Preview

Analyze the Advantages and Disadvantages of Using a Global Brand Name

Best Essays
Open Document
Open Document
2791 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Analyze the Advantages and Disadvantages of Using a Global Brand Name
Mercier du Paty de Clam
Laetitia (10902550x)

Analyze the advantages and disadvantages of using a global brand name

INTRODUCTION
Nowadays the global market is quite attractive for high competition environment. In order to be visible in global market, brands can be used to play an important role. From marketing point of view, brands are the means that consumers use to distinguish products and services based on essential and non-essential attributes and they are a source of business’s differential advantage.
When the company exports a product label, it has the choice between using: specific brands in each market (local brands), or a single brand for all its foreign markets (global brand).
The decision between these two alternatives, which each have their advantages and drawbacks is related to the choice between standardization and adaptation of brands in foreign markets and the desire to associate a local image or a foreign image to the product.
What are the advantages and disadvantages of using a global brand name?
Firstly I will explain what a global brand name is, then I will analyze the advantages of using a global brand and finally I will analyze the disadvantages.

I What is a global brand name?
A global brand (examples: Coca-Cola, Benetton, IBM, Sony, Canon ...) is a brand that is marketed the same way worldwide. This means this means: * Strategic principles are identical in all markets; * An identical position is observed in all markets. The brand positioning is the mental image associated with it. If we associate the brand with a high price or a particular age group in the domestic market, it will have the same position worldwide; * Marketing strategy is identical in all markets with a few exceptions to best adapt to local tastes and to the competition. The marketing mix should not be completely uniform because it can vary in price, the media distribution systems used, etc.. The key is that the principles underlying strategic


References: * Books LENDREVIE Jacques, LEVY Julien, LINDON Denis (2006) Geoffrey Randall (2000). Branding: a practical guide to planning your strategy. : Marketing in actions series. Kapferer, Jean-Noel (1997), Strategic Brand Management, second edition, London: Kogan Page. Kochan, N. (1996). The World’s Greatest Brands, Macmillan: London.  * Websites Interbrand-www.interbrand.com Bénédicte Epinay (2008) Euro-export, Le choix entre la standardisation, l 'adaptation et la standardisation adaptée. Retrieved. http://www.eur-export.com/francais/apptheo/marketing/comm/comstand.htm Interbrand (2008). Interbrand Global Brand * Article in a Journal Aaker, David and Kevin Keller (1990), Consumer Evaluations of Brand Extensions,Journal of Marketing, 54, 1, 27-33. Bearden, W.O. and M.J. Etzel (1982), Reference Group Influence on Product and Brand Purchase Decisions, Journal of Consumer Research, 9(2), 183-194.
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Btec National Diploma in Business Introduction to Marketing Pass One
    • 1389 Words
    • 6 Pages

    Btec National Diploma in Business Introduction to Marketing Pass One

    An important marketing technique mainly used is branding. Branding is the entire process involved in creating a unique name and image for a product in the consumer’s minds, and almost act’s as a business’s ‘identity’ as it creates an image for the business. A brand can be a powerful selling tool and can help achieve marketing objectives such as gaining market leadership and raising customer awareness. According to the chartered institute of marketing, the best brands create a special relationship with their customers, based on intangible qualities that evoke strong emotional responses. These might consist of a logo, a general look and feel, a tone of voice and the way the company interacts with its customers.…

    • 1389 Words
    • 6 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Phl 320 Globalization Argumentative Research Paper
    • 652 Words
    • 3 Pages

    Phl 320 Globalization Argumentative Research Paper

    While business that remain local competitors are limited to the scope of their sales and revenue. An organization that can successfully expand to a global market creates a broad open market which can more effectively communicate with partners and customers alike. This makes the process of supply and demand, distribution, and local producers and sellers much easier to manage for an organization. This is especially true for an organization who expands globally in areas they already may import/sell products. By having a physical location in these regions they can avoid high importing/exporting tariffs and even build brand recognition and foster a strong economy. (2, Conclusion) Therefore globalization creates and fosters open markets and strengthens brand names. A company can greatly increase not only their revenue with globalization, but also the effectiveness of their brand on a global…

