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Marketing management in AsiaPacific


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Title: Marketing management in AsiaPacific

Unit 5
  • Marketing management in Asia-Pacific

Objective (I)
  • Identify the factors shaping the marketing
    environment in selected Asia-Pacific countries
  • Describe the nature of consumer behavior in Asia
    and how this has been influenced by the Asia
  • Link the principles of marketing strategy to the
    market environment in Asia
  • Evaluate the standardization versus adoption
    debate in the Asia-Pacific context

Objective (II)
  • Discuss issues specific to Asia-Pacific which
    affect the nature of
  • Product
  • Pricing
  • Promotion
  • Distribution strategies in the region
  • Explore other key marketing issues specific to
    the Asia-Pacific region

Asia as a market (I)
  • Marketing environment
  • Asia-Pacific become attractive markets in the
  • Consumption in this region has grown as
    disposable incomes rise
  • Traditional values become more westernized
  • Changes in the marketing environment in Asia are
    result of events
  • Cultural, economic, political, legal and
    technological environments
  • The major trends over the past decade include
  • Fast growing markets that continue to grow,
    albeit at a slower rate, even after the Asian

Asia as a market (II)
  • Increasing customer spending power as a result of
    higher disposable incomes and more relaxed
    attitude to saving
  • Increasing income gaps between the rich and the
    poor, and between urban and rural populations
  • Flourishing underground economy
  • Both traditional and emerging values and beliefs
    that are shaping the modern Asian consumer
  • Customers who are fulfilling their wants rather
    than just their needs
  • High levels of demand for customer durables
  • Changing preferences towards foreign products
    rather than domestic products
  • Shift towards a more Western lifestyle
  • Increasing awareness of brands, self-image and
    conspicuous consumption, return to
    price-conscious shopping

Asia as a market (III)
  • Rapid diffusion of new products, fads and
    mass-consumer trends in purchasing
  • Willingness to try new products or services
  • Dramatic increases in the use of credit cards and
    credit facilities
  • Implications for implementing elements of the
    marketing mix
  • Product design, advertising strategies, pricing
    and distribution
  • Cultural characteristics common to Asia
  • Long-term orientation
  • Extensive use of relationships based on trust and
    loyalty in the business setting
  • Collectivist or group-oriented culture

Asia as a market (IV)
  • Business is based on long-term relationships and
    commitment between buyer and seller
  • Keiretsu, Japanese business system
  • Excluded all but the most innovative outside
    firms from the production network
  • Small to medium-sized suppliers depended on
    relationships with larger firms
  • Unwilling to distribute foreign products that
    compete with existing lines
  • Chinese dominant business activity and pervasive
    influence of guanxi (connection) that difficult
    for outsiders to operate effectively
  • Long-term orientation is also reflected in
    consumer purchasing
  • Technology and exposure to mass media make more
    informed choices about the way they live
  • Raised awareness of the need for precautionary
    spending for products

Asia as a market (V)
  • Loyalty has been part of traditional consumer
    behavior in Asia
  • In rural areas and among the older generations
  • Tendency to be both risk-averse and price
    conscious in their shopping behavior
  • Remain with a trusted brand
  • Trustworthy friend able to give advice about any
    product or brand in the store
  • Family-oriented as a result of collectivist trait
    and Confucian values
  • Womans place at home and extended family still
    holds very strong in Japanese, Chinese and Korean
  • Womens existence is based on her relationships
    with her father, husband and sons
  • Traditionally her role was to produce a male heir
    to continue the family line

Asia as a market (VI)
  • Opening up of their economies to trade and
  • Proactive approach towards encouraging trade from
    the West and lowering trade surpluses with USA
  • Increasing levels of disposable income under the
    evolving socialist market system
  • China take advantage of the anticipated boom in
    consumer demand before their competitors
    establish themselves
  • Chinese government maintains its socialist
    political ideology
  • Characterized
  • Corruption and collusive agreements with or
    influence by government bureaucrats
  • Lack of clarity and consistence in rules and
    regulations pertaining to business
  • Lack of reliable statistic and economic data on
    which to base market assessments and feasibility
  • Transport, distribution finical and legal systems
    are still under development and presents a real
    problem for any Western firm entering the market

