Branding Across Borders - Assignment Example

?Running head: Marketing Marketing Insert Insert Grade Insert 25 July Question Global branding is beneficial to firmsin several ways; primarily global branding boost the reputation of the firm in the market making it attract more customers who are enticed by its global status. Therefore, global branding is successful marketing gimmick for the attraction of customers. Subsequently, global branding creates an illusion of superior quality in the minds of customers who consider the products of the company as being superior due to the global branding status. Additionally, global branding creates a new image for a company could be used to increase its market share. Highly recognized brands have certain common features that define them and prevail amongst them (Bloomberg, 2006). Most of these features denote the prevailing marketing strategy that determines successful global brands. This is because branding is a marketing gimmick that basically characterizes the quintessential aspects of marketing and strategy. From my experience while visiting inter-brand and business week websites where the top global brands report is evaluated, these elements include reliability, aesthetic value, proper packaging, warranty services and sustainability among others. In essence, consumers prefer global brands for an assortment of reasons. Originally, global branding has a lot of connotations some of which are real, and others perceived. Therefore, consumers associated global brands with aspects of quality, reliability, superiority, convenience and safety (Interbrand, 2012). As a result, global branding has a lot of sway on the buying decisions of consumers. Practically, global branding has a high bearing on the quality and suitability of products and services more so to the usage by consumers. First and foremost are the high standards associated with the global business through which global brands must meet certain requirements to survive in the market. Consumers value global brands due to the aspect of superiority in quality and reliability. Inter-brand methodology can be quite constructive in diversifying the essence of products and services and could be a good recipe for organizational success (Reinold, 2010). Though, in essence, inter brand methodology represents the confusion of parameters where the organization fails to identify its true identity in the market and resorts to inter brand methodology for opportunism purposes. Establishing global brands is a step-by-step progression that calls for time, tact and long-term perspective. Therefore, managers ought to first ascertain their respective concepts of marketing, as well as its long-term marketing objectives. Subsequently, managers must embrace competition in the global market and boost the quality quotient of their respective services and products. Such measures will guarantee successful international brands. Question 2 a) The emergence of a new breed of multinational from merging countries is well-documented in business reports, books and literature and points towards a paradigm shift with regard to the global business (Aguilar, 2006). In essence, the previous years have witnessed an exponential growth in the participation of emerging economies in the international trade more so in the ownership of international business. There is a big divergence between the traditional multinational corporations like IBM and Nestle among others and these emerging multinationals. These differences emanate from the strategy used in developing, managing and advancing these corporations. As a point of fact, emerging countries are applying particularly unique strategies of entering and prevailing in the global business environment. This poses a huge challenge to the existing multinationals. b) The new global challengers are using different approaches in entering the international market. The two most prevalent methods are the organic growth and through mergers and acquisitions. Each strategy has its own advantages and disadvantages (Casanova, 2009). For instance, organic growth is suitable with the organization’s well-developed goals and objectives which it endeavors to achieve through the course of time. Organic growth provides appropriate time for the business to establish itself in the international market. However, organic growth may take a very long time and could possibly never succeed in the competitive market. The mergers and acquisition strategy is a direct way through which a company joins the international market through purchasing or joining a multinational corporation. This is good because it is expedient and straight forward, it does not take much time. The danger of mergers and acquisition is that the company purchased or merged with may be on the verge of collapse or may never succeed in the market. c) Joining the international business environment can occur in myriad ways. A company’s success in joining the international market depends on effectiveness of the approach taken. Some approaches my take short time durations while others may take longer durations. Traditional methods of joining the international market involve the growth parameter whereby a small firm gradually develops and expands into cross border trade through time and process. This represents the most reliable and procedural method of joining the international market that occurs automatically over a period of time and is based on the strategic ambitions of the firm. However, contemporary MNC’s rely more on joint ventures, mergers and takeovers to enter the international market. These are more direct and immediate approaches of transforming a company into a multinational corporation. d) The new multinational corporations have posed a great competition to the existing corporations which now need to fight for their position in the market (Gregory & Wiechmann, 2002). This can be done through robust marketing in which the corporations can win more customers and retain the existing clients. Similarly, the corporations can diversify their product and service portfolio to serve more customer needs thus denying the new entrants in the market. Additionally, the traditional corporations have vast experience in the international market and can apply it to counter the new MNC’s. Question 3 In developing a global plan for a new aftershave with my colleagues from Turkey, Belgium and Japan, great consideration will be granted to hofstede scores for the respective countries through which a formidable, practical and successful plan can be developed for the sake of the project. Hofstede scores are derived from Geert Hofstede's conjecture of cultural