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p art four: managing marketing. chapter 11 building brands with the International marketing mix. an opening challenge.
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part four: managing marketing chapter 11building brands with the International marketing mix
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 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
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 perceived delivery augmented support basic core quality features value image brand identity service peripheral products
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 suppliers manu-facturer import 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 value buyer seller price 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? product packaging promotion place price
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 evidence people process
branding • brand image - identity, personality, values • brand equity • brand types • branding strategies • brand loyalty
the brand’s personality shapes its brand identity which helps create a brand image
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 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 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
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.