Asia as a market (VII)
  • Japan affluent consumer markets in the world
  • Government-imposed restrictions on importing or
  • Due to the confounding nature of the Japanese
    business environment
  • Independently from outside influence on the basis
    of longstanding relationships between groups of
    Japanese companies
  • Determined and well-resourced firms from
    competing on an equal basis with Japanese firm
  • The close network of firms also allows rapid
    responses to changes in consumer preferences and
    market demand
  • Desire to purchase locally made goods or services
  • Start from scratch to find new premises and new
    staff, build market share and customer loyalty
    and develop network of supporting firms
  • IBM as example

Asia as a market (VIII)
  • Hong Kong and Taiwan
  • Governments adopted a minimal involvement
    philosophy that focuses on maintaining stability
    and a relatively corruption-free regulatory
  • Hong Kong remain economically independent and
    close relationship with the ever-growing China
  • Korea
  • The are liberalization of policies concerning
    entry of foreign investment and some imports
  • Tariffs on imported products are slowly being
  • Non-tariff barriers, such as government
    regulation, inspection and interference hinder
    the importation of foreign goods
  • Education and training
  • Encouraged a virtuous cycle of economic
    development and rising incomes supported by
    skilled workers
  • More accessible and affordable to these workers
    and children

Asia as a market (VI)
  • Education is linked to financial and career
  • Learning has progressed dramatically of open-door
    policies and the influx of foreign companies
  • Japan invest in the upgrading of infrastructure,
    technology and human resources in the host
  • Develop skills such as teamwork, quality control,
    electronic component assembly, clothing
    manufacture and numerous associated with light
  • Adoption and adaptation of Western ideas,
    products and consumer culture
  • Profound effect on the behavior of consumers in
  • In the wealthier coastal areas of China, are now
    boutique stores and fashion outlets offering
    European designs and American labels
  • Changing traditional values and customs and
    altering shopping behavior
  • Dramatic increase in the use of customer credit
    including credit cards, bank overdrafts and
    loans, and hire-purchase style options

Asia as a market (VI)
  • Thrift and saving are well-recognized values in
    Asia based on the long-team orientation of
  • The perceived and actual need to protect one
    family against any hardship
  • Poverty, natural disaster, war and disease
  • Fuelled demand and consumption and has been a
    boon for banks and companies selling consumer
    products in the East
  • Changing societal characteristics of Asian
  • Japan adopted as part of the collection of
    presents traditionally given to the bride, rather
    than a symbol of love and commitment as in the
  • HK sales of non-traditional foods
  • Beef are on the increase but the meat is prepared
    in traditional Chinese style

Asia as a market (VII)
  • Demographic factors and market segmentation
  • No denying that the wider Asia region represents
    a huge actual and potential market
  • Rapid rate of economic growth and
    industrialization that has made these countries
    attractive markets
  • Japan fuelled strong demand for quality products
    from all over the world
  • HK, Singapore, Taiwan and South Korea are now
    mature and service-oriented
  • Thailand, Philippines, Indonesia and Malaysia
    have rapidly progressed into budding consumer
    societies, purchasing fashion items, products for
    the home and customer services
  • China is higher costs of land, labour and other
    resourced, appreciating currencies and financial
    woes are eroding margins and comparative

Asia as a market (VIII)
  • The geographical spread of the population and the
    underdeveloped infrastructure means that urban
    areas will be easier and more profitable as
    target markets
  • The potential of the market
  • Numbers in the population that have sufficient
    incomes to afford the production
  • The ease of accessing the market
  • Numbers in urban areas as opposed to rural areas,
    those with televisions and ratios and adequate
    distribution infrastructure
  • The distinct characteristics of the market
  • The number of people in each age group, the
    numbers of working women

Asia as a market (IX)
  • Some statistics available to conduct
    environmental and market analyses
  • Population density
  • Life expectancy
  • Population distribution (Rural or urban)
  • GDP and employment per sector (Agriculture,
    industry and services)
  • Changes to GDP and GDP per capital over time
  • External debt, government expenditure, investment
    and savings
  • Level of foreign investment, imports and exports
    by sector, commodity
  • Major trading partners

