14.1CHAPTER 14:CHAPTER 14:MANAGING BRANDS OVER GEOGRAPHICMANAGING BRANDS OVER GEOGRAPHICBOUNDARIES AND MARKET SEGMENTSBOUNDARIES AND MARKET SEGMENTSKevin Lane KellerKevin Lane KellerTuck School of BusinessTuck School of BusinessDartmouth CollegeDartmouth College
14.2Regional Market SegmentsRegional Market Segments Regionalization is an important recent trend that,Regionalization is an important recent trend that,perhaps on the surface, seems to run counter toperhaps on the surface, seems to run counter toglobalization.globalization. Reasons for regional marketingReasons for regional marketing Need for more focused targetingNeed for more focused targeting The shift from national advertising to sales promotionsThe shift from national advertising to sales promotions DrawbacksDrawbacks Production headachesProduction headaches Marketing efficiency may suffer and costs may riseMarketing efficiency may suffer and costs may rise
14.3Other Demographic and CulturalOther Demographic and CulturalSegmentsSegments For example, the importance for marketers toFor example, the importance for marketers toconsider age segments and how youngerconsider age segments and how youngerconsumers can be brought into the consumerconsumers can be brought into the consumerfranchisefranchise As another example, the 2000 census revealedAs another example, the 2000 census revealedthat Asians and Hispanics accounted for 79that Asians and Hispanics accounted for 79million of 281 million people in the Unitedmillion of 281 million people in the UnitedStates and an estimated $1 trillion in annualStates and an estimated $1 trillion in annualpurchasing power.purchasing power.
14.4Rationale for Going InternationalRationale for Going International Perception of slow growth and increasedPerception of slow growth and increasedcompetition in domestic marketscompetition in domestic markets Belief in enhanced overseas growth and profitBelief in enhanced overseas growth and profitopportunitiesopportunities Desire to reduce costs from economies of scaleDesire to reduce costs from economies of scale Need to diversify riskNeed to diversify risk Recognition of global mobility of customersRecognition of global mobility of customers
14.5Advantages ofAdvantages ofGlobal Marketing ProgramsGlobal Marketing Programs Economies of scale in production and distributionEconomies of scale in production and distribution Lower marketing costsLower marketing costs Power and scopePower and scope Consistency in brand imageConsistency in brand image Ability to leverage good ideas quickly andAbility to leverage good ideas quickly andefficientlyefficiently Uniformity of marketing practicesUniformity of marketing practices
14.6Disadvantages ofDisadvantages ofGlobal Marketing ProgramsGlobal Marketing Programs Differences in consumer needs, wants, and usageDifferences in consumer needs, wants, and usagepatterns for productspatterns for products Differences in brand and product developmentDifferences in brand and product developmentand the competitive environmentand the competitive environment Differences in the legal environmentDifferences in the legal environment Differences in marketing institutionsDifferences in marketing institutions Differences in administrative proceduresDifferences in administrative procedures
14.7Standardization vs. CustomizationStandardization vs. Customization According to Levitt, because the world is shrinkingAccording to Levitt, because the world is shrinking—due to leaps in technology, communication, and—due to leaps in technology, communication, andso forth—well-managed companies should shiftso forth—well-managed companies should shifttheir emphasis from customizing items to offeringtheir emphasis from customizing items to offeringglobally standardized products that are advanced,globally standardized products that are advanced,functional, reliable, and low priced for all.functional, reliable, and low priced for all.
14.8Standardization vs. CustomizationStandardization vs. Customization Blending global objectives with local or regionalBlending global objectives with local or regionalconcernsconcerns ““Think global. Act local.”Think global. Act local.” A global brand has a clear consistent equity acrossA global brand has a clear consistent equity acrossgeographies: same positioning, same benefits plusgeographies: same positioning, same benefits pluslocal tailoring if neededlocal tailoring if needed
14.9Global Brand StrategyGlobal Brand StrategyTo build brand equity, it is often necessary to createTo build brand equity, it is often necessary to createdifferent marketing programs to address different marketdifferent marketing programs to address different marketsegments.segments. Identify differences in consumer behaviorIdentify differences in consumer behavior How they purchase and use productsHow they purchase and use products What they know and feel about brandsWhat they know and feel about brands Adjust branding programAdjust branding program Choice of brand elementsChoice of brand elements Nature of supporting marketing programNature of supporting marketing program Leverage of secondary associationsLeverage of secondary associations
14.10Building a Global BrandBuilding a Global Brand How valid is the mental map in the newHow valid is the mental map in the newmarket?market? What is the level of awareness?What is the level of awareness? How valuable are the associations?How valuable are the associations? What changes need to be made to the mentalWhat changes need to be made to the mentalmap?map? By what means should this new mental map beBy what means should this new mental map becreated?created?
14.11Global Customer-Based BrandGlobal Customer-Based BrandEquityEquity To build customer-based brand equity,To build customer-based brand equity,marketers must:marketers must:1.1. Establish breadth and depth of brand awarenessEstablish breadth and depth of brand awareness2.2. Create points-of-parity and points-of-differenceCreate points-of-parity and points-of-difference3.3. Elicit positive, accessible brand responsesElicit positive, accessible brand responses4.4. Forge intense, active brand relationshipsForge intense, active brand relationships Achieving these four steps, in turn, requiresAchieving these four steps, in turn, requiresestablishing six core brand building blocks.establishing six core brand building blocks.
14.13Questions for Global BrandingQuestions for Global BrandingPositioningPositioning How valid is the mental map in the new market? HowHow valid is the mental map in the new market? Howappropriate is the positioning? What is the existing levelappropriate is the positioning? What is the existing levelof awareness? How valuable are the core brandof awareness? How valuable are the core brandassociations, points-of-parity, and points-of-difference?associations, points-of-parity, and points-of-difference? What changes should we make to the positioning? DoWhat changes should we make to the positioning? Dowe need to create any new associations? Should wewe need to create any new associations? Should we notnotre-create any existing associations? Should we modifyre-create any existing associations? Should we modifyany existing associations?any existing associations? How should we create this new mental map? Can weHow should we create this new mental map? Can westill use the same marketing activities? What changesstill use the same marketing activities? What changesshould we make? What new marketing activities areshould we make? What new marketing activities arenecessary?necessary?
14.14Building Global Customer-BasedBuilding Global Customer-BasedBrand EquityBrand Equity In designing and implementing a marketingIn designing and implementing a marketingprogram to create a strong global brand,program to create a strong global brand,marketers want to realize the advantages of amarketers want to realize the advantages of aglobal marketing program while suffering as fewglobal marketing program while suffering as fewof its disadvantages as possibleof its disadvantages as possible
14.15Ten Commandments of Global BrandingTen Commandments of Global Branding1.1. Understand similarities and differences in the globalUnderstand similarities and differences in the globalbranding landscapebranding landscape2.2. Don’t take shortcuts in brand buildingDon’t take shortcuts in brand building3.3. Establish marketing infrastructureEstablish marketing infrastructure4.4. Embrace integrated marketing communicationsEmbrace integrated marketing communications5.5. Cultivate brand partnershipsCultivate brand partnerships6.6. Balance standardization and customizationBalance standardization and customization7.7. Balance global and local controlBalance global and local control8.8. Define operable guidelinesDefine operable guidelines9.9. Implement a global brand equity measurement systemImplement a global brand equity measurement system10.10. Leverage brand elementsLeverage brand elements
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