International Marketing Mix: Building Brands with Roles, Analysis, Channels, and Equity, Study notes of Marketing

Download International Marketing Mix: Building Brands with Roles, Analysis, Channels, and Equity and more Study notes Marketing in PDF only on Docsity! Gain Aves PART FOUR465 Managing Marketing 1P A R T F O U R This Part Contains: 11 Building brands using the international marketing mix 12 Marketing planning WHAT THIS PART IS ABOUT The final section of this book draws together all the previous areas and shows what marketers actually do with the resources at their disposal. Branding is a major weapon in a marketer’s armoury and so Chapter 11 looks back at previous chapters on the marketing mix and shows how the marketing mix elements combine to build brands. Chapter 12 explains the marketing planning process and how it is used to manage marketing activities and to achieve marketing goals. Modern organisations are highly reliant upon marketing and successful marketing is depend- ent upon the skills of marketers. There is a wide range of different roles within marketing: research and analysis, logistics planning and management, account handling, brand management, new prod- uct development, price setting – it would take too much space to list them all here. However, we do want you to share our enthusiasm for marketing and to find your ideal marketing role. So we have put an extra, bonus, section on this book’s companion website that explains what marketers do in more detail and how your career might develop. Go to www.sagepub.co.uk/masterson3e We wish you good luck in your future marketing career! 468 PART FOUR INTRODUCTION The marketing mix is at the core of any marketing plan. The most commonly used schematic for the marketing mix is the 4Ps and this has the advantage of being both widely recognised and easy to remember. The marketing mix is a set of tools and should be treated as such. No one element can stand alone; they must all support each other. If they conflict, target markets will be confused, objectives will not be met and the brand’s image will be diluted. Marketing managers blend their marketing mixes to make an integrated plan that will achieve their marketing objectives. This chapter is a round-up of the marketing mix, summarising the techniques, demonstrating how they fit together and showing how they can be integrated to build brands. The idea of branding as an integral part of a modern product was introduced in Chapter 6. It will be considered here as a strategy that employs all elements of the marketing mix. MARKETING MIX OBJECTIVES Before any decisions are taken on what to do with the marketing mix, it is impor- tant to know what you are trying to achieve. If you just get into your car and drive, without first deciding where you want to go, then you will just drive around aim- lessly. To reach a destination, you have to know where you want to be and plan a route to get there. The marketing mix is the organisation’s route to its marketing objectives (see Exhibit 11.1). marketing mix (see 4Ps, 7Ps) the basics of marketing plan implementation, usually product, promotion, place, price, sometimes with the addition of packaging; the services marketing mix also includes people, physical evidence and process 4Ps a mnemonic (memory aid) for the marketing mix: product, promotion, place, price Exhibit 11.1 Planning to meet objectives where are we now? (the situation) where are we going? (the objectives) how will we get there? (strategy and planning) what exact route shall we take? (marketing programmes) how will we know when we get there? (monitoring and control) BUILDING BRANDS USING THE INTERNATIONAL MARKETING MIX 469 An organisation’s objectives work in a hierarchy. At the top level are the cor- porate objectives. All other objectives, including marketing, should be designed to contribute to those overall, corporate objectives. The objectives illustrated in Exhibit 11.2 are insufficiently detailed for the real world – more precision and explanation is required The meeting of customer needs is at the heart of good marketing. Marketers have to get inside their customers’ heads and see the offering through their eyes. If the offering is noticeably better than that of the competition, then competitive advantage will be created. For example, it may be better quality, or cheaper, have a better image or be more readily available. The marketing mix will be more effec- tive if it is well integrated, i.e. each element fits with the others so that there are no contradictory signals (see ‘Mixing it’ below). Resources are always a constraint on marketing activities. There is no point in designing a mix that the company does not have the resources (finance, expertise, time or a suitable infrastructure) to implement. THE MARKETING MIX: A REPRISE FIRST THERE WERE 4PS: THE TRADITIONAL MARKETING MIX Each of the 4Ps is covered in more depth in its own chapter (Chapters 6–10). This chapter focuses on integrating the elements of the marketing mix to build brands and also introduces some of the additional complexities associated with interna- tional marketing and the marketing of service products. Exhibit 11.3 summarises the 4Ps and shows how they can fit together. Exhibit 11.2 Hierarchy of objectives corporate e.g. to grow the company marketing e.g. to increase market share product e.g. to launch two new products place e.g. to recruit 10 new stockists promotion e.g. to inform target audiences of new products price e.g. to be cheaper than competitors Pintrest: The Marketing Mix 470 PART FOUR PRODUCT It may seem obvious just what a product is (a pen, a car, a ring, a bar of chocolate, etc.), but there is rather more to it than that. Products of the same type, e.g. cars, and even produced by the same manu- facturer, e.g. Ford, are differentiated by features, quality, size, speed, shape and colour. They have different features (engine size, braking system, colour, interior trim, etc.) and come in different sizes for different drivers (small car, small family car, family car, executive, limousine, van, minibus, people carrier, etc.). All these things are characteristics (or attributes) of a particular car and so a product could be said to be a bundle of characteristics. It is the quality of these features, cou- pled with the workmanship that goes into the product, that determines its quality. Quality is something that most customers look for in a product, even though they cannot always afford to buy the best. This is an example of how the marketing mix integrates. The best components, such as those that go into a Rolls-Royce (e.g. walnut veneer dashboards), cost more than others (e.g. plastic dashboards). This means that a higher price will have to be set for the products that have the higher-quality components. Some customers will be willing and able to pay that price (so long as the quality really is better), some will not. Those who do buy a Rolls-Royce will be buying not just a car but an exclusive image. They will therefore expect impeccable service, both before and after the sale. Companies provide a range of products, of differing quality, with different features, different images and different levels of support, to match the prices that different customers are prepared to pay for that product type. So a product is a bundle of characteristics but, of course, that is not what cus- tomers really want to buy. What the customer really wants is the benefit that the product brings. People do not just buy cars, they buy means of transport or status symbols. They do not really buy rings because they want small bands of metal, they want tokens of affection, gifts, decorated fingers, symbols of their engage- ment. Marketers must concentrate on the benefits their products bring to their purchasers – the product features and quality are really just the means by which those benefits are delivered. Exhibit 11.3 The 4Ps: key variables Product Price Place Promotion Features (characteristics, attributes) Price range Intermediaries (retailers, wholesalers, etc.) Advertising Range Discounts Coverage Personal selling Support services Allowances Order processing Public relations Brand Negotiation policy Stock control Sales promotion Design Credit policy Delivery Direct marketing Packaging Price changes Transport Sponsorship BUILDING BRANDS USING THE INTERNATIONAL MARKETING MIX 473 International product decisions Most consumer products are adapted in some way to suit the needs of different countries although