Global Branding – 1 Global Branding Professor Carl Mela BA 460 Product Management Fuqua School of...
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Transcript of Global Branding – 1 Global Branding Professor Carl Mela BA 460 Product Management Fuqua School of...
Global Branding – 1
Global Branding
Professor Carl Mela
BA 460 Product Management
Fuqua School of Business
• Brand Management System
• On Building A Brand
• Managing Across Brands
Global Branding – 2
Agenda
• Rational for Global Marketing
• Benefit of Global Marketing
• Liabilities of Global Marketing
• Building Global Brands
Global Branding – 3
Why Use Global Brands?
• Economies of scale– Production– Marketing (e.g., one agency)
• Prestige of global availability
• Consistency (McDonalds)
• Rapid adoption of innovations
• Benefits of learning across cultures
• Less risk of arbitrage (e.g., diverting low price brands from other markets)
Global Branding – 4
Why Not Use Global Brands
• Consumers differ across cultures– Needs, attributes, marketing response
• Environment differs across markets– Competition, regulations, channels, etc.
• High tech, high image (jewelry), corporate image (airlines), new channels (internet), point of origin brands (champagne), and standardized needs (medical) are categories where global makes more sense
• Is the Duke MBA a global brand? Why?
Global Branding – 5
Building Global Brands
• Exporting brand– Costly, high control, slow
• Brand acquisition– Costly, medium control, fast
• Brand alliance– Cheap, low control, fast
Global Branding – 6
Building Global Brands
• Global brands vs. Global leadership in brands
• Share best practices across nations
• Develop consistent planning process (but not plan) across countries
• Develop organizational structure to integrate best practices
Source: Aaker and Joachimsthaler (1999)
Global Branding – 7
Building Global Brands
• Brand elements must transfer across categories
• Ensure product does not interact adversely with environment
• Develop distribution (pull won’t work without)
• Communications - standardize some messages, but vary creative
Global Branding – 8
Summary
• Global brands have benefits ..
• But also liabilities
• Key solution is to be global leader in branding as opposed to global brand