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International Marketing Strategy

307LON

Products, Services and


Brands
Unit: 5 Knowledgecast: 2
Kalliopi.Konsolaki@culc.coventry.ac.uk

Module Learning Outcomes


Understand the principles of marketing within the
constantly changing international environment
Demonstrate knowledge of marketing concepts and
approaches in practice
Analyse a range of examples demonstrating innovative
marketing approaches used by various types of
international organisations

Branding Strategy
The image of the brand is the most visible feature
The perceived value is central to positioning a product
across markets
Branding is critical to product identification and the key
factor in differentiating a product from its competition
Makes it easier for customers to find and buy products
Firms must protect brand names and brand marks from
trademark infringement by other firms

The Brand Value Equation

Source: Doole 2012: 268

Example: Virgins Brand Promise


The Virgin Brand Promise
Fun (You can take as much emotional baggage as
you like but only this much hand baggage)
Value for money (Keeping the air fare)
Quality
Innovation (Doing things differently, being the
challenger brand, using PR more than others why
pay for so much advertising space?)
Competitive challenge (Keeping the air fare)
Brilliant customer service

Marketing Advantages of Strong Brands


Improved perceptions of
product performance
Greater loyalty
Less vulnerable to
competition
Less vulnerable to crises
Larger margins
Inelastic consumer
response to price
increases

Elastic consumer
response to price
decreases
Greater trade cooperation
Increase in effectiveness
of IMC
Licensing opportunities
Brand extension
opportunities

The Best Global Brands (2006)

Source: Doole 2008: 288

The Best Global Brands (2010)

Source: Doole 2012: 270

Brand Evaluation
The basic criteria for brand evaluation:
Title of the brand has to be clear and separately
disposable from the rest of the business
The value has to be substantial and long term, based
on separately identifiable earnings that have to be in
excess of those achieved by unbranded products

Branding Strategies
Umbrella brands (one brand supports several products,
e.g. Philips electrical products)
Product brands (each product has a different brand,
e.g. Unilever, P&G)
Line brands (a number of complementary products
sharing the same brand concept, e.g. Studio Line of
LOreal)
Range brands (broader than Line brands, e.g. Heinz
uses Weight watchers, Nestle uses Findus for frozen
food)
Endorsing brands (after acquisition, towards umbrella
branding, e.g. Nestle Kit-Kat)
Source brands (double branded with a corporate
name, e.g. Ford Mondeo)

Brand Piracy
It is the problem of
forgery of famous
brands
Development of fake
products imitating
famous brands

Types
Outright Piracy
Reverse engineering
Counterfeiting
Passing-off
Wholesale
infringement

THE NPD PROCESS


Idea generation

Idea screening

Focus groups
Real world testing

Concept testing

monitoring
&
evaluation
(at any stage)

Business analysis

Product development
Test marketing
commercialisation

13

New Product Categories

Source: Doole 2012: 274

Research & Development Strategies


Companies must take decisions on:
Location of their own internal R&D facilities
Extent to which they contract out certain parts of their
R&D programme
Whether or not they might acquire a company which
can provide either the required new technology or a
new product
Licensing the technology and process from another
company
Funding joint ventures or strategic alliances with
companies that have complementary technology

Failure of NPD

Tariff and non-tariff barriers


Local competitor subsidiaries
Cultural insensitivity
Poor planning
Lack of unique selling proposition
Product deficiencies
Misguided enthusiasm of top management

Stages of the Product Life Cycle

Customer Satisfaction

What do they look for?

Customer Satisfaction
How to satisfy customers:
http://www.youtube.com/watch?v=Fy4lYDN1gz4
How to lose customers:
http://www.youtube.com/watch?v=PFsMOGMCg
WA

Knowledgecast Summary
Understand the principles of marketing within the constantly
changing international environment
Demonstrate knowledge of marketing concepts and approaches in
practice
Now you are able to discuss the brand marketing elements.
Analyse a range of examples demonstrating innovative marketing
approaches used by various types of international organisations
Reflect on the examples the lecturer has given you of these
concepts in action; you will gather more examples in the
seminar.

Questions?

Seminar
Assessment Preparation
The first part of this session is available for you to ask
any questions related to your successful submission of
the modules first assessment; the Marketing Review.
During the second part of the session you will continue
to work within your allocated group to finalize your ideas
around completing your first assignment.
You will have to summarise and present the key findings
from your research so far Mini Presentations!

Seminar/Group Activity
Products, Services and Brands
In this session you are going to critically assess the product, service
and brands ability to communicate value to your clients customers.
Be prepared to answer the following questions;
1. Who are your clients customers? What is their profile? How would
you describe their segment of the market?
2. What are the product/service/brands attributes?
3. What do these attributes communicate to the customer?
4. How the product/service/brand effectively communicate its
attributes?
5. Do these attributes communicate value to the customer?
6. How could this be improved?

Seminar/Group Activity
Marketing Review : Unit 5 Task
Your next activity should be a Products/Services/Brands piece
For example;
How would the clients product or service be classified?
What are the products/services attributes?
Is the product part of a product line or portfolio/mix?
Is the product or service branded and if so what brand equity does it
possess?
How has the brand been designed and developed?
If the client offers a service what are its nature and characteristics?
How does this compare to the main competitors product/service or
brand?

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