there is some convergence of global tastes and preferences, largely due to improved communications and the efforts of multinational and global companies. This allows manufacturers to standardise products in certain categories. For example, Gillette’s Mach 3 was developed as a world product. It is a standard shaving system designed to meet the needs of men who want a quicker, closer shave – whatever their nationality. ACTIVITY This exercise is perhaps best done in class, or at least with a group. List as many products as you can that are absolutely standard in all their features and characteristics, the world over. Then compare lists and see if you agree with the products that others have listed. There are some products that look the same and are assumed to be the same, but even Coca-Cola is not the same in all countries, e.g. it has more sugar in India than it does in Europe. There are many more standardised products in b2b and industrial markets. Raw ingredients such as vegetables, commodities such as salt, metals, minerals and gemstones are all more likely to be standard, as are many office and computer supplies. Analysis tools such as the product life cycle and the Boston Consulting Group Portfolio Matrix (BCG matrix) are used in international marketing as well as in domestic marketing. Products may be at different stages in their life cycles in different countries, although these differences are reducing as the forces of globalisation gather force. Exporting has long been seen as a means of extending a product’s life cycle but, with the convergence of life cycles internationally, the general shortening of product lives and the trend for global brands to launch new products simultaneously in multi- ple countries, this is becoming less common. In terms of the BCG matrix, at the simplest level the ‘market’ referred to on the axes can be taken as the country in question, although it should be remembered that few countries are really just one big uniform market segment. (See Chapter 6 for more on the product life cycle and the BCG matrix.) PROMOTION (MARKETING COMMUNICATIONS) Consumers have a wide choice of products on which to spend their money. Sell- ers try to influence that choice through the use of promotion. This is the part of the marketing mix that is primarily concerned with communication, which is why it is now more commonly known as marketing communications. Marketing com- munications is thought to be a better term as it is a more accurate description and because there was always the possibility of confusion between promotion and sales promotion. Marketing communications and promotion are interchangeable terms and this book uses both. product life cycle a product analysis tool based on the idea that a product has life stages: introduction, growth, maturity, decline, deletion Boston Consulting Group Portfolio Matrix (BCG matrix) a product portfolio analysis tool involving classifying products or SBUs (strategic business units) according to their relative market share and market growth rate – as stars, cash cows, problem children or dogs 474 PART FOUR global focus: Cars for the people A car is often the single most valuable item that a person owns. Great thought and effort goes into the selection and purchase of a car: it is not just transport, it is a statement, a status symbol, an outward representation of its owner’s inner self. In the developed world, the make and style of a car says a lot about its driver, especially about their wealth. Then again, in some other parts of the world, just owning a car, any car, speaks of affluence. Imagine the joy of buying your first, brand new car in a society where fewer than eight people in a thousand own one. This is the dream that the Tata motor company hoped to make come true for thousands of Indians when it proudly launched the world’s cheapest car. With a price of just 100,000 rupees (which was less than £1450/€1600), the Nano was less than half the price of the next cheapest car already available in India and only slightly more expensive than an upmarket motor bike. It was aimed at those who wanted quick and convenient transport but could not afford any of the cars then on the market. The idea for this radical new product came from observing whole families piled on to one motorbike (quite a common sight on Indian roads), father driving with a child standing between his knees while mother sits behind with the smallest child on her lap. Tata’s designers felt that the practice demonstrated a clear customer need for safer, more comfortable transport. The Nano was promoted as the latest in a distinguished tradition of people’s cars that started with the Model T Ford and included the Volkswagen Beetle and the Mini. The Nano had no radio, no boot, no airbag, no passenger side mirror and only one windscreen wiper. It was light and simple, held five adults ( just), had more plastic than steel and was held together by hi-tech glue. Questions were raised about its ability to pass the stringent safety tests required by markets such as the European Union (EU) but Tata claimed that the design allowed for further strengthening with metal plates should they decide to sell it in such markets – at a cost of course. Analysts were predicting that India would soon be the fastest-growing car market in the world but still not everyone wanted to celebrate the launch of this new wonder car. Environmental campaigners were concerned about the pollutant effect of so many extra cars on the road. They made the point that if just 10% of Indian motorcyclists bought Nanos instead, there would be an extra 1 million cars in the country. Many major Indian cities already suffered from smog and the traffic in Delhi crawled along at an average of nine miles an hour. Delhi’s Centre for Science and Environment argued that people needed better public transport rather than more affordable private cars. The Indian motoring lobby remained positive in the face of the criticism and pointed out that Indians owned very few cars compared to Western consumers who had been able to afford cars for many years. Would the highly affordable Nano be able to do for the Indian car market what Ford’s Model T did for the USA? Tata Nano BUILDING BRANDS USING THE INTERNATIONAL MARKETING MIX 475 The promotional mix traditionally comprises: •• advertising •• public relations (PR) •• sales promotion •• personal selling. Direct marketing communication and sponsorship can be added to these. Advertising uses paid media (advertisers buy space or air time in which to show their adverts), e.g. television, radio, cinema, Internet, leaflets. Media relations is a large part of public relations (PR) and this uses earned media, mainly through media releases, the placing or seeding of stories, press conferences or briefings, and publicity stunts. Although PR does not use paid-for space or air time, it would be a mistake to describe PR as free. PR agencies do not work for free and there are printing and other costs to account for as well. Organisations use a range of PR activities, including exhibitions, hospitality, sponsorship and product placement. All of these are designed to build relationships with audiences and promote understanding of the organisation and its activities. Short-term special offers (money-off coupons, multibuys, competitions, free trials, etc.) are called sales promotions and are a popular choice, especially among FMCG retailers. Personal selling ranges from sales assistants in shops, through door-to-door salespeople and telesales, to the high-level account managers who sell large capital items (such as bridges and mainframe computers) to governments and the boards of multina- tional clients. All these activities must be integrated so that they support, rather than contradict, each other. The same message and tone should come through from each activity. This is an important part of building brand image. As well as being integrated with each other, marketing communications activ- ities must also fit with the rest of the market- ing mix as the message comes through from all of the mix, not just from explicit communications. Harrods sells quality products at premium prices, and we expect its communications to be similarly upmarket. A gaudy advert in a downmarket magazine offering a BOGOF would detract from its carefully cultivated image. (For more on marketing communications, see Chapter 8.) INTERNATIONAL PROMOTION (MARKETING COMMUNICATIONS) DECISIONS While promotional strategies may be global, differences