CHAPTER: 14
Copyright © 2015 Pearson India Education Services Pvt. Ltd.
Managing Brands
Over
Geographic
Boundaries and
Market Segments
Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e
By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob
Learning Objectives
• Understand the rationale for developing a global brand.
Copyright © 2015 Pearson India Education Services Pvt. Ltd.
• 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.
Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e
By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob
Regional Market Segments
A regionalization strategy can make a brand more relevant
and appealing to an individual.
Copyright © 2015 Pearson India Education Services Pvt. Ltd.
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.
Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e
By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob
Other Demographic and Cultural
Segments
Demographic differences often serve as the rationale for a
Copyright © 2015 Pearson India Education Services Pvt. Ltd.
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.
Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e
By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob
Other Demographic and Cultural
Segments
Some consumers may not like being targeted on the basis of
Copyright © 2015 Pearson India Education Services Pvt. Ltd.
their being different
• Since that reinforces their image as outsiders or a minority.
• They may feel alienated or distanced from the company
and brand.
Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e
By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob
Rationale for Going International
Forces that have encouraged many firms to market their
brands internationally:
Copyright © 2015 Pearson India Education Services Pvt. Ltd.
• 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.
Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e
By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob
Rationale for Going International
The marketing program for a global brand consists of:
Copyright © 2015 Pearson India Education Services Pvt. Ltd.
• Product formulation
• Package design
• Advertising program
• Pricing schedule
• Distribution plan
Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e
By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob
Advantages of Global Marketing
Programs
Copyright © 2015 Pearson India Education Services Pvt. Ltd.
Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e
By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob
Disadvantages of Global Marketing
Programs
Copyright © 2015 Pearson India Education Services Pvt. Ltd.
Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e
By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob
Global Brand Strategy
Copyright © 2015 Pearson India Education Services Pvt. Ltd.
Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e
By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob
Global Customer-based Brand
Equity
• Creating brand salience
Copyright © 2015 Pearson India Education Services Pvt. Ltd.
• Crafting brand image
• Eliciting brand responses
• Cultivating resonance
Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e
By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob
Global Brand Positioning
Because the brand is at an earlier stage of development
when going abroad:
Copyright © 2015 Pearson India Education Services Pvt. Ltd.
• Awareness and key points-of-parity need to be established
first.
Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e
By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob
Standardization and Customization
Copyright © 2015 Pearson India Education Services Pvt. Ltd.
Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e
By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob
Developing Versus Developed
Markets
BRICS (Brazil, Russia, India, China and South Africa)
Copyright © 2015 Pearson India Education Services Pvt. Ltd.
• 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.
Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e
By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob
Figure 14-4: Ten Commandments of
Global Branding
Copyright © 2015 Pearson India Education Services Pvt. Ltd.
Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e
By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob
To Sum Up…
• Marketers are blending global objectives with local or
regional concerns.
Copyright © 2015 Pearson India Education Services Pvt. Ltd.
• 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.
Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e
By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob
Copyright © 2015 Pearson India Education Services Pvt. Ltd.
Thank you.
Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 4e
By Kevin Lane Keller, Ambi M. G. Parameswaran and Isaac Jacob
