MARK 4700: Final Exam

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 their interrelationships as an integrated global unit

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 foothold in foreign markets without large capital Franchising: a rapidly growing form of licensing in which the franchiser provides a standard package and the franchisee provides market knowledge, capital, and personal involvement in management.

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)

Signal of Quality Identification reduces search costs Status and Prestige reduces psychological risk

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 loyalty in purchasing categories

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

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 number of potential customers A global brand can serve as an umbrella brand, support line extensions, and lend a halo to local and national brands intended for a different market segment The overall quality of the global-brand-based marketing campaign can benefit from cross-border learning by transferring successful best practices and approaches from one market to another Global brands are also important in securing access to distribution channels

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 occurs so the brand represents the same set of practical and emotional attributes everywhere There is often a link to the corporate brand, with the global brand name and the corporate brand name often being the same

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

% of Sales Revenue Expected Competition (Competitive Parity) Objective/Task Comparative Analysis

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

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

Strategy Brand Analysis Brand Identity Implementation System

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.

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 metaphors, brand heritage

1. Interpretation/processing of information. 2. Confidence in the purchase decision. 3. Use satisfaction.

1. Efficiency and effectiveness of marketing programs. 2. Brand loyalty. 3. Prices/Margins. 4. Brand extensions. 5. Trade leverage. 6. Competitive advantage.

PROS - lower production cost - lower marketing costs - lower legal cost - flexible quality and quantity control CONS - severe price competition - lack of market identity - commodity

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

PROS - better margins for dealers - possibility of larger market share - no promotional problems CONS - severe price competition - lack of market identity

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

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 - loss of economies of scale

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

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 economies of scale - diffused image

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 homogeneity assumed - problems with black and gray markets - possibility of negative connotation - quality and quantity consistency required - LDC’s opposition and resentment - Legal complications