Week 1 MKT Discussion

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Integrated Advertising, Promotion, and Marketing Communications

Seventh Edition

Chapter 2

Brand Management

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Learning Objectives (1 of 2)

2.1 How does a brand image affect consumers, other businesses, and the company itself?

2.2 What elements are involved in identifying, creating, rejuvenating, or changing a brand’s image?

2.3 What are the different types of brand names?

2.4 What are the characteristics of effective logos?

2.5 What different kinds of brands can firms offer?

These are the objectives for this chapter.

Learning Objectives (2 of 2)

2.6 How are brands developed, built, and sustained in order to build brand equity and fend off perceptions of brand parity?

2.7 What current trends affect private brands?

2.8 How are packages and labels used to support an IMC program, both domestically and in foreign settings?

2.9 How are brands managed in international markets?

Additional objectives for this chapter.

Applebee’s

2008 recession changed dining out

DineEquity purchased Applebee’s

IHOP CEO – Julia A. Stewart

“Minnow swallows the whale”

Act of retribution

Marketing emphasis

Product quality, price, promotions

Quality employment environment

Enhance dining experience

“Girl’s Night Out”

Advertising agency – Crispin Porter

The recession (2008) changed the dining habits of Americans as people switched to cheaper dining-out alternatives. DineEquity, which owns IHOP, purchased Applebee’s. CEO Julia A. Stewart says it was case of a “minnow swallowing a whale” since IHOP had 1400 locations and Applebee’s had 2000. Concern was that it was retribution by Stewart for not getting the Applebee’s CEO position. Emphasis was placed on product quality, pricing, promotions, the dining experience, and a quality employment environment. In 2012, a change was made to the Crispin Porter advertising agency. Applebee’s is an excellent example of brand building and rejuvenation with a stagnant company.

Chapter Overview

Managing a brand image

Issues associated with developing and promoting brand names and logos

Brand equity versus brand parity

Importance of packaging and labels

The chapter begins with a discussion of brand image – the tangible and intangible elements that make up a brand’s image. Brand image is more than the goods and services the company sells. The brand image involves everything the brand does and every touchpoint between customers and the firm. Many companies have multiple brands that must be managed. It involves understanding the brand image and deciding if it is the image that is desired. If not, then modifications must be made. Issues with developing and promoting brand names and logos are presented. Lastly, the chapter presents information about packaging and labeling. In addition to protecting products, packaging is a final marketing message to consumers to make a purchase decision.

Brand Image Advertisement by Kraft Foods

Part of an integrated marketing campaign is brand image advertising. This ad for Kraft Foods is designed to reinforce the Kraft brand.

Figure 2.1 Components of a Brand Image

Tangible Elements

Goods or services sold

Retail outlets where the product is sold

Advertising

Marketing communications

Name and logo

Packaging and labels

Employees

Intangible Elements

Corporate personnel

Ideals

Beliefs

Conduct

Environmental policies

Corporate culture

Country location

Media reports

Brand image is made up of everything a company does, has, and is. It includes tangible and intangible elements. Tangible elements can be observed. In addition to the goods and services that are sold, tangible elements include the retail outlets where the products are sold and the factories where the products are made. Advertising, promotions, and other forms of communications all reflect the image of a brand. Certainly the brand name and logo convey a specific message. Packaging protects products, and labels provide information about the product inside. The last tangible element are the employees. What they say about a company influences consumers. On the intangible side are policies of the company in dealing with employees and other publics. Ideas and beliefs espoused by corporate personnel become part of the image. Even the culture and location of the company are important. Lastly, media reports can enhance or harm a company’s image depending on what is communicated.

Role of Brand Image Consumer Perspective

Provides positive assurance

Unfamiliar settings

Little or no previous experience

Reduces search time

Provides psychological reinforcement

Provides social acceptance

From a consumer’s perspective, brand image serves several important functions. It provides positive assurance about a brand and what can be expected. It is especially helpful in unfamiliar settings, such as on a vacation or a trip, and when the consumer has very little previous experience. A well-known brand or company becomes a safer purchase choice. In shopping, a strong brand image can save search time. Consumers do not have to evaluate several brands. They can just choose the one they feel is the best, based on brand image. A strong brand name provides psychological reinforcement to consumers that they made a wise purchase decision, and it also provides social acceptance with other people.