of language and environ- ment mean that they can rarely be absolutely standard in their detail. Adverts, packaging and promotions will all have to be translated. Different images, and paid media channels of communication in which advertisers buy space, e.g. television, magazines, social media sites public relations (PR) planned activities designed to build good relationships and enhance an organisation’s or an individual’s reputation earned media channels of communication outside marketers’ direct control that are used to talk about brands, issues, organisations; traditionally PR media, e.g. newspaper columns/editorials (not advert space), individuals’ blogs, individuals’ social media pages hospitality hosting clients (e.g. providing refreshments in a private room) at events sponsorship giving financial aid, or other resources, to an individual, organisation (usually non-profit making) or event in return for a positive association with them, e.g. the Coca- Cola cup product placement arranging for products to be seen, or referred to, in entertainment media, e.g. during TV or radio programmes, films, plays, video games sales promotion short-term special offers and other added-value activies, e.g. two for the price of one FMCG (fast-moving con- sumer goods) low-value items that are bought regularly (the shelves empty quickly), e.g. toothpaste BOGOF buy one get one free Walls ice cream displays from around the world. 478 PART FOUR International place decisions Indirect exporters leave the job of getting goods to customers to someone else, but companies with a more direct involvement have to organise distribution themselves. This can be a difficult task as distribution channels, and the nature of the intermediaries available, can vary enormously. The Japanese distribution infrastructure used to be so fiendishly complicated that some would-be exporters claimed it was an unofficial barrier to trade. (For more on place, see Chapter 9.) PRICE Price is the one element of the marketing mix that does not need a budget. The other three Ps all cost significant amounts. Price brings the money in. At one level, the price is what a business charges its customer for the goods and services it provides. However, the product that the customer is buying may e-focus: Channel conflict The Internet opens up new markets for all members of the supply chain, from raw materials suppliers through to retailers. This freer market access brings new competition with it, both from companies at the same level in the supply chain and from those at different levels who were not previously seen as com- petitors at all. Organisations can reach pre- viously inaccessible markets, e.g. overseas markets, and at the same time the distinction between levels is blurring as wholesalers and manufacturers sell directly to consumers. For example, a number of sportswear retail- ers have set up Internet sites to offer their customers an alternative way to buy sporting goods. In the world of e-commerce, these retailers may have to deal with competition from retailers in other countries (although in practice, many retailers cannot cope with supplying overseas orders and so only deliver to specific locations). Most of these retailers get their stocks from wholesalers, who can also now sell sports goods directly to consumers. Wholesalers do not operate from smart high- street stores and so, in the past, were not equipped to deal with end customers. Now they can. With an Internet site, the wholesal- ers can cut out the retailers and sell direct. It doesn’t stop there. If the wholesalers can do this, why not the manufacturers themselves? This merging of customer bases is a cause of channel conflict. Supply chain members are able to compete with other members higher up, or lower down, the chain. Some manufac- turers choose not to compete. They may offer products direct to customers but make sure that the deal is not as good as can be obtained at online retail sites. There is sound reasoning behind this strategy, and it is often to do with order administration and the problems of deal- ing with thousands of customers when you are only used to dealing with tens of customers. indirect export using a third party (e.g. an export management company), based in the firm’s home country, to sell products abroad BUILDING BRANDS USING THE INTERNATIONAL MARKETING MIX 479 actually cost more than the price suggests. This may be because of hidden costs, such as a computer upgrade required before the software will run, or it may be more subtle, like the time it will take the customer to install the new software (time is money), or the loss of the benefits they would have got if they had bought a different package. So the organisation needs to bear these other things in mind when setting the actual price. The price of a product is usually the most significant part of the value that a customer hands over in exchange for a product. Therefore, the perceived value of the product must be at least equal to the price. Other elements of the mix can be used to increase the perceived value and therefore allow the charging of a higher price, e.g. attractive or useful packaging, a free gift or an additional feature such as the bonus disks that come with some DVDs. The price of a product sends a message to potential customers: high quality, cheap and cheerful, bargain, or somewhere in between. It is important that this message accords with the actual product. If Rolls-Royce halved its prices, people would be likely to think that the quality had dropped significantly. If Toshiba drops the price of its computers because a new model will be out soon, people may see this as a bargain and snap them up. The price and the product must match up if marketing is to work successfully. Prices must also be in accord with place. If a restaurant wants to charge high prices, it usually needs not just good food, but also to be in a prime location. Perhaps then the restaurant critics will give it good write-ups (which is good PR). (For more on price, see Chapter 10.) customer focus: Now with added extra! Some organisations add new features to their products in an attempt to make them seem better value. However, if customers see no benefit to the additions, this ploy will only add to the firm’s costs, eventually necessitating a higher price that customers may be unhappy to pay. For example, an online retailer offered a reduced-price DVD player in its clearance sale. As an added incentive, the player came with 50 free films. They were not well-known films and spanned a variety of genres – they looked like the titles that usually appear in the bargain tub. Does this seem like a good deal? International pricing decisions Organisations with trading partners or customers overseas, have to choose a cur- rency in which to price contracts for sale. Given that marketing is about meeting customer needs, it would seem to be good marketing practice to price in the cus- tomer’s currency. However, this has some disadvantages for the seller in terms of costs and practicalities of converting the customer’s currency into their own. In practice, many contracts are priced in a well-accepted, stable, easily convertible currency, such as the US dollar – whether or not one of the parties is American. 