2/9/2022

Managing Brands Over

Geographic Boundaries
and Market Segments

REGIONAL MARKET
SEGMENTS
• Regionalization seems to run counter
to globalization.
• Marketers are more interested in
regional marketing today than
previously because there is high-
quality data available about
purchasing behavior both in-store
and online
• Therefore, a regional targeting
strategy can make a brand more
relevant and appealing to any one
individual.
• Regionalization can have downsides.
 Marketing efficiency may suffer, and
costs may rise with regional marketing.
 Regional campaigns may force local
producers to become more competitive
or blur a brand’s national identity.

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OTHER DEMOGRAPHIC SEGMENTS

OTHER CULTURAL SEGMENTS

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GLOBAL BRANDING
• The reasons for many firms were encouraged to market their brands
internationally are:
I. Perception of slow growth and increased competition in
domestic markets
II. Belief in enhanced overseas growth and profit opportunities
III. Desire to reduce costs from economies of scale
IV. Need to diversify risk
V. Recognition of global mobility of customers.

Advantages of Global Marketing

• Economies of scale in production and distribution
• Lower marketing costs
• Power and scope
• Consistency in brand image
• Ability to leverage good ideas quickly and efficiently
• Uniformity of marketing practices

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Disadvantages of Global Marketing

• Differences in consumer needs, wants, and usage patterns for
products
• Differences in consumer response to branding elements
• Differences in consumer response to marketing mix elements
• Differences in brand and product development and the competitive
• environment
• Differences in the legal environment
• Differences in marketing institutions
• Differences in administrative procedures

STRATEGIES FOR CREATING & MANAGING GLOBAL

BRANDS
• Creating Global Brand Equity
• Global Brand Positioning

• Standardization Vs Adaptation

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CUSTOMIZING MARKETING MIX ELEMENTS IN LOCAL MARKETS FOR

GLOBAL BRANDS

• Product Strategy
• Pricing Strategy
• Communication Strategy
• Distribution Strategy

Ten Commandments of Global Branding

• 1. Understand similarities and differences in the global branding landscape.
• 2. Don’t take shortcuts in brand building.
• 3. Establish marketing infrastructure.
• 4. Embrace integrated marketing communications.
• 5. Cultivate brand partnerships.
• 6. Balance standardization and customization.
• 7. Balance global and local control.
• 8. Establish operable guidelines.
• 9. Implement a global brand equity measurement system.
• 10. Leverage brand elements.

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1. Understand Similarities and Differences in the Global Branding

Landscape
• International markets can vary in terms
of brand development, consumer
behavior, marketing infrastructure,
competitive activity, legal restrictions,
and so on.
• Virtually every top global brand and
company adjusts its marketing program
in some way across some markets but
holds the parameters fixed in other
markets.

2. Don’t Take Shortcuts in Brand Building

Building a brand in new markets must be
done from the bottom up.
• Strategically, that means concentrating
on building awareness first, before the
brand image.
• Tactically, or operationally, it means
determining how to best create sources
of brand equity in new markets.
• Distribution, communication, and pricing
strategies may not be appropriate in any
two markets even if the same overall
brand image is desired in both

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3. Establish Marketing Infrastructure

• A critical success factor for

many global brands is their
manufacturing, distribution,
and logistical advantages.
• These brands have created
the appropriate marketing
infrastructure, from scratch
if necessary, and adapted to
capitalize on the existing
marketing infrastructure in
other countries

4. Embrace Integrated Marketing Communications

• A number of top global firms have

introduced extensive integrated
marketing communications programs.
• Embrace other forms of
communication—such as
sponsorship, promotions, public
relations, merchandising activity

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5. Cultivate Brand Partnerships

• Most global brands have marketing partners of

some form in their international markets,
ranging from joint venture partners, licensees
or franchisees, and distributors, to ad agencies
and other marketing support people.
• One common reason for establishing brand
partnerships is to gain access to distribution.
• Companies are sometimes legally required to
partner with a local company.

6. Balance Standardization and Customization

The challenge, of course, is to

get the right balance—to know
which elements to customize or
adapt and which to standardize.

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7. Balance Global and Local Control

• A key decision in developing a global marketing program is choosing

the most appropriate organizational structure for managing global
brands.
• Centralization at home office or headquarters
• Decentralization of decision making to local foreign markets
• Some combination of centralization and decentralization

8. Establish Operable Guidelines

• Brand definitions and guidelines must be

established, communicated, and properly
enforced so marketers in different regions
have a good understanding of what they are
and are not expected to do

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9. Implement a Global Brand Equity

Measurement System

Global brand equity

measurement system is a set of
research procedures designed
to provide timely, accurate, and
actionable information for
marketers on brands, so they
can make the best possible
tactical decisions in the short
run and strategic decisions in
the long run in all relevant
markets.

10. Leverage Brand Elements

Proper design and

implementation of brand
elements can often be critical to
the successful building of global
brand equity. A number of
brands have encountered
resistance because of difficulty
in translating their name,
packaging, slogans, or other
brand elements to another
culture

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