International Marketing

POSITIONING IN INTERNATIONAL MARKETING

- is the product used in the same way in different countries? it’s difficult to have

the same position everywhere: PAY ATTENTION TO ADAPT WHERE YOU CAN, but

make sure that your image doesn’t change too much given the change in the

level of adaptation that is needed.

- In international positioning decisions, firms need to examine whether the same

product attributes are valued across different cultures, whether the product or

the brand is perceived in the same manner, and whether the competitive

structure differs.

INTERNATIONAL POSITIONING STRATEGIES:

In international positioning, marketers need to decide whether they will use a uniform

positioning strategy or to what extent they will modify the positioning strategy for different

markets.

- identification of determinants of competitive advantage

- construction of generalizable and effective positioning strategies

- influence of country and entry-mode selection on positioning decisions

so: LOCAL CONSUMER-CULTURE POSITIONING: the strong connection between the

- product, brand, or the company itself and your country of origin and cultural values.

→ “made in Italy”

FOREIGN CONSUMER-CULTURE POSITIONING: strong connection with a foreign

- culture → adaptation of your characteristics of a country you sell your products in

- GLOBAL CONSUMER-CULTURE POSITIONING: you target yourself as global

INTERNATIONAL BRANDING STRATEGIES

INTRODUCTION to Branding:

A brand is NOT JUST PRODUCTS AND SERVICES

, a brand is a name, term, sign, symbol,

or design, values or combination, that more or less describes che company design, intended

to identify the goods

/services of a seller/group of sellers and differentiate one’s goods from

those of competitors (P. Kotler).

It pushes association between brand and values/ ideas

Another definition: a successful brand is an identifiable product

, service (YouTube), person

(Maria de Filippi), place (New York, Amsterdam), augmented in such a way that a buyer or

user perceives relevant, unique added values which match their needs most closely.

Strong connection with the idea of positioning

They make a lot more value nowadays : change the amount of revenue that a company can

make through it compared to the past

Companies use brands to convey their marketing message, strategy and positioning in the

markets.

Some even give birth to sub-brands or brand extensions (FERRERO the main brand→

NUTELLA, ESTATHE // TOYOTA → INFINITY, YARIS: the design changes, but the brand is

still the change), which allow the company to exploit the brand in new areas.

in terms of advocacy:

Brand loyalty: exists when a customer always buys the same brand. It leads to resistance to

switching to another company’s products.

Customer loyalty: exists when a customer always buys one company’s products and

automatically creates barriers to entry for competitors, especially in a foreign market. Brands

want and need to offer easy association to be better than competitors → STRONG BOND IN

BETWEEN YOU AND YOUR CUSTOMERS

BRANDING MEANS DEVELOPING THE REPUTATION OF A BRAND NAME, BY

UNDERSTANDING CUSTOMER SEGMENTS, CREATING A BRAND THAT CAN BE

PERCEIVED TO SATISFY THESE SEGMENTS’ NEEDS OR WANTS AND CONVEYING

THIS THROUGH COMMUNICATION AND ADVERTISING.

the development of branding

- Ancient Greece and Rome - wares were promoted using written information

Middle Age: craftsman, guild (CORPORAZIONE) and city signs were used for

- branding and promotion

PRESENT TIME: brands are listed as assets on balance sheets (BILANCI): a global

- brand gives a firm a uniform worldwide image

a country-specific brand is a brand that is sold in only one country: BIG BRANDS MANY

TIMES BUY THEM to BE CLOSER TO THE HISTORY/COUNTRY OF ORIGIN and create

stronger relationships (CORNETTO IS PART OF UNILEVER)

companies that already have successful country-specific brand names must balance the

benefits of a global brand against the risk of losing the benefits of an established brand.

COUNTRY OF ORIGIN

influence that the country of manufacture has on a consumer’s positive or negative

perception of a product → Factors that influence consumer perception:

- STEREOTYPES about specific countries and product categories (e.g. English tea,

French fashion, Switzerland watches) → it can also be done with negative aspects

(American: junk food)

STEREOTYPES regarding manufacturing country comprising industrialized

- countries, emerging markets or less developed economies: the more technologically

advanced the product, the less positive is the perception of one manufactured in a

less developed country

- ETHNOCENTRISM: buy American!

