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Managing brands internationally (Building Global customer based brand…
Managing brands internationally
Standardization vs Customization
Standardization
, because the world is shrinking due to heaps in tech and communication, well managed companies should shift their emphasis from customizing items to offering globally standardized products that are advances, functional, reliable and low priced
Customization
, The product should be tailoured to fit the local populace and market needs
Advantages of global marketing campaigns
Lower marketing costs,
uniformity in packaging, advertising and promotion activities, should increase cost saving potential.
Consistency in brand image
, Maintaining a common marketing platform helps increase consistency of band. This is important where there is a lot of customer mobility or where media exposure transmits images across national borders (Europe)
Economies of scale
(a proportionate saving in costs gained by an increased level of production.) The advantage of a global ad campaign is the efficiencies and lower costs that derive from higher volumes in production and distribution
Building Global customer based brand equity
, marketers must attempt to maximize the probability of realizing the advantages of a global marketing campaign while minimizing any potential disadvantages of globalization
1. Understand similarities and differences
, the most fundamental guideline is to recognize that international markets can vary in terms of brand development, consumer behavior, marketing infrastructure, competitive activity and legal restrictions
2. Don't take shortcuts
, it is critically important in each country that there exist sufficient levels of brand awareness and strong, favorable and unique brand associations to provide sources of brand equity
3. Establish marketing infrastructure
, success for many brands has been because of their manufacturing, distribution and logistical advantages, Involved creating marketing infrastructure from scratch, also adapting to capitalize on the marketing infrastructure in other countries
Embrace IMC
, Oversees markets don't have the same advertising opportunities as in the US and Europe, As a result businesses have had to embrace other forms of communication such as sponsorship, promotions, public relations and merchandising.
Disadvantages of global marketing campaigns
Differences in consumer response
, varying attitudes towards marketing activity, people in the US are very cynical about advertising whereas Japanese people react more positively to it
Differences in the legal environment
, Different regulatory and legal restrictions exists in different countries , Canada banned prescription drug advertising in TV, Sweden prohibits advertising to children
Differences in consumer needs
, because of different cultural values, economic development, religion consumer behavior with respect to many product categories is different. The consumption of fizzy drinks, beer, shampoo will vary dramatically from country to country
Global brand strategy
, in order to gain global customer based brand equity, it is important to do the following
Identify differences in consumer behavior (how consumers purchase and use products and what they know and feel about brands) in each market
Adjust the brand accordingly (through the choice of brand elements nature of the actual marketing campaign and activities and the use of secondary associations)