480 PART FOUR Goods and services that are sold directly to end-users or consumers, rather than through marketing channels, will normally have to be priced in the local currency. PACKAGING – THE FIFTH P? Whether or not we grant packaging the status of a fifth P, it is certainly a very important part of the product offering. Packaging transcends the traditional 4Ps, playing a part in each and every one. It is part of the product. Many products have to be packed or they cannot be sold. For example, the product may be liquid (e.g. cough syrup), dangerous (e.g. acid), potentially damaging (e.g. hair dye), delicate (e.g. contact lenses) or perish- able (e.g. foodstuffs). As well as protecting the product, the packaging may be there to protect consumers. Childproof tops protect the young from accidental ingestion of harmful medicines. Tamper-proof packs prevent the malicious from poisoning, or otherwise spoiling, products. Sometimes the packaging is more than a means to contain the product; it is an integral part. Products such as toothpaste turn packaging into a feature: pump or tube? Food can be packaged in different ways and this turns it into different products. For example, peas may be sold in tins, jars, packets, vacuum packs or their original pods. Individual drinks cartons have straws attached to make them easier to drink on the go. Some packs are deliberately made attractive so that people will use them rather than put the product into something else (e.g. some of Marks & Spencer’s desserts come in glass bowls). This can be good promotion too if the pack has the product’s name on it. How many people, even in cafés, bother to decant ketchup out of the bottle rather than have it sitting on the table advertising Heinz? ACTIVITY Next time you go grocery shopping, look carefully at the different types of packaging used. Who are they designed to appeal to? Are you influenced in your choice of product by the packaging? Packaging can be a key consumer decision criterion, especially for commodity products. Take milk as an example. Milk can be packaged in a number of ways: glass bottle, plastic bottle, paper carton, tin or packet (for dried milk). Some cus- tomers may choose the milk with the carton that is easiest to open, or the one that pours best, or keeps the milk freshest longest, or survives freezing. Innovative packaging can confer competitive advantage. A supplier who invents a new and better way of packaging has an advantage over its competitors – at least until they catch up. Imagine having been the first to put fruit juice into a small carton with a straw, milk in an easy-pour carton, shampoo in a sachet or tissues in a pocket-sized pack. The packaging is a key part of the brand identity and so is jealously guarded by brand owners. Coca-Cola watches competitors carefully and is quick to object brand identity all the outward trappings of the brand, e.g. logo, name, colours, strap line and packaging Pintrest: Lovely Packaging BUILDING BRANDS USING THE INTERNATIONAL MARKETING MIX 483 FMCG products do offer advice lines or similar services – all are designed to try to establish a relationship with the customer and offer a better service. These additional 3Ps must also be integrated into marketing plans. They too should support the rest of the mix, not clash with it. Exhibit 11.6 Examples of use of the additional 3Ps Example products Examples of physical evidence: the tangible aspects of the service Examples of people: who deliver the service Examples of process: how the service is delivered Car cleaning Car shampoo, sponges The cleaners While you shop Restaurant meal Food, tables, cutlery Cooks, toilet cleaners Self-service Car hire The car, maps Receptionist, mechanics Car delivered to home address Personal computer Retail environment Shop assistants, helpline operators Assistants’ approach to customers in store, call-queuing systems peripheral product a secondary product often provided as part of a service, e.g. the complementary mints at the end of a meal, shampoo at the hairdressers Carrier bags: carrying the message home. PHYSICAL EVIDENCE Physical evidence includes peripheral products, such as free peanuts on a bar, products that are part of the service, such as ice in a drink, the décor of the place where the service is provided – and anything else that is tangible, but not the actual physical product itself. The physical evidence may be the key thing in setting customer expectations. A smart, trendy bar with genuine art on the walls, expensive-looking furniture and waiters in tuxedos sets the expectation of superior service, a good wine list, high prices and a classy clientele. Contrast that with a typical local pub or bar, with posters and a wide-screen TV on the walls, a foot- rest around the base of the bar, hard-back chairs, a juke box and the bar staff in T-shirts. Quite a different customer expectation is set. Customer expectations are extremely important in market- ing, and particularly in services marketing. A cus- tomer who has been let down, i.e. has received a service that does not meet their expectations, is an unhappy customer. They are liable to complain and to say unflattering things about the product to their friends. Often, if they had received the same service but had known what to expect beforehand and chosen it anyway, then they will be quite con- tent with that situation. So physical evidence is an important aspect of customer service and must match the rest of the mix if expectations are to be met. 484 PART FOUR PEOPLE Most services require people to deliver them and to receive them. Although there are an increasing number of services delivered electronically, e.g. Internet mes- saging, where people’s involvement is limited to the original set-up and mainte- nance of the service and dealing with queries and complaints, people remain an important asset for most service providers. The quality of the service is liable to be largely dependent upon the quality of the people involved in its delivery and so, once again, the people must match the rest of the mix. A high-class restaurant needs silver service waiters; a burger joint does not. The people who deliver the service are an integral part of its marketing mix, as are the people who receive that service. Customers are part of the interaction and influence the way a service operates. For example, it is quite possible for two people to eat the same meal in the same restaurant and experience the same ser- vice but one will love it and one hate it. This is equally true of concerts, haircuts and service from shop assistants. PROCESS Process starts long before a service is actually experienced. It starts with the pros- pect’s very first contact with the service-providing organisation. This may be read- ing a brochure, visiting a website, making a phone call or calling into an office or shop. The process of service delivery is key to customer satisfaction and therefore to the stimulation of positive word of mouth and repeat business. The restaurant can be the smartest in the world, the staff the best trained and friendliest, but if customers find their booking has been lost, or if the food takes hours to arrive, they will not be happy. In a pizza restaurant, however, there may be no advance bookings and customers may be expected to queue. Customers may be happy to do this, especially if they are able to sit in the bar and have a drink, listen to music, read the menu. That is all part of the process. Once again, the process has to be right, and fit with the rest of the marketing mix, if the product is to be a success. (For more on the 7Ps, see Chapter 7.) MIXING IT (INTEGRATING THE MARKETING MIX) Each element of the marketing mix should support the others. They should build to a consistent whole that accords with the organisation’s brand values and so builds the brand’s image. For example, an upmarket, exclusive fashion brand would: •• require high-quality products, made with top-class fabrics, that are well styled and well made, perhaps finished by hand (product) •• command premium prices (price) •• be sold in more exclusive, fabulously done-up stores (place, physical evidence) •• be sold by smart, fashionably dressed staff (people) •• provide an alteration service to achieve a perfect fit (process) •• be promoted in a tasteful, creative way, perhaps with adverts placed in fashion and lifestyle magazines, and with suitably upmarket celebrities wearing the clothes (promotion). However, a mass-market clothing brand might: •• use cheaper fabrics and mass-production techniques while keeping fancy trims to a minimum word of mouth where members of the target audience pass on information or promotional messages to each other; see also viral marketing BUILDING BRANDS USING THE INTERNATIONAL MARKETING MIX 485 •• undercut competitors’ prices •• be sold everywhere •• be carried home in cheap plastic bags •• be promoted extensively, in newspapers and magazines that the customers read, on billboards, even on flyers. These mixes send clear, but very different, messages about the company’s offer- ing. If the messages are contradictory, then customers will become confused. You cannot charge a high price but use cheap materials (at least not for long). If your products are on sale everywhere, they lose their exclusive image (this is why Levi’s was so keen to stop Tesco selling its jeans, and why perfumers such as Calvin Klein do not want their products sold in high-street stores such as Superdrug). The marketing mix is used to implement marketing strategies and plans. It is the marketer’s toolkit, and deciding how to use each tool is a key part of the marketer’s job. Those decisions are made in the light of the organisation’s objectives and its overall