- FADS (tendencies) surrounding the products (in China anything Western seems to

be the fad)

Favoring FOREIGN-MADE OVER DOMESTIC-MADE products in less developed

- countries

foreign-made products are products made in a different country from the one they are

being sold in

domestic made-products are produced in the same country they are sold

Challengers to manufacturers’ brands, global or country-specific, are brands owned

by retailers (OWN BRANDS: uovo di pasqua coop, esselunga smart line → mostly

rely on the whole big brand, even though it is not always clear who produces these

products: many times produced by common producers (esselunga ice creams are

produced by sammontana) but not always.

these products provide the retailer with higher margins than manufacturers’ brands,

receive preferential shelf-space and strong in-store promotion, and provide quality

products at low prices for consumers. cost containment in advertising (in comparison

with other brands) → big chain have become not only distributors, but they also have

their own line of products

To maintain market share, global brands will have to be priced competitively and

provide real consumer value.

BRAND ELEMENTS

a brand’s strength is based on the dimensions that customers find relevant and that

are different from other offers available in the market. The brand thus gives the

consumer an added advantage and value, regardless of whether this has to do with

taste or status.

LEGAL INSTRUMENTS (mark of ownership: symbol, name, music protected

- by the law and which can’t be used to sponsor any other product outside the

brand)

- LOGO (design)

- COMPANY

RISK REDUCER (confidence that expectation being fulfilled: it enables the

- company to be better recognized; the more nervous we are when we have to

make a purchase decision, the more the brand should reduce it)

IDENTITY SYSTEM (what the brand means and how they wish to appear,

- more than just a name)

- IMAGE SYSTEM (consumer centered: what the brand means for the

consumers)

- VALUE SYSTEM

- PERSONALITY (Psychological values: Harley-Davidson = freedom: traits of

the brand that are human traits)

RELATIONSHIP (between people and the brand, consumer has attitude to

- brand)

ADDING VALUE (Non-functional extras: to the consumers → AESTHETICS,

- QUALITY, EXCLUSIVITY …)

Functions/advantages of brands:

FOR BUYERS: reduce the risk and raise the level of psychological confidence, by

- eliminating negative emotions and social consequences of using wrong brand,

reduce search costs by helping them identify specific products

- FOR SELLERS: facilitate repeat purchases (AMBASSADORS FOR THE BRAND),

introduction of new products

, promotional efforts and premium pricing (make

people buy more) and communication of identical messages to target

customers.

characteristics of brands:

- Attributes

: things that they do, such as the level of safety features, practically: Volvo

cars → safety cars

; Netflix → reliable streaming service

Benefits

: what makes customers interested in the brand: Volvo cars → long-lasting

- and safe car; Netflix → relative cheap price , be entertained, many good options

- Image

: brand in tune with the value of consumers: Netflix → cultural values,

inclusivity

, information and stimuli, connectivity

- Personality

: human traits: Netflix → updated, modern

- Consistency

: the customer is sure of the quality every time they buy the product or

service. sure that they will have the same benefits and so the price worth it

- Differentiation convinces the customer that the offer is different to other offers

:

differentiate from competitors: Netflix → possibility to create families, many VIP

taking part

- Equity

: the added value it provides to the firm and its stakeholders

dimensions of the brand

functional

: strongly connected with the physical performance of the product and

- reflect rational reasons for purchase; can be replicated by competitors (disadvantage,

when it comes to quality and durability)

expressive

: consumer’s self-image and how the brand fits in with that image; that

- helps us offer some aspects of our image → to convey the image we wish the

consumer sees, with this brand the consumer can express some aspects of his/her

personality through the brand

central

: COMBINATION of functional and expressive elements and values, plays

- central role in customers’ purchase decisions, life and mind

brand management

brand equity refers to the incremental utility or value added to a product or service by its

brand name.

It can be estimated by subtracting utility of a product’s physical attributes from total utility of

a brand, and it increases the cash flow to the business.

equity:

- brand loyalty

- brand awareness → Anchor to which other associations can be attached

- perceived quality → Reason-to-buy

- brand associations → Help process information (connections between a product and

its values and personality)

EVERYTHING CONVEYS COMPETITIVE ADVANTAGE

Branding strategy.

- analysis of competing brands: in given market, enables companies to understand

who it has to compete with (market conditions that can stop a company to enter

some international market)

- target customer segment: segment the market: who they are and what is expected

from them → impossible to develop a brand without knowing which characteristics to

incorporate

position the brand: recognize which elements of product/service particular customers

- are looking for → how to communicate the brand, to convey the right image in the

customers’ mind

- contents of the brand: decide how much should be globalized and how much should

be localized. how much standardization over adaptation or vice versa (languages,

billboards, testimonials or actors in the commercials)

- combine elements of the brand: find the right mix, which may differ from market to

market (the big brand conveys some good information and is able to push the

sub-brand or not → it is not necessary to specify that “Cornetto” bra