Asia as a market (X)
  • In China
  • Willing to buy consumer goods
  • Larger ticket items-Refrigerators and washing
  • Luxury items-Convenience foods and beauty
  • Chinas market are perhaps the most diversified
    in Asia
  • More useful to segment the market on the basis of
    the different economic regions to get a clearer
    idea of consumer characteristics
  • A smaller group have become Chinas nouveaux
    riches and are now able to afford some luxury
    items such as vehicles or electronic goods
  • Chinese have sufficient disposable income to
    become shoppers for consumer durables
  • Bicycles, watches, television sets and other
    household appliances
  • Chinese government s subsidization of basic
  • Food and housing, transport, education and
    medical care

Asia as a market (XI)
  • In HK
  • Emigration from HK has been high through the
    1990s during the lead-up to the handover to the
    Chinese government in 1997
  • Most industrial countries and reflects the
    increase in working women
  • Attaining material wealth and the change in
    traditional values
  • Living standards and household income are high in
    HK and comparable to those in the West and Japan
  • South Korea
  • Ethically homogeneous population, albeit has been
    influenced colonial rule, war and civil conflict
  • The nuclear family has become the norm for the
    majority of households and divorce has now been
  • Working women make up 45 of workforce and are
    having to balance long hours and family

Asia as a market (XII)
  • Traditional values of frugality and conservative
  • Reinforced by the government prominent business
    people who call for, personally demonstrate acts
    of sacrifice and personal moderation
  • In Taiwan
  • Second highest population density in the world
  • Making the market stable and attractive
  • With low levels of inflation and unemployment and
    high trade surpluses and savings
  • Become the big spenders and consumption is even
    endorsed by the government
  • Increasing the gender ratio of males to females
  • Being perpetuated by women technologies that can
    detect and dispose of the unwanted foetus

Asia as a market (XIII)
  • Segmentation
  • Process of diving a potentially large market into
    distinctive subsets of consumers
  • Target the marketing strategy towards one or more
    of these segments
  • Starts with an analysis of the marketing
    environment , or changes and trends influencing
    consumer behavior
  • Identify where there are potentially profitable
    areas of the market
  • Not being exploited or where new products can be
  • Ways that a potential market could be divided
    into more manageable segments
  • Demographic variables
  • Age, gender, family size and type, income,
    occupation, education, religion, place of
    residence and nationally

Asia as a market (XIV)
  • Psychographics and lifestyle approaches
  • Divide consumers according to their social class,
    culture, attitudes, behavior, lifestyle or
  • Behavioral segmentation bases
  • Perceived and actual benefits of the product to
    the consumer, like functional benefits, image and
    prestige, convenience or economy, or usage
  • Heavy, moderate or light users of a product or
  • Each segment characteristics
  • Readily identifiable relevant to the product in
  • Measurable
  • Able to count or estimate the number of people
    that fall into that segment
  • Substantial in size and durable to be profitable
  • Sustainable long enough to worth targeting
  • Define actual and potential market segments very
  • Demographic segmentation is preferred rather than
    psychographics or lifestyle patterns

Asia as a market (XV)
  • Must be similarities between the members of a
  • Yuppie segment in Southeast Asia
  • Difference in culture, demonstrate similar
    preferences for Western-style consumption of fine
    wine, golf, travel and designer labels
  • Based on the need for status and conveniences
    rather than solely functional attributes
  • Accessible by the company
  • Reach the targeted segment
  • Lacks of infrastructure, roads, electricity and
    public transport
  • Lack of suitable adverting media
  • Purchasing power of the segment and the literacy
    rate inhibit the markers efforts to reach a
    particular group of consumers
  • Affected by political events
  • Type of segmentation used will depend on the type
    of product and its likely customers
  • Such as soft-drinks (Asia), coffee (Singapore),
    tea (Chinese)

