Global Brand Building and Management
A global brand strategy must be built to achieve business goals across multiple markets. Creating a global brand team can be a daunting task, and there are several key elements to consider. Creating a global brand strategy requires a top-down approach, strong communication skills, and creativity to overcome execution challenges. In addition, it is essential to develop a localized strategy for each country and market. These key elements are discussed below. Here are some considerations to keep in mind.
Top-down approach
Companies that use a top-down approach often have fewer opportunities for creative collaboration and innovation. The centralized nature of this approach can result in less communication among departments, which can hinder the process. In contrast, the bottom-up approach fosters communication and allows teams to establish their own processes and grow as an organization. A top-down approach also tends to lead to organizational silos. Listed below are some of the benefits and drawbacks of a top-down approach to global brand building and management.
The bottom-up approach involves identifying synergies among countries and incorporating them into a global brand strategy. This strategy is more effective in developing global brands in local contexts. The benefits of top-down management include clear decision-making and fewer conflicts of interest. It also reduces confusion, as all decisions are made in one place. However, top-down management also limits creativity and slows problem-solving.
Information asymmetry
In any marketing campaign, there is some degree of information asymmetry. In most cases, this asymmetry leads to the misguided belief that one party knows more about the product or service than the other. For example, in a house sale, a homeowner may know that the buyer does not. This could lead the buyer to believe that they have overpaid for the home or that they may not have bought it in the first place.
A review of the literature on information asymmetry in global brand building and management is presented. It identifies the main causes of market failure and presents several opportunities for innovation. Despite its negative effects, information asymmetry can be an opportunity for entrepreneurship. When information is asymmetric, there are no clear rules for the development of a new product or service, and there is little or no standardized way for individuals to obtain the information that is necessary to make a good decision.
Transparency
As the world moves toward more transparent communication, brands need to change their approach to reach consumers. On social media, consumers expect more than a bland, unfiltered brand. They want to interact with the brand, be educated, entertained, and have their needs met without being asked. To keep up with consumers, brands must devote themselves to continuous evolution and heavily influence their audiences through listening. Transparency is not a marketing ploy or sales tactic; it requires that every level of the organization adjust its behavior and engage with consumers in a meaningful way.
The term “transparency” is a broad one, with many definitions. In business, it refers to openness and honesty, both of which are important for brand building and management. Customers have increasingly come to rely on their personal value systems to make their purchasing decisions. This is especially true of millennials, who are more willing to spend more for products from brands that share their values. While it may not always be feasible to be transparent in every aspect of your company, transparency can help you stand out from your competitors.
Market research
Market research is a key component of successful global brand building and management. In addition to identifying consumer preferences, it can be an essential tool for product differentiation and market segmentation. It can also help determine the priorities of consumers and tailor advertising efforts. To conduct successful market research, a company must engage in a series of tasks, including gathering data about its target audience, analyzing and interpreting the results, and determining how to better use the data.
To begin with, market research is the main source of strategic planning. Brand building requires analysis of the competitive environment, public behavior, and needs of each location. Once a brand is established, it must continue to build its reputation by determining its position in that market. For instance, Ford needs to position itself as an alternative to a German competitor, and vice versa. To effectively manage a global brand, a company needs to conduct market research in each country in order to understand how consumers behave.