    • 652 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Implementation and Standardization Strategies Paper
    • 1796 Words
    • 8 Pages

    Implementation and Standardization Strategies Paper

    This paper will discuss the implementation strategies to include factors influencing local and foreign buyer behavior. Discuss the difficulties encountered when trying to research and understand local buyers. The implementation strategy will address which models of consumers’ behavior might be used to examine buyers in local markets and the importance of considering cultural elements to apply these models effectively. This paper will also discuss standardization strategies to include the difference between localization, adaptation and standardization of a global product or service. Discuss the key factors that drive a successful globalization of a new product into a foreign market. Discuss the pros and cons of standardization. Explain methods of integrating a global brand to both local and foreign markets…

    • 1796 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Better Essays

    Branding, Pricing, and Distribution
    • 1512 Words
    • 7 Pages

    Branding, Pricing, and Distribution

    Branding, pricing, and distribution are all integral parts of a strategic marketing plan. Each segment of the plan needs to be developed individually with the entire culmination of the plan in mind. In other words, each segment should be a link in the chain to a completed marketing strategy. The ultimate goal is to reach a successful culmination of all three tiers that will have a successful impact in introducing the brand, pricing it correctly, and forming a distribution model that will maximize the competitive advantage to the company or service in question. This report will outline the steps in developing a local branding outline as well as an international branding strategy .The idea behind branding is to differentiate your product, value, quality or service from your competitors, and make it more readily identifiable to the end user. There are at least four questions that need to be asked before implementing a branding strategy. The first of course is whether to brand the product vs, a no brand decision. The second decision would be to use a manufacturers brand vs. a private label strategy. The third question entails whether to go with a single brand vs. multiple brands. The final decision is to decide whether to brand in a local market or a global market or a combination of both. Branding in a global market is much more complicated than branding in a local market. When branding in a global market. Culture becomes a major consideration. It is generally wise to chose countries that have similar or closely related cultures and, or language skills to expand your brand globally. International marketing is the last frontier of the marketing discipline. International marketing is yet to be fully explored but is being increasingly tested to reach an ever growing sea of future consumers.…

    • 1512 Words
    • 7 Pages
    Better Essays
    Read More
  • Powerful Essays

    Contemporary Brand Management
    • 7424 Words
    • 30 Pages

    Contemporary Brand Management

    Hatch, M, J. and Schultz, M. (2000) cited in Chernatony, L. (2010) From Brand Vision To Brand Evaluation, 3rd ed. Oxford, Butterworth-Heinemann…

    • 7424 Words
    • 30 Pages
    Powerful Essays
    Read More
  • Good Essays

    The Global Branding of Stella Artois
    • 1409 Words
    • 6 Pages

    The Global Branding of Stella Artois

    * popularity of brands in one country (e.g the U.S.) may spill over to neighboring…

    • 1409 Words
    • 6 Pages
    Good Essays
    Read More
  • Powerful Essays

    ITC ltd
    • 4621 Words
    • 19 Pages

    ITC ltd

    “A country's brands are a reflection of its competitive strengths and a manifestation of its innovation and intellectual capacity. I strongly believe that a country's economic capacity is significantly enriched when its institutions build and own internationally competitive brands. Winning brands serve as market anchors to support the competitiveness of the entire value chains of which they are a part. Strong domestic brands create much larger value since they…

    • 4621 Words
    • 19 Pages
    Powerful Essays
    Read More
  • Good Essays

    Globalisation on Developing Economies
    • 838 Words
    • 4 Pages

    Globalisation on Developing Economies

    The two main characteristics of globalisation are global brands and global sourcing. Global branding involves one brand being available in most international markets. Examples of global brands include McDonalds and coca-cola. Even though the price charged in each economy may be different, the product will be almost identical in every country. Global sourcing on the other hand is more about ways in which global companies produce on a worldwide scale. In this way, domestic producing becomes replaced by investing in capital on an international scale. Examples of global sourcing can be seen by the actions of Nike and Toyota. Both global branding and global sourcing have their positives and negatives on developing economies.…

    • 838 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Marketing and Heineken
    • 973 Words
    • 4 Pages