strategy to meet those objectives. Look back at the above example: if a brand wants to maintain its upmarket position, then clearly it must be in the best shops and be made of high-quality materials. The desired market position informs the choice of how to use marketing tools. With the marketing purpose firmly in mind, marketing managers are able to design effective marketing programmes, which must be based on a well-coordinated marketing mix. VARYING THE MIX THROUGH A PRODUCT’S LIFE Marketers do not decide on the best marketing mix for a new product and leave it at that forever. The mix has to be varied over time in response to, or in anticipation of, the changing marketing environment (see Chapter 2) and the brand’s circumstances. The product life cycle (which was introduced in Chapter 6) provides an illustra- tion of how the optimal marketing mix may change over time (see Exhibit 11.7). Exhibit 11.7 Mixing it through the product life cycle product: fairly standard promotion: high advertising spend; trade promotions; publicity; point of sale place: sign up distributors; build up stocks price: market skimming or market penetration product: improve quality; add features; update style; add new products to range promotion: still a high spend; build brand loyalty place: look for new outlets; build relationships price: skimming stops now – price falls product: further updating; few additions to range promotion: sales promotion; reminder advertising; database marketing place: keep costs down; stress customer service; maintain relationships price: needs to be competitive; depends on loyalty levels product: scale back to basic; limited range; consider deletion promotion: lower spend; sales promotion place: cut back distribution; look for other markets price: keep low introduction growth maturity decline deletion sales time Nestle: Long term maintenance 488 PART FOUR The development of faster and better methods of manufacture has led to the vastly increased level of choice being offered to the customer. This change from a supply-dominated marketplace to one where customers demand certain things, and are prepared to look for what they want, comes from the certain knowledge that those things will be available from one of the many possible sources now competing for their business. Increased distribution of goods and services nation- ally, internationally and globally, presents vast choice to customers. The challenge in such a world is to find customers in the first place, and to hang on to them in the future. This is one of the objectives of branding. Brand strength is important and so maintaining and building this strength is an essential part of managing a brand. Strong brands sell more easily, both initially and to loyal customers and are therefore valuable organisational assets. Exhibit 11.8 The world’s top brands According to Interbrand, a leading global brand consultancy, the top ten brands (with values ranging from Coca-Cola’s US$77,839 million to Toyota’s $30,280 million) of 2012 were: 1. Coca-Cola 77,839 ($m) 2. Apple 76,568($m) 3. IBM 75,532 ($m) 4. Google 69,726 ($m) 5. Microsoft 57,853 ($m) 6. GE 43,682 ($m) 7. McDonald’s 40,062 ($m) 8. Intel 39,385 ($m) 9. Samsung 32,893 ($m) 10. Toyota 30,280 ($M) IT and electronics companies continued to dominate the listings, with another four technology companies in the next ten (Cisco, Hewlett Packard, Oracle and Nokia). Coca-Cola has maintained its first-placed position while Apple has pushed IBM into third place. Only two of the top ten are from outside of the USA: South Korean Sam- sung and Japanese Toyota. See www.interbrand.com for the full report. SOURCE: Interbrand, 2012. BRANDING Brands are important assets for many companies, and building and maintaining their strength is a key marketing task that involves all of the marketing mix. A brand is more than a design or a concept. It is a combination of values which together promise customers the solution to their problems or the answer to their needs. The brand is greater than the products it encompasses and adds value to it. Modern branding has seemed to be the saviour of mass-produced products which often have little or no other means of differentiation. However, it has now become a victim of its own success. The credit for the success of many modern products has been attributed to their branding, but now it is often thought to be the brand that can cause a product to fail (Haig, 2003). If a brand’s image deteriorates, then its sales will suffer as Levi’s found to their cost when their jeans were no longer perceived as fashionable, nor even as a youth brand, in the late 1990s. BUILDING BRANDS USING THE INTERNATIONAL MARKETING MIX 489 BEHIND THE BRAND Branding has given rise to a host of terms that are often used slightly differently in different texts and by different people. At the heart of a brand is its brand personality (see Exhibit 11.9). A brand can be described in a similar way to a person. Brands may be young (e.g. FCUK), mature (e.g. Epicure), rebellious (e.g. Virgin), understated (e.g. Liberty), classy (e.g. Aston Martin), forceful (e.g. Nike), caring (e.g. Body Shop) – any personality descriptor that can be applied to a person, can be (and probably has been) applied to a brand. Marketers develop their brands’ personalities, which may be articulated in a brand personality statement, e.g. ‘This is a chocolate bar that bites back. It’s edgy and assertive whilst being absolutely dependable – a bar you want on your side.’ This is not meant as a slogan for an advertising campaign, although it might help inspire one. This is the way the brand team see their product, and it is what they want their customers to see too. Their next challenge, therefore, is to find a way to express their chocolate bar’s personality clearly to others. Brand personality is encapsulated in brand identity. A brand’s identity is a set of cues which help people to form their impressions of the brand, e.g. logo, name, colours, strap line and packaging. However, messages are not always received as intended (see Chapter 8). The target audience’s perception of the brand may be different from its intended personality. brand personality the heart of the brand, the sum of its values, its character traits, e.g. bubbly, elegant, friendly brand identity all the outward trappings of the brand, e.g. logo, name, colours, strap line and packaging Exhibit 11.9 Brand view brand personality the brand’s characteristics the way the market perceives the brand the way the brand looks – physically the financial value of the brand brand identity brand image brand equity logo colours name strap line packaging e.g. upmarket e.g. cool £ Cadbury has a strong brand identity. 490 PART FOUR ACTIVITY Pick two or three products within the same category, e.g. three cars or three clothing brands. Examine their brand identities and try to deduce the brand personalities that lie behind them. What else affects the way you see these brands? Those identity cues represent values that the brand owner wants to be associated with the brand. For example, Pepsi is blue because it is a different cola and also refreshing and modern. Hovis packaging has an old-fashioned look because it is a traditional brand. Unleaded petrol comes out of a green-handled pump because it is more environmentally friendly. The internal processing of these brand values adds up to an overall brand image. The target market’s perception of the brand is called the brand image and it is this that really matters. Brand personalities and identities only exist in order to create an image. This is what people really think of the brand and, in an ideal world, it would match the brand personality as this is the image the brand team wanted people to have. A brand’s power stems from the collective nature of these perceptions. One person’s perception cannot create a powerful brand; it takes numerous people accepting the brand truth and reinforcing it in their everyday lives (Holt, 2004). Whether or not personality and image match will depend upon how well the brand team have constructed their brand’s identity, and upon what else people hear about the brand. Brands exist independently of their owners. Brand owners cannot control everything that is said about them or how they are used. A person forms a brand image on the basis of all their experience with the brand – not just the official brand communications. EXPAND YOUR KNOWLEDGE Cleeren, K., van Heerde, H.J. and Dekimpe, M.G. (2013) ‘Rising from