Figure 2.3 Top 10 Corporate Global Brands

Rank	Company	Brand Value (Billions)	Country
1	Apple	$98.3	United States
2	Google	$93.3	United States
3	Coca-Cola	$79.2	United States
4	IBM	$78.8	United States
5	Microsoft	$59.5	United States
6	General Electric	$46.9	United States
7	McDonald’s	$41.9	United States
8	Samsung	$39.6	South Korea
9	Intel	$37.3	United States
10	Toyota	$35.3	Japan

Source: Based on “2013 Ranking of Top 100 Brands,” Interbrand, interbrand.com, accessed September 30, 2013.

This chart identifies the top 10 corporate global brands and the brand value for each. Each year Intrabrand publishes a list of the top 100 brands, which can be found at the Interbrand website.

Role of Brand Image Company Perspective

Extension of feelings to new products

Ability to charge more

Consumer loyalty

More frequent purchases

Positive word-of-mouth

Greater channel power

Attracts higher quality employees

More favorable ratings

Having a strong brand image also benefits a company. It allows for the extension of new products. In most cases, the feelings and image that consumers have about the brand will transfer to the new product. Because of the strong image, a company can price its products higher. Customers are willing to pay the higher price and become more loyal as well. They also tend to purchase more frequently and often generate positive word-of-mouth communications. In terms of the distribution channel, a strong brand name allows a company to have greater channel power. Because consumers purchase the company’s products, retailers and other channel members will want to stock it. Even employees and potential employees are attracted to good companies. They want to be associated with the firm. Lastly, it provides more favorable ratings with investors.

Identifying the Desired Image

Evaluate current image

Ask customers

Ask non-customers

Can be strategic advantage

The first step in managing a brand image is to identify the desired image. This begins with evaluating the current image by asking customers what they think. It is also important to ask non-customers. They often present a different view, one that reflects why they did not make a purchase. Having a strong brand image can be a strategic advantage for a company. Interstate Batteries has a specific image, one that is desirable to most consumers.

Creating the Right Image

Sends clear message

Portrays what the firm sells

Business-to-business may be challenging

Creating the right image is important. It sends a clear message about what the firm sells and what it stands for. With the business-to-business sector, creating the right image may be more challenging. Such was the case with Scott Equipment, which sells new and used construction, agricultural, and industrial equipment. Creating the right brand image was important to the company’s success.

Rejuvenating an Image

Sells new products

Attracts new customers

Retains current customers

Key – Remain consistent with old and new

Takes time and effort

In some cases an image has become stale or not quite in sync with what the company wants. It is then time to rejuvenate the image. The company wants to keep what is good about the past but build new concepts for the future or modify the view slightly to be more relevant to consumers. Rejuvenating a brand image can produce a number of positive results, such as increasing sales, attracting new customers, and retaining current customers. The key to rejuvenating an image successfully is to remain consistent with the old image while adding new elements. It takes time and effort and will not happen overnight.

Figure 2.5 Keys to Successful Image Rejuvenation

Help former customers rediscover the brand

Offer timeless consumer value

Stay true to original, but contemporize

Build a community

Successful rejuvenation of a brand requires 4 critical ingredients – helping former customers to rediscover the brand, offering timeless consumer value, staying true to the original, yet contemporizing the brand, and building a community of loyal consumers. Rejuvenation requires retaining current customers, winning back former customers, and attracting new customers. The opening vignette about Applebee’s is a good illustration of rejuvenation.

Changing an Image

Extremely difficult

Necessary when target market declines or product no longer matches industry trends

Requires more than advertising

Begins internally – then moves outward

The most difficult challenge is changing an image. At times, it may not even be possible. It becomes necessary to change an image when the target market declines resulting in lower sales or when the product no longer matches industry trends. Changing an image requires considerably more advertising. It has to begin internally, and then move outward. Employees must see the change, believe the change has occurred, and then convey that change to every contact the company makes. Changing an image is a slow, tedious process.

Corporate Names

Overt names

Implied names

Conceptual names

Iconoclastic names

Choosing a corporate name is important. Companies will spend thousands and even millions on choosing just the right name. Corporate names can be divided into 4 categories.

Overt names reveal what a company does, such as American Airlines.

Implied names contain words or word parts that convey what a company does, such as FedEx.

Conceptual names capture the essence of what a company offers, such as Twitter.

Iconoclastic names represent something unique, different, and memorable. The name does not reflect or imply what the company does. Nike would be an example.

In the ad shown, the Snoring Center name would be an example of an overt name. It is evident the company does something with snoring.

