Global Marketing Management
Masaaki Kotabe & Kristiaan HelsenThird Edition John Wiley
& Sons, Inc., 2004Chapter 12 Kotabe & Helsen's Global
Marketing Management, Third Edition, 2004 1
Chapter 12
Global Product Policy Decisions II: Marketing Products and
Services
Chapter 12
Kotabe & Helsen's Global Marketing Management, Third
Edition, 2004
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Chapter Overview1. Global Branding Strategies 2. Managing
Multinational Product Lines 3. Product Piracy 4. Country-of-Origin
(COO) Effects 5. Global Marketing of Services
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IntroductionCompanies that brand their products have various
options when they sell their goods in multiple countries. More and
more companies see global (or at least regional) branding as a
must. Multinational product line management entails issues such as:
What product assortment should the company launch when it first
enters a new market?Chapter 12 Kotabe & Helsen's Global
Marketing Management, Third Edition, 2004 4
Introduction (contd.) How should the firm expand its
multinational product line over time? What product lines should be
added or dropped? Global marketers also face the issue of global
piracy. In global marketing, firms have to use a multitude of
strategies to handle the negative country-oforigin
stereotypes.Chapter 12 Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004 5
1. Global Branding StrategiesGlobal Brands (see Exhibit 12-1) A
truly global brand is one that has a consistent identity with
consumers across the world. The development costs for products
launched under the global brand name can be spread over large
volumes. A global brand has much more visibility than a local
brand. The fact of being global adds to the image of a brand
country.Chapter 12 Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004 6
1. Global Branding Strategies (contd.) Global brands are also
able to leverage the country association for the product. The value
of a global brand (brand equity) usually varies a great deal from
country to country. Inter-country gaps in brand equity may be due
to any following factors: History Competitive climate Marketing
supportChapter 12 Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004 7
1. Global Branding Strategies (contd.) Cultural receptivity to
brands Product category penetration Local Branding Examples:
Interbrew has a portfolio of 200 local and regional brands across
the globe; Mecca Cola from France Global or Local Brands? Solo
branding, hallmark branding, family branding, and extension
branding.Chapter 12 Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004 8
1. Global Branding Strategies (contd.) A firms global brand is
shaped by three types of factors: Firm-based drivers Product-market
drivers Market dynamics Brand Name Changeover Strategies
Fade-in/fade-out
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1. Global Branding Strategies (contd.) Co-branding Umbrella
branding Transparent forewarning Summary axing Private Label
Branding (Store Brands): Factors explaining success of private
labels: 1. Improved quality of private-label products 2.
Development of premium private-label brandsChapter 12 Kotabe &
Helsen's Global Marketing Management, Third Edition, 2004 11
1. Global Branding Strategies (contd.) A system where a single
banner brand is used worldwide, often with a sub-brand name, for
almost the entire product mix of the company. 3. Shift in balance
of power between retailers and manufacturers 4. Expansion into new
product categories 5. Internationalization of retail chains 6.
Economic downturns
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1. Global Branding Strategies (contd.)Umbrella (Corporate)
Branding Umbrella branding facilitates brand-building efforts over
a range of products. Umbrella branding makes it easier to add or
drop new products. Protecting Brand Names Brands are vital assets
to brand owners.
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1. Global Branding Strategies (contd.) In the area of brand
protection, the oldest treaty is the Paris Convention for the
Protection of Intellectual Property. The difference in opinion held
by industrialized and developing countries on intellectual property
(see Exhibit 12-6) Many elements of the brand franchise may require
protection.
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2. Managing Multinational Product LinesThe product assortment is
usually described on two dimensions: the width and the length.
Drivers affecting the composition of a firms international product
line: Customer Preference Price Spectrum Competitive Climate
Organizational Structure HistoryChapter 12 Kotabe & Helsen's
Global Marketing Management, Third Edition, 2004 16
2. Managing Multinational Product Lines (contd.)Categories of
product lines: Core products Niche products Seasonal products
Filler products
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3. Product PiracyAny aspect of the product is vulnerable to
piracy, including the brand name, the logo, the design, and the
package (see Exhibit 12-10). Strategic Options Against Product
Piracy: Lobbying Activities Legal Action Customs Product Policy
Options Distribution Communication OptionsChapter 12 Kotabe &
Helsen's Global Marketing Management, Third Edition, 2004 18
4. Country-of-Origin StereotypesCountry-of-Origin (COO)
Influences on Consumers For many products, the made in label
matters a great deal to consumers. Key research findings of COO
effects: COO effects are not stable Consumers prefer domestic
products over imports Both the country of design and the country of
manufacturing/assembly play a role in consumer attraction.Chapter
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4. Country of Origin Stereotypes (contd.) COO particularly
influences the elderly, less educated, and politically
conservative; consumer expertise also makes a difference. Cultural
orientation play a role. Consumers are likely to use the origin of
a product as a cue when they are unfamiliar with the brand name
carried by the product. COO effects depend on the product
category.
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4. Country of Origin Stereotypes (contd.)Strategies to Cope with
COO Stereotypes (see Exhibit 12-11): Product Policy Pricing
Distribution Communication
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5. Global Marketing of ServicesChallenges in Marketing Services
Internationally: Protectionism Immediate Face-to-Face Contacts with
Service Transactions Difficulties in Measuring Customer
Satisfaction Overseas Opportunities in the Global Service
Industries: Deregulation of Service Industries Increasing Demand
for Premium ServicesChapter 12 Kotabe & Helsen's Global
Marketing Management, Third Edition, 2004 22
5. Global Marketing of Services (contd.) Increased Value
Consciousness Global Service Marketing Strategies: Capitalize on
Cultural Forces in the Host Market Standardize and Customize Give
Information Technologies (IT) a Central Role Add Value by
Differentiation Establish Global Service NetworksChapter 12 Kotabe
& Helsen's Global Marketing Management, Third Edition, 2004
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Copyright John Wiley & Sons, Inc. 2004
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Kotabe & Helsen's Global Marketing Management, Third
Edition, 2004
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