increased
competition in domestic markets
 Belief in enhanced overseas growth and
profit opportunities
 Desire to reduce costs from economies of
scale
 Need to diversify risk
 Recognition of global mobility of customers

14.4
Advantages of
Global Marketing
 Programs
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

14.5
Disadvantages of
Global Marketing
 Programs
Differences in consumer needs, wants, and
usage patterns for products
 Differences in brand and product development
and the competitive environment
 Differences in the legal environment
 Differences in marketing institutions
 Differences in administrative procedures

14.6
Standardization vs.
Customization
According to Levitt, because the world is
shrinking
—due to leaps in technology, communication, and
so forth—well-managed companies should shift
their emphasis from customizing items to offering
globally standardized products that are
advanced, functional, reliable, and low priced for
all.

14.7
Standardization vs.
Customization
 Blending global objectives with local or
regional concerns
 “Think global. Act local.”
 A global brand has a clear consistent equity
across geographies: same positioning, same
benefits plus local tailoring if needed

14.8
Global Brand
Strategy
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
 What they know and feel about brands
Adjust branding program
 Choice of brand elements
 Nature of supporting marketing program
 Leverage of secondary associations

14.9
Building a Global
Brand
 How valid is the mental map in the new
market?
 What is the level of awareness?
 How valuable are the associations?
 What changes need to be made to the mental
map?
 By what means should this new mental map
be created?
14.10
Global Customer-Based Brand
Equity
 To build customer-based brand
equity, marketers must:
1. Establish breadth and depth of brand
awareness
2. Create points-of-parity and points-of-
difference

3. Elicit positive, accessible brand responses
Achieving these four steps, in turn,
4. Forge intense, active brand relationships
requires establishing six core brand
building blocks.
14.11
Core Brand Building
Blocks
 Creating brand salience
 Developing brand performance
 Crafting brand image
 Eliciting brand responses. Example:
positive brand judgments
 Creating brand feelings
 Cultivating resonance

14.12
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
necessary?
14.13
Building Global Customer-
Based Brand Equity
 In 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

14.14
Ten Commandments of Global
1.
Branding
Understand similarities and differences in the
global branding landscape
2. Don’t take shortcuts in brand building
3. Establish marketing infrastructure
4. Embrace integrated marketing communications
5. Cultivate brand partnerships
6. Balance standardization and customization
7. Balance global and local control
8. Define operable guidelines
9. Implement a global brand equity measurement
system
10. Leverage brand elements 14.15

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