Figure 2.7 Origins of Some Unique Corporate Names (1 of 2)

Google – name started as a joke about the way search engines search for information. Word “googol” is one followed by 100 zeros.

Lego – combination of Danish phrase “leg godt” which means “play well” and Latin word “lego” which means “I put together.”

Reebok – alternative spelling of “rhebok” which is an African antelope

Logos and corporate names should meet four tests. First, they should be easily recognizable. Second, they should be names and symbols that are familiar to people. Third, the meaning should be consensual, i.e. everyone who sees the logo or hears the name has similar thoughts and ideas. This process of having shared meanings across consumers is called stimulus codeability. This helps especially in global markets, but is difficult to achieve across national boundaries. Fourth, the logo and name should evoke positive feelings.

Figure 2.7 Origins of Some Unique Corporate Names (2 of 2)

Skype – original name was “sky-peer-to-peer,” which was changed to “skyper” then to “skype.”

Verizon – combination of Lain word “veritas” which means “truth” and “horizon”

Volkswagen – created by Adolph Hitler as a car for the masses that could transport 2 adults and 3 children at speeds up to 62 mph. Name means “people’s car.”

Yahoo – word from Jonathan Swift’s book Gulliver’s Travels, which represented a repulsive, filthy creature that resembled a Neanderthal man. Yahoo founders, Jerry Yang and David Filo considered themselves yahoos.

Figure 2.8 Tests of Quality Logos and Brand Names

Easily recognizable

Familiar

Consensual meaning

Stimulus codeability

Evokes positive feelings

Logos and brand names should meet four tests. First, they should be easily recognizable. Second, they should be names and symbols that are familiar to people. Third, the meaning should be consensual, i.e. everyone who sees the logo or hears the name has similar thoughts and ideas. This process of having shared meanings across consumers is called stimulus codeability. This helps especially in global markets, but is difficult to achieve across national boundaries. Fourth, the logo and name should evoke positive feelings.

Figure 2.9 Some of the Oldest Logos

Company/Brand	Year Company Founded	Year Logo First Used
John Deere	1837	1876
Coca-Cola	1886	1886
Johnson & Johnson	1886	1886
Union Pacific Railroad	1862	1888
Prudential Life Insurance	1875	1896
Campbell’s Soup	1869	1898
General Electric	1892	1900
Goodyear	1898	1901
Sherwin-Williams	1866	1905
DuPont	1802	1907

Source: Based on Samuel Weigley, Alexander Hess, and Paul Ausick, “The Oldest Company Logos in America,” 246wallst.com, June 18, 2013.

This list contains some of the oldest brand logos. Students will recognize many of the brands.

Brand Logos

Aids in recall of specific brands

Aids in recall of advertisements

Reduces shopping effort

Reduces search time and evaluation of alternatives

Corporate logos are important because often people see the logo and instantly know the company. In a symbolic way, it conveys a message. This logo for PolyProcessing looks like some type of process as the two lines curve and overlap each other. Corporate logos provide several benefits. They aid in recalling specific brands and advertisements. People may not notice the brand name, but the logo is a picture and tends to be remembered better. In shopping, customers often look for familiar logos and colors of packages and products, which saves time and energy. They don’t need to look at alternatives.

Figure 2.10 Tips on Creating or Changing Logos

The logo is a reflection of the brand.

Creating logos requires knowledge and expertise.

Use professional designers

Make the logo simple

Make the logo media transferrable

Creating or changing logos takes careful consideration. It requires knowledge and expertise in logo design and an understanding that the logo is a reflection of the brand. It is best to use professional designers. The temptation is for a business owner to do it himself using a graphics design package. Logos should be simple. They also should be transferrable across multiple mediums.

What Colors Should You Use in Your Logo? (1 of 2)

Black –seriousness, distinctiveness, boldness, power, sophistication, and tradition

Blue – authority, dignity, security, faithfulness, heritage, corporate stability, and trust

Brown/gold – history, utility, earthiness, richness, tradition, and conservative

Gray/silver – somberness, authority, practicality, corporate mentality, and trust

Green – tranquility, health, freshness, stability, and appetite

Orange – fun, cheerfulness, warmth, exuberance, health, and youth

(Bonus slide, not in textbook) Colors are very symbolic and convey various meanings. This slide provides information on various colors and what they tend to mean in American culture. The meaning varies widely across other cultures and in other countries. While consumers may not consciously think about the color in a logo and what it means, there may be a subconscious attachment between the color and these meanings.

