Brand & Product Decisions in Global Marketing
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Questions and Answers

What is considered a key factor of a product's tangible attributes?

  • Manufacturer's reputation
  • Brand mystique
  • Customer service commitment
  • Weight and dimensions (correct)

    • What defines buyer orientation in the context of product classification?

  • The effort and risk associated with a purchase (correct)
  • The brand loyalty of consumers
  • The level of advertisement for a product
  • The price sensitivity of customers

    • Which type of warranty assures buyers they are receiving what they paid for?

  • Full warranty
  • Express warranty (correct)
  • Implied warranty
  • Limited warranty

    • What is NOT a category in the buyer orientation framework?

    <p>Luxury</p> Signup and view all the answers

    How do intangible attributes impact a product’s perceived value?

    <p>They can enhance a product’s status and reputation.</p> Signup and view all the answers

    What type of product is typically associated with high buyer involvement?

    <p>Durable products</p> Signup and view all the answers

    Which aspect is NOT crucial in developing product and brand policies for global markets?

    <p>Local regulations</p> Signup and view all the answers

    What is an example of a product that is often classified as nondurable?

    <p>Toothpaste</p> Signup and view all the answers

    What is the primary purpose of a brand extension strategy?

    <p>To leverage existing brand equity for new products</p> Signup and view all the answers

    Which company has successfully extended its brand into categories beyond athletic shoes?

    <p>Nike</p> Signup and view all the answers

    What characterizes a truly global brand?

    <p>Consistent identity and positioning globally</p> Signup and view all the answers

    What is a significant challenge in developing a global brand?

    <p>Building a cohesive global brand team</p> Signup and view all the answers

    Which of the following is NOT listed as an advantage of global brands?

    <p>Local market customization</p> Signup and view all the answers

    Which brands are considered truly global by Proctor and Gamble?

    <p>Pringles, Pantene, Duracell</p> Signup and view all the answers

    In evaluating the development of a global brand, managers need to focus on which of the following?

    <p>Realistic goal assessment</p> Signup and view all the answers

    What is an example of a company that has expanded from personal computers to technology products like smartphones and tablets?

    <p>Apple</p> Signup and view all the answers

    What was a significant strategy implemented by Hyundai Motor America to improve customer perception?

    <p>Introducing a 10-year, 100,000-mile warranty</p> Signup and view all the answers

    Which aspect of packaging is emphasized as especially important for products shipped worldwide?

    <p>Product protection</p> Signup and view all the answers

    What role does 'eco-packaging' play in modern packaging design?

    <p>It addresses environmental concerns.</p> Signup and view all the answers

    How does packaging improve brand experience according to industry experts?

    <p>By engaging the senses and creating emotional connections</p> Signup and view all the answers

    What distinguishes Coca-Cola's trademark contour bottle from other soft drink packaging?

    <p>Its unique design that can be recognized by touch</p> Signup and view all the answers

    What is a common function of packaging in consumer decision-making?

    <p>To offer communication cues</p> Signup and view all the answers

    What type of feedback does Nestlé's network of packaging teams provide?

    <p>Packaging improvement suggestions quarterly</p> Signup and view all the answers

    What is an important consideration when designing packaging for different countries and regions?

    <p>Adaptation to local tastes and preferences</p> Signup and view all the answers

    What does a brand primarily aim to do?

    <p>Identify goods and services and differentiate them from competitors</p> Signup and view all the answers

    Which color is associated with mourning in South Africa?

    <p>Black</p> Signup and view all the answers

    How does brand image differentiate competitors in the same sector?

    <p>Through a combination of marketing strategies and consumer perceptions</p> Signup and view all the answers

    What does the term 'Brand Image' refer to?

    <p>The sum of impressions about a brand formed by various cues</p> Signup and view all the answers

    Which of the following colors is associated with good luck in China?

    <p>Red</p> Signup and view all the answers

    What role does a brand play in a consumer's shopping experience?

    <p>It helps customers organize and find specific products</p> Signup and view all the answers

    Which statement best describes the relationship between aesthetics and global marketing?

    <p>Different cultures have varying aesthetic styles that marketers must understand.</p> Signup and view all the answers

    Which of the following best explains the function of a brand?

    <p>It provides a promise of quality and product identification.</p> Signup and view all the answers

    Which of the following statements best describes a global product?

    <p>It meets the wants and needs of a global market.</p> Signup and view all the answers

    What distinguishes a global brand from a global product?