Asia as a market (XVI)
  • Consumer behavior
  • Segments identified through the analysis of the
    marketing environment and specific
    characteristics of the consumers
  • Coupled with demographic information and other
    segmentation bases
  • Existing culture, trends and changes in Asian
    society with demographic features
  • Japan
  • Middle class consumer exhibits very similar
    patterns of buying behavior
  • Attributed to the collectivist and relatively
    homogeneous nature of Japanese society
  • Well-educated population have served to make
    Japanese consumer behavior much more uniform
  • Emphasis on quality and service rather than price
  • More sophisticated in their buying behavior

Asia as a market (XVII)
  • China
  • The middle class consumer exhibits a fairly
    conservative style of consumer behavior
  • Remain faithful to traditional Chinese products
  • Aspirations of new refrigerator or a second
    television set
  • Younger generation and the wealthier
    entrepreneurial class
  • Try new things and make riskier purchasing
  • The time for leisure and family is more in demand
    in Asia
  • Pursuit of higher education and training
  • Childrens schoolwork and extracurricular
  • Products and services that reduce the time needed
    for household chores
  • Vacuum cleaners, microwaves, family restaurants
    and product with remote control

Asia as a market (XVIII)
  • Working women
  • They are earning money themselves and household
    has higher levels of discretionary income to
  • Encourage purchases of convenience products and
    restaurant meals
  • HK, women are holding down goods in service
    sectors and devoted to the raising of the family
    still very strong
  • Yuppies
  • Focus on their wants rather than just their
    needs in purchasing behavior
  • Cars, refrigerators and mobile telephones
  • Nouveaux riches are striving to fit into an
    emerging lifestyle that is modern
  • Led to conspicuous consumption or the acquisition
    of material assets
  • Fine wines, expensive jewellery, luxury vehicles
    and artwork
  • Services as foreign maids, tutors, medical
    insurance, overseas travel and golf membership

Asia as a market (XIX)
  • Youth and teenagers
  • Demonstrated a passion for consumer fads
  • Taiwan, as the bean sprout generation
  • Well protected, yet feeble and vulnerable
  • Post-crisis consumers
  • Japanese, shifted towards goods that are
    realistically priced and offer value for money
  • Purchase high quality functional items
  • The rise of cut-price or no-frills shopping
    outlets that provide the customer with the best
    value for money
  • Readjust their marketing mixes and product
    offerings to suit the new consumers
  • Past 5 years
  • HK, consumers are cautious and prefer to save
    their money rather than upgrade to newer models
    of cars, stereos and TV
  • Korea, consumers desires to spend on hold and
    demand for expensive foreign products
  • thailand,

Marketing strategy and the marketing programme (I)
  • Marketing strategy Basic concepts
  • Marketing philosophy
  • Behind marketing-oriented strategy
  • Focus on determining the needs and wants of the
  • Develop a product that meets those needs, then
    sell it for profit
  • Marketing concept
  • Seek to achieve its goal through identifying the
    needs and wants of target markets
  • Delivering the product more effectively than
  • Most successful for companies to understand what
    their customers expect
  • Able to satisfy those customers better
  • Leads to high demand, sales and ultimately to
    achieving the companys goals

Marketing strategy and the marketing programme
  • Selling
  • Encouraging customers to buy existing products
    through use of the promotion and adverting and
    aggressive selling techniques
  • Selling try to sell what it makes rather than
    what the market wants
  • Insurance companies as example
  • Marketing-oriented
  • Employ aspects of the marketing function
  • Oriented towards selling, production or the
  • Production-oriented
  • Lowering the cost of the through efficient
    production techniques
  • Making the product widely available through
    expansive distribution coverage
  • Develop and refine their product offering
  • Disadvantage
  • Increasing choice of products, available
    consumers may put other needs of product quality

