©2005PrenticeHall10-1Chapter10ProductandBrandDecisionsPowerPointbyKristopherBlanchardNorthCentralUniversity©2005PrenticeHall10-2BasicProductConceptsAproductisagood,service,oridea–TangibleAttributes–IntangibleAttributesProductclassification–Consumergoods–Industrialgoods©2005PrenticeHall10-3ProductTypesBuyerorientation–Amountofeffortexpendedonpurchase–Convenience–Preference–Shopping–Specialty©2005PrenticeHall10-4BrandsBundleofimagesandexperiencesinthecustomer’smindApromisemadebyaparticularcompanyaboutaparticularproductAqualitycertificationDifferentiationbetweencompetingproductsThesumofimpressionsaboutabrandistheBrandImage©2005PrenticeHall10-5Brands©2005PrenticeHall10-6BrandsTheaddedvaluethataccruestoaproductasaresultofinvestmentsinthemarketingofthebrandAnassetthatrepresentsthevaluecreatedbytherelationshipbetweenthebrandandcustomerovertime©2005PrenticeHall10-7Brands“Wehavetoshifttohighvalue-addedproducts,andtodothatweneedtoimproveourbrand.”-NoboruFujimoto,PresidentSharpElectronicsCorporation©2005PrenticeHall10-8LocalProductsandBrandsBrandsthathaveachievedsuccessinasinglenationalmarketRepresentthelifebloodofdomesticcompaniesEntrenchedlocalproducts/brandscanbeasignificantcompetitivehurdletoglobalcompanies©2005PrenticeHall10-9InternationalProductsandBrandsOfferedinseveralmarketsinaparticularregion–‘Euro-brands’©2005PrenticeHall10-10GlobalProductsandBrandsGlobalproductsmeetthewantsandneedsofaglobalmarketandisofferedinallworldregionsGlobalbrandshavethesamenameandsimilarimageandpositioningthroughouttheworld©2005PrenticeHall10-11GlobalProductsandBrandsAmultinationalhasoperationsindifferentcountries.Aglobalcompanyviewstheworldasasinglecountry.WeknowArgentinaandFrancearedifferent,butwetreatthemthesame.Wesellthemthesameproducts,weusethesameproductionmethods,wehavethesamecorporatepolicies.Weevenusethesameadvertising—inadifferentlanguage,ofcourse.-AlfredZeienFormerGilletteCEO©2005PrenticeHall10-12BrandingStrategiesCombinationortieredbranding:allowsmarketerstoleverageacompany’sreputationwhiledevelopingadistinctiveidentityforalineofproducts–SonyWalkmanCo-brandingfeaturestwoormorecompanyorproductbrands–NutraSweetandCoca-Cola–IntelInside©2005PrenticeHall10-13BrandingStrategiesBrandactsasanumbrellafornewproducts–Example:TheVirginGroup•VirginEntertainment:VirginMega-storesandMGMCinemas•VirginTrading:VirginColaandVirginVodka•VirginRadio•VirginMediaGroup:VirginPublishing,VirginTelevision,VirginNet•VirginHotels•VirginTravelGroup:VirginAtlanticAirways,VirginHolidays©2005PrenticeHall10-14GlobalBrandDevelopmentQuestionstoaskwhenmanagementseekstobuildaglobalbrand:–Willanticipatedscaleeconomiesmaterialize?–Howdifficultwillitbetodevelopaglobalbrandteam?–Canasinglebrandbeimposedonallmarketssuccessfully?©2005PrenticeHall10-15GlobalBrandDevelopmentGlobalBrandLeadership–Usingorganizationalstructures,processes,andculturestoallocatebrand-buildingresourcesglobally,tocreateglobalsynergies,andtodevelopaglobalbrandstrategythatcoordinatesandleveragescountrybrandstrategies©2005PrenticeHall10-16GlobalBrandDevelopmentCreateacompellingvaluepropositionThinkaboutallelementsofbrandidentityandselectnames,marks,andsymbolsthathavethepotentialforglobalizationResearchthealternativesofextendinganationalbrandversusadoptinganewbrandidentitygloballyDevelopacompany-widecommunicationsystem©2005PrenticeHall10-17GlobalBrandDevelopmentDevelopaconsistentplanningprocessAssignspecificresponsibilityformanagingbrandingissuesExecutebrand-buildingstrategiesHarmonize,unravelconfusion,andeliminatecomplexity©2005PrenticeHall10-18LocalversusGlobalProductsandBrands:ANeeds-BasedApproachPhysiologicalSafetySocialExternal/InternalEsteemSelf-actualization©2005PrenticeHall10-19CountryofOriginasBrandElementPerceptionsaboutandattitudestowardparticularcountriesoftenextendtoproductsandbrandsknowntooriginateinthosecountries–Japan–Germany–France–Italy©2005PrenticeHall10-20PackagingConsumerPackagedGoodswhenthepackagingisdesignedtoprotectorcontaintheproductduringshippingEco-PackagingbecausepackagedesignersmustaddressenvironmentalissuesOfferscommunicationcuesthatprovideconsumerswithabasisformakingapurchasedecision©2005PrenticeHall10-21LabelingProvidesconsumerswithvarioustypesofinformationRegulationsdifferbycountryregardingvariousproducts–Healthwarningsontobaccoproducts–AmericanAutomobileLabelingActclarifiesthecountryoforigin,andfinalassemblypoint–EuropeanUnionrequireslabelsonallfoodproductsthatincludeingredientsfromgeneticallymodifiedcrops©2005PrenticeHall10-22AestheticsGlobalmarketersmustunderstandtheimportanceofvisualaestheticsAestheticStyles(degreeofcomplexityfoundonalabel)differaroundtheworld©2005PrenticeHall10-23ProductWarrantiesExpressWarrantyisawrittenguaranteethatassuresthebuyerisgettingwhattheypaidfororprovidesaremedyincaseofaproductfailureWarrantiescanbeusedasacompetitivetool©2005PrenticeHall10-24Extend,Adapt,Create:StrategicAlternativesinGlobalMarketingExtension–offeringproductvirtuallyunchangedinmarketsoutsideofhomecountryAdaptation–changingelementsofdesign,function,andpackagingacco