CHAPTER:14

MANAGING BRANDS
OVER
GEOGRAPHIC
BOUNDARIES AND
MARKET SEGMENTS

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Learning Objectives
 Understand the rationale for developing a global
brand
 Outline the main advantages and disadvantages of
developing a standardized global marketing
program
 Define the strategic steps in developing a global
brand positioning
 Describe some of the unique characteristics of
brand building in developing markets like India and
China
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Regional Market Segments
 A regionalization strategy can make a brand more
relevant and appealing to an individual
 Downsides:
 Marketing efficiency may suffer and costs may rise
with regional marketing
 Regional campaigns may force local producers to
become more competitive
 Upside:
 Marketing can have a stronger impact

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Other Demographic and Cultural Segments

 Demographic differences often serve as the

rationale for a separate branding and marketing
program
 Younger generation may be more easily influenced
by trends and broad cultural movements due to
media exposure
 Brands can tap into global sensibilities of the youth
market

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Other Demographic and Cultural Segments

 Some consumers may not like being targeted on the

basis of their being different
 Since that reinforces their image as outsiders or a
minority
 They may feel alienated or distanced from the
company and brand

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Rationale for Going International
 Forces that have encouraged many firms to market
their brands internationally:
 Perception of slow growth and increased competition
in domestic markets
 Belief in enhanced overseas growth and profit
opportunities
 Desire to reduce costs from economies of scale
 Need to diversify risk
 Recognition of global mobility of customers

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Rationale for Going International
 The marketing program for a global brand consists
of:
 Product formulation
 Package design
 Advertising program
 Pricing schedule
 Distribution plan

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Advantages of Global Marketing Programs

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Disadvantages of Global Marketing Programs

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Global Brand Strategy

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Global Customer-Based Brand
Equity
 Creating brand salience
 Crafting brand image
 Eliciting brand responses
 Cultivating resonance

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Global Brand Positioning
 Because the brand is at an earlier stage of
development when going abroad:
 Awareness and key points-of-parity need to be
established first

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Standardization and Customization

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Developing Vs. Developed
Markets
 BRICS (Brazil, Russia, India, China and South
Africa)
 Most important developing markets
 They do not yet have the infrastructure, institutions, and
other features that characterize more fully developed
economies in North America and Western Europe
 The product category itself may not be well developed
 The marketing program must operate at a very
fundamental level

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Figure 14.4 - Ten Commandments of Global
Branding

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To Sum Up…
 Marketers are blending global objectives with local
or regional concerns
 Some of the biggest differences in global marketing
occur between developed and developing or
emerging markets
 In entering a new market of any kind, it is
necessary to identify differences in consumer
behavior and adjust the branding program
accordingly

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