    Marketing and Heineken

    A global brand is one which customizes product features and selling techniques to local tastes so that consumers in different locations and under different socio-cultural constructs (or, in this case, also under different development cycles) can identify and relate.…

    • 973 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Branding Strategy of Sony Ericsson in International Market
    • 5945 Words
    • 24 Pages

    Branding Strategy of Sony Ericsson in International Market

    In today‟s global marketplace, MNCs need to set up effective branding strategies in order to be competitive. Depending on the structure of the company and the products offered, MNCs can use different strategies. There are certain characteristics that will affect the type of strategy chosen. In order to reach economies of scale and scope, many MNCs standardize their branding and marketing activities. But, when expanding globally, a global brand strategy has to be developed & when entering international markets different strategies have to be considered. This report on „Branding Strategy of Sony Ericsson in International Markets‟ is prepared as a fractional requirement of the course – Global Market Analysis & Branding, course code: IB-505, instructed by Professor Dr. Md. Kamal Uddin, Dept. of International Business, University of Dhaka.…

    • 5945 Words
    • 24 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    A Research Proposal on Marketing Brand Management
    • 3650 Words
    • 15 Pages

    A Research Proposal on Marketing Brand Management

    This proposal is about one particular aspect of marketing, “Brand Management”. Marketing is a vast discipline so as a part of writing this proposal; I chose one particular aspect of it, which will provide information about several aspects of brands in global scenario.…

    • 3650 Words
    • 15 Pages
    Powerful Essays
    Read More
  • Good Essays

    Global Brands vs Local
    • 1181 Words
    • 5 Pages

    Global Brands vs Local

    A big issue facing the international marketing world today is whether global branding is better then local branding. Consumers all over the world have many different opinions on whether they like purchasing products from big corporate, multicultural companies or the local mom and pop shops that they have grown to know, and became comfortable with. The pros and cons of both global and local branding vary from good and bad. In my opinion local branding are still superior to global branding in the society today.…

    • 1181 Words
    • 5 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Culture of Brand Origin
    • 293 Words
    • 2 Pages

    Culture of Brand Origin

    Therefore to close the identified gaps, Thakor and Lavack (1996) proposed the ‘brand origin’ (BO) and highlighted a perceptible distinction between the concepts of COO and BO. They defined Brand Origin as “the place, region or country where a brand is perceived to belong by its target market”. It was later postulated that a culture effect is an important factor that can affect brand preference and purchase intention. There has been conflict between standardization of brand name and localization of brand name. It has been argued that people from diverse geographic locations and cultural backgrounds to share the same preferences, resulting in the emergence of global brands. On the other hand, many companies change the brand name of their product according to the country they target. This study postulated that the cultural characteristics that are appended to a brand are in fact the linguistics characteristics of a brand name which these factors can modify consumer’s attitude towards the brand as well as to affect his or her intention to purchase the…

    • 293 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Article Review: Real differences between Local and International Brands
    • 591 Words
    • 3 Pages

    Article Review: Real differences between Local and International Brands

    The article begins with an overview of the advantages and disadvantages of international and local brands. International companies are defined as such due to globalized elements in their marketing mix. Their main benefit is the opportunity to benefit from economies of scale that enables to offer the product at lower price and thus to gain competitive advantages worldwide. In that way, the brand can build unique image and popularity internationally. Research shows that quality and prestige are the main characteristics consumers associate with international brands. Additionally, international companies can launch a product and foster its advertising faster than local ones.…

    • 591 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Deciding on the Marketing Program
    • 885 Words
    • 4 Pages

    Deciding on the Marketing Program

    a. Global Marketing Strategy – defines a standard marketing mix and implements it with minimal modifications in all of its domestic and foreign markets. This standard approach saves money because it allows large-scale production runs and reinforces the brand’s image. It can foster collaborative innovation. Through global marketing strategy, Global firms can effectively market some goods and services to segments in many nations that share cultures and languages. This approach works best for products with strong, universal appeal such as McDonalds and for luxury products that target upscale consumers everywhere.…

    • 885 Words
    • 4 Pages
    Good Essays
    Read More

Related Topics