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part four: managing marketing
CHAPTER 11
BUILDING BRANDS WITH THE
INTERNATIONAL MARKETING MIX
an opening challenge
You are the marketing manager for a wellknown 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
product
objectives
e.g. to
develop a
new range
promotion
place
objectives
objectives
e.g. to
e.g. to recruit
change
new dealers
attitudes to a
brand
price
objectives
e.g. to
undercut
competitors
the extended marketing mix
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 example
upmarket 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
augmented
delivery
basic
image
features
service
support
core
quality
brand identity
peripheral products
value
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
customer
manufacturer
fashion
stores
import agent
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
buyer
value
price
opportunity cost
seller
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
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
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 types
corporate
umbrella
range
individual
own-label
(private)
generic
all products use
e.g. Heinz
corporate name
groups of products e.g. Taste the
share a brand name Difference
(Sainsbury’s)
each product has its e.g. Bold (Procter
own brand name
& Gamble)
products bear the
e.g. Tesco
retailer’s (or
wholesaler's) name
product name only e.g. aspirin
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 5th P?
– 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.