Global brands are brands that are recognized throughout much of the world. Companies intending to create global brands need to do the following: Identify the relative attractiveness of each market for your brand.
Creating a global brand presence in one or more international markets isn’t cheap or easy, but it is worthwhile. A global brand is one that has a consistent identity with consumers across the world. It can be the use of a name, term, sign, design or combination thereof intended to identify one seller and differentiate it from competitors.
When people think of a global brand, they Think Apple , Google, Coca-Cola, and IBM. Nowadays, social media interactions allow consumers to shape a brand fast (and take it global) by their matter of opinions and demand for the product, leaving you with less and less control over how your brand transcends borders.
”A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well.” – Jeff Bezos
Benefits of a Global brand
Global branding and advertising can help you market your product or service in many different countries around the world. Although global branding and advertising have historically required large budgets, emerging communication techniques such as social media can make global campaigns affordable for companies of all sizes.
Advantages of a global brand are:
- Build up global awareness. A global brand has more visibility than a local brand. If you ship your brand to Germany, for example, prospective customers who travel there or live in the country, get exposed to it. Every time you ship to a new country, you’re building global awareness of your brand.
- Achieve economies of scale. The development costs to fund a new global brand can be spread over large volumes. Those costs include but are not limited to manufacturing, marketing, human resources, distribution, and shipping.
- Convey a prestige factor. We all like the “cool factor” and taking a brand global adds to the image of your brand. It sends a signal that you are committed to the global marketplace and have the resources to back it up on a worldwide scale.
- Leverage the product to the country. As you develop your brand into what I hope is a global powerhouse, your brand name will be associated with where the product is made. McDonald’s is a true American brand; Gucci is Italy, and L’Oreal is France.
- Is the most valuable resource a company has. The brand name encompasses the years of advertising, product experience, social media exposure, goodwill and other positive attributes the market associated with the product or service offering.
When to go global?
Being a small business doesn’t mean you have to think small. Yet this is the group that is driving global business forward. It’s no longer the exclusive preserve of the huge corporate brands everyone has heard of. Technology makes it possible for many small businesses to expand globally.
The Internet has opened the door for companies to trade all over the world. Previously it was too expensive to do this. Now you don’t even need to have a physical presence in a country in order to do business. You can be an international company from the comfort of your own home. You can easily manage a global empire without visiting the places you are actually doing business in. Solid Wi-Fi connections and software options like Skype allow you to stay connected at all times. Expensive business travel is a thing of the past.
The most obvious reason to seek international markets is to expand sales. Reasons to go global are:
- Diversify your markets and customer base.
- Extend the sales life of current products. What’s already established here could be a hot new item elsewhere.
- Reduce dependence on current markets by spreading your risk.
- Counter seasonal fluctuations. If you sell a seasonal product, when it’s summer here, half the world is experiencing winter and vice versa.
- Learn how to compete and grow, and you may want to expand from market to market.
Make a realistic appraisal of your products, then ask yourself –
- Will people want to buy what you’re selling?
- Will selling your products require an education process before consumers accept them?
- Are there cultural differences you need to be aware of that could impact your success?
Becoming a trusted brand internationally will increase your prestige as a brand. It will increase your overall reach because customers are going to look at an international brand and assume they can be trusted. It’s all just because of this added prestige. Rightly or wrongly this is how it works.
Saving on tax by using tax havens. Tax havens are a gold mine for major international companies. It’s a chance to save most of your profits for yourself, but this can only happen by expanding internationally.
Create an Economy of Scale, because expanding will enable you to produce more units. The more units you produce the lower your per unit cost. This can increase your profit margins, but you can only get the best of this through selling to more customers, which can only come through expanding to more countries.
Slogans and Names
Words change meanings. In our daily life, we listen and say many things to justify our conversation – some words stay out in our mind, many go away with time. With human psychology, nobody can remember everything but when I say “Connecting People” your mind may immediately pick up that I am talking about Nokia. Although slogans work slowly, they are effective and their hold is long lasting.
Great advertising always earns extra credit whether we talk about banner advertisement or TV commercials or any other digital advertising; however, when we talk about slogans, there are many things we should keep in mind i.e. they should be memorable, conceptual, state a mission (elaborate company goal), predictable and actionable.
Why it is the important part of branding?
A slogan is not just a tag-line that advertisers create; they play a strategic game; in the long run, good slogans play with customer’s mind making it believe yours is a reliable product.
Importance of Product names and slogans:
- work to build a strong relation with client
- elaborate perspective for different organizations
- make your product / service desirable