Brand Management - Week 7 Notes
Brand Management - Week 7 Notes MKTG 421
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This 5 page Class Notes was uploaded by Erin McGoff on Thursday October 13, 2016. The Class Notes belongs to MKTG 421 at American University taught by Dr. Sanal Mazvancheryl in Fall 2016. Since its upload, it has received 4 views. For similar materials see Brand Management in Marketing at American University.
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Date Created: 10/13/16
Brand Marketing 10/12/16 11:28 PM Week 7 – October 12, 2016 Building Global Brands & Russian Standard Vodka Case • What o There is no standard definition of a “global brand” ▯ A brand that is the same in several countries –vague. o Working definitions o • Why o The lure of global branding ▯ More countries, more revenues, more profits. ▯ Sometimes to counteract declining sales in domestic market ▯ Reduced costs through economies of scale ▯ Recognition that consumers are getting more global ▯ Fear that the competition will get there first ▯ A global profule is needed for company’s success o Harsh Global Environment ▯ Many global flops: ▯ Hallmark cards in France ▯ Kelloggs in India ▯ Uber in China • How o Q1. Deciding which global market to enter? ▯ Market’s overall attractiveness ▯ Benefits outweigh costs, attractive market ▯ Must weight the risks. ▯ GDP = average amount of money available in the country—the activity of the economy in a country. ▯ Risk + Benefits + Costs ▯ Entering global markets: benefits ▯ Developing countries with high growth rates are called emerging markets ▯ Challenges • 1/3 of the world is illiterate—how to advertise? • Ethical issues • Poor infrastructure • Low income (low discretionary money) ▯ Entering global markets: costs ▯ Costs of entering global markets are often greater than anticipated • Costs of manufacturing and distributing products across geographic boundaries • Costs of packaging, advertising, promotion • Costs of creating infrastructure and distribution ▯ Global Markets: Risks ▯ Political risks • Stability of government • Legal risks ▯ Economic risks • Currency risks • Risks to economic growth o Adaptation vs. Standardization ▯ Elements of the marketing mix could be: ▯ Standardized across al markets or ▯ Adapted to appeal to particular countries ▯ Promotion & Product adaptation ▯ Product adaptation • Oreos to wafers in China Promotion adaptation • Reasons: • Language differences • Cultural differences • Social differences • Legal and regulatory differences o Global Brand Management: Country factors ▯ Country of Origin effect: deals with quality perceptions of that product ▯ Country of origin bias ▯ To cope with unfavorable COO images, companies can resort to several strategies including: ▯ Building up strong brand equity ▯ Disguising ▯ Boosting the country of origin ▯ Buying brands with a favorable COO image o Global brand management: consumer factors ▯ Consumers are becoming more globalized ▯ But consumers are still very different around the world ▯ Cross-culture illiteracy ▯ Lack of knowledge about practices in the country or culture leading to marketing and advantage blunders o Global brands: pro and con ▯ Disadvantages ▯ Recently ther has been a backlash against what is perceived as excessive globalization. o Conclusion: be a global leader, not necessarily a global brand. 10/12/16 11:28 PM 10/12/16 11:28 PM
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