Marketing strategy and the marketing programme
  • Marketing fundamentals (Market-oriented)
  • Customer satisfaction is ultimate goal
  • Understanding what customers want and
  • How the company can best meet customer needs
    profitable and achieve this goal
  • Customers do not buy products or services
  • Solutions or benefits the product can provide to
  • Kodak as example
  • Led marketing-oriented firms to view their
    products as bundles of benefits
  • IBM as example
  • Made up different groups of consumers with
    different characteristics
  • Sell a single idea or product to all these people
    in the same way
  • Ineffective and a poor use of company resources
  • Market segmentation and adoption of the marketing
    mix to suit the segment
  • Needs to review each element of the marketing mix
    continually in view of these changes
  • More volatile than others
  • Computers as exapmle

Marketing strategy and the marketing programme
  • Market positioning
  • Consider the market positioning of your company
    relative to your existing competitors
  • McDonalds hamburger chain in Asia
  • Different products
  • Vegetarian and chicken burgers to Indians and
  • Kids meals and toys to children
  • Emphasis the company image and its bundle of
    benefits as a lifestyle and image choice
  • Convenience of the purchase, the congenial family
    atmosphere of the restaurants, promotions
    targeted at different customer segments, the
    hygienic and efficient food preparation
  • Strongly influenced by the firm strengths and
    weaknesses relative to competing firms
  • Understand the extent of its resources and the
    nature of the business environment
  • Maintain a competitive edge in the market
  • Market often overwhelmed with choice

Marketing strategy and the marketing programme (V)
  • Marketers tried to position their position their
    companies as suppliers of luxury goods only for
    the elite
  • Through building brand reputation, up-market
    promotion techniques, high prices and
    technologically sophisticated products or
  • Future growth is the marketing of environmentally
    friendly products to the green segments
  • Environment concern will increase among consumers
    and companies alike
  • China are simply not rich enough to afford to
    purchase green products
  • SWOT analysis
  • Competitor analysis
  • Useful for developing marketing strategy after
    the market grouped into clearly defined segments
    of customers
  • Allowed the firm to see if any segments are not
    being served adequately-fill that gap
  • Incorporating all the environmental and internal
    analyses clarify the process of strategy

Marketing strategy and the marketing programme
  • Standardization versus adaptation
  • Firms offering and the elements of the marketing
    mix can be standardized across international
  • Standardization across world markets is
  • Becoming more homogeneous due to the growing
    influence and accessibility of travel and
    worldwide media
  • TV, films, telecommunications and the Internet
  • McDonalds and Coca-Cola as example
  • Identify and target homogeneous market segments
    that exist globally, such as the youth/teen,
    yuppie, or young family market segments
  • Adaptation (or customization)
  • Needs to be modified account for differences in
    host-country environments, demographic
    characteristics and consumer tastes, needs and

Marketing strategy and the marketing programme
  • Consumers in global markets are diverse rather
    than homogeneous and marketing programme should
    be directed accordingly
  • Honda Motor Company
  • Full standardization or full adoption strategies
    must be extremely uncommon
  • Take Coca-cola for example
  • Promotional material translated into different
    languages for different countries
  • Sophistication and availability of different
    distribution channels
  • Pricing depends on what the market bear and the
    strength of the other competitors
  • The product must be altered, the can is green
    where red is considered to be offensive
  • Professional service companies customize the
    service offered to each customer

Marketing strategy and the marketing programme
  • Marketing mix elements 3 key advantages for the
  • Cost advantage through achieving economies of
    scale in production, research and development,
    promotional material
  • Standardization also promotes consistency and
    customer recognition of products that are offered
    in more than one country
  • The golden arches of McDonald
  • Provide a consistent product, pricing and
    distribution regardless of location
  • International firms have found that
    standardization improves marketing performance,
    market share and profitability
  • Through ease of implementation, control and
    management of standardized marketing programme
  • Adaptation of the elements of the marketing mix
  • Higher levels of consumer satisfaction, patronage
    and ultimately profits

Marketing strategy and the marketing programme
  • Advantages of partial adaptation
  • Better tailor the marketing mix to specific
    segments and cater to the differences in customer
  • Mandatory to meet the legal requirements of some
  • Safety standards, labeling and censorship
  • Balance must be achieved somewhere between full
    standardization and full adaptation of marketing
  • Based on traditional and marketing mix elements
  • Able to capture an international market segment
  • Standardization will be determines by
  • Product features and type
  • Environmental variables
  • Political and legal requirements
  • Demographic and economic characteristics of the

