chapter 11 building brands with the International marketing mix

1. part four: managing marketing chapter 11building brands with the International marketing mix

2. 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?

3. agenda • marketing mix objectives • revisiting the marketing mix • integrating the marketing mix • internationalising the marketing mix • packaging • branding

4. a hierarchy of objectives corporate objectives marketing objectives productobjectives 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

5. the extended marketing mix 7Ps

6. 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

7. 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

8. product perceived delivery augmented support basic core quality features value image brand identity service peripheral products

9. 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

10. promotion: major tools • advertising • PR • wom/viral • sales promotion • personal selling • packaging • direct marketing communications • sponsorship

11. 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

12. example marketing channel fabric and trim suppliers manu-facturer import agent customer fashion stores wholesaler

13. 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

14. price: a measure of value? goods/services value buyer seller price opportunity cost

15. 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

16. 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

17. the fifth P? product packaging promotion place price

18. 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

19. services marketing mix physical evidence people process

20. branding • brand image - identity, personality, values • brand equity • brand types • branding strategies • brand loyalty

21. the brand’s personality shapes its brand identity which helps create a brand image

22. 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)

23. brand types

24. 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

25. 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

26. summary • is packaging the 5thP? • 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

27. 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.