Chapter 1 Learning Objec ves
2.5 The Accoun ng Cycle
Disadvantages - - - -
- - - -
Gains strong patronage in local market Local identification
Avoidance of taxation on international brand Allowing variations of quantity and quality across markets
Higher marketing cost Higher inventory cost Loss of economies of scale Diffuse image.
8. Worldwide Brand Advantages
- - - - - - - Disadvantages
-
Maximum marketing efficiency Prediction of advertising costs Elimination of brand confusion Acceptable to people across cultures Appeals to upper class people across countries
Easy identification/recognition for international travellers
Uniform worldwide image.
Assuming market homogeneity
- - - -
Problems with black and gray markets Possibility of negative connotation
Requiring quality and quantity consistency Legal complications.
SELF ASSESSMENT EXERCISE 3
What are the pros and cons of using a local brand while marketing internationally?
3.4.1 Selection of Brand Name
A brand name when selected should be able to meet some of these criteria. A good brand name should:
- - - - - - - - - - - -
be short be unique be memorable connote quality be pleasant to hearing be descriptive of the product be distinctive
be pronounceable be acceptable be legal
be suggestive of the product it represents be easy to remember.
Many products fail this test in an international market.
Brands that have succeeded worldwide include:
- - - - - -
Coke Pepsi Honda Rolls Royce Toyota Sony.
3.4.2 Types of Branding
The following are the classification of brands.
i.
ii.
Individual brand names.
Procter & Gamble gives a different name for different products.
Blanket family name for all products.
iii. Separate family names for all products. This is mostly practised by departmental stores.
iv. Company name and individual product name.
3.4.3 Steps in Branding
The following steps are used.i.
ii.
Information gathering using one or more in-depth telephone interviews with key members of the organisation
Old fashion brain storming iii. Individual name development iv. Feedback and evaluation
v. Limited trademark search and profanity check vi. Report preparation.
Avoiding eight great blunders in branding i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
People respond most positively to names. Try to avoid abstract names.
Avoid names devoid of imagination and emotional appeal.
Avoid names made up of alphabets like AZY, ZYB,GYT, etc.
Avoid vulgar and abusive names.
Avoid names that are already well known in the market.You should be original in your own brand name.
Avoid allowing other professionals to give your product a name that has no marketing value.
Avoid meaningless names.
Avoid ugly names.
3.5 Brand Piracy
Piracy is copying of other people�s work. There are four ways competing companies can pirate some brands.
i. Outright piracy
Products look the same in form and trademark as the original.
ii. Reverse engineering
Stripping down the original product and then copying it, underselling the original manufacturer.
iii. Counterfeiting
Altering the products quality without altering the trademark.
iv. Passing off
Modifying both the product and trademark, adapting a trademark that is similar in appearance, aesthetic quality or meaning to the original product.
v. Wholesale infringement
This involves the questionable registration of famous brand name overseas rather than the introduction of faked products.
3.6 Packaging
Packaging in some cases is not seen as a promotional tool, but simply a barrier, a way to protect products from other forces of competition.
Packaging size changes with personal disposable income, but also with available channel of distribution.
Packaging design is affected by:
- -
type of distribution channel climate
Packaging from whichever angle you look at it is to:
i.
ii.
protect the product use it for promotion.
3.7 Five Corporate Strategies to Handle Counterfeiting
Paliwoda (1993) identified five strategies to handle counterfeiting.(i) Compete and attempt to overcome the opposition.
(ii) Avoid conflict and withdraw from the fray.
(iii) Accommodate the opposition, where the objective is appeasement.
(iv) Collaborate.
(v) Compromise.
4.0 CONCLUSION
To go international with a product, you need to package it, brand it in such a way that it will get to consumers safe and sound. These could be used as promotional strategy.
Product must conform to international standard by way of
standardisation and modification. Brand name must be carefully chosen to suit the occasion; it should be local or international.
5.0 SUMMARY
In this unit you have learnt the following.
Product policy decision, product modification and standardisations in an international business.
Branding, various methods of branding and criteria for selecting a good brand name for an international business.
Packaging and its factors in an international business.
6.0 TUTOR-MARKED ASSIGNMENT
As an international businessman, discuss five ways of branding.
7.0 REFERENCES/FURTHER READING
Paliwoda, S. (1993). International Marketing, (4th ed.).Kotler, P. (1984). Marketing Management; Analysis Planning and Control, (4th ed.). NJ: Princeton Hall.