5 pages country analysis

Chapter 9 Outline - Branding Decisions in International markets

Standardization vs. Adaptation

1. Global Standardization: standardization of products across markets and of the marketing mix worldwide. The term is often used interchangeably with adopting a global marketing strategy. Advantages are:

1) Global consumers: An emergence of global consumers – homogeneous consumer groups worldwide sharing similar interests and product/brand preferences.

2) International travel: More consumers engage in international travel.

3) Media and Technology

4) Global branding can be used to address uniform global consumer needs. It involves selling a brand that has the same name, logo, image, and positioning everywhere in the world.

5) Economies of scale

2. Regional Standardization: use of a uniform marketing strategy within a particular region. This strategy is becoming more appealing as regional market integration is gaining strength with emergence of unified markets like the European Union.

3. Mandatory Adaptation: Adapting of products to local requirements so that the products can legally operate in the respective countries.

4. Local, Non-mandatory Adaptation: Adapting a product to better meet the needs of the local market, or developing new brands for individual local markets, even though such adaptation is not required.

5. Global Localization (glocalization): the practice of global branding and localized marketing adaptations; involves adapting a global product to the differences in local culture, legislation and production capabilities, etc.

Private labels – Brands sold under the brand name of a retailer or a distributor. This saves money and reduces the problem of having too many brands in a category. These can be produced by several manufacturers.

A national brand is distributed nationally under a brand name owned by the manufacturer or distributor, as opposed to local brands (products distributed only in some areas of the country), and private label brands (products that carry the brand of the retailer rather than the manufacturer.)