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Chapter 2

Global Branding

American University of Sharjah College of Arts and Sciences

Department of Mass CommunicationDr. Ibahrine

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Define and understand the value of the brand concept

Explain the global brand in global marketing

Explore the brand as an association network

Explain global brand strategies

Discuss the global brand communications

Chapter 1 Objectives

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What is a brand

The term "brand" is at the root of brand equity

A brand represents a "name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition”

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The Concept of Brand Equity Brand

Is a name, term, sign, symbol, or design.

Identifies and differentiates goods and services of one seller or group of sellers from those of the competition.

Communicates a particular set of values.

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1. Brand identity 2. Brand personality 3. Brand position 4. Brand image 5. Brand promise and brand

preference6. Brand loyalty

Brand Communication Strategy

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Brand identity Must be distinctive and familiar in terms of

name, logo, colors, typeface, design, and slogan.

Brand personality Human characteristics like loving, trustworthy,

sophisticated.

Brand image The mental image consumers construct for a

product based on symbols and associations that customer link to a brand

Brand Communication Strategy

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Dimensions of Brand Personalities

Excitement

Sincerity

RuggednessSophistication

Competence

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Brand position The soul or essence of the brand; it stands for

something that matters to consumers

Brand promise and brand preference Believing the promise that a brand will meet

your expectations leads to brand preference

Brand loyalty A connection built over time that leads to

repeat purchases

Brand Communication Strategy

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Branding models

Brand as association network in the mind of the consumer – can be applied to global branding

Brand as a personality: personalities vary across nations

Cultural branding model based on local myths

Viral or tribal branding: brand communities are locally/nationally based (language, shared culture)

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Brand Equity

Brands are corporate assets

Basis of brand equity is Mindshare = existence of brand in the mind of the

consumer Consumer equity = Influence on buying behavior

Consumer equity influences brand value Consumers have different brand associations across

cultures, so brand value varies

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Higher market share

Increased brand loyalty

Premium pricing

Effects of Brand Equity Increases

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A Customer-Based Brand Equity Framework

Source: Adapted from Kevin Lane Keller, “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity,” Journal of Marketing 57 (January 1993),

7.

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Corporate brands

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The Global Brand: definitions

• A brand available across multiple geographies• Brands with the same strategy in all target markets• Brands that consumers can find under the same

name in multiple countries• Is “globalness” an element of a global brand’s

existence?

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Characteristics Global Brand

Available in most countries in the world Same strategic principles, positioning, marketing

in all markets Carries the same brand name and/or logo Marketing mix may vary; e.g. different products Substantial market share in all countries Comparable distribution intensity Comparable brand loyalty Visual dominance

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Characteristics Of World-Class Brands

• Beyond these particular survey results, a thought leader in the area of branding and brand equity has identified 10 traits shared by the world's strongest brands:

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Characteristics Of World-Class Brands

1. The brand excels at delivering the benefits customers truly desire

2. The brand stays relevant

3. The pricing system is based on consumers' perceptions of value

4. The brand is properly positioned

5. The brand is consistent

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Characteristics Of World-Class Brands

6. The brand portfolio and hierarchy make sense

7. The brand makes use of and coordinates a full repertoire of marketing activities

8. The brand's managers understand what the brand means to consumers

9. The brand is given proper support, and that support is sustained over the long run

10. The company monitors sources of brand equity

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Connect: Association Facet

Association: using symbols to communicate.

The primary tool used in brand communication.

Brand linkage reflects the degree to which the associations presented in the message, as well as the consumer's interest, are connected to the brand.

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Connect: Association Facet

Factors Driving Association Symbolism

A brand takes on a symbolic meaning. It stands for certain, usually abstract, qualities.

Conditional Learning Thoughts and feelings associated with the brand. Beer is about sporting events, beach parties, and pretty

women. Transformation

A product is transformed into something special, differentiated by its brand image symbolism and personality..

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Elements brand association network

brand name + signals

products

users

placesoccasionsmomentsmoods

visualimages

attributes

Values

benefits

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Associations with Coca-ColaAssociations with Coca-Cola

Coca-Cola

childrenchildren

young people

adults

unhealthyunhealthyaddictiveaddictive

flipposflippos

chipschips

soccer soccer on TVon TV

partiespartiesmix drinkmix drink

non-alcoholnon-alcohol

alternativealternativefor beerfor beer

thirstthirstquenchingquenching

tennistenniscourtcourt

softsoftdrinkdrink

red canred can

ubiquitousubiquitous

AmericanAmerican

youngyoung Coca-ColaCoca-Colalight breaklight break

MichaelMichaelJacksonJackson

stickysticky

sweetsweet

brownbrown

fizzyfizzy

bubblesbubbles

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Corona Extra

original

youth be different

bars/pubs belonging

talk tofriends

happiness

open minded

security

sophistication

exclusivity alternative other drinks

moreexpensive

thirstquenching

refreshing

outdoor

good life

enjoyment

popularoriginal bottle

heat

low alcohol

relaxation

Mexican restaurants

Mexican

with tequila

quality

mild clear

successself

esteem independence change freedom

culturalenrichment

blonde

always in bottle

without label

lemon inside

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Assignments

Make an inventory of the brands you own or use and decide if they have a personality as described in this chapter. Find the country of origin of the owner of the brand

Go to the website of Interbrand and find which brands in different countries are most highly valued.