elements, describes the implications of a society's civilization on the values of its associates, as well as the manner in these values recount to behavior, by means of an arrangement obtained from factor analysis (Kristin, 2011). On the basis of the hofstede scores, there will be certain challenges in the process of developing the plan. First there will be a division of opinion over the best course of action to be taken owing to the fact that Turkey, Belgium, and Japan have distinct scores that will definitely bring about a conflict of ideas and proposals in the course of the meeting. For instance, with regard to project, what works in Turkey may not work in Belgium or Japan and vice versa. Several criticism have been advanced against the approach of Hofstede scores particularly regarding the narrow approach it takes in defining the cultural parameters that determine business success in respective countries (Falkenreck, 2009). In essence, the theory is an exaggeration of the role of the cultural parameters on business prospects. Therefore, the study has a lot of limitations which revolve around the total insistence of cultural parameters on business. In as much as the approach provides a formidable platform upon which to judge a business environment, it overemphasizes the role of cultural factors and portrays business prospects in a very complicated manner. Question 4 The emergence of born-global firms challenges the conventional theory of firm internationalization (Knight& Cavusgil, 2009). This is because of the emergence of new multinational corporations that never grew into what they are, but rather entered the foray through acquisitions or mergers. Therefore, the conventional theory has been proved wrong as more companies need not spend more time trying to become MNC’s, they just turn themselves into the market directly. This has put a lot of strain on exiting MNC’s, which incidentally have to fight for their survival. Today’s global market is full of new multinationals particularly from emerging economies, which no longer approach business in the conventional method and simply consider joining other global companies or buying stakes in existing multinationals. The entry strategy of born-global firm differs from that of mature multinational firm in several aspects. Primarily, mature firms have stayed in the market for a lengthy period of time starting as local business units and gradually transforming and increasing their capacity (Cook et al, 2012). Therefore, mature firms apply the step-by-step strategy in joining the international business environment whereas the born-global firms use direct methods through the purchase of merger with an already established multinational corporation. The two strategies are quite different and they border on diverse considerations of business approach and tact. Whereas one insists on the procedural growth of a business enterprise into a globally competitive firm, the second one considers joining an already existing business in the international market or simply buying a global firm. Each strategy has its strong points and its weak points, and firms ought to be careful when choosing the strategy. This is because there are certain parameters that make the difference. Question 5 Market segmentation denotes the strategic demarcation of the market in units that represents the marketing plan and is based on the broader organizational goals. First and foremost, segmentation is a paramount consideration in the export business and several companies practice export business through the market segmentation methodology which is of great significance on the relevant parameters of the holistic venture. Segmentation basically involves the demarcation of the market for purposes of caring out the business. This is driven by the actuality that export business cannot be carried out in the entire market and in case it takes place in the entire market then the market has to be subdivided into segments for easier identification and carrying out the export activities. In essence, segmenting the market achieves much more than dividing the market into sections. It provides clarity of activity and operation making it quite convenient for executives to coordinate the relevant efforts involved in the business (Dunbar & McDonald, 2004). Small and medium sized enterprises can successfully market in those segments if they consider certain parameters that are pertinent and conversant with the process of export business. The SME have a great capacity of marketing in these segments and could actually become very successful especially when they understand the way the segments operate. Generally, market segmentation does not exclude any nature companies because segmentation is a strategy that denotes the management of the market through demarcation for purposes of operation and exclusion of activity. Small and medium sized enterprises have a great potential of surviving and thriving in the segmented market because the corporation have the required competence for that task (Kamakura & Wedel, 2000). References Aguilar, M. (2006). The New Global Challengers: How 100 Top Companies from Rapidly Developing Economies are Changing the World. London: Boston Consulting Group. Bloomberg. (2006). Best Global Brands. Retrieved from http://www.businessweek.com/stories/2006-08-06/best-global-brands Casanova, L. (2009). Global Latinas: Latin America's Emerging Multinationals. Washington: Palgrave Macmillan. Cook et al. (2012). New Technology-Based Firms in the New Millennium. Washington: Emerald Group Publishing. Dunbar, I. & McDonald, M. (2004). Market Segmentation: How to Do It, How to Profit from It. Washington: Elsevier. Falkenreck, C. (2009). Reputation Transfer to Enter New B-To-B Markets: Measuring and Modelling Approaches. London: Springer. Gregory, J. & Wiechmann, J. (2002). Branding Across Borders: A Guide to Global Brand Marketing. New York: McGraw-Hill Professional. Interbrand. (2012). 2010 Ranking of the Top 100 Brands. Retrieved from http://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global- brands-2010.aspx Kamakura, W. & Wedel, M. (2000). Market Segmentation: Conceptual and Methodological Foundations. Washington: Kluwer Academic. Kristin, P. (2011). Critical Analysis of Hofstede’s Model of Cultural Dimensions: To what Extent are His Findings Reliable, Valid and Applicable to Organisations in the 21st Century? Washington: Grin Verlag. Knight, G & Cavusgil, S. (2009). Born Global Firms: A New International Enterprise. New York: Business Expert Press. Reinold, T. (2010). The China Brand Report: An Overview of China's Biggest and Most Valuable Brands. Washington: Verlag. Read More