Marketing strategy and the marketing programme (X)
Factors influencing standardization
Marketing strategy and the marketing programme
  • Introduction to the marketing programme
  • Identified and the marketer has ensured that this
    segment is large and sustainable enough to be
  • Potentially incorporate a number of different
    product offerings over several market segments or
  • Factors influencing the marketing mix

Marketing strategy and the marketing programme
  • The Four elements, or Ps of the marketing mix
    are the
  • Product-the firms offering of both products and
  • Price-which includes the purchase price of the
    product in different markets, and the value of
    the product to different customers
  • Promotion-of the product and communication of the
    products benefits to the customer
  • Place-or distribution of the product from
    manufacturer to end consumer
  • More closely aligned with the needs and wants of
    the consumers
  • Trends of the marketing environment

Product management and development (I)
  • Understanding the product/service mix
  • The companys offering to the market and can
    include physical goods, services, ideas and even
    places or organizations and people
  • bundle of benefits embodied in the physical
    product and service mix offered to customer
  • Having services
  • Pre-purchase advice, installation and
    instructions for use, or after-sales service
  • Maintenance and repair
  • Example of IBM
  • Involve some physical product elements
  • And either not retained by the customer-air
  • Brochures from the travel agent, the airplane
    itself and the food served

Product management and development (II)
  • Bundles of benefits or product offerings are
    products and which are services
  • A meal at a restaurant
  • A mobile telephone
  • A doctors consultation and prescription for
  • An outdoor landscaping service
  • A personal computer
  • A tailored suit
  • Consumers become more discerning about the
    products they buy, the range of choices increases
  • Companies need to spend more time considering how
    their product could be supplemented by supporting
    service elements and vice versa for services
  • Avoid confusion we will refer to the product
    and/or service mix as the product offering, or
    simply the product

Product management and development (III)
  • Product offering at f different levels
  • Most basic level
  • Company is selling a fundamental or core benefit
    to the customer
  • Second level
  • Benefit must be transformed into a generic
    product to relay the benefit to the customer
  • Third level
  • Expected product includes all features and
  • Most customers would expect to receive upon
    purchasing the product
  • Fourth level
  • Augmented product embodies more than the expected
    features to make the offering superior to
  • Their product offering from the competitors
    offerings by providing additional benefits sought
    or desired by customers
  • Fifth level
  • Product evolve sometimes in the future and will
    better meet the changing needs of the customer
    and generate more business for the company

Product management and development (IV)
Product levels
Product management and development (V)
  • Manufacturing firms in Asia have traditionally
    focused on the functional attributes of the
    generic product
  • Maximum benefit through functional attributes at
    minimal cost
  • Cost-focused or product-oriented strategy works
    well when consumers are price-sensitive
  • Attention to developing the expanded product
  • Tangible and intangible attributes sought after
    by the customer
  • Select their products over their competitors and
    are willing to pay a premium for additional
    actual or perceived benefits
  • Product differentiation and commonly used include
    price, brand names, packaging, quality of the
    product and aesthetic attributes such as style
    and design
  • Books and CDs as a example
  • Services included with the product (as free
    delivery), promotion and give-aways
  • Appeals to identity and image are also used to
    differentiate the product

Product management and development (VI)
  • Managing brands
  • Represents a lasting symbol of the company and
    its products in the eyes of the consumers
  • Define brand as a name, term, sign, symbol, or
    design, or a combination of them, intended to
    identify the goods or services of one seller or
    group of sellers and to differentiate them from
    those the competitors
  • Purpose of branding is to create awareness,
    foster loyalty and encourage repeat sales of the
    companys products
  • Associated with a certain reputation, as quality
    and reliability, value for money, or innovation
    and technological sophistication
  • Produces a wide range of non-durable consumer
    goods ,focuses on positioning the brand names of
    the products rather than the company in the

