MARK 4700: Final Exam
26 Cards in this Set
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Developing the Marketing Plan
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A marketing plan is developed for the target market—whether it is a single country or a global market set
The marketing plan begins with a situation analysis and culminates in the selection of an entry mode and a specific action program for the market
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Implementation and Control
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The planning process is a continuous set of interacting variables with info continuously building among phases
An evaluation and control system requires performance-objective action; bringing the plan back on track should standards of performance fall short
Views all country markets and…
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Contractual Agreements
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Long-term, non equity associations between a company and another in a foreign market. Generally involve the transfer of technology, processes, trademarks, and human skills. In short, they serve as a means of transfer of knowledge rather than equity.
Licensing: a means of establishing a …
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Consortia
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They typically involve a large number of participants and they frequently operate in a country or market in which none of the participants is currently active. (similar to a joint venture)
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Functions of the brand - Buyer
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Signal of Quality
Identification reduces search costs
Status and Prestige reduces psychological risk
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Functions of the brand - Seller
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Product identification facilitates repeat purchases
Familiarity facilitates new product introductions
Product differentiation facilitates premium pricing
Coherent message facilitates market targeting
Ability to identify facilitates promotional efforts
Identification facilitates loyal…
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Global Branding
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Whether to offer one international brand or different national brands for a given product
Possible role of private branding in international markets
Whether to use multiple brands in the same market to target different customer segments
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Why move to global brands?
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Standardized products combined with converging tastes and media available send a single message simultaneously, effectively, and efficiently to a large number of geographically dispersed markets
Global branding can also be cost-effective, providing economies of scale by reaching a large …
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What characterizes a global brand?
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The brand is strong in the home market
Geographic balance exists
The product addresses a similar need worldwide
Most global brands have a country of origin that is part of the global brand’s identity
The brand’s main focus is on a single broad product category
Consistent positioning …
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Dangers of global branding
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Subsidiaries may complain about standardization, rigid control from headquarters, and the inability to make allowances for the stage of market growth in each country
A firm may also have difficulty consistently communicating the same brand image in all markets
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Promotional Budgeting Options
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% of Sales Revenue Expected
Competition (Competitive Parity)
Objective/Task
Comparative Analysis
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% of Sales Revenue Expected
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Besides its convenience, this method has the advantage of relating promotion to the volume of sales in a country
When sales are declining, promotion declines, although long-range considerations might suggest that promotion should be stepped up
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Why is it so hard to build a brand?
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1. Pressure to compete on price
2. Proliferation of competitors
3. Fragmenting markets and media
4. Complex brand strategies and relationships
5. Bias toward changing strategies
6. Bias against innovation
7. Pressure to invest elsewhere
8. Short-term pressures
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Brand Identity Planning Model
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Strategy Brand Analysis
Brand Identity
Implementation System
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Strategy Brand Analysis
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Customer analysis: trends, motivation, unmet needs and segmentation.
Competitor Analysis: Brand/image identity, strengths, strategies and vulnerabilities.
Self-Analysis: Existing brand image, brand heritage, strengths/capabilities and organization values.
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Brand identity
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o Brand as a product: product scope, product attributes, quality/value, uses, users, country of origin
o Brand as an organization: organization attributes, local vs. global
o Brand as a person: personality, brand-customer relationships
Brand as a symbol: visual imagery and metaph…
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Brand equity provides value to customer by enhancing customers'
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1. Interpretation/processing of information.
2. Confidence in the purchase decision.
3. Use satisfaction.
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Brand equity provides value to firm by enhancing
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1. Efficiency and effectiveness of marketing programs.
2. Brand loyalty.
3. Prices/Margins.
4. Brand extensions.
5. Trade leverage.
6. Competitive advantage.
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NO BRAND
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PROS
- lower production cost
- lower marketing costs
- lower legal cost
- flexible quality and quantity control
CONS
- severe price competition
- lack of market identity
- commodity
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Branding
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PROS
- better identification and awareness
- better chance for production differentiation
- possible brand loyalty
- possible premium pricing
CONS
- higher production cost
- higher marketing cost
- higher legal cost
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Private (distributor/retail) brand
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PROS
- better margins for dealers
- possibility of larger market share
- no promotional problems
CONS
- severe price competition
- lack of market identity
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Manufacturers brand
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PROS
- better price due to more price inelasticity
- retention of brand loyalty
- better bargaining power
- better control of distribution
CONS
- difficulty for small manufacturer with unknown brand or identity
- brand promotion required
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MULTIPLE BRANDS (in 1 Market)
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PROS
- market segmented for varying needs
- creation of competitive spirit
- lower inventory cost
- avoidance of negative connotation of existing brand
- more retail shelf space gained
- no damage to existing brand’s image
CONS
- higher marketing cost
- higher inventory cost
-…
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SINGLE BRAND (in 1 Market)
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PROS
- marketing efficiency
- more focused marketing permitted
- elimination of brand confusion
- advantage for product with good reputation (halo effect)
CONS
- market homogeneity assumed
- harm to existing brand’s image when trading up/down
- limited shelf space
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Local brands
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PROS
- meaningful names
- local identification
- avoidance of taxation on international brand
- quick market penetration by acquisition of local brand
- variations of quantity and quality across markets allowed
CONS
- higher marketing cost
- higher inventory cost
- loss of econ…
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Worldwide Brand
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PROS
- maximum marketing efficiency
- reduction of advertising costs
- elimination of brand confusion
- advantage for culture-free product
- advantage for prestigious product
- easy identification/recognition for international travelers
- worldwide uniform image
CONS
- market h…
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MARK 4700: Test 1