the ashes: how brands and categories can overcome product-harm crises’, Journal of Marketing, 77 (2): 58–77. Product-harm crises can cause major revenue and market-share losses, lead to costly product recalls, and destroy carefully nurtured brand equity. The authors analyse 60 fast-moving consumer goods (FMCG) crises that occurred in the United Kingdom and the Netherlands to assess the effects of post-crisis advertising and price adjustments on the change in consumers’ brand share and category purchases, the extent of negative publicity surrounding the event and whether the affected brand had to publicly acknowledge blame. The authors provide context-specific managerial recommendations on how to overcome a product-harm crisis. brand image people’s perception of the brand Behind the Brand BUILDING BRANDS USING THE INTERNATIONAL MARKETING MIX 493 EXPAND YOUR KNOWLEDGE Hennig-Thurau, T., Houston, M. and Heitjans, T. (2009) ‘Conceptualizing and measuring the monetary value of brand extensions: the case of motion pictures’, Journal of Marketing, 73 (6): 167–83. Valuing brands is complicated; valuing brand extension potential is even more so but Thorsten et al. have developed a means to measure the monetary value of brand extension rights in the context of motion pictures (i.e. movie sequel rights) and to calculate the effect of variations of key product attributes, such as the continued participation of stars, on this value. BRAND TYPES There are a number of different types of brand in the marketplace today (see Exhibit 11.11) each of which has advantages and disadvantages. Most of Cadbury’s products have an individual brand name as well as the corporate name. Cadbury’s name is the badge of quality, while the individual name is an identifier for a particular recipe of confectionery. A purely descriptive name for Cadbury’s Flake would be too long and would not differentiate the product from the competition. Heinz, however, traditionally sticks to straightforward descriptions of its products alongside its corporate brand name, e.g. Heinz baked beans, Heinz tomato ketchup. The company relies on its own name to help establish the desired brand image. Even Heinz, who traditionally used their corporate brand name only, have now caught the brand name fever, though, by introducing, or acquiring, some range brands (e.g. Weight Watchers and Linda McCartney). Exhibit 11.11 Brand types Corporate umbrella brands The products use the corporate name e.g. Heinz, Next Range brands Groups of related products share a brand name e.g. Taste the Difference (Sainsbury’s), Lean Cuisine (Nestlé) Individual brands Each product has its own brand name e.g. Twix (Mars), Bold (Procter & Gamble) Own-label (private) brands Products bear the retailer’s (or wholesaler’s) name e.g. Tesco, Marks & Spencer Generic brands A product descriptor with no brand or owners’ name e.g. Ibuprofen 494 PART FOUR Own-label brands are a big success story. Once the poor relation of branding, seen as inferior to manufacturer brands, they now take up the bulk of supermarket shoppers’ trolleys. They are popular with retailers (and some wholesalers) because they enable them to earn better profits. These products are not manufactured by the retailers, just badged by them. The advantage to the manufacturer is that it can use up spare capacity this way. However, these brands can be the cause of friction in the supply chain if the manufacturer believes that the own-label product is too similar to its own (see ethical focus box ‘The lookalikes’ on p. 482). Generic brands are less common in FMCG than they used to be. Nowadays, they are more likely to be pharmaceuticals and they can be controversial. Many life- saving drugs, e.g. for cancer or for AIDS, are very expensive and well beyond the reach of third-world countries. Some companies, notably in India, ignore patents and make copies of these drugs and sell them for a fraction of the normal price. Is this a crime or a public service? BRAND NAMES There are historical reasons behind most corporate brand names. Companies often start out with the owner’s name (e.g. Mars, Cadbury, Sainsbury, Guinness, Ford, Mercedes, Marks & Spencer, Dior). This remains the corporate brand name as it is well known and people make associations with it. In the 1990s, however, there was a management craze for renaming organisations, i.e. changing their brand names. There were a number of reasons behind this, including: •• a more attractive name that either described the organisation better or enhanced the brand identity •• a name that was more acceptable (or just easier to pronounce) in international markets (e.g. Jif household cleaner became Cif) •• distancing the organisation from its past (e.g. Andersen Consulting became Accenture after a scandal). Not all of these renamings were successful. Take Consignia, for example. This was the new name chosen, after extensive consultation and market research, for the Royal Mail service. There were good reasons for wanting to change the name. The business had changed and was no longer merely a mail service. They oper- ated call centres, courier services and logistics services and so the name no longer described the business that well. It was limiting their ability to add new services. Also, the organisation wanted to grow its business in overseas markets, beyond the rule of Queen Elizabeth II, where there might even be other ‘Royals’ and ‘Royal Mails’ to cause confusion. Finally, it wanted to revamp its image and be seen as a modern business rather than one stuck in the nineteenth century. Consignia was chosen because it does not actually mean anything in any language, but it sounds attractive and relevant. It was a disaster. The organisation and its branding consultants severely under- estimated the British public’s attachment to the old name, and the media’s will to sink the new one. Within about three years, the old name was back. People do not like change. They get used to a brand and its look, and can react surprisingly strongly to management improvements. Such updates therefore need to be handled very carefully. patent a legal protection for inventions that prohibits unauthorised copying brand name the product’s, or product line’s, given name BUILDING BRANDS USING THE INTERNATIONAL MARKETING MIX 495 BRANDING STRATEGIES The types of brands a company uses, and the way they relate to each other and to the corporate brand, is often referred to as their brand architecture. There are a number of brand architectures in use today but the best known are the branded house and the house of brands (Abraham and Taylor, 2011). According to the World Advertising Research Centre’s best practice briefing (WARC, 2012), a house of brands comprises a set of stand-alone brands, e.g. Mars owns Dolmio, Pedigree Petfoods and Uncle Ben’s. This architecture helps firms to position different prod- ucts clearly and to maximise their impact in their target markets. It is also useful for a diverse portfolio where the company needs to distance some brands from each other. For example, customers may not be happy to buy the same brand of chocolate and dog food. A branded house (which is sometimes known as mono- lithic) uses a single master brand to span a set of products, known as sub-brands. This master brand reassures potential purchasers while the sub-brand serves as a descriptor, e.g. Virgin (master brand): Virgin Trains, Virgin Atlantic, Virgin Mobile, Virgin Media, Virgin Money (sub-brands). The choice of brand type can almost be said to be a strategy in itself. It certainly has far-reaching consequences for the company’s marketing. However, there are some specific strategies that relate to branding. Branding strategies are used ‘to differentiate products and companies, and to build economic value for both the consumer and the brand owner’ (Pickton and Broderick, 2004). The following are some of the more commonly used strategies. Co-branding is when two companies’ brand names appear together, as on PCs when the brand name of the chip manufacturer appears alongside the PC maker (e.g. ‘Intel inside’). Either or both brands should benefit from this as the good reputation of one rubs off on the other. Multibranding is a strategy employed by companies that have multiple prod- ucts within the same category. This gives the customer the illusion of choice. They can switch brand but still be buying from the same supplier. For example, Procter & Gamble has many different brands of washing powder: Ace, Dreft, Bold (Bolt), Ariel, Dash, Fairy, Daz, Bonus, Vizir and Tide. These are not all available in all coun- tries, and each lays claim to slightly different properties, but they all clean clothes. The above are ongoing strategies. However, one of the great advantages of a strong brand is that it can be used to launch new products with a far greater chance of success. According to Kotler (2003), there are three ways to introduce more products under the auspices of an existing brand: •• line extension – introducing product variants under the same brand name, e.g. a new flavour or colour •• brand extension – using the brand name on products in a new category but within the same, broadly defined market, e.g. a biscuit company starting to produce cakes •• brand stretching – using the name on products in a different market, e.g. a cigarette company making clothes. For example, when Robinsons launched a new summer fruits drink flavour, that was a line extension. When Mars started making ice cream bars, that was a brand extension. The king of brand stretching is Richard Branson of Virgin, taking a brand brand architecture the structure of an organisation’s brand portfolio which shows how their brands relate to one another; it typically includes master and sub-brands branded house a form of brand architecture which uses a single master brand to span a set of products, known as sub-brands house of brands a form of brand architecture which comprises a set of stand-alone brands with their own names and identities, although there may be a reference to the owning brand Virgin Hot Air Balloons 498 PART FOUR Brand extension carries a higher risk of failure. People loved Mars ice cream. It was such a success that other chocolate manufacturers followed suit. So would you buy any kind of food from Mars? How about frozen ready meals? Baked beans? Breakfast cereal? Unilever successfully extended its Lynx brand. The original Lynx was just a deodorant, but now a wide range of grooming products are available under that brand name. Sometimes a brand carries with it associations that would be unhelp- ful to the new product. Companies may then actively try to disassociate the two. So Levi’s did not call its cotton trouser ‘Levi’s’ but Dockers instead. Sometimes, a company opts for a new range brand name, perhaps coupled with the corporate brand (e.g. Tesco Finest). The riskiest of these three strategies is brand stretching. Often, the stretched brand breaks. Xerox computers were never as popular as the company’s copiers and printers. Cosmopolitan’s move into the health food sector (with a range of low-fat dairy products) did not work, nor did its Cosmo Spirit Cafés (Anon, 2003). The strategy does work for some, however, even without a new range brand name. Yamaha successfully added musical instruments, home audio/video equipment, computer peripherals and sports equipment to its motorcycle range. Many retail- ers have successfully moved into financial services, offering credit cards, loans and insurance. Usually they do not run these services themselves, of course, but license others to do so, lending their name to the enterprise. EXPAND YOUR KNOWLEDGE Eckhardt, G.M. and Bengtsson, A. (2010) ‘A brief history of branding in China’, Journal of Macromarketing, 30 (September): 210–21. In this article, the authors trace branding practices in China from 2700 BC to contemporary times and demonstrate that China has had a sophisticated brand infrastructure with a continuous history. They chronicle the consumer culture of the time in China, and how brands developed out of it, demonstrating that brands can develop in varying ways. GLOBAL BRANDING Although it is rare to find globally standardised products, there are a number of global brands. A global brand may not have (in fact, almost certainly will not have) a completely standardised marketing mix, but it will have the same brand personality the world over and that personality will be expressed through a brand identity that is standard in its essential design, even though there may be some variance in packaging, languages used, etc. Take McDonald’s, for example. The golden arches are a well-recognised symbol throughout the world. Ronald McDonald has clowned his way through restaurant openings from New York to Shanghai. The writing beneath the arches may be in another language, or even another alphabet, but the brand identity is nonetheless the same. The products are not exactly the same though, and nor is the market- ing mix. In India, Hindus do not eat beef products and so the burgers have to be No Logo & Corporate Brands BUILDING BRANDS USING THE INTERNATIONAL MARKETING MIX 499 made of something else, originally mutton but now the Maharaja burgers are chicken. Veggie burgers are also available in India, where the staff who make them wear a different uniform and prepare them separately from the meat (this is an example of a different process). The veggie burgers are also sold in other countries where there is a significant demand for veg- etarian foods (e.g. some European countries), but are not generally available in the USA. In predominantly Muslim countries, the burgers are called beefburgers rather than hamburgers because Muslims do not eat pig products and the word ‘ham’ is therefore off-putting (even though there is no ham in the burger – the name comes from Hamburg where the recipe originated). In Australia, you can get a McOz: a quarter pounder with beetroot, tomato, lettuce and onions. Prices vary according to local costs, ingredients and income levels. Promotions have to be in the right language and suited to local audiences. In some countries, McDonald’s own their own restaurants; elsewhere they are franchised. Some outlets, e.g. in Japan, sell ranges of branded toys and other products; others do not. Yet McDonald’s is held, quite rightly, to be the epitome of a global brand. Its image is consistent, as is its positioning. EXPAND YOUR KNOWLEDGE Classic articles Levitt, T. (1983) ‘The globalisation of markets’, Harvard Business Review, 61 (May–Jun): 92–102. Ohmae, K. (1989) ‘Managing in a borderless world’, Harvard Business Review, 67 (May–Jun): 152–61. These classic papers address the challenges of marketing worldwide in interlinked economies. The papers have at their hearts the inescapable view that marketing should no longer be thought of at a local level alone and suggest how to handle marketing across borders. BRAND LOYALTY A company’s loyal customers consistently choose that brand over any other. This brand loyalty has to be earned by the company and can be destroyed much more quickly and easily than it can be established. Loyalty is important because loyal McDonald’s, Beijing. brand loyalty the attachment that a customer or consumer feels to a favourite product 500 PART FOUR customers make the best brand ambassadors, spreading positive word of mouth and so encouraging others to buy the product, and because repeat purchases mean a steadier, more reliable volume of sales for the company in question. Quality is crucial, both in the product itself, and in any supporting service. Poor service will lead to disappointment in the purchase and a reluctance, if not downright refusal, to ever buy that brand again. A customer who repeatedly purchases the same brand may, or may not, be loyal to it. True loyalty comes from an ongoing relationship, not from conveni- ence. So a customer who shops in their local supermarket every week may do so out of convenience rather than loyalty. It may sound like this does not matter, as the sales are made anyway, but what happens when another store opens nearby? Does that supposedly loyal customer stay with the shop they have always used or do they switch? Also, where do they shop when they are away from home? Truly loyal customers will stick with their store and that makes them valuable. Brand loyalty is based on an emotional bond between the customer and the brand. It can be very personal and powerful, and is usually formed on the basis of past experience, past brand encounters. When Coca-Cola launched New Coke in the USA in the 1980s, the reaction from customers was phenomenal. The product had been extensively blind taste-tested in the marketplace and had been almost universally described as having a superior taste to original Coke. However, when the new version replaced the old, public reaction was violent. Street protests took place to demand that the old recipe be reinstated. Customers were so emotion- ally involved with the brand, it meant so much