What Colors Should You Use in Your Logo? (2 of 2)

Pink – femininity, innocence, softness, health, and youth

Purple – sophistication, spirituality, wealth, royalty, youth, and mystery

Red – aggressiveness, passion, strength, vitality, fear, speed, and appetite

White/silver – purity, truthfulness, faith, contemporary, refined, and wealth

Yellow – youth, positive feelings, sunshine, cowardice, refinement, caution, and appetite

Source: Adapted from “Jared McCarthy, “Logos: What Makes Them Work (Part 1 of 2),” (marketingprofs.com), February 22, 2005.

Types of Brands

Family brands

Multiple products under one brand

Transfer associations

Brand extension

New good or service

Flanker brand

New brand within current category

Brands can be placed into 3 major categories. Family brands are a group of related products sold under one name. The primary advantage of using a family brand is transferring associations to new products. Brand extensions involve suing an established brand name on products or services not related to the core brand. An example would be Black & Decker putting its brand name on appliances. Flanker brands involve the development of a new brand sold in the same category as another product. Proctor & Gamble offers a number of brands within a category, such as laundry detergent or body wash. Hallmark sells a cheaper version of greeting cards, Shoebox Greetings. The goal of flanker brands is to capture a bigger market share without cannibalizing current brands.

Figure 2.12 Brands Sold by Procter & Gamble

This slide presents examples of flanker brands sold by Procter & Gamble in three different product categories. For instance, in the dish washing category, P & G offers consumers four different brands. P & G believes each brand attracts a different type of consumer, and by offering four brands P & G captures a larger market share than if the firm sold only one brand.

Figure 2.13 Forms of Co-Branding (Alliance Branding)

Co-branding or alliance branding is the offering of two or more brands in a single marketing offer. There are three types of co-branding options. Ingredient branding is the placement of one brand within another brand, such as Intel processors in various brands of computers. Cooperative branding is the joint venture of two or more brands into a new product or service, such as VISA card offered by JP Morgan Chase with American Airlines. Complementary branding is the marketing of two brands together for co-consumption, such as Oreo milkshakes at Dairy Queen.

Developing Strong Brands

Begins with understanding why consumers buy a brand.

Where does your brand stand now?

What are your objectives?

What are you doing in terms of building your brand and business?

What are your brand’s strengths? Weaknesses?

Which opportunities should be pursued first?

Where are the pitfalls?

Developing strong brands begins by understanding why consumers buy a brand. On this slide are typical questions that can be asked of a client to measure the current position of a brand and to help an agency understand the current position of a brand.

Figure 2.14 Building Powerful Brands

Invest in the brand

Create awareness

Offer authenticity or uniqueness

Build trust

Deliver an experience

Offer value

Utilize social media

Utilize mobile phones

Act responsibly

Building powerful brands requires a marketing commitment. Companies must be willing to invest money in the brand, which starts with creating awareness. However, awareness alone will not build a strong brand. Strong brands offer some type of authenticity or uniqueness. They deliver value and a positive consumer experience that result in consumer (or b-to-b) trust. Today’s brands must be savvy about using social media and incorporating mobile phones (smart phones). Consumers also want companies to act socially responsible.

Building Powerful Brands

Skyjacker has built a powerful brand by providing customers with a good experience and delivering value.

Skyjacker dominates the vehicle suspension market and has built a powerful brand by delivering value and a positive customer experience. Click on the link to visit Skyjacker’s website.

Brand Loyalty

Ultimate objective

Only brand that customers purchase

Drivers of brand loyalty

Emotion

Value

Consumer experience

Brand loyalty is the ultimate goal of building powerful brands. With brand loyalty, consumers purchase only that specific brand regardless of the effort necessary. They are not willing to substitute another brand. Drivers of brand loyalty are an emotional connection and value. Brand loyalty goes beyond functional attributes.

Figure 2.15 Top Brands (CLEI)

Category	Top Brand	CLEI Emotional Engagement
Athletic Footwear	Sketchers	86%
Bank	JP Morgan Chase	79%
Car Insurance	State Farm	82%
Casual Dining	Applebee’s	82%
Cosmetics	Clinique	93%
Gasoline	Shell	80%
Major League Sports	NFL	86%
Pizza	Domino’s	84%
Quick Service Restaurant	Subway	95%
Soft Drinks (Diet)	Diet Coke	89%

Source: Based on “Brand Keys 2013 Customer Loyalty Index Finds Seismic Shift I How Consumers Emotionally Engage with Products, Services,” Press Release, brandkeys.com

Listed are the top brands according to Brand Keys Customer Loyalty Index in select product categories. Brand Keys identified top performing brands in 54 different product categories.