    <p>A global brand has the same name and image worldwide.</p> Signup and view all the answers

    How do global brands create a perception of superior quality?

    <p>By competing fiercely in both local and international markets.</p> Signup and view all the answers

    What is one characteristic of a multinational company?

    <p>It adapts products for local preferences.</p> Signup and view all the answers

    According to the content, what role do global brands play in society?

    <p>They should act as responsible citizens.</p> Signup and view all the answers

    What does the term 'global myth' refer to in the context of global brands?

    <p>The idea that global brands represent cultural ideals.</p> Signup and view all the answers

    What is a characteristic of tiered branding?

    <p>It combines corporate names with individual brand names.</p> Signup and view all the answers

    What challenge do global brands face in local markets?

    <p>They compete with local brands for market share.</p> Signup and view all the answers

    What does brand equity represent in the context of a brand?

    <p>The value created by the relationship between the brand and its customers over time</p> Signup and view all the answers

    Which of the following is NOT a benefit of strong brand equity?

    <p>Increased vulnerability to marketing crises</p> Signup and view all the answers

    How do companies visually represent their brands?

    <p>By developing logos, distinctive packaging, and communication devices</p> Signup and view all the answers

    What is a significant issue in global marketing regarding brands?

    <p>Safeguarding trademarks and other forms of intellectual property</p> Signup and view all the answers

    What are 'local products and brands' primarily characterized by?

    <p>Their achievement of success in a single national market</p> Signup and view all the answers

    Which of the following statements about international products and brands is true?

    <p>They are offered in several markets in a particular region</p> Signup and view all the answers

    What kind of logo might include both a word mark and a brand symbol?

    <p>Coca-Cola's branding element with its script and wave symbol</p> Signup and view all the answers

    Global megabrands like Coca-Cola have their brand equity estimated in which range?

    <p>In the tens of billions of dollars</p> Signup and view all the answers

    Study Notes

    Brand & Product Decisions in Global Marketing

    • Satisfaction is no longer enough; delight customers. -Philip Kotler

    Key Points

    • Brand and product concepts
    • Local, international, and global brands
    • Product design issues
    • Attitudes toward foreign products
    • Strategic alternatives
    • New product issues

    Basic Product Concepts

    • A product is an offering that satisfies customer needs.
    • Management must develop product and brand policies sensitive to market needs, competition, and company ambitions and resources, globally.

    Basic Product Concepts (continued)

    • A product is a good, service, or idea
    • Tangible attributes: assessed physically (weight, dimensions, materials). Examples include a 42-inch flat-panel TV with an OLED screen.
    • Intangible attributes: include ownership status, manufacturer's service commitment, and brand reputation/mystique.

    Product Types

    • Framework for product classification
    • Consumer Products: Bought for personal consumption. Vary in how consumers buy them.
    • Industrial Products: Bought for further processing or use in a business. Bought by other businesses (not end consumers).

    Product Types (continued)

    • Buyer Orientation: A composite measure of customer effort, risk level, and involvement in a purchase.
    • Convenience products: routinely purchased (e.g., Electronics)
    • Shopping products: considerable effort is exerted in the purchase decision
    • Specialty products: customers are loyal and will seek out these specific products

    Product Warranties

    • Express warranty: written guarantee assuring the buyer gets what they paid for, or provides remedy in case of failure.
    • Warranties are an element of a product's value proposition.
    • Warranties can be used as a competitive tool to favorably position a company in a global market.
    • Example: Hyundai's 10yr/100,000 mile warranty program boosted sales significantly.

    Packaging

    • Packaging is integral to product decisions.
    • Packaging protects products shipped worldwide.
    • Eco-packaging is important; addresses environmental issues (recycling, biodegradability, and sustainable forestry).
    • Packaging is a communication tool, influencing consumer purchase decisions.

    Packaging (continued)

    • Packaging improves brand experience: engaging the senses, creating emotional connection and enhancing consumer brand experience.
    • The Coca-Cola bottle's distinctive shape makes it easily recognizable.

    Packaging (continued)

    • Nestle improves packaging quarterly, through:
    • Plastic lids for easier ice-cream container opening
    • Deeper indentations of candy wrapper ends for easier ripping open.
    • Deeper notches on single-serve Nescafé packets.
    • Glue used in Smarties chocolate tube for louder clicking sounds.

