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GLOBAL POLICY AND GLOBAL POLICY AND PRICING DECISIONS II:PRICING DECISIONS II:

MARKETING PRODUCTS MARKETING PRODUCTS AND SERVICESAND SERVICES

Chapter TwelveChapter Twelve

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Global Product Policy Decisions Global Product Policy Decisions II:II:

Marketing Products and ServicesMarketing Products and Services OverviewOverview 1. Global Branding Strategies1. Global Branding Strategies 2. Managing Multinational Product 2. Managing Multinational Product

LinesLines 3. Product Piracy3. Product Piracy 4. Country of Origin Stereotypes4. Country of Origin Stereotypes 5. Global Marketing of Services5. Global Marketing of Services

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OverviewOverview

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1. Global Branding Strategies1. Global Branding Strategies

Global BrandsGlobal Brands– Exhibit 12-1 Top 25 Brands in the Exhibit 12-1 Top 25 Brands in the

United States, Japan and WorldwideUnited States, Japan and Worldwide– inter-country gapsinter-country gaps

History, Competitive climate, Marketing History, Competitive climate, Marketing support, Cultural receptivity to brands, support, Cultural receptivity to brands, Product category penetrationProduct category penetration

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1. Global Branding Strategies 1. Global Branding Strategies (cont)(cont)

Local BrandingLocal Branding Global or Local Brands?Global or Local Brands?

– Exhibit 12-2 Sara Lee’s Hierarchy of Exhibit 12-2 Sara Lee’s Hierarchy of BrandsBrands

– Exhibit 12-3 Nestle Branding TreeExhibit 12-3 Nestle Branding Tree– Exhibit 12-4 Brands of Six Multinational Exhibit 12-4 Brands of Six Multinational

Companies in 67 CountriesCompanies in 67 Countries Brand name Changeover StrategiesBrand name Changeover Strategies

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1. Global Branding Strategies 1. Global Branding Strategies (cont)(cont)

Private Label Branding (“Store Private Label Branding (“Store Brands”)Brands”)– Exhibit 12-5 Market Share (% Value) Exhibit 12-5 Market Share (% Value)

of Private Labels in Japan : 1990 and of Private Labels in Japan : 1990 and 19941994

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1. Global Branding Strategies 1. Global Branding Strategies (cont)(cont)

Factors explaining success of private Factors explaining success of private labelslabels– Improved quality of private-label productsImproved quality of private-label products– Development of premium private-label brandsDevelopment of premium private-label brands– Shift in balance of power between retailers Shift in balance of power between retailers

and manufacturersand manufacturers– Expansion into new product categoriesExpansion into new product categories– Internationalization of retail chainsInternationalization of retail chains– Economic downturnsEconomic downturns

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1. Global Branding Strategies 1. Global Branding Strategies (cont)(cont)

Umbrella (Corporate) BrandingUmbrella (Corporate) Branding Protecting Brand NamesProtecting Brand Names

– Exhibit 12-6 Pizza Domino in Israel: Exhibit 12-6 Pizza Domino in Israel: Twin Brother of Domino’s PizzaTwin Brother of Domino’s Pizza

– Exhibit 12-7 Differing Views on IP Exhibit 12-7 Differing Views on IP ProtectionProtection

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2. Managing Multinational 2. Managing Multinational Product LinesProduct Lines

– Exhibit 12-8 International Product Mix Exhibit 12-8 International Product Mix of CPC Internationalof CPC International

Customer PreferencesCustomer Preferences– Exhibit 12-9 Top Selling Campbell’s Exhibit 12-9 Top Selling Campbell’s

Soups Around the WorldSoups Around the World Competitive ClimateCompetitive Climate Organizational StructureOrganizational Structure HistoryHistory

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3. Product Piracy3. Product Piracy

– Exhibit 12-10 Piracy Around the WorldExhibit 12-10 Piracy Around the World Strategic Actions Against Product Strategic Actions Against Product

PiracyPiracy– Lobbying ActivitiesLobbying Activities– Legal ActionLegal Action– Product Policy OptionsProduct Policy Options– Communication OptionsCommunication Options

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4. Country of Origin (COO) 4. Country of Origin (COO) StereotypesStereotypes

Country of Origin (COO) Influences Country of Origin (COO) Influences on Consumerson Consumers– Exhibit 12-11 Product-Country Exhibit 12-11 Product-Country

Matches and Mismatches: Examples Matches and Mismatches: Examples and Strategic Implicationsand Strategic Implications

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4. Country of Origin (COO) 4. Country of Origin (COO) Stereotypes (cont)Stereotypes (cont)

Strategies to Cope with COO Strategies to Cope with COO StereotypesStereotypes– Product PolicyProduct Policy– PricingPricing– DistributionDistribution– CommunicationCommunication

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5. Global Marketing of Services5. Global Marketing of Services

Challenges in Marketing Services Challenges in Marketing Services InternationallyInternationally– Exhibit 12-12 Barriers to International Exhibit 12-12 Barriers to International

Marketing of ServicesMarketing of Services– Immediate face-to-face Contacts with Immediate face-to-face Contacts with

Service TransactionsService Transactions– Difficulties Measuring Customer Difficulties Measuring Customer

Satisfaction OverseasSatisfaction Overseas

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5. Global Marketing of Services 5. Global Marketing of Services (cont)(cont)

Opportunities in the Global Service Opportunities in the Global Service IndustriesIndustries– Deregulation of Service IndustriesDeregulation of Service Industries– Increasing Demand for Premium Increasing Demand for Premium

ServicesServices– Increase Value ConsciousnessIncrease Value Consciousness

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5. Global Marketing of Services 5. Global Marketing of Services (cont)(cont)

Global Service Marketing StrategiesGlobal Service Marketing Strategies– Capitalize on Cultural Forces in the Host Capitalize on Cultural Forces in the Host

MarketMarket– Standardize and CustomizeStandardize and Customize– Central Role of Information Technologies (IT)Central Role of Information Technologies (IT)– Add Value by DifferentiationAdd Value by Differentiation– Exhibit 12-13 Japanese Practices to Achieve Exhibit 12-13 Japanese Practices to Achieve

Customer SatisfactionCustomer Satisfaction– Establish Global Service NetworksEstablish Global Service Networks– Exhibit 12-14 Market Leadership Coca-ColaExhibit 12-14 Market Leadership Coca-Cola