Chapter 11 Global Services, Brands, and Social Marketing

Chapter 11

Global Services, Brands, and

Social Marketing

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)


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)


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


Brand Name Decisions

Mr. Clean, Monsieur Propre, Meister Proper

Coca-ColaKodak

IBM

SINGLE-COUNTRY GLOBAL

versus


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)


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)


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


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


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


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


Fighting Counterfeits

• Do nothing• Sue• Co-op the offenders• Educate governments• Advertise• Participate directly in investment and

surveillance


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


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)


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

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Chapter 11 Global Services, Brands, and Social Marketing