Global branding

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How to chose between global and local How to chose between global and local brandingbrandingHow to transfer brands to global marketsHow to transfer brands to global markets

How to translate brand names to other How to translate brand names to other culturescultures

Global or Local Global or Local Brands?Brands?

Global branding

economies of scaleeconomies of scaleeasier to build awarenesseasier to build awareness“global” conveys prestige“global” conveys prestigeglobal brands can leverage country global brands can leverage country associations (e.g., Swatch, associations (e.g., Swatch, McDonald’s)McDonald’s)

Cross national differences in brand equity

History, History, Competitive climate, Competitive climate, Marketing support, Marketing support, Cultural receptivity to brands, Cultural receptivity to brands, Product category penetrationProduct category penetration

Local branding

regulatory requirements regulatory requirements similar name already in use similar name already in use cultural barrierscultural barrierspatriotism patriotism acquisition of local brandsacquisition of local brands

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Sara Lee’s Hierarchy of Brands

Nestlé Nestlé Branding Branding

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Transferring brands to global markets

Transferring brands to global markets

Brand Name ChangeoverStrategiesStrategiesfadefade--in/fadein/fade--outouttransparent forewarningtransparent forewarningsummary axingsummary axing

Brand translationsBrand translations

COMMUNICATING COMMUNICATING WITH THE WORLD WITH THE WORLD

CONSUMERCONSUMER

Objectives

Describe the global communication processDescribe the global communication processDescribe the constraints on global Describe the constraints on global communications strategiescommunications strategiesIdentify message strategyIdentify message strategyDescribe how to choose an advertising agencyDescribe how to choose an advertising agency

Constraints on Global Communication Strategies

Language BarriersLanguage BarriersCultural BarriersCultural BarriersLocal Attitudes toward Local Attitudes toward AdvertisingAdvertising

Global Attitudes toward AdvertisingGlobal Attitudes toward Advertising

Constraints on Global Communication Strategies (cont)

Media InfrastructureMedia InfrastructureAdvertising RegulationsAdvertising Regulations

Advertising of “Vice Products” and Advertising of “Vice Products” and PharmaceuticalsPharmaceuticalsComparative AdvertisingComparative AdvertisingContent of Advertising Messages Content of Advertising Messages Advertising toward ChildrenAdvertising toward Children

Message Strategy

The “Standardization” versus “Adaptation” The “Standardization” versus “Adaptation” Merits of StandardizationMerits of Standardization

Scale EconomiesScale EconomiesConsistent ImageConsistent ImageGlobal Customer SegmentsGlobal Customer SegmentsCreative TalentCreative TalentCrossCross--FertilizationFertilization

3. Message Strategy (cont)

Agency Survey: Mean Importance of Agency Survey: Mean Importance of Reasons for Standardizing Multinational Reasons for Standardizing Multinational Advertising Advertising

3. Message Strategy (cont)

Barriers to StandardizationBarriers to StandardizationCultural DifferencesCultural DifferencesAdvertising RegulationsAdvertising RegulationsMarket MaturityMarket Maturity“Not“Not--InventedInvented--Here” SyndromeHere” Syndrome

Choosing an Advertising Agency

OptionsOptions1. Work with the agency that handles the 1. Work with the agency that handles the advertising in the firm’s home marketadvertising in the firm’s home market2. Pick a purely local agency in the foreign 2. Pick a purely local agency in the foreign marketmarket3. Choose a local office of a large 3. Choose a local office of a large international agencyinternational agency4. Select an international network of ad 4. Select an international network of ad agencies that spans the globeagencies that spans the globe

Choosing an Advertising Agency (cont)

CriteriaCriteriaMarket coverageMarket coverageQuality of coverageQuality of coverageExpertise in developing a central international Expertise in developing a central international campaigncampaignScope and quality of support servicesScope and quality of support servicesDesirable image (“global” versus “local”)Desirable image (“global” versus “local”)Size of agencySize of agencyConflicting accountsConflicting accounts