DISCUSSION QUESTIONS
10-1. What is the difference between a product and a brand?
A product can be defined as a collection of tangible and intangible attributes. The former
include physical features, design attributes, and packaging. The chrome on a Harley-
A brand is defined in the text as a symbol about which consumers have beliefs or
10-2. How do local, international, and global products differ? Cite examples.
A local product or brand is perceived to have potential in a single national or regional
market. Coca-Cola’s Georgia-brand canned coffee is an example cited in the text.
refrigerator from Matsushita has three doors and a special chilling compartment for fish.
The Smart car is an example of an international product; it was specifically designed for
10-3. What are some of the elements that make up a brand? Are these elements tangible or
intangible?
The components of a brand image are shown in Figure 10-1. At the heart of the brand is a
person’s expertise with it. In addition, the brand name and logo, company name,
10-4. What criteria should global marketers consider when making product design decisions?
A standardized global product platform can offer potential cost savings. Customer
preferences, costs, country laws and regulations, and environmental compatibility are all
10-5. How can buyer attitudes about a product’s country of origin affect marketing strategy?
If buyers feel positive about a country, a company should consider playing up the
country-of-origin in its marketing communications. For example, Volkswagen’s
Russia and the South Africa are two countries in which policy makers and business
leaders have an uphill battle in combating negative country-of-origin perceptions. While
packaging and marketing communications.
10-6. Identify several global brands. What are some of the reasons for the global success of the
brands you chose?
Depending on what a particular student’s home country is, he or she may mention Coca-
Cola, Kodak, Sony, Mercedes-Benz, or Nike. As discussed in the text, Nike has
10-7. Each year, the Interbrand consultancy complies a ranking of global brands. The top-ranked
brands for 2014 are shown in Table 10-2. Browse through the list and choose any brand that
interests you. Compare its 2014 ranking with the most recent ranking, which you can find online
at www.interbrand.com. How has the brand’s ranking changed? Consult additional sources (e.g.,
articles from print media, annual reports, the company’s Web site) to enhance your understanding
of the factors and forces that contributed to the brand’s move up or down in the rankings.
10-8. Hofstede’s social values framework can be used to help explain the Asian version of
Maslow’s hierarchy. Which dimension from Table 4-2 is most relevant? In Chapter 4, we also
noted the differences between innovation diffusion processes in Asia and the West. Review the
discussion in the chapter. Can you relate it to Figure 10-1?
From Table 4-2 we find that masculinity, long-term orientation, and uncertainty
avoidance are the most relevant to understanding the Asian market. And from Figure 10-
10-9. Compare and contrast the three categories of innovation discussed in the chapter. Which
type of innovation do flat-panel widescreen HDTVs represent? The iPad?
Products that create new markets and consumption patterns are called discontinuous
Dynamically continuous innovations refer to products that share certain features with
Continuous innovation refers to products that are “new and improved” versions of
The Flat-screen TV is a continuous innovation although it represents a departure from the
evolving!
CASES
Case 10-1: Google
Overview: Google is one of the world’s premiere technology companies. Founded in 1998 by
Larry Page and Sergei Brin with a focus on Internet search, today Google is a household name
virtually everywhere. Google has developed an impressive product and brand portfolio that
includes consumer offerings such as Google+, Google Play, Google Wallet, and Google Chrome.
Google has also made a number of strategic acquisitions, including video-sharing site YouTube
and “smart” thermostat brand Nest (see Exhibit 10-1). Google’s myriad product development
initiatives illustrate the point that products and brands are arguably the most crucial element of a
company’s marketing program; they are integral to the company’s value proposition.
10-10. Apply the new-product continuum on page 332 to Google’s Moonshot Factory. Which
category is most evident?
More than one-third of the world’s population does not have Internet access. Project
Loon is Google’s solution. The company has an ambitious plan to launch thousands of
Regarding the new-product continuum, students’ answers may vary. I believe
10-11. Assess the prospect for driverless cars. Once the technology is perfected, what obstacles
will Google have to overcome before the concept becomes widely adopted?
regulatory approval.
10-12. If you were an executive at a car manufacturer, would you adopt Android Auto or CarPlay
for your vehicles?
with them.
Case 10-2: The Smart Car
Overview: The Smart car invented by DaimlerChrysler is supposed to hit the American market
and then global. The European market didn’t bring a profit to its parent company. The
management of DaimlerChrysler has hesitations about the demand for the Smart car in the
United States.
10.13. What is Smart’s competitive advantage? Brand Promise? Positioning?
The Smart car boasts several competitive advantages. First is its diminutive size. There is
nothing else quite so small. This, in itself, is a unique advantage. Second is Smart’s
It’s brand promise is associated with the quality and reputation of Mercedes-Benz and the
10.14. How does the Smart compare to the Honda Element, Scion iQ, Kia Soul, or Fiat 500?
Are these models targeting the same consumers as the Smart? In view of the Japanese
carmakers’ success with these brands, do you think the Smart’s U.S. launch is too late?
On the surface, it seems that the Smart Car and the Honda Element and Scion iQ and the
others are targeting different consumers—the Honda and Scion iQ to the Gen Y markets,
10.15. As noted in the case, Penske Automotive Group is no longer the distributor for Smart
USA. How will this affect Smart’s fortunes in the United States?
As one of the largest automotive distributor’s in the United States, the loss of the Penske
10.16. Evaluate Smart USA ‘s social media strategy. What additional channels or tactics would
you recommend?
Student answers will vary but one’s recommendation would be to change the social media
tactic from “dumb” to a message that is more pragmatic and positive especially if the