Global branding is significant to consumers as it offers them a variety of brands from which to choose the one that best suits their needs. Global branding increases the products being offered in various markets, thereby increasing the choice options for consumers. Further global branding offers consumers a chance to attain high-quality products because firms will be compelled to provide a standardized quality globally.
Most consumers have various perceptions regarding global brands (Abbott, and Snidal 96). To begin with, they believe global brands are prestigious. Most consumers tend to associate global brands with the high-class individuals in the community. Further, consumers associate global brands with high quality. They believe that global brands have undergone a variety of quality checks before being allowed to trade internationally.
As such, they will associate themselves with such products thinking they will serve their needs better. Besides, consumers believe that global brands are expensive than the local brands. In most cases, they think the products are not produced within their locality, and that increases their prices.
Global branding has severally affected my purchase decisions. The most recent incident is when I was purchasing a phone. I had a variety of choices from which to decide on one. I automatically opted to buy a Samsung brand simply because I hold a perception that global brands are of high quality. As such, it is to my expectation that the phone will be more durable as opposed to the local brands.
Global markets pose a variety of challenges for brand management. To begin with, firms face inherent market differences in various nations all over the world. For instance, the model that a firm will embrace in the US will not be similar to the one it will employ in China due to various factors such as cultural and legal differences.
Therefore, as much as firms may be ready to standardize their brand management globally, it will be difficult due to such variations. Secondly, entrenched local brands are acting as a challenge for global brand management. The local brands have a variety conditions favoring them over the global brands, which includes the ability to serve unique market trends. As such, their brand loyalty is inherited from one generation to another, making it hard for global brands to break through.
Finally, global brand management is facing a challenge of increased focus on retail buying power. More often the goals of local brands differ from those of the global brands (Vartiak 77). Most local brands tend to serve the demands of the consumers at lower prices, as they are not required to undergo long formalities. As such, the local consumers may tend to prefer the local brands as opposed to the global ones.
Global brands require specific strategies, which can improve perceptions about the specific brand. For instance, use of digital marketing, consistent brand culture, and promotions for customers can prove to be helpful in promoting the brand name of any multinational company. Digital marketing plays a key role in spreading the word about the existence of the product and at the same time enhances sell of the products (Pernu et al. 80).
Using traditional methods of marketing might prove costly as it can fail in some areas. This will promote the brand name of the company positively. Building a consistent brand culture is essential for a multinational company that wants to do better globally. The culture of the organization should be geared towards ensuring that customers are handled well during business operations.
The brand name speaks volumes about their products hence the need to adopt a consistent brand culture. A consistent brand name will prove helpful as this will make products more attractive to consumers. Consequently, the sales will increase due to a reputable brand name. Reputable brand names will be most preferred by consumers unlike products with the poor brand image.
Promotion programs initiated by multinational companies are important in promoting the growth of transnational firms. For instance, offering discounts to various customers on products can be used to create a positive perception of the brand. Examples of such promotions include after sale services, discounts, credit sales and taking part in community programs.
Trademarks and patents are important to the production process and operations of the companies in general, and there is a need to protect them. The first strategy that can be used to protect patents and trademarks is upholding of high levels of privacy. Keeping privacy at a high level means the secret will be protected. Developments in the company should be kept confidential, and this will help the organization protect their patents.
Information on such companies should always be kept within the authorized lines until the patents have taken effect. Second, multinational companies should enforce patent ownership that is precise (Segers 200). The agreement should contain the exact partners’ roles and contribution as well as divisions of the intellectual property. Further, the companies should adopt trademarks that are unique in a way that they can be identified with the business.
Additionally, the company should find out whether any part of their product has been trademarked. This can be done through trademark clearance search. Third, the multinational companies should file any of their trademarks for registration. This will help prevent any future conflicts as to who owns the trademark rights. Most global companies have filed their patents for registration. At a small fee, the companies can download forms of certification and fill them before submitting. This can help decently protect patents and trademarks.
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Pernu, Elina et al. “Creating Shared Views Of Customers: Individuals As Sense-Makers In Multinational Companies”. Industrial Marketing Management, vol 48, 2015, pp. 50-60. Elsevier BV, doi:10.1016/j.indmarman.2015.03.005.
Segers, Rien T. Multinational Management. Springer, 2016.
Vartiak, Lukas. “Global Sustainable And Responsible Investment Activities And Strategies Of Companies”. New Trends And Issues
Proceedings On Humanities And Social Sciences, vol 3, no. 4, 2017, pp. 77-87. Sciencepark Research Organization And Counseling, doi:10.18844/gjhss.v3i4.1610.