Marketing Latam - 06 Product


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Marketing Latam - 06 Product

  1. 1. Global Marketing Doing Business in Latin America Product 6. Product, Services & BrandingThis presentation (and extra material) belongs to Natalia Ceruti´s Global Marketing Course, within the Leading the Way to Success in Latin America Program. Should not be copied, nor reproduced, in full or in parts, without Natalia Ceruti´s permission. · Product Levels Sales and Product Life Cycle Source: Cateora · ·
  2. 2. Common Product Life-Cycle Patterns Product Life Cycle Source: Kerin, Marketing The Core · · New Product Process Product Newness Source: Kerin, Marketing The Core Source: Kerin, Marketing The Core · ·
  3. 3. Product Adoption Consumer Goods Source: Kerin, Marketing The Core · · GreenGeneral Trends in LA Disco – Traé tu Bolsa - 2009 ·
  4. 4. Acceptance & Wellbeing Eternal Youth – Sentirse bien es una elección 2008 Nivea Q10 Plus · · Homo Mobilis Snack Cult: easy to make ! Paradox: Fast Food vs Fitness ! Drink on the go (Rica y ! Entertainment on the go Sana) ! Beauty on the move Savora - Nada · ·
  5. 5. Stress Out Singles Sandero Inflables · · HyperPremium Real Fact ! Marketing Resistance ! Sampling ! Forum ! Influentials! Paradox: desire for luxury and intense seeking for discounts (Ford EcoSport) Schneider Telemarketer · ·
  6. 6. Living the Experience Hyperconnectivity Movistar - Marcas Arnet - Pandas! Always give more · · Marketing in Service Industries Services in LA ·
  7. 7. Personal Shoppers · · Root Causes of Customer Failure Service-Quality · ·
  8. 8. Gaps that Cause Unsuccessful Service Delivery Marketing Services in LA• Gap between consumer expectation and management • Just make it work is enough perception. • Everyday stress affects services• Gap between management perception and service-quality specifications. • Lack of culture makes it difficult• Gap between service-quality specifications and service • No real value on Service (seen as free) delivery. • Informal labour (no punishments)• Gap between service delivery and external communications. • Poor regulations• Gap between perceived service and expected service. · · Brands Brand Equity Source: Keegan ·
  9. 9. Brand Equity & Marketing Personalizing Marketing • One-to-One Marketing: Consumers help to add value by providing information.Brand equity relates to the fact that different outcomes • Firm adds value by generating rewarding experiences with consumers.result in the marketing of a product or service because • Creates switching costs for consumersof its brand name, as compared to if the same product • Reduces transaction costs for consumers • Maximizes utility for consumers or service did not have that name. • Treat different consumers differently • Different needs• How do marketing activities in general—and product, pricing, • Different values to firm (Current, Future LTV) and distribution strategies in particular—build brand equity? • Devote more marketing effort on most valuable consumers (and customers)• How can marketers integrate these activities to enhance brand • Five Steps 1. Identify consumers, individually and addressably awareness, improve the brand image, elicit positive brand 2. Differentiate them by value and needs responses, and increase brand resonance? 3. Interact with them more cost-efficiently and effectively 4. Customize some aspect of the firm’s behavior 5. Brand the relationship · · Personalizing Marketing Personalizing Marketing • Experiential Marketing • Focuses on customer experience • Focuses on the consumption situation • Views customers as rational and emotional elements · ·
  10. 10. Personalizing Marketing Personalizing Marketing• Permission Marketing (Seth Godin)“Encourages consumers to participate in a long-term interactive marketing campaign in which they are rewarded in some way for paying attention to increasingly relevant messages.” • Anticipated • Personal • Relevant• Five Steps 1. Offer the prospect an incentive to volunteer. 2. Offer the interested prospect a curriculum over time, teaching consumers about the product. 3. Reinforce the incentive to guarantee that prospect maintains the permission. 4. Offer additional incentives to get more permission from the consumer. 5. Over time, leverage the permission to change consumer behavior toward profits. · · Interbrand Model World Brands• Global Brands • There must be substantial publicly available financial data • The brand must have at least one-third of revenues outside of its country-of- origin • The brand must be a market-facing brand • The Economic Value Added (EVA) must be positive • The brand must not have a purely B2B single audience with no wider public profile and awareness• Latin American Brands • There must be substantial publicly available financial data • The brand´s country-of-origin must be Latin American • The brand must be a market-facing brand • The Economic Value Added (EVA) must be positive • In Holding cases, they should report enough information in order to determine each individual brand´s financial revenues · ·
