brand report

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Marketers are more interested in regional marketing today than previously because there is high-quality data available about purchasing behavior both in-store and online.

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Any market segment may be a candidate for a specialized marketing and branding program. For example, demographic dimensions such as age, income, gender, ethnicity, and race—as well as psychographic considerations —often relate to more fundamental differences in shopping behaviors or attitudes about brands. These differences can often serve as the rationale for a separate branding and marketing program. The decision ultimately rests on the costs and benefits of customized marketing efforts versus those of a less targeted focus.

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Why is marketing to different ethnic groups an effective strategy? Different ethnicities have unique characteristics, tastes, and preferences such that brands which are customized tend to be more appealing.

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A number of well-known global brands such as Apple, Google, Coca-Cola, Microsoft, and Toyota have derived their sales and profits from international markets. In more product categories, the ability to establish a global profile is becoming a prerequisite for success. Ideally, the marketing program for a global brand consists of one product formulation, one package design, one advertising program, one pricing schedule, one distribution plan, and so on that would prove the most effective and efficient option for every country in which the brand was sold. Unfortunately, such a uniformly optimal strategy is rarely possible.

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Economies of scale in production and distribution •  Manufacturing efficiencies and lower costs that derive from higher volumes

in production and distribution •  The more that strong experience curve effects exist, the more economies of

scale in production and distribution from a standardized global marketing program will prevail

Lower marketing costs •  Arises from uniformity in packaging, advertising, promotion, and other

marketing communication activities •  The more uniform, the greater the potential savings

Power and scope •  A global brand profile can communicate credibility •  An admired global brand can also signal social status and prestige

Consistency in brand image •  Maintaining a common marketing platform all over the world helps maintain

the consistency of brand and company image •  Services often desire to convey a uniform image due to consumer

movements

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Differences in consumer needs, wants, and usage patterns for products •  Differences in cultural values, economic development, and other factors

across nationalities lead customers to behave very differently •  Product strategies that work in one country may not work in another

Differences in consumer response to branding elements •  Linguistic differences across countries can change the meaning of a brand

name •  Sound systems that differ across dialects can make a word

problematic in one country but not another

Differences in consumer responses to marketing mix elements •  Price sensitivity, promotion responsiveness, sponsorship support, and other

activities all may differ by country •  These differences can motivate differences in consumer behavior

and decision making

Differences in brand and product development and the competitive environment •  Products may be at different stages of their life cycle in different countries •  The nature of competition also differs

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Global brand strategy •  In building brand equity, different marketing programs need to be created to

satisfy different market segments. Therefore: •  Differences in consumer behavior need to be identified

•  How consumers purchase and use products and what they know and feel about brands

•  Branding program need to be adjusted accordingly through the choice of brand elements, the nature of the actual marketing program and activities, and the leveraging of secondary associations

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In each and every market in which marketers sell a brand, they must consider how to achieve brand salience, brand performance, brand imagery, brand judgments, brand feelings, and brand resonance. Brand judgments must be positive in new markets—consumers must find the brand to be of good quality, credible, worthy of consideration, and superior. Finally, achieving brand resonance in new markets means that consumers must have sufficient opportunities and incentives to buy and use the product, interact with other consumers and the company itself, and actively learn and experience the brand and its marketing. Clearly, digital marketing and social media communications can be deployed to strengthen brand resonance. Nevertheless, digital efforts cannot completely replace grassroots marketing efforts that help connect the consumer with the brand.

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A number of companies have a global brand positioning document that typically addresses a number of questions. 1.  How valid is the brand’s mental map based in the home market relevant to

a new market? How appropriate is the positioning? What is the existing level of awareness? How valuable are the core brand associations, points- of-parity, and points-of-difference?

2.  What changes should we make to the positioning? Do we need to create any new associations? Should we not recreate any existing associations? Should we modify any existing associations?

3.  How should we create this new mental map? Can we still use the same marketing activities? What changes should we make? What new marketing activities are necessary?

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Many brands need to customize specific aspects of the marketing mix to better appeal to local market conditions. We next review the four major elements of a marketing program—product, communications, distribution, and pricing strategies—in terms of adaptation issues. Product strategy •  Due to the relative expense, many smaller companies tried to sell their

products without sufficient market research. As a result, they sometimes became aware of consumer differences only after the introduction of the product.

•  Research reveals that product differences are not justified for certain countries.

•  From a corporate perspective, a solution to the trade-off between global and local brands is to sell both types of brands as part of the brand portfolio in a category.

Communication strategy •  Although brand positioning may be the same in different countries, creative

strategies in advertising may have to differ to some degree. •  Each country has its own unique media challenges and opportunities. •  Marketers can execute sponsorship in a global basis.

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Perhaps the most basic distinction we make between the countries that global brands enter is whether they are developing or have developed markets. The distinction between developing and developed markets is increasingly blurring, as some markets such as China have a large GDP, even though their infrastructure and resources are limited, relative to their more developed counterparts. A few interesting facts about consumers in emerging and developing markets are the following: 1.  Eighty percent of consumers in emerging markets buy their products from

tiny bodegas, stalls, kiosks, and mom-and-pop stores not much bigger than a closet.

2.  Smaller packaging and lower sales prices are often critical when incomes and housing spaces are limited.

3.  Many companies (e.g., Procter & Gamble, Unilever, etc.) have devised cheaper, clever ways to make the right kinds of products to suit consumer demand.

4.  Mobile and digital strategies may take on greater importance given the relatively high smart phone penetration.

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In designing and implementing a global brand marketing program, marketers want to realize the advantages while suffering as few of the disadvantages as possible.

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