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Q3 Marketin and Brandin, image, image - Coggle Diagram
Q3 Marketin and Brandin
The Global Marketplace
Globalisation refers to greater permeability and interdependence across national boundaries and is an economic, political and cultural phenomenon (Winchester, 2015) R20 pg139
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Triggers, what makes organisation
expand across national boundaries?
Jobber and Ellis (2013, R20 pg139)
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The Macro Environment
Needs to consider the characteristics of a country into which it is considering operating. broadly the same as STEEPLE but few additions which are....
Trading Systems
Governments or trading blocs may protect domestic companies via charges, tariffs, quotas, controlled currency exchange, regulations on Foreign companies etc (EU/NAFTA do the opposite)
Socio-cultural considerations
Easier to operate in a country (at least initially) that is culturally and socially similar to your domestic market. Understanding of a country’s language, history and religion (Jobber and Ellis-Chadwick, 2013) and social conventions (Dibb et al., 2016) are additional considerations.
Technological considerations
Level of tech development in a country can affect the viability of operating in it, both in terms of efficiency of coordination and potential as a market for tech goods
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Policical/Legal
including tariffs and government intervention/regulation to either encourage or discourage international trade, countries will protect their own interest
The Micro Environment
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For stakeholders see R20 pg 143 Crane and Matten, 2016, Figure 1.5, p. 23
Research should be done but is more difficult in foreign areas due to language, literacy, culture, internet access , reliability (Dibb et al 2016)
International Marketing
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Top Company Strategies
Red Bull - host extreme sports events & keep packaging consistent across markets to be recognised as a global brand
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Dominos - invite foreign chefs and they cook food in their regional style with local ingredients, use this to make local varieties
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The branding is often global for consistency across international markets (examples include the packaging of Red Bull and ‘chatty branding’ of Innocent Drinks), but the product offerings tend to be customised to adapt them for local tastes or contexts in individual markets (examples include the customised menu options of Dunkin Donuts, Domino’s and McDonald’s, the customised currency and language tool of the Rezdy reservation software and Nike’s product customisation platform).
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However, a mindset of ‘think globally, act locally’ has replaced this as organisations have come to recognise that they need to adapt their offerings and communications to local preferences and conditions (harris OU reading 21 pg 149)
organisations need to decide how much they can standardise their approach and how much adaption is needed when entering foreign markets
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Introduction to Brandin
Brand Identity - what it stands for, decided by who makes it
Kapferer (2012, pp. 158–162) (Reading 22 pg 154)
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Brand reputation
external evaluation of a brand based on past actions and results that represent their ability to perform
built on its interactions with and evaluations by multiple
stakeholders, not just consumers
Brand equity
the monetary value of the psychological goodwill which the brand has created over time’ (Kapferer, 1997, p. 24)
Brand content
Brand content engages consumers to relate to the brand, because it does not talk about its products, but about a domain of mutual interest between the brand and its public. (Kapferer, 2012, p. 142)
The role of a brand
for organisations
Brands are recognised as a key intangible asset for an organisation, encapsulating its offering’s core idea, positioning and values and connecting with customers to develop a relationship with them and encourage their enduring loyalty. Brands play a number of roles for organisations. They can:
. guarantee future income (Doyle, 1989) through brand equity
. enable premium pricing to be charged (Kapferer, 2012)
. deter market entry from potential competitors (Kapferer, 2012)
. facilitate their own entry into new markets (Kapferer, 1997)
. increase bargaining power with distributors (Aaker, 1991)
. command royalties through licensing (Kapferer, 2012)
. act as a communication device to consumers (Goodyear, 1996) through a
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(Berthon et al., 1999), because familiar brands tend to be preferred
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. encourage consumer loyalty (Kapferer, 2012)
for consumers
It is not just organisations that benefit from brands. Brands also play avariety of roles for consumers; they can:
offerings (Kapferer, 1997)
. act as cues to information about products (Aaker, 1991)
. facilitate consumers’ decision-making (Kapferer, 1997)
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. reduce perceived risk of a purchase (Berthon et al., 1999) (such as
financial, performance and social risks)
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contribute to consumer satisfaction (Aaker, 1991)
. stimulate emotional rewards such as nostalgia, a sense of identity and
fulfilment of personal values (Goodyear, 1996; Kapferer, 1997;
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Brand Naming
brand conjures up throughts of more than category and basic features, consumers make inferences based on brand names (peterson and ross 1972 R22 pg159)
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Packaging and labelling - Packaging and labelling also contribute to the communication and perceptions of brands. The imagery and information on the packaging and label can feed into consumers’ purchase decision-making about whether the product appears appealing and is likely to meet their needs
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International Marketing
While operating in a global marketplace offers opportunities, there are also risks involved. These include possible economic and government instability; different legislative restrictions; trade barriers; and diverse cultural preferences and practices.
R20 pg 149
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key ethical issues
Theory
Crane and Matten (2016 pg 176) identified three key ethical issues of globalisation in relation to consumers, to which may be addedafourth:
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