Riassunto esame Brand management, Prof. Magno Francesca, libro consigliato Strategic Brand Management - Building, Measuring and Managing Brand Equity, Keller, Kevin Lane

Factors Affecting Consumer Behavior and Decision Making Across Countries

Price sensitivity, promotion responsiveness, sponsorship support, and other activities may differ by country, and these can motivate differences in consumer behavior and decision making.

Differences in brand and product development and the competitive environment can also contribute to variations in consumer behavior. Products may be at different stages in their lifecycle in different countries, and the perceptions and positions of brands may vary across countries. The nature of competition may also differ.

The legal environment varies from country to country, with different laws and regulations that are constantly changing.

Marketing institutions, such as distribution channels, retail practices, media availability, and costs, may vary across countries. This variation makes it difficult to implement the same marketing program everywhere.

In addition, differences in administrative procedures can pose challenges in implementing standardized programs. Local managers may resist having their autonomy challenged, leading to a "not invented here" syndrome.

Global brand strategy

In building brand equity, often different marketing programs must be created to satisfy different market segments. Therefore:

• Differences in consumer behavior must be identified in each market (how consumers purchase and use products and what they know and feel about brands);
• The branding program must be adjusted accordingly through the choice of brand elements, the nature of the marketing program and activities, and the leveraging of secondary associations.

Leveraging secondary brand associations to build global brand equity is most likely to require change across countries because the entities linked to a brand may take on very different meanings in different countries. It can be difficult to understand how consumers form their impressions of country of origin and update their brand knowledge. The design, manufacturing, assembly, distribution and

different though. History may for example be rich in the domestic market, but mean nothing in the new market.

Eliciting brand responses: consumers in new markets must find the brand to be of good quality, credible, worthy of consideration, and superior. It is a challenge to create the proper balance and type of emotional responses and brand feelings. Because of cultural differences across markets, it may be difficult to blend inner (enduring/private) and outer (immediate experiential) emotions.

Cultivating resonance: consumers must be provided with sufficient possibilities to buy and use the product and to communicate with other consumers about it. They must be actively involved, which can be done with interactive, online marketing, although this should be complemented with more traditional marketing efforts.

Global brand positioning

In developing a global positioning, three sets of questions should be answered:

1. How valid is the mental map in the new market? How appropriate is the positioning?

What is the current level of awareness? How valuable are the core brand associations, POPs and PODs?

What changes should be made to the positioning? Do extra associations need to be created? Should any existing associations not be recreated or be modified?

How should we create the new mental map? Can the same marketing activities be used? What changes should be made and what new activities are necessary?

First awareness and POPs must be established, then additional competitive considerations can be considered. The hierarchy of brand associations must be defined in a global context, while attuning them to different contexts and markets.

There are two fundamental contrasts in global branding: standardization versus customization, and developing versus developed markets.

Standardization versus customization

This is the most fundamental issue in global marketing because it has a deep impact on marketing structure and processes. Levitt argues that companies need to learn to operate as if the

In today's globalized world, it is no longer feasible for companies to treat the market as one large entity, ignoring regional differences. Instead, firms have been forced to tailor their products and marketing programs to different markets.

Marketers are now blending global objectives with regional and national concerns. Centralized marketing strategies that preserve local traditions can be beneficial for products sold in multiple countries. Firms have improved their capabilities to customize products and programs to local conditions, thanks to more flexible manufacturing technology and advances in information systems, which have increased coordination.

There are four major elements of a marketing program that need to be reviewed in terms of adaptation issues:

Product strategy: Many companies overlook cultural differences and simply launch products without considering the specific market. As a result, they only become aware of consumer differences after the launch. To avoid this, marketers need to conduct market research.

Despite the trend towards standardization, customization is still crucial in today's global market. By understanding and adapting to local preferences and cultural nuances, companies can better meet the needs of their target customers.

brand value are, their willingness to pay, and the price elasticity in each country. Because of differences, prices can vary across countries. However, to avoid illegal imports and exports, prices should be aligned internationally. Price corridor = the HQ and country subsidiaries calculating the corridor within which the prices must be set within a country. Countries with lower prices have to raise them, countries with higher prices have to lower them.

Another strategy is introducing different brands in high-income/price countries than in low-income/price countries. Developing versus developed markets BRICS = Brazil, Russia, India, China, and South Africa; some of the most important developing markets because they do not yet have the infrastructure, competitive frame of reference, etc. that characterize developed countries. However, because there are many differences between developing countries as well, distinct marketing programs are needed for each country. Heinz's Three As model for

• Applicability: the product must suit the local culture;
• Availability: the product must be sold in channels that are relevant to the local customer;
• Affordability: the product needs to be priced within the local market's range.

1. Understand similarities and differences in the global branding landscape
2. Don't take shortcuts in brand building

must be concentrated on building awareness, then on building an image. It must be determined how to best create sources of brand equity. The basic tactics from chapter B and C still apply. The current marketing program shouldn't just be exported because it works in the domestic market. Each consumer must be understood, it should be recognized what he or she knows and can value about the brand, and marketing programs must be tailored to his/her wants and needs.

3. Establish marketing infrastructure

A CSF for many global brands is their manufacturing, distribution, and logistical advantages. The appropriate marketing infrastructure must be created, if necessary from scratch, and adapted to fit with the existing infrastructure in other countries. Often, companies need to invest in foreign partners and adapt production and distribution operations to those of the foreign market.

4. Embrace integrated marketing communications

Foreign countries do not always have the same marketing possibilities

as the domestic country. Therefore, other forms of communications may have to be embraced.

Cultivate brand partnerships

Most global brands cooperate with a local distributor, joint venture partner, franchisee, ad agency or other entity to gain, for example, access to distribution. Three alternative ways to enter a new global market:

1. By exporting existing brands of the firm into the new market (introducing a geographic extension);
2. By acquiring existing brands already sold in the new market but not owned by the firm;
3. By creating some form of brand alliance with another firm (JV, partnership, licensing).

Key criteria by which to judge the options above are speed, control, and investment. Geographic extensions are very slow, brand acquisitions very costly and difficult to control, while brand alliances are less costly but even harder to control. The choice of strategy depends on the company's resources and objectives. However, in some countries, companies are legally obliged to

Local and global elements need to be blended in the right way in their marketing programs. Factors such as cultural differences, language preferences, and consumer behaviors should be taken into account to ensure effective communication and engagement with the target audience.