Brand Equity

Brand parity

Brand equity

Set of characteristics makes brand unique

Helps fight brand parity

Perceived better

Brand parity is when consumers see very few differences among brands. Brand equity is a set of characteristics that makes a brand unique. Brand equity helps fight brand parity situations because the brand is perceived as being better.

Figure 2.16 Methods of Measuring Brand Equity

Financial value

Stock market value

Revenue premium

Consumer value

Brand metrics, which measure the return on branding investments, are used to measure brand equity. Four primary methods are used. Financial value estimates the cash flow of a brand based on its unique strengths and characteristics. Stock market value uses stock evaluations to measure brand equity. With the revenue premium approach, a brand is compared to a generic brand within the product category. Consumer value attempts to measure brand equity based on input from consumers.

Figure 2.17 Top Ten Most Loved Brands

Rank	Company	Emotional Index
1	Disney	74.7
2	Yahoo!	74.3
3	Google	74.2
4	Sony	74.1
5	Nestle	73.3
6	Auchan	72.9
7	Netflix	72.8
8	Whole Foods	72.7
9	Apple	72.7
10	Lowe’s	72.5

Source: Based on Christopher Heine, “Check Out the Top 100 Beloved Brands,” Adweek, adweek.com, October 10, 2013.

The top ten most loved brands was compiled by APCO Worldwide from a survey of 70,000 consumers. The study measured eight emotional feelings consumers have about brands – understanding, approachability, relevance, admiration, curiosity, identification, empowerment, and pride.

Private Brands

Popularity has fluctuated

Connotation of low price, low quality

Historically  price-sensitive consumers

Retailers investing in private brands

Consumers see few differences

The popularity of private brands has fluctuated over the years. In the past, private labels were seen as low priced, low quality goods. Historically, only price-sensitive consumers purchased private brands. Because of the higher gross margins on private brands, retailers began investing into their private brands. As a result, 72% of consumers today see private brands as being equivalent to manufacturers’ brands.

Figure 2.18 Changes in Private Brands

Improved quality

Perceived as a value purchase

Higher loyalty towards retail outlets and lower loyalty towards specific brands

Used to differentiate retail outlets

Increased advertising of private brands

Increased quality of in-store displays and packaging of private brands

Private brands (labels) have changed in a number of ways. The quality of private labels has improved. In fact, most consumers believe the quality of private labels is now equivalent to brand labels. In most cases, the price of private labels is below manufacturers’ brands, which consumers see as a value purchase. With the rise of large retail store chains, consumers have become more loyal to retail stores and less loyal to specific brands. For example, a consumer may say “whatever brands are sold by Dillard’s (or another retail store) is okay because that is where I want to shop.” Retailers are now using private labels to differentiate themselves from other retail outlets. In addition to improving quality, retailers have invested more money in advertising private labels, improving in-store displays of private labels, and improving the packaging of private labels. The result is that now many consumers cannot tell the difference between a retailer’s own private labels and a manufacturer’s label.

Advantages to Retailers Private Labels

Higher gross margins

Lower prices

Greater loyalty to stores and brands within a store

Differentiates stores from national brands

J.C. Penney – private labels

Private labels are attractive to retail stores for a number of reasons. Because the retailer owns the private label, the gross margins earned per product are higher than on manufacturers’ labels. This means the retailer can lower the price of the private label and still make more money. It also makes the private label attractive to customers. With increased brand parity, consumers have become more loyal to stores and less loyal to national brands, which benefits the retailer and private labels. For instance, JC Penney offers more than 30 private label apparel lines, which accounts for 40% of sales in the apparel category. Because of the benefits of private labels, retailers are investing more dollars into advertising and marketing. Often the ads do not tell consumers it is a private brand. In many cases, consumers do not know which brand is owned by the retailer (a private brand) and which one is owned by a manufacturer (national brand).

Figure 2.19 Tactics Used to Combat Private Labels

Focus on core brands

Increase advertising

Introduce new products

Focus on in-store selling, packaging

Use alternative methods of marketing

Source: Adapted from Vanessa L. Facenda, “A Swift Kick to the Privates,” Brandweek, Vol. 48, No. 31 (September 3, 2007), pp. 24-28.

