Keegan11 Product Decisions

8/11/2019 Keegan11 Product Decisions

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Product Decisions

Chapter 11

Global Marketing


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Product Concepts

A product is a good, service, or idea

Tangible Attributes

Intangible Attributes

Product classification

Consumer goods

Industrial goods


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Consumer Goods Classification

Buyer orientation

Amount of effort expended on purchase

Level of risk

Level of involvement

Product life span


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Life Span Based Product

Classification

Durable

Non-Durable

Disposable


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Brands

Bundle of images and experiences in the

customers mind

A promise made by a particular companyabout a particular product

A quality certification

Differentiation between competing products The sum of impressions about a brand is the

Brand Image


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Brand Equity

The added value that accrues to a product as

a result of investments in the marketing of

the brand

An asset that represents the value created by

the relationship between the brand and

customer over time


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Global Products and Brands

Global products meet the wants and needs

of a global market and is offered in all

world regions

Global brands have the same name and

similar image and positioning throughout

the world


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Brand Extensions

Brand acts as an umbrella for new productsExample: The Virgin Group

Virgin Entertainment: Virgin Megastores and MGM

Cinemas

Virgin Trading: Virgin Cola and Virgin Vodka

Virgin Radio

Virgin Media Group: Virgin Publishing, Virgin

Television, Virgin Net Virgin Hotels

Virgin Travel Group: Virgin Atlantic Airways,

Virgin Holidays


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The Most Valuable Brands

RANK Value(billions)

RANK Value(billions)

1. Coca-Cola 69.9 7. Disney 32.6

2. Microsoft 65.1 8. Ford 30.1

3. IBM 52.8 9. McDonalds 25.3

4. GE 42.4 10. AT&T 22.8

5. Nokia 35.0 11. Marlboro 22.0

6. Intel 34.7 12. Mercedes 21.7


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Guidelines for Developing

Global Brand Leadership

Create a compelling value proposition

Think about all elements of brand identity

and select names, marks, and symbols that

have the potential for globalization

Research the alternatives of extending a

national brand versus adopting a new brand

identity globally

Develop a company-wide communication

system


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Guidelines (cont.)

Develop a consistent planning process

Assign specific responsibility for managing

branding issues

Execute brand-building strategies

Harmonize, unravel confusion, and

eliminate complexity


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A Needs-Based Approach:

Maslows Hierarchy of Needs

Physiological

Safety

Social

External/InternalEsteem

Self-actualization


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Maslows Hierarchy:

The Asian Equivalent

Physiological

Safety

Affiliation

Admiration

Status


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Strategic Alternatives in Global

Marketing Extensionoffering product virtually

unchanged in markets outside of home

country Adaptationchanging elements of design,

function, and packaging according to needs

of different country markets Creationdeveloping new products for the

world market


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Global Product Planning:

Strategic Alternatives

Product

Same DifferentCommunication

Different

SameStrategy 1:

Dual Extension

Strategy 2:

Product ExtensionCommunication

Adaptation

Strategy 4:

Dual Adaptation

Strategy 3:Product Adaptation

Communication

Extension


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Factors Affecting Choice of

Product/Communication Strategy

Product

Market

Costs of adaptation

Keegan11 Product Decisions

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