Marketing Paradoxes

1
Marketing Paradoxes

• Meeting 11

2
Marketing Elements

• Product - what are you selling
• Place - where are you selling it
• Price - how much will you charge
• Promotion - how will you use advertising, PR,
  sales and sponsorships
• People - to whom are you selling

3
Product

• Combination of features, benefits and end
  benefits
• Utilitarian or service orientation
• Hi or low involvement decisions
• Name and brand elements

4
Place

• Mass, selective, exclusive distribution
• Wholesale clubs, outlet malls
• Direct marketing - Internet, catalog
• Direct sales - person to person
• Pyramid marketing

5
Price

• Competitive
• Discount
• Low-price matching
• Premium
• Flexible (auctions)

6
Promotion

• Media advertising
• Place-based advertising
• Product placement
• Public relations, media exposure
• Sponsorships
• Sales promotions (retail and consumer)
• Event promotion (trade shows)
• Direct sales (employee training)

7
People

• Relationship building
• Consumer behavior
• Account planning
• Incentive rewards for employees
• Qualitative research

8
Paradoxes

• Values reflect where people grew up no global
  values
• Markets must think global (products) , act local
  (people)
• Technology void
• Media control
• Brand culture reflects country of origin
• Research is culture-bound

9
Global Branding Strategies

• By Brand Type
• Single product brand (Club Med)
• Line brands (Bud light, dark)
• Umbrella / corporate brands (GM, Nestle)

10
Branding Strategies

1. Cultivate established local brands - national to
   international brand
2. Global platform, local adaptations (Coke)
3. Create new brands (Nintendo Gameboy)
4. Purchase local brands (Kraft)
5. Develop line extensions (Pepsi Max)
6. Multi-local mono to endorsement or concentration
   on core brands

11
Standardization

• Same products at same prices via same
  distribution channels and promotions
• Influencing factors
• Product category (hi-tech, hi-touch)
• Positioning - same life cycle in different
  markets
• International media (few)
• Advertising concept and execution

12
Localization

• Considerations of language, tradition, habit,
  perception, nationalism, media, technology
• Advertising adapted to culture and lifestyle
• Utilization of local talent and production
• Reflects social values, feelings, emotions
• Connects product with role in consumers life