Product management and development (VII)
  • Six levels of meaning can be incorporated into
    the branding strategy
  • Product attributes such as quality, reliability
    and prestige
  • FEO (Singapore) focus on improving the quality
    and design features its condominiums
  • Achieved ISO 9002
  • Product benefits communicate the value of the
    specific product attributes to the customer
  • Installing a comprehensive range of additional
  • Caters to emotional benefits
  • Values of the company or what the company stands
  • Body shop, retailer and marketer of its unique
    range of cosmetics and toiletries
  • Not testing on animals, using renewable natural
    resources and promoting the personalities rather
    than the body image of its clients

Product management and development (VIII)
  • Cultural influences are evident in many products
    from developed countries
  • Italy, whose sports cars and fashion industry are
    famous for quality of design and performance
  • Personalities normally associated with person,
    animal or object can be projected by the brand
  • Slogan or Puma logo which suggest strength and
  • User characteristics are potentially the most
    influential aspect of the brand
  • LV, BMW, Posrche or Toyota
  • Marketing mix should support the desired
    reputation or image of the brand
  • The product itself, the packaging, the way in
    which the product is promoted, distributed and
  • The Mercedes as example (Motorcar as a luxury)

Product management and development (IX)
  • Some strategies that company take to overcome the
    difficulties of branding across several counties
  • Standardization of a brand name to cover both
    company and products
  • Advantages of consistency and clarity for the
    consumer and economies of scale
  • Disadvantages of firm risk its own reputation,
    based on the poor performance of a single product
    if the two are so closely associated
  • Translate appropriately and still appeal to local
  • Coca-Cola, Nissan, Kodak, IBM and ATT
  • Standardization of a brand name to cover all
  • Promotes brand awareness and product acceptance
  • Avoids the risks of the fisrt strategy, may
    create lower levels of loyalty with some
  • Tend to remain loyal to the company rather than
    its products

Product management and development (X)
  • Standardization of brand names for different
    classes of product produced by the same firm
  • Advantage of associating a brand name with a
    specific product or consumer segment
  • Lower-priced goods without hurting the quality
    reputation of its more expansive product lines
  • Individualized brand names for each product
  • More time-consuming and expensive
  • Brand names to suit both products and markets and
    re-package and re-label products
  • Closely tailored to customer tastes and
    requirements and brand names for the same product
    are changed for different situations
  • Common characteristics
  • Ability to convey meaning about the product
  • Names being short and easy to pronounce
  • Recognizable and easy to remember
  • Able to translated into different languages

Product management and development (XI)
  • In Asia, brand name that sounds good when spoken
    and looks good on paper
  • Names and numbers are associated with luck
  • Number eight (associated with prosperity)
  • Number four (avoid, considered unlucky)
  • Symbols are used to support the brand name, are
    instantly recognizable and overcome the
    difficulties of translation
  • Using translations may be problematic within
    countries as well as between countries
  • Japanese, 4 different writing systems exist and
    associated with different historical or cultural
  • Kanji, traditional and quite inappropriate for a
    technologically sophisticated product
  • Katakana, borrowing language from the West
  • Hiragana, perceived to be feminine and used for
    beauty prodcuts and hair dressing salons

Product management and development (XII)
  • Brand equity
  • The loyalty to the brand by consumers, awareness
    of the brand, perceived quality, the strength of
    brand associations and supporting patents,
  • Tailoring each element of the marketing mix
    contributes to brand equality
  • Gain legal protection of their name and unique
    products features
  • Gain leverage when dealing with distributors and
    retailers who need to offer the brand to keep
    customers satisfied
  • Easily identify the type of goods or services
    that suit them best
  • Branding strategy
  • Japanese (Flexible branding strategies)
  • Meet the customer needs that change over time
  • Translated into direct benefits for the consumer
  • Advertising and promotion have sought to support
    the image of the brand
  • Example as Mitsubishi, Toyota and Sony

Product management and development (XIII)
  • South Korean
  • Brands internationally
  • Example as Goldstar, Samsung, Daewoo and Hyundai
  • Taiwanese
  • Ranging from the computers to fashion clothing ,
    relied on established brands from the USA, Japan
    and Europe to market these products
  • Rely on product function, low prices and
    international distribution and marketing to
    promote their products
  • Product life cycle and positioning
  • PLC concept refers to the stages of a products
    life span in the marketplace
  • Depend on how well the company can stimulate
    demand for the product
  • The perception of the product type changes and
    the elements of the marketing mix are adjusted

