Analyze the Advantages and Disadvantages of Using a Global Brand Name
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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
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.