    Labeling

    • In today's self-service retail environments, product labels are designed to attract attention, support positioning, and persuade consumers to buy.
    • Labels provide information to consumers; crucial to global marketing.
    • Multilanguage labeling is common in a modern global marketplace..
    • Mandatory health warnings are required (e.g., warnings on tobacco products).
    • The American Automobile Labeling Act clarifies country of origin, assembly point, and percentages of foreign content for vehicles.
    • The U.S. enacted a country-of-origin labeling law in 2008 (COOL), requiring retailers to display the origin of meat, poultry, and other food products.

    Aesthetics

    • Global marketers must understand the importance of visual aesthetics.
    • Aesthetic styles vary across the world. (E.g., colour associations).

    Brands

    • A brand is a name, term, sign, symbol, or combination intended to identify the goods or services of one seller and to differentiate them from those of competitors.
    • Bundles of images and experiences in the customer's mind.

    Brands (continued)

    • Brand functions:
    • A promise a company makes about a product quality.
    • Differentiating competing products.
    • Enable customers to organise their shopping experience.

    Brand Image

    • Brand image is the sum of impressions about a brand.
    • Information about products and brands comes from various sources (advertising, personnel, publicity, sales, packaging).
    • Consumer perceptions of service after the sale, price, and distribution are considered when evaluating brand image.
    • Industry sector competitors differentiate using brand image (e.g., Apple vs Samsung in smartphones).

    Brand Equity

    • Brand equity adds value to a brand during its existence.
    • Brand equity represents the value created by the relationship between a brand and its customers over time.
    • The global megabrands (such as Coke) have billions of dollars in brand equity.
    • Strong brand equity fosters loyalty, less vulnerability to marketing actions and crises, larger margins, and a more positive consumer response to price changes.

    Brand Components

    • Companies develop visual representations of brand through logos, packaging, and other communications.
    • Examples: Brand name, word mark (e.g., Coke), non-word mark (e.g., Coca-Cola logo wave).

    Brands (continued)

    • Companies register names, logos, and other brand elements (e.g., trademarks, service marks) to protect their substantial investment of time and money.
    • Safeguarding intellectual property is crucial in global marketing

    Products & Local Market

    • Locally successful products and brands are fundamental to domestic companies and often represent a significant hurdle to global success.

    International Products & Brands

    • Products are offered in several markets in a particular region (e.g. Europe).
    • GM’s Opel Corsa, designed in Europe, is an example of an international brand.

    Global Products & Brands

    • Global products meet worldwide needs.
    • Global brands share a name and similar image/positioning.
    • A true global product is available in all regions.
    • Global brands are not the same as global products, although they are often regionally adapted.

    Local Products and Brands (continued)

    • Successful brands in one nation are often a major competitive hurdle for global companies.

    Global Product Strategies

    • Three broad global product strategies are:
    • Extension strategy: products sold virtually unchanged in different markets.
    • Adaptation strategy: adjusting (design, function, packaging) to local tastes and conditions.
    • Creation strategy: developing new products to meet the unique needs of different markets..
    • A number of strategies exist according to different combinations of adapted or non adapted products and communications. (Refer to slides 43-44).

    Global Product Strategies (continued)

    • New product development process in a foreign market identifies needs and addresses questions:
    • What new products should be developed for different markets?
    • What products should be added, discarded, or modified?
    • What brand names should be used globally?
    • How should products be packaged and serviced?

    Poor Product Policy

    • Ikea's initial market failure in the USA demonstrates that poor product policy can result from poor understanding of local market preferences (e.g., American preference for larger furniture vs Ikea's standard products).

    Global Product Invention/Innovation

    • Global product invention/innovation often addresses local markets in more efficiently than simply adapting similar products.

    Global Product Strategies (continued)

    • Key Value dimensions for Global Brands:
    • Product quality and reputation.
    • Global brands are culturally important.
    • Global brands engender a feeling of belonging.
    • Social responsibility.

    Global Brand Development

    • Guidelines for establishing Global Brand Leadership:
    • Create a compelling value proposition.
    • Think about elements (names, marks, etc): Potential for globalization.
    • Consider extending vs. adopting a new brand identity.
    • Develop a company-wide communication system.

    Testing New Products

    • Test new products—interacting with humans, mechanical, and chemical elements to spot potential for unexpected issues.
    • Testing can be as simple as observing product usage within the market.

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    Description

    This quiz explores the fundamentals of brand and product decisions in the context of global marketing. Participants will assess brand concepts, product design issues, and the attitudes toward foreign products. It emphasizes the importance of delighting customers and understanding market needs for successful global strategies.

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