to them, that the change was felt as a personal blow. They felt betrayed and so their loyalty was tested to the limit. Wisely, just 79 days after the launch, Coca-Cola changed back – and apologised. It is far more expensive to win a new customer than to keep an existing one and so it is cost-effective (as well as nice) to build these emotional linkages, and hence brand loyalty. Wise companies calculate the customer lifetime values (the net present value of all their purchases of the brand, past and future), rather than just looking at short-term sales. This approach is not without its drawbacks, however. The very act of calculation tends to reduce exchanges to transactions rather than relationships (Peelen, 2005), and without a good relationship with customers it is unlikely that the company will retain customers for a lifetime anyway. ACTIVITY Pick a favourite product – one that you are loyal to (a chocolate bar, drink, restaurant, brand of sports equipment, TV programme). Make a list of what might cause you to buy, watch or consume something else instead. A strong brand is a good starting point for building brand loyalty, but the loyalty does not happen automatically. Loyalty comes out of a good, mutually beneficial relationship and its foundation is trust. This trust must go both ways. Clearly, customers must trust the brand. They must feel comfortable with it, secure that products will do what they are supposed to, that the quality will be maintained, that their brand experience will be the same as it was the last time they made a word of mouth where members of the target audience pass on information or promotional messages to each other; see also viral marketing BUILDING BRANDS USING THE INTERNATIONAL MARKETING MIX 503 very small. However, by analysing its customer data, Tesco found that people who bought bird feeders were also likely to buy organic foods. So it stocked a wider range of bird feeders, told its organic food customers about them – and watched the sales rocket (Shabi, 2003). The information that stores gain from their reward card schemes is worth a lot to them. Market research can be expensive, yet here the stores have customers volunteering their information, electronically, every time they present their card at the till. The set-up costs are high but the research information pours in. EXPAND YOUR KNOWLEDGE Hollebeek, L.D. (2011) ‘Demystifying customer brand engagement: exploring the loyalty nexus’, Journal of Marketing Management, 27 (7–8): 785–807. Hollebeek explores the emerging concept of ‘engaged customers’ and its relationship to brands. PART FOUR504 SUMMARY Most marketing plans rely heavily on the marketing mix for their implementa- tion. The 4Ps has been the most commonly used framework for many years but this is always extended to 7Ps when considering services marketing. As so many products now have service elements to them (warranties, guarantees, after-sales service, retailing, etc.), the 7Ps framework has become generally preferred for all products – tangible and intangible ones. Packaging is another important marketing tool and is often proposed as the fifth P. Although they remain the most popular frameworks, the 4Ps and 7Ps models are not without their critics, mainly on the grounds that they are insufficiently customer-focused. A brand’s marketing mix should be integrated, each element working with the others to present a united front and support the organisation’s marketing objectives. An uncoordinated mix sends conflicting messages to target customers and is much less effective in terms of building brand values and achieving marketing goals. CHALLENGES REVIEWED Now that you have finished reading the chapter, look back at the challenges you were set at the beginning. Do you have a clearer idea of what’s involved? HINTS •• The marketing mix must be integrated so all elements should support the organisation’s desired position in its market. •• See ‘Contribution pricing’ in Chapter 10 but also remember that price is seen as a determinant of quality. •• The 7Ps of services marketing are key determinants of the attractiveness of services to customers. •• This is an ethical question – how important is the environment to your firm? Are there ways to maintain the brand identity even when changing packaging (Nestlé managed it with Kit Kat, for example)? READING AROUND JOURNAL ARTICLES Borden, N. (1964) ‘The concept of the marketing mix’, Journal of Advertising Research, June: 7–12. Cleeren, K., van Heerde, H. and Dekimpe, M. (2013) ‘Rising from the ashes: how brands and categories can overcome product-harm crises’, Journal of Marketing, 77 (2): 58–77. Eckhardt, G. and Bengtsson, A. (2010) ‘A brief history of branding in China’, Journal of Mac- romarketing, 30 (September): 210–21. Grönroos, C. (1997) ‘From marketing mix to relationship marketing – towards a paradigm shift in marketing’, Management Decision, 32 (2): 4–20. Hennig-Thurau, T., Houston, M. and Heitjans, T. (2009) ‘Conceptualizing and measuring the monetary value of brand extensions: the case of motion pictures’, Journal of Marketing, 73 (6): 167–83. 505BUILDING BRANDS USING THE INTERNATIONAL MARKETING MIX Hollebeek, L. (2011) ‘Demystifying customer brand engagement: exploring the loyalty nexus’, Journal of Marketing Management, 27 (7–8): 785–807. Levitt, T. (1965) ‘Exploit the product life cycle’, Harvard Business Review, 43 (Nov./Dec.): 81–94. Levitt, T. (1983) ‘The globalisation of markets’, Harvard Business Review, 61 (May–June): 92–102. Matzler, K., Pichler, E., Füller, J. and Mooradian, T. (2011) ‘Personality, person–brand fit, and brand community: an investigation of individuals, brands, and brand communities’, Journal of Marketing Management 27 (9–10): 874–90. Ohmae, K. (1989) ‘Managing in a borderless world’, Harvard Business Review, 67 (May–June): 152–61. BOOKS AND BOOK CHAPTERS Baker, M. (2008) ‘The marketing mix’, in M.J. Baker and S.J. Hart (eds), The Marketing Book. Oxford: Butterworth Heinemann, Chapter 12. de Chernatony, L. (2010) From Brand Vision to Brand Evaluation, 3rd edn. Oxford: Butterworth Heinemann. Haig, M. (2006) Brand Royalty: How the World’s Top 100 Brands Thrive and Survive. London: Kogan Page. Holt, D. (2004) How Brands Become Icons: The Principles of Cultural Branding. Boston: Harvard Business Review Press. Klein, N. (2000) No Logo. London: Flamingo. Slater, J.S. (1999) ‘Product packaging: the silent salesman’, in J.P. Jones (ed.), The Advertising Business. London: Sage, Chapter 42. WEBSITES www.cim.co.uk – the Chartered Institute of Marketing. www.interbrand.com – Interbrand. SELF-REVIEW QUESTIONS 1. What are the 7Ps? (See p. xx) 2. Where does packaging fit in the marketing mix model? (See p. xx) 3. What are the five characteristics of a well-designed marketing mix? (See p. xx) 4. Name and describe the levels of the total product offering. (See p. xx) 5. What are the main tools of the promotional mix? (See p. xx) 6. What is another name for ‘promotion’? (See p. xx) 7. How can packaging give a product a competitive advantage? (See p. xx) 8. What is the relationship between brand personality and brand image? (See pp. xxx–xx) 9. Why is it important that all elements of the marketing mix match and support each other? (See pp. xxx–xx) 10. What faults can you find with the marketing mix as a framework for marketing activity? (See p. xx) PART FOUR508 in particular frequently replace working phones with the latest models, keeping phones on aver- age for only 18 months when they are designed to last for ten years. Only a small proportion of these thousands of discarded phones are recycled. 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Visit the companion website on your computer at [insert url here] or MobileStudy on your Smart phone or tablet by scanning this QR code and gain access to: • Videos to get a better understanding of key concepts and provoke in-class discussion. • Links to useful websites and templates to help guide your study. • Access [insert final confirmed name of SAGE’s pintrest page here.] SAGE’s regularly updated pintrest page, giving you access to regularly updated resources on everything from Branding to Consumer Behaviour. • Daily Grind podcast series to learn more about the day-to-day life of a marketing professional. • Interactive Practice questions to test your understanding. • A bonus chapter on Marketing Careers to not only support your study, but your job search and future career. • PowerPoints summarising each chapter to help you revise for exams.