chapter 11 global services, brands, and social marketing
TRANSCRIPT
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-ColaKodak
IBM
SINGLE-COUNTRY GLOBAL
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 preemptionsLocal individual or business registers
a famous international trademark in their country before the real owner of the brand does
• Brand imitationsEmploying packaging and/or marking
that closely resembles those of brand
• Counterfeit productionIllegal use of registered trademark
• PiracyCounterfeit 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