  11. 11. Latin American Brands Some Ads Banco Itaú - Carteles Petrobras · · Brand Building in Emerging Markets: Brand Building in Emerging Markets: The McKinsey Study The McKinsey Study• Studied 23 global consumer goods makers in Argentina, • Most entered an emerging market by acquiring a local Brazil, Chile, China & India. competitor (buying access to local distribution networks & facilities). • Imported brand managers from developed markets• Study revealed that companies perform best in vast low- overhauled manufacturing processes & launched expensive income segment by adopting local branding & organizational marketing campaigns. strategies, which often run counter to established practice in more advanced regions. • Most integrated acquisitions into parent organization by extending corporate functions and allocating share of those costs • Almost all had then to raise prices. · ·
  12. 12. Brand Building in Emerging Markets: Brand Building in Emerging Markets: The McKinsey Study The McKinsey Study• This approach worked for affluent consumers who pay a • Local competitors typically manufacture & distribute. premium for brand names. • They have little or no marketing or brand management• But it prices products out of mass markets. expenses.• It is common for multinationals to lose half the market share • Far lower costs of materials, packaging and production. of brands they acquire. • Margins are comparable to those of global competitor. • Provide higher margins for retailers, thus increasing their loyalty. • Local manufacturers can thus maintain profitability – even without tax evasion. · · Brand Building in Emerging Markets: Brand Building in Emerging Markets: The McKinsey Study The McKinsey Study• Global manufacturers should develop two distinct approaches • For low-income segment, emulate local competitors: to emerging markets. • Retain the best local managers: less likely to change products extensively, focused on cost reduction, operational efficiency• For high-income segment: can continue to pursue and simplicity sophisticated brand-building strategies. • Adhere to local standards of quality & technology (let the consumer define quality) • Keep operations of acquired local manufacturer separate, sharing only a few functions (eg: purchasing, logistics) • Parent should act like a venture capital firm does: • Invest in companies that are growing • Preserve their autonomy and lower cost structures • Transfer product ideas between countries · ·
  13. 13. Other challenges in branding Building Strong Brands• Legal issues (pre-empting of brand name by 3rd party) • Strong brands have aspirational attraction• Meaning, pronunciation (ESPN, HSBC) • A top-branded jean for a lower income in L.A. is the equivalent of a Rolex for an European upper customer• There might be waves of negative public opinion affecting • When shoddy or unreliable products proliferate, a good brand some industries or specific brands. Well established media guarantees quality, even in commodity-like products (example: La relations are essential. Serenísima in milky products) • Brand building cost induces to support umbrella brands even in food. Examples: Sadia and Arisco in Brazil, Ser and Sancor in Argentina • Buying local firms and supporting their well-established brands is also a good strategy. · · Sources • Cateora, P., Gilly, M. and Graham, J. (2009). International Marketing, 14th ed. New York: MacGraw-Hill. • Czinkota, M. and Ronkainen, I. (2010). International Marketing, 9th ed. New York: Cengage Learning. • Keegan, W. and Green, M. (2011). Global Marketing, 6th ed. New Jersey: · Pearson Education. • Kerin, R., Hartley, S. and Rudelius, W. (2007). Marketing The Core, 2nd ed. New York: MacGraw-Hill Irwin. • Kotler, P. and Armstrong, G. (2006). Principles of Marketing, 11th ed. New Jersey: Pearson Education. • Kotler, P. and Keller, K. L. (2009). Marketing Management, 13th ed. New Jersey: Pearson Education. ·