Marketing Strategies: Creating a Global Brand

Chapter 7: Creating a Global Brand

• The chapter explores the creation of a global brand, examining relevant trends and issues in financial markets.
• The notes focus on the elements and benefits of branding, formulating global brand summaries, global branding structures, determinants of global brand structure, managing key strategic brands, and common branding strategies.
• The study includes an introduction, table of contents, and objectives.

Introduction

• A global brand maintains a consistent name and image across the world.
• Companies use various branding strategies (tiered branding, co-branding, etc.) to strengthen brands globally.
• Maslow's hierarchy offers a framework to understand consumer needs for developing products in differing markets.
• Country-of-origin effect impacts product appeal.
• Packaging and warranty policies should be tailored to local market preferences.
• Consumers trust brands, which directly correlates to profit margins and share prices.

Elements and Benefits of Branding

• Brands are valuable identifiers (names, signs, symbols, designs, etc.) simplifying consumer choices.
• Brands represent promises of what a company or product offers.
• Brands are assets that create customer preference and drive premium pricing.
• Brands encompass collective perceptions, experiences, and beliefs about a company or product.
• “Mind share” refers to a unique position a company/product holds in the consumer's mind.
• Brand features include visual design, product features, experiences, and intangible aspects.
• Brands serve to differentiate, stimulate associations, and trigger the psychological needs and experiences of consumers.

Global Branding Strategies

• Companies strategize to expand globally.
• Global branding strives for economies of scale by optimizing production, packaging and leverage existing power.
• Brands may face the challenge of meeting different consumer needs
• Global branding requires adjusting marketing strategies to local contexts, to increase their appeal to local segments.
• Different operating modes exist to execute international objectives.

Evaluating Brand Performance

• Companies evaluate and assess external environments' impacts on brand performance, to ensure positive brand image and successful branding strategies are developed and implemented.

Value of Branding

• Branding helps streamline consumer choices and create trust.
• Effective branding helps consumers easily identify desirable companies/products.
• Positive brand associations influence product selection and consumption.
• Branding helps companies establish a competitive advantage.
• Companies may charge more premium prices on stronger brands.

Factors influencing Brand Strategy

• Firm-based characteristics (organization structure, growth, etc.)

• Product-market characteristics (target market, competition, cultural associations, etc.)

• Underlying market dynamics (global integration, consumer preferences, etc.)

• Balancing the need for global presence with local responsiveness.

• The importance of branding corporate identity: it helps the company communicate its value effectively and fosters confidence.