Global brands Flashcards
What measures does Business and Management theory suggest for defining global brands?
1) the number of countries
2) the geographic spread of the countries
3) the amount of investment that transfers across borders
What is Kenichi Ohmae’s ‘Borderless World’ stating about how the world is changing?
The world is becoming increasingly defined by tradeflows around the world, where in financial and economic terms the world is becoming borderless and globally interlinked
What statistics does Ohmae use to support their theory of the ‘Borderless World’?
In 1990, 80% of the world’s trade occurred between the triad economies -> Europe, North America and Japan
Since then, the BRIC economies have outstripped the growth and moved ahead of the triad
There has also been large increases in investment in the Middle East, China and India
What is the solution developed by Bartlett and Ghoshal to help define global brands?
The Transnational solution -> there is a scale from multi-domestic to transnational where levels of centralisation differ along this scale
What does the transnational solution dictate about global brands?
That they will have one marketing strategy that works across all markets
What does the transnational solution dictate about multi-domestic’s marketing strategies?
That they will have a different marketing strategy for different markets
According to Bartlett and Ghoshal, what are the characteristics of how a transnational is run?
They have top-down strategies -> head office decides actions
They have centralised R&D and control
Consistent communication and strategies across different markets
They are cost effective -> economies of scale and scope
What is the drawback of being a transnational?
They can be inflexible -> can miss opportunities and threats because they are so large, which makes it hard to access and control the business in all places at all times -> different markets may have different demands and regulation
According to Bartlett and Ghoshal, what are the characteristics of how a multi-domestic is run?
Bottom-up strategies -> localised control and responsiveness rather than centralised
They will use adaptive strategies -> strategies will change based on domestic demand and the localised responses to previous strategies
What is the drawback of running a multi-domestic?
They can be complex and inefficient -> can lead to duplication of work and technology
What do Levitt and Ohmae argue are reasons for standardisation?
1) Technology advances
2) Homogenisation of tastes
3) Economies of scale and scope
What reason does Hout et al and Bartlett and Ghoshal give for standardisation?
It will create global competition -> once there is global competition it will drive others to do the same so that they can compete with them in the market
What 2 perspectives can global brands be split into?
Consumer and Producer
According to Quelch, what 5 characteristics do global brands have from the producer perspective?
1) the company must have the same positioning worldwide
2) the firm focuses on a single product category
3) the company name is the brand name
4) access to the global village -> consuming the product = membership into a global club
5) the firm will have social responsibility -> consumers will expect the firm to lead on CSR
What is the potential issue with having one name/brand across all countries?
It can have misunderstandings or may lose its meaning in other languages
How can global brands overcome the issue of people misunderstanding their brand name?
Develop a transparent name e.g. a combination of random letters (IBM) or use an image to represent the brand
What do Steenkamp, Alden and Batra believe makes a brand global?
A brand is global when it is perceived in a consumer’s mind to be that way
What do Aaker and Joachimstaler believe about global brands?
They believe that there is a lure to global brands, where their look, feel, positioning and personality is the same across different countries.
What do Aaker and Joachimstaler believe that the success of global brands will lead to others doing?
They believe that brands seeing high profile success of other global brands will encourage them to try to match and emulate that
What is Holt, Quelch and Taylor’s belief about global brands?
That they make you feel a sense of belonging and sense that you are part of something bigger -> localised brands show what you are, global brands show what you want to be
What do Holt, Quelch and Taylor believe the consumption of global brands can lead to the creation of?
Cultural myths -> global brands now help the creation of cultural myths in society
What is the country-of-origin effect?
Certain countries are associated with being good at producing certain products e.g. Germany and manufacturing -> creates a halo effect for that product
Can the country-of-origin effect also be negative?
Yes, certain countries may also be attributed with poor performance in a certain industry which will reduce your demand in that industry
What elements of the Marketing mix are more likely to be standardised across markets?
Packaging, pricing, and product
