Global branding

Question 1

Why should the firm brand its products /why not?

Answer 1

Branding needs to offset the cost from branding.

We would like to create a preference and hereby improve chances for higher sales.

• We increase the awareness and hereby the total number of potential customers buying our products.
• The reason for the investment: that the payout over time will be less than gained from the branding.
• A product is not only a product. It is a offering with intangible elements added to it. E.g. brand-values. The customer is engaged in a physiological contract with the brand. A violation of this perceived contract (by changing design, brand-name), which translate in negative performance of the product.

Question 2

Why use brand communities?

Answer 2

: a product can be more than the functionality itself.

Question 3

Which authors on Global branding?

Answer 3

Levitt T. (opinon on global markets = stadardization of products, manufacuting and commerce).

Schroiff & Arnold (Using global brabding or local branding, + offering product and brand and their relatiosnhip)

Question 4

What is global branding?

Answer 4

Globally consistent brand names, identities and positions

- high effeciency wrt. economies of scale in marketing expenditure, managerial control. Also low complexityy

Question 5

What is local branding?

Answer 5

Branding that takes into account local taste and preferences

• closeness to the custimer, custumizing offerering
• high complexity

Question 6

When to standardize or globalize branding?

Answer 6

Shroiff & Arnolds matrix of standadization and adaptation:

X = product features
(adaptation, standadization)
Y = Brand elements
(adaptation, standadization)

One local brand, different local brand, adpated global brands, global brands

Question 7

Does standadization always yield economies of scale?

Answer 7

In order to realize EOS, should should be able to sell high amounts. If this is not possible due to different custumer preferences matter, it will yield lower sales. The benefits of standardizing will be compensated in lost sales. Analyze how sensitive the customers are

Question 8

How is the S-curve/concave curve related to the branding strategy?

Answer 8

Global Diversification: tadapted global brands

Concentration: One local brand and different local brand.

Question 9

Why having brand communities?

Answer 9

A product can be more than the functionality itself.

• Being part of the community, members are more likely to consume your products more. You create a bond to the customers -> enhance loyalty.
• Normally it is very costly to acquire new customers.