1. Global Marketing Management
Masaaki Kotabe & Kristiaan Helsen Second Edition John Wiley & Sons, Inc., 2001
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Kotabe & Helsen's Global Marketing Management, Second Edition

2. Global Product Policy Decisions II: Marketing Products and Services
Chapter 12
Global Product Policy Decisions II:
Marketing Products and Services
Chapter 12
Kotabe & Helsen's Global Marketing Management, Second Edition

3. Kotabe & Helsen's Global Marketing Management, Second Edition
Chapter Overview
1. Global Branding Strategies
2. Managing Multinational Product Lines
3. Product Piracy
4. Country-of-Origin Effects
5. Global Marketing of Services
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Kotabe & Helsen's Global Marketing Management, Second Edition

4. Kotabe & Helsen's Global Marketing Management, Second Edition
Introduction
Companies that brand their products have various options when they sell their goods in multiple countries.
More and more companies see global (or at least regional) branding as a must.
Multinational product line management entails issues such as:
What product assortment should the company launch when it first enters a new market?
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5. Kotabe & Helsen's Global Marketing Management, Second Edition
Introduction (contd.)
How should the firm expand its multinational product line over time?
What product lines should be added or dropped?
Global marketers also face the issue of global piracy.
In global marketing, firms have to use a multitude of strategies to handle the negative country-of-origin stereotypes.
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Kotabe & Helsen's Global Marketing Management, Second Edition

6. 1. Global Branding Strategies
Global Brands (see Exhibit 12-1)
A truly global brand is one that has a consistent identity with consumers across the world.
The development costs for products launched under the global brand name can be spread over large volumes.
A global brand has much more visibility than a local brand.
The fact of being global adds to the image of a brand country.
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Kotabe & Helsen's Global Marketing Management, Second Edition

7. 1. Global Branding Strategies (contd.)
Global brands are also able to leverage the country association for the product.
The value of a global brand (brand equity) usually varies a great deal from country to country
Inter-country gaps in brand equity may be due to any following factors:
History
Competitive climate
Marketing support
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Kotabe & Helsen's Global Marketing Management, Second Edition

8. 1. Global Branding Strategies (contd.)
Cultural receptivity to brands
Product category penetration
Local Branding
Global or Local Brands?
Brand Name Changeover Strategies
Private Label Branding (“Store Brands”): Factors explaining success of private labels:
1. Improved quality of private-label products
2. Development of premium private-label
brands
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Kotabe & Helsen's Global Marketing Management, Second Edition

9. 1. Global Branding Strategies (contd.)
3. Shift in balance of power between retailers and manufacturers
4. Expansion into new product categories
5. Internationalization of retail chains
6. Economic downturns
Umbrella (Corporate) Branding
A system where a single banner brand is used worldwide, often with a sub-brand name, for almost the entire product mix of the company.
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10. 1. Global Branding Strategies (contd.)
Umbrella branding facilitates brand-building effort over a range of products.
Umbrella branding makes it easier to add or drop new products.
Protecting Brand Names
Brands are vital assets to brand owners.
In the area of brand protection, the oldest treaty is the Paris Convention for the Protection of Intellectual Property.
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11. 1. Global Branding Strategies (contd.)
The difference in opinion held by industrialized and developing countries on intellectual property (see Exhibit 12-6).
Many elements of the brand franchise may require protection.
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Kotabe & Helsen's Global Marketing Management, Second Edition

12. 2. Managing Multinational Product Lines
The product assortment is usually described on two dimensions: the width and the length.
Drivers affecting the composition of a firm’s international product line:
Customer Preference
Price Spectrum
Competitive Climate
Organizational Structure
History
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Kotabe & Helsen's Global Marketing Management, Second Edition

13. 2. Managing Multinational Product Lines (contd.)
Categories of product lines:
Core products
Niche products
Seasonal products
Filler products
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14. Kotabe & Helsen's Global Marketing Management, Second Edition
3. Product Piracy
Any aspect of the product is vulnerable to piracy, including the brand name, the logo, the design, and the package (see Exhibit 12-10).
Strategic Options Against Product Piracy:
Lobbying Activities
Legal Action
Customs
Product Policy Options
Communication Options
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Kotabe & Helsen's Global Marketing Management, Second Edition

15. 4. Country-of-Origin Stereotypes
Country-of-Origin (COO) Influences on Consumers
For many products, the “made in” label matters a great deal to consumers.
Key research findings of COO effects:
COO effects are not stable
Consumers prefer domestic products over imports
Both the country of design and the country of manufacturing/assembly play a role in consumer attraction.
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Kotabe & Helsen's Global Marketing Management, Second Edition

16. 4. Country of Origin Stereotypes (contd.)
COO particularly influences the elderly, less educated, and politically conservative; consumer expertise also makes a difference.
Consumers are likely to use the origin of a product as a cue when they are unfamiliar with the brand name carried by the product.
COO effects depend on the product category.
Strategies to Cope with COO Stereotypes (see Exhibit 12-11):
Product Policy
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Kotabe & Helsen's Global Marketing Management, Second Edition

17. 4. Country of Origin Stereotypes (contd.)
Pricing
Distribution
Communication
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18. 5. Global Marketing of Services
Challenges in Marketing Services Internationally:
Protectionism
Immediate Face-to-Face Contacts with Service Transactions
Difficulties in Measuring Customer Satisfaction Overseas
Opportunities in the Global Service Industries:
Deregulation of Service Industries
Increasing Demand for Premium Services
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19. 5. Global Marketing of Services (contd.)
Increased Value Consciousness
Global Service Marketing Strategies:
Capitalize on Cultural Forces in the Host Market
Standardize and Customize
Central Role of Information Technologies (IT)
Add Value by Differentiation
Establish Global Service Networks
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20. Copyright © John Wiley & Sons, Inc., 2001
Chapter 12
Kotabe & Helsen's Global Marketing Management, Second Edition