Because of the rise in popularity and sales of private brands, manufacturers have been forced to look at strategies to fight back. Some manufacturers have chosen to focus on core brands. They may or may not drop some of their other brands, but the focus is on the core brands. For these brands, advertising budgets are increased. Innovation and new products are introduced sooner and more often. There is a greater focus on in-store selling and packaging. Rather than focus only on traditional media, alternative methods of marketing are pursued.

Packaging

Final opportunity to make impression

69% of purchase decisions made in-store

Have three seconds to catch attention

Must stand out

Tell customers what is inside

The importance of packaging should never be overlooked. It is the final opportunity to make an impression. Research has shown that 69% of purchase decisions are made in the store. This means packaging can be influential in the final purchase decision. Research has further shown that a package has three seconds to catch someone’s attention. Therefore, it needs to stand out. It needs to tell customers what is inside, or why they should look inside.

Figure 2.20 Primary Purposes of Packaging

Protect product

Provide for ease of shipping and handling

Provide for easy placement on shelves

Prevent or reduce theft

Prevent tampering (drugs and food)

Meet consumer needs for speed, convenience, and portability

Communicate marketing message

A primary purpose of packaging is to protect the product. It also should provide for easy shipping, moving, and handling of the product from the manufacturer to the retailer. It should provide for easy placement on store shelves. For many products, the package should prevent or reduce theft and tampering. Packaging must meet consumer needs for speed, convenience, and portability. Lastly, packaging should communicate a marketing message that resonates with buyers and is integrated with the marketing of the product, thus everything involving the brand from advertising to packaging is speaking with one voice.

Labels

Must meet legal requirements

Provide marketing opportunity

Labels are an important component of packaging. They must meet legal requirements in terms of listing contents and providing information on ingredients. But, labels also provide a marketing opportunity. Words such as gourmet, all-natural, and premium are used to convey what is offered and why it is important to consumers. Labeling can be the last opportunity to tell consumers about a product.

Figure 2.21 Uses for QR Codes Packages and Labels

Access product information

Access videos on product use

Access recipes and nutritional information

Compare sizes, brands, and styles

Access product reviews and ratings

Provide links to social media and entertainment sites

Source: Based on Heidi Tolliver-Walker, “The Top Five Most Effective Ways to Use QR Codes on Packaging,” Seybold Report: Analyzing Publishing Technologies, Vol. 12, No. 1, January 9, 2012, pp. 2-6

QR codes have gained popularity with consumers because of the rising use of smart phones and QR code apps. As a result, brands are placing QR codes on packages and labels. This slide shows the various uses for a QR code. It can provide access to additional product information posted online and videos on how to use the product. For food items, the QR code can be linked to recipes and nutritional information. For clothing, sizes, brands, and styles can be compared. For higher priced goods, product reviews and ratings can be provided. Sometimes brands want consumers to access social media or entertainment sites.

Ethical Issues

Brand infringement

Brand name becomes a generic term

Domain or cyber squatting

Marketers can face some ethical issues in the area of brand management. First, brand infringement occurs when a company takes a brand name that is very similar to a current, successful, and popular brand. Victor’s Secret was a brand infringement on the brand Victoria’s Secret. Second, sometimes brand names become the generic term for the product category, such as Xerox and band aids. More recently, the term Google has gained generic status. The last ethical issue is domain or cyber squatting, which is the purchase of website domains that individuals know are or will be valuable to a business or person. The reason for purchasing the domain is to be able to sell it for a high price later.

International Implications

Adaptation vs. standardization

Standardization reduces costs

Shrinking world  standardization

High-profile, high-involvement – global brand

Low-involvement products – local brand

Packaging and labeling

Image and positioning issues

For global firms, brand management is an important issue. A major decision that has to be made is should the brand use a standardization approach to marketing or adaptation? Standardization is cheaper because the same brand name is used in multiple countries, and the same marketing plan is followed. With a shrinking world due to advances in information technology, standardization makes sense. Most people have access to media and communication from around the world and are exposed to people from around the world. All of this leads to standardization becoming more attractive. For high profile, high involvement products, using a global brand works. But, for low involvement products, it is best to use an adaptation approach and develop local brands. Packaging and labeling issues involve more than language translations. It is important to ensure colors and content do not offend. Imaging and positioning should also be considered.

Blog Exercises

Sears

Target

Branding

The blog exercises for Chapter 2 include Jeep, Olive Garden, and videos about consumer behavior. Links are embedded in the text for each.