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CHAPTER 11BUILDING BRANDS WITH THE INTERNATIONAL MARKETING MIX
part four: managing marketing
an opening challenge
You are the marketing manager for a well-known designer fashion brand. A chain store has approached your company with a view to placing a large order. The finance manager is delighted and is prepared to discount the price. However, the managing director has some concerns. Do you think this order should be accepted? Do you want to impose any special terms and conditions?
agenda
• marketing mix objectives• revisiting the marketing mix
– integrating the marketing mix– internationalising the marketing mix
• packaging• branding
a hierarchy of objectivescorporate objectives
marketing objectives
product objectives
e.g. to develop a new range
promotion objectives
e.g. to change
attitudes to a brand
place objectives
e.g. to recruit new dealers
price objectives
e.g. to undercut
competitors
the extended marketing mix
7Ps
a well‐designed marketing mix should:
• achieve marketing objectives• meet customers’ needs • create competitive advantage• be well integrated (with each element
supporting the others)• fit within the available marketing resources
integration exampleupmarket clothing brand
• high-quality products• premium prices• for sale in exclusive stores
– grand servicescapes• smart, fashionably dressed sales staff • alterations service available• tasteful, creative adverts in style magazines
– and magazine spreads
product
core
basic
augmented
perceived
features quality
service
support
image value
peripheral products
delivery
brand identity
products sold internationally
• basic, augmented and perceived products may vary– core is often the same
• may be at different product life cycle stages • are affected by country-specific PRESTCOM +
CCC factors– especially laws and regulations, cultural factors
influencing product use, income levels, availability of support services
promotion: major tools
• advertising• PR• wom/viral• sales promotion• personal selling• packaging• direct marketing communications• sponsorship
international promotion
• strategy may be global– details may need to be country-specific
• local scenes and actors may help audience relate to the product advertised
• affected by country-specific PRESTCOM + CCC factors– especially language and other cultural factors,
laws and regulations, the availability of technology, media habits
example marketing channel
fabric and trim
suppliersmanu-
facturerimport agent
customer fashion stores
wholesaler
international distribution
• export or manufacture abroad?– indirect or direct export?
• appointment of intermediaries– agents, distributors, licensees, franchisees
• affected by country-specific PRESTCOM + CCC factors– especially different infrastructures, distribution
networks, logistics, transport facilities
price: a measure of value?
goods/services
buyer seller
price
value
opportunity cost
international prices
• currency– fluctuations can cause significant losses or gains
• additional costs– export, transport, agents’ fees
• affected by country-specific PRESTCOM + CCC factors– especially income levels, inflation/deflation, import
laws, financial regulations, competitors’ pricing, currencies
packaging: the 5th P?
• multi function– protection– adding value to product– communication– the silent salesman on the shelf
• the brand’s visual identity• a valuable asset• an environmental nightmare
the fifth P?
PACKAGING
product
price
promotion place
international packaging considerations include:
• laws and regulations– e.g. composition, recycling
• culture– e.g. language, common usage, colours
• education and literacy levels– e.g. impact on instructions
• protection during transport– maybe over longer distances
services marketing mix
PHYSICAL EVIDENCEPEOPLE
PROCESS
branding
• brand image- identity, personality, values
• brand equity• brand types• branding strategies• brand loyalty
the brand’s personality
brand identity
brand image
shapes its
which helps create a
brand equity
• a good brand is a valuable asset– but the value is hard to measure– takeover bids, price premiums
• indicators of high brand equity include:– high price, high distribution intensity, a
pleasant shopping environment , a large advertising budget (Yoo et al., 2000)
brand types
corporate umbrella
all products use corporate name
e.g. Heinz
range groups of products share a brand name
e.g. Taste the Difference (Sainsbury’s)
individual each product has its own brand name
e.g. Bold (Procter & Gamble)
own-label (private)
products bear the retailer’s (or wholesaler's) name
e.g. Tesco
generic product name only e.g. aspirin
brand architectures and strategies
• branded house– single master brand, e.g. Virgin
• house of brands– suite of stand-alone brands, e.g. Diageo
• new product launches– line extension– brand extension– brand stretch
• co-branding
brand loyalty
• loyal customers consistently choose the brand– and go out of their way to buy it
• they are more valuable than repeat customers– positive word of mouth– longevity
• loyalty has to be earned– an emotional bond based on trust– customer satisfaction is essential
summary
• is packaging the 5th P?– or does it cut across the marketing mix?
• marketing mix may need to be varied overseas– the core benefit may be the same
• well-integrated 7Ps can help build brands– brand image– brand loyalty– brand longevity and profitability
reference
• Yoo, B., Donthu, N. and Lee, S. (2000) 'An examination of selected marketing mix elements and brand equity', Academy of Marketing Science, 28(2): 195–211.