MKT300

International Marketing
-Global marketing product decisions-
 -Learning objectives-

0 Compare & contrast local products & brands, international

products & brands, and global products & brands.
0 Explain key branding strategies
0 Explain the product/brand matrix (strategic approach)
0 Explain the brand development process
0 Explain how Maslow’s needs hierarchy helps global
marketers understand the benefits sought by buyers in
different parts of the world.
0 Outline the importance of the “country of origin” as a
brand element.
 -local products and brands-

0 Brands that have achieved success in a single

national market
0 Represent the lifeblood of domestic companies
0 Entrenched local products/brands can be a
significant competitive hurdle to global companies
 -international products and
brands-

0 Products and brands offered in several markets in a

particular region
0 ‘Euro-brands’
0 Honda 5-door hatchback auto is known as Fit in
Asia and Jazz in Europe and Africa
0 Cocoa krispies (USA), Choco krispis (Mexico, Costa
Rica), Coco pops (UK, Denmark), Choco krispies
(Portugal, Spain, Germany)…
 -global products and brands-
0 Global brands are not the same as
global products
0 iPod / Sony Walkman = brands
0 mp3 player= product
0 Global products meet the wants
and needs of a global market and
are offered in all world regions
0 Global brands have the same In any language Gillette’s trademarked

name and similar image and brand promise is easy to understand.

positioning throughout the world

0 BMW : “Ultimate Driving Machine
0 Visa: Life takes Visa
 -global products and brands-

“A multinational has operations in different countries. A

global company views the world as a single country. We
know Argentina and France are different, but we treat
them the same. We sell them the same products, we use
the same production methods, we have the same
corporate policies. We even use the same advertising—
in a different language, of course.”

- Alfred Zeien Former Gillette CEO

 -branding strategies-
0 Combination or tiered branding allows marketers to
leverage a company’s reputation while developing a
distinctive identity for a line of products
0 Sony Walkman (Sony NW-A105, Sony NWZ-E390); Toyota product lines
(Toyota Yaris, Toyota corolla, Toyota land cruiser…)

0 Co-branding features two or more company or product

brands
0 NutraSweet and Coca-Cola; Intel and Computer brands
0 Brand extensions where an established brand act as an
umbrella for new product categories
0 Virgin group – Virgin hotels, Virgin entertainment, Virgin health
 -product/brand matrix-
(Strategic approach)

0 4 combinations of local/global products/brands in matrix.

0 Strategy 1: developing local products and brands for individual country
or regional markets. E.g. Georgia canned coffee in Japan by Coca Cola
0 Strategy 2: Valpre brand bottled water in South Africa by Coca Cola
0 Strategy 3: Global cosmetic industry – Chanel, Givenchy, Clarins,
Guerlain, e.t.c create different formulations for different regions of the
world… the brand name/ packaging may be uniform everywhere.
0 Strategy 4: Coca-Cola’s flagship cola brand
-World’s most valuable brands
(2020)-
 MKT300
International Marketing
-Global marketing product decisions-
 -Learning objectives-

0 Compare & contrast local products & brands, international

products & brands, and global products & brands.
0 Explain key branding strategies
0 Explain the product/brand matrix (strategic approach)
0 Explain the brand development process
0 Explain how Maslow’s needs hierarchy helps global
marketers understand the benefits sought by buyers in
different parts of the world.
0 Outline the importance of the “country of origin” as a
brand element.
 -global brand development-

0 Questions to ask when management seeks to build a

global brand:
0 Does this move fit the company and/or its markets?
0 Will anticipated scale economies materialize?
0 How difficult will it be to develop a global brand team?
0 Can a single brand be imposed on all markets successfully?
 -global brand development
process-
1. Create a compelling value proposition, beginning with the
home-country market
2. Think about all elements of brand identity and select names,
marks, and symbols that have the potential for globalization
3. Develop a company-wide communication system to share &
leverage knowledge and information about marketing
programs & customers in different markets
4. Develop a consistent planning process across markets &
products. Make a process template available to managers in all
markets
5. Assign specific responsibility for managing branding issues to
ensure local brand managers accept global best practices.
6. Execute brand-building strategies that leverage global strengths
& respond to relevant local differences.
 -a needs based approach to
product planning-
0 Maslow’s Needs Hierarchy helps marketers understand
how & why local products go beyond the home-country
0 Needs and wants aren’t the same thing
0 At the most basic level of human existence, physiological, safety,
social, esteem, and actualisation needs must be met (– in that
order).
0 Products that meet these basic needs have potential for
globalization.
0 A need to consume food and drink is not the same thing as
wanting or preferring a Big Mac or a Coke.
0 Global giants like Coca-Cola, McDonald’s and Sony understand
and build local products or products that fulfill social functions
(Needs) and then globalized…
 -Maslow's hierarchy of needs-

0 Social needs cut across

various stages of country
development and can
create a powerful
internal motivation
driving demand for
status-oriented products.
0 Rolex, Louis Vuitton, and
Dom Perignon are some
of the global brands
bought in an effort to
satisfy esteem needs.
 -Asian hierarchy of needs-

0 The quest for status also leads to luxury

badging / conspicuous consumption
0 20 percent of industry sales are
generated in Japan alone,
0 with another 22 percent of
sales occurring in the rest
of the Asia-Pacific region.
0 Nearly half of all sales
revenues of Italy’s Gucci
Group are generated in
Asia.
 -Asian hierarchy of needs-
0 Hellmut Schütte has proposed a modified hierarchy to explain the needs and wants of Asian
consumers.
0 The three highest levels emphasize social needs. Affiliation needs in Asia are satisfied when an
individual has been accepted by a group.
0 Conformity with group norms becomes a key force driving consumer behavior. For example,
when a cool new cell phone hits the market, every teenager who wants to fit in buys one.
Knowing this, managers at Japanese companies develop local products specifically designed to
appeal to teens.
0 The next level is admiration, a higher-level need that can be satisfied through acts that
command respect within a group. At the top of the Asian hierarchy is status, the esteem of
society as a whole.
0 In part, attainment of high status is character driven. However, the quest for status also leads to
luxury badging. Support for Schütte’s contention that status is the highest-ranking need in the
Asian hierarchy can be seen in the geographic breakdown of the $200-plus billion global luxury
goods market. Fully 20 percent of industry sales are generated in Japan alone, with another 22
percent of sales occurring in the rest of the Asia-Pacific region. Nearly half of all sales revenues
of Italy’s Gucci Group are generated in Asia.
 -Country of origin as brand
elements-
0 Perceptions about and attitudes toward countries often
extend to products and brands known to originate in
those countries
0 they become part of a brand’s image and contribute
to brand equity.
0 Japan - electronics
0 Germany - quality engineering
0 France – ‘chic’
0 Italy – ‘style’
- Good day -