11 Global Strategies for Services, Brands, and Social Marketing

Learning Objectives Describe ways in which marketing services internationally differs from the international marketing of physical products. Explain how culture can affect key aspects of services marketing. Compare the advantages and disadvantages of using global brand names and using single-country brand names. Differentiate between a global brand name and a global brand strategy. Identify the strengths and weaknesses of global brands versus local brands. Define private branding and explain why it is used by some international firms. Differentiate among trademark preemption, counterfeiting, and product piracy, and suggest ways in which firms can seek to minimize each of these. Explain how social marketing is similar to—and different from— the international marketing of products and services.

Chapter Overview Marketing services globally Branding decisions Trademarks and brand protection Social marketing in the global context

Services to Organizations 1.Communication services 2.Financial services 3.Software development 4.Database management 5.Construction 6.Computer support 7.Accounting 8.Advertising 9.Consulting 10.Legal

Differences Between Services and Products Services are: –Intangible – They cannot be stored or readily displayed or communicated –Simultaneous - Production and consumption happen at same time –Heterogeneous - Production lines do not exist to deliver standardized products of consistent quality –Perishable - Cannot be stored

Transferring Service Models Abroad Guaranteeing quality worldwide = hard Fewer opportunities for economies of scale Back-stage elements (planning and implementation) are EASIER to standardize than front-stage elements (aspects of service encounters)

Branding Decisions Globally recognized brand name = asset –Gives product credibility –Enables consumers to identify the product –Helps consumers make choices faster and more easily

Developing a Global Brand Strategy 1.Identify common customer needs and determine how brand can deliver FUNCTIONAL and EMOTIONAL benefits. Establish process to communicate brand’s identity to consumers, channels, and firm’s own employees. Establish tracking system to chronicle global brand identity. Determine whether company will employ a top-down or bottom-up global brand strategy approach.

Developing a Global Brand Strategy Importance of Brand Champions Charged with building and managing a global brand Monitors the brand across markets Authorizes the use of the brand on other products and businesses (brand extensions) Typically senior manager at HQ, a product development group, manager of lead country, or manager of country with major market share for brand

Global Citizens Consumers who rely on global brands to indicate products of quality and innovation Concerned that transnational firms respect workers rights and the environment Segment is 55% of consumers Fewer global citizens in the U.K. and U.S. More global citizens in Brazil, China, Indonesia

Global Dreamers Consumers who think global brands represent quality Consumers attracted to lifestyle that global brands portray Less concerned with social issues Global dreamers segment is 23% of consumers Young people in Russia, the Ukraine, and U.S. viewed themselves as part of global world and preferred global products

Antiglobals Skeptical of the quality of global brands Also do not trust transnational firms Prefer to buy local and avoid global products The segment represents 13% of consumers This segment is common in Britain and China but less common in Egypt and South Africa

Global Agnostics Judges global and local brands by the same criteria Neither impressed or alienated by global brands Global agnostics represent 8% of the consumers This segment is larger in U. S. and South Africa, but less common in Japan, Indonesia, China and Turkey

Private Branding Private branding – Supplying products to another party for sale under the latter’s brand name

Trademarks and Brand Protection Counterfeits and piracy Fighting counterfeits

Social Marketing Adaptation of marketing practices designed to influence the voluntary behavior of target groups in order to improve their personal welfare and that of the society to which they belong Influence of NGOs

Differences Between Social and Commercial Marketing Social marketers not concerned with profitability Social marketers’ funding comes from sources other than target markets Lateral partnerships among social marketers are common Social marketers consider how governments view their products