Chapter 11 Global Services, Brands, and Social Marketing

Copyright © Houghton Mifflin Company. All rights reserved.Chapter 11 | Slide 2 Transferring Service Models Abroad Guaranteeing quality worldwide = hard Greater adaptation for services marketed to consumers Back-stage elements (planning and implementation) are EASIER to standardize than front-stage elements (aspects of service encounters)

Copyright © Houghton Mifflin Company. All rights reserved.Chapter 11 | Slide 3 Culture and Service Experience Customer expectations –Service levels (Japan vs. US) –Equal customer treatment? Waiting experience –Time (European vs. American restaurants) –Waiting in line (French vs. British) –Other social norms Service personnel –Gender –Social class (service = servants)

Copyright © Houghton Mifflin Company. All rights reserved.Chapter 11 | Slide 4 Branding Decisions Globally recognized brand name = asset –Gives product credibility –Enables consumers to identify the product –Helps consumers make choices faster and more easily –Lends an air of sophistication

Copyright © Houghton Mifflin Company. All rights reserved.Chapter 11 | Slide 5 Brand Name Decisions Mr. Clean, Monsieur Propre, Meister Proper Coca-Cola Kodak IBM SINGLE-COUNTRYGLOBAL versus

Copyright © Houghton Mifflin Company. All rights reserved.Chapter 11 | Slide 6 Brand Name Strategies Arbitrary or invented word (Lexus) Recognizable English (or foreign language) word but unrelated to product (Cheer) Recognizable English (or foreign language) but suggestive of product (Mr. Clean)

Copyright © Houghton Mifflin Company. All rights reserved.Chapter 11 | Slide 7 Brand Name Decisions (cont’d) English (or foreign language) word describes product but may not be understandable to outsiders (Pampers) Geographic place (Kentucky Fried Chicken) Device, design, number or some other “technical” element (3M)

Copyright © Houghton Mifflin Company. All rights reserved.Chapter 11 | Slide 8 Caterpillar Learns to Speak with “One Voice” “Everyone wanted to do his or her thing. We had newly decentralized divisions creating product names by the hundreds, logo contests proliferating among employee groups, even people adding elements to the corporate logo. It was totally out of control.” – Bonnie Riggs, Manager of Corporate Identity and Communication for Caterpillar

Copyright © Houghton Mifflin Company. All rights reserved.Chapter 11 | Slide 9 Global Brands Study (Holt, Quelch & Taylor) – 4 Segments 1.Global citizens (55%) –global brands as quality and social responsibility signals –Brazil, China, Indonesia 2.Global dreamers (23%) –global brands as quality signal and “good life” symbol (but no SR component) 3.Antiglobals (13%) – skeptical of global brands, buy local instead – Britain, China 4.Global agnostics (8%) –Indifferent towards global brand –May buy global, may buy local –U.S. and South Africa

Copyright © Houghton Mifflin Company. All rights reserved.Chapter 11 | Slide 10 Pan-Regional Branding There are few truly global brands, but pan-regional brands are increasing –Shangri-La Hotel Chain in Asia –Varig Airlines in Latin America –Electrolux –Danone Eurobrands

Copyright © Houghton Mifflin Company. All rights reserved.Chapter 11 | Slide 11 Global Brand Threats Brand name preemptions Local individual or business registers a famous international trademark in their country before the real owner of the brand does Brand imitations Employing packaging and/or marking that closely resembles those of brand Counterfeit production Illegal use of registered trademark Piracy Counterfeit production of copyrighted material ENCOURAGED BY WEAK LEGAL INFRASTRUCTURE Failure to… Sign international treaties Enforce protection law Process or treat foreign applications same as domestic applications

Copyright © Houghton Mifflin Company. All rights reserved.Chapter 11 | Slide 12 Fighting Counterfeits Do nothing Sue Co-op the offenders Educate governments Advertise Participate directly in investment and surveillance

Copyright © Houghton Mifflin Company. All rights reserved.Chapter 11 | Slide 13 Fighting Counterfeits (cont’d) Continue changing aspects of product; high-tech labeling and packaging Push for better legislation Employ coalitions Reconsider more aggressive pricing Exit or avoid market

Copyright © Houghton Mifflin Company. All rights reserved.Chapter 11 | Slide 14 Microsoft Combats Piracy Edge-to-edge holograms on its CD ROMs Monitors the Internet to uncover sites for illegal downloading Deep discounts to encourage trial of authentic product (Bulgaria) Free software and training program in top universities in exchange for government enforcement of anti- piracy laws (Pakistan) Technical training and consulting for government in exchange for government promotion of authentic use of software (China) Toll-free number and rewards for evidence of piracy (Malaysia)

Copyright © Houghton Mifflin Company. All rights reserved.Chapter 11 | Slide 15 Microsoft 2003 in Taiwan Taiwan cracks down on piracy Taiwanese political parties and consumer organizations accuse Microsoft of price- gouging –Fair Trade Commission agrees and threatens to sue Microsoft offers to cut retail prices up to 54.5% to escape competition lawsuit and possible sanctions Taiwan agrees to crackdown on piracy