Product management and development (XIV)
  • PLC consists of 4 separate stages
  • The first stage-Introduction
  • First released onto the market
  • Typically slow, aware of the product
  • Inferior to their current brand or are waiting
    for others in their peer group to try the product
  • Products are minimal at this stage due to the
    high costs of product development, trials,
    promotion and distribution channel set-up
  • Be long and protracted in Asian
  • Lack of understanding of Asian consumer
    preferences and behavior may also slow the
    availability and acceptance pf the product
  • The second stage- Growth
  • Consumers accept the products and sales rise
    rapidly and profits follow
  • Promotion related costs are offset by higher

Product management and development (XV)
  • Try and extend the PLC through improvements or
    additional features
  • Competitors start to enter the market during this
  • Firm must clearly differentiate the benefits of
    its product offering and communicate these to
  • The third stage-Maturity
  • Sales reach their peak and level off
  • Profits are highest early in this stage
  • Steady revenue generated by sales and lower costs
    once the product has been established
  • Offering against products from competing firms
    (lowering prices)
  • Offering promotional deals or differentiating the
    product through minor modification
  • Products have been available for years and merely
    being updated and improved
  • The fourth stage-Decline
  • Product and profits decrease

Product management and development (XVI)
  • Product becomes a short-lived fad, or its style
    and features go out of fashion
  • Product becomes obsolescent or replaced by a
    superior model
  • Competitors supply rival models of the product,
    purchase have already done so
  • Consumer behavior in response to the products
    entry, acceptance and maturity provides a
    rationale for the PLC concept
  • Introductory stage are known as innovators
  • Growth stage are known as early adopters
  • Decline stage, the product becomes legitimized
    for the majority of the target segments who then
    decide to purchase
  • Substitutes rise and price wars ensure, consumers
    move on to new products and alternative brands

Product management and development (XVII)
  • Strategies for the PLC
  • Introduction stage-skimming strategy
  • High price level while it is still new and offers
    additional benefits over existing products
  • Promotion is high, encourages more rapid
    acceptance and awareness
  • Promotion is low, company recover some of the
    costs of the product development and introduction
  • Willing to pay premium for product
  • Introduction stage-penetration strategy
  • Product is introduced at a low price to capture
    market share quickly
  • Higher level of promotion, market already
    price-sensitive and awareness of the product is
  • Lower level of promotion, market id large enough
    to sell sufficient volume of the product
  • Growth stage
  • Sustain rapid sales growth for as long as
    possible, avoid the onset of the maturity stage
  • Product involve improving quality and design
  • Adding features to the product

Product management and development (XVIII)
  • Introducing new models or products that
    complement the existing model
  • Redesigns promotional materials or lowers prices
    to attract new customers
  • Maturity stage
  • Dominant players and by competition on the basis
    of price and new product attributes
  • Selling based on their established brand and
    brand reputation
  • For quality, value-for-money or service
  • Smaller customer segments avoid head-on
    competition with the dominant market players
  • Employ market and product expansion strategies
    during this stage
  • Attempting to increase the volume of sales by
    attracting new customers in new segments or from
  • Increasing the purchase rate of existing
    customers or modifying the product features,
    style or performance
  • Marketing mix elements is reviewed

Product management and development (XIX)
  • Decline stage
  • Need to address its position in the market for
    the product in question
  • Decide on some type of exit or harvest strategy
  • More profitable to drop the product than to
    continue to complete
  • Decide the product is able to continue to
    generate sales
  • Substantially curb expenditure on the product
    while maintaining sales levels
  • The companys strengths versus those of the
    competitors and the potential return during the
    decline stage
  • Product positioning
  • Identified target markets, evaluated the
    companys strengths and weaknesses and those of
  • Firm needs to establish and clearly communicate
    the grounds on which the product is
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