Global Brand and Local Brand

Topics: Marketing, Brand management, Brand Pages: 5 (1457 words) Published: December 30, 2013
Global brands Vs. Local Brands
Introduction
According to Ger, Belk and Lascu (1993), advances in communications and information systems technology have shrunk distances, thereby linking markets through flows of information across markets. These trends enhance the management of global operations and drives up the need to deal effectively with global competition. As firms enter international markets, branding plays an important role in its marketing strategy. Many consumers use brands as clues to indicate product performances, instead of engaging themselves in search for information when deciding between competing brands. Consumers use brands as cues to make decisions to purchase or try products. During the recent years, there has been a great shift from local brands to global brands due to the display of similar needs and preferences by the consumers. This study aims in analyzing the consumer’s perception of global brands vs. local brands. The research explores and comprehends consumers’ perceptions of global brand vs. local brand. Body

According to Wolfe (1991) local brands are brands that exist in one country or in a limited geographical area. Local brands belong to a local, international, or global firm. Local brands provide a link between the national economy and individual well-being. Levitt (1983) said that global brands as brands that use the same marketing strategy and mix in all target markets. Global brands benefit from the scale and scope of having presence in multiple markets. The authors have defined well global brands and local brands. The researcher agrees with the authors definitions. A global brand is a brand that is marketed under the same name in multiple countries with similar and centrally coordinated marketing strategies. Akram, Merunka & Akram (2011) added that quality is the subjective judgment of consumers towards a product or brand superiority and distinction. Perceived quality is important in determining consumer preferences towards global and local brand. A global brand is defined from a consumer’s perspective as a brand which is believed to be marketed and recognised in multiple countries. In turn, a local brand is produced domestically for a specific national market and usually only obtainable in the particular region. It is identified that a local brand may be preferred when consumers can identify with others in their community as the local brand is often positioned to understand local needs and culture. On the other hand, Batra et al. (2000) stated that global brands have been perceived to be of higher quality in developed and developing countries. This is due to the fact that global brands are accepted globally and charges a premium price. Consumers also regard global brands as having higher prestige and are preferred essentially because of brand globalness, in regards to be internationally desirable and demanded. Additionally, it was found that global brands even appeal to local consumers due to higher perceived quality, status and prestige. The above authors have the same perception of global brands. Global brands are of more quality than local brands. The researcher agrees with these authors. On the contrary, Keller (2003) stated that as far as global brand is concerned, perceived brand globalness is normally associated to brand quality and prestige, higher esteem, having the ability of enhancing the consumer’s self-image as being cosmopolitan, sophisticated and modern. Consumers consider global brands to be symbols of cultural ideas, using brands to participate in a perceived global identity that they share with other people worldwide. Some of these brands have attained the status of global icons, becoming cultural systems in their own right that speak a universal language. Schuiling et. Al. (2004) added that local brands benefit from strong brand equity and specifically, local brands benefit from higher consumer awareness than international brands do, and they enjoy a strong brand...


References: Books
De Mooij, M., 2005
Holt, D., 2003. Managing the Transnational Brand: How Global Perceptions Drive Value. Harvard: Harvard Business School.
Keller, K., 2003. Strategic Brand Management. New York: Prentice Hall.
Batra, R., Ramaswamy, V., Alden, D.L., Steenkamp, J.B.E.M. & Ramachander, S., 2000. Effects of brand local/non-local origin on consumer attitudes in developing countries. Journal of Consumer Psychology, Vol. 9 No. 2, pp. 83-95.
Ger, G., Belk, R. and Lascu, D., 1993. The development of consumer desire in marketing and developing economies: the cases of Romania and Turkey. Advances in Consumer Research, Vol. 20, pp. 102-7.
Kapferer, J., 2002. Is there really no hope for local brands?. Journal of Brand Management, Vol. 9, pp. 163-170.
Levitt, T., 1983. The Globalization of Markets. Harvard Business Review, Vol. 61, pp. 92–108.
Schuiling, I. et al., 2004. Real Differences between Local and International Brands: Strategic Implications for International Marketers. Journal of International Marketing, Vol. 12 No.4, pp. 97–112.
Wolfe, A., 1991. The Single European Market: National of Euro-Brands. International Journal of Advertising, Vol. 10, pp. 49– 58.
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