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From Country of Origin Effect to Brand Origin: Challenges in International Direct Marketing Channels

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Book cover International Marketing Strategy

Part of the book series: International Series in Advanced Management Studies ((ISAMS))

Abstract

Direct investments are an entry mode that increases business risk but allows a high level of control of the international marketing channel. Control means to be able to exploit and defend one’s own competitive advantages and to operate personally in the production and commercial activities. This chapter is aimed at investigating the ways in which greenfield direct investments can facilitate manufacturers’ value creation process for the market through the COO and value appropriation process. In the COO perspective, a representative office can oversee the foreign market by controlling implementation of the company’s branding strategy, suggesting possible adaptations, and maintaining close relationships with distribution partners. This chapter analyses what, from companies’ perspective, the role of the concept of manufactured-in has in the associations drawn between the country and the specific brand.

The relationship between the country of manufacturing and the country of brand is also explored, giving voice to some companies that have entered directly through greenfield investment types in China and the USA operating in the food, furniture, and fashion sectors. Knowing how to adapt product attributes by rereading the made-in and its relationship with the brand to match local market needs is one of the main challenges to compete effectively in foreign markets.

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Notes

  1. 1.

    In 2018, Italy confirmed its position as the fourth largest supplier to China among European countries, with exports of 13.2 million euro. In addition, with 30.7 million euro, Italy ranked fourth among European customers of China (Source: http://www.infomercatiesteri.it/paese.php?id_paesi=122#slider-6, accessed May 05, 2019.

  2. 2.

    Many of the original quotations extracted from the interviews, which are reported in this chapter, have already been published in a previous work by Vianelli and Pegan (2014).

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Authors and Affiliations

  1. Department of Economics, Business, Mathematics and Statistics, University of Trieste, Trieste, Italy

    Giovanna Pegan, Donata Vianelli & Patrizia de Luca

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  1. Giovanna Pegan
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  2. Donata Vianelli
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  3. Patrizia de Luca
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Pegan, G., Vianelli, D., de Luca, P. (2020). From Country of Origin Effect to Brand Origin: Challenges in International Direct Marketing Channels. In: International Marketing Strategy. International Series in Advanced Management Studies. Springer, Cham. https://doi.org/10.1007/978-3-030-33588-5_5

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