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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
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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.
7.
8.
9.
10.
Computer support
Accounting
Advertising
Consulting
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
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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