What is known about Global Brand Management

What is known about Global Brand Management

What is known about Global Brand Management

Before assessing what is known about GBM, we begin by painting the background that put global brands in the center stage. Developments accelerating the trend toward global market integration include the emergence of global media, the Internet, and mobile communications, the free movement of capital and goods leading to worldwide investment and production strategies, rapid upgrading and standardization of manufacturing techniques not only in the developed world but also in emerging economies, growing urbanization, rapid increase in education and literacy levels, and expansion of world travel and migration (Ritzer, 2007; Yip, 1995). These forces make global brands appealing from both the demand and supply side perspectives. From a supply side perspective, global brands can create economies of scale and scope in research and development, manufacturing, sourcing, and marketing: They provide an ability to exploit good products, ideas, and executions in multiple markets (Maljers, 1992; Özsomer & Prussia, 2000; Yip, 1995); From the demand side, global brands, with their worldwide availability, awareness and consistent positioning may benefit from a unique perceived image or “myth” worldwide (e.g., Alden, Steenkamp, & Batra, 1999; Holt, Quelch, & Taylor, 2004). Such a global positioning increases in its strategic appeal as large consumer segments around the world develop similar needs, tastes, and aspirations (Özsomer & Simonin, 2004; Steenkamp, J.-B, & Ter Hofstede, 2002; Steenkamp, J.-B, & de Jong, 2010). Thus we believe that GBM represents an evolution, integration, and interaction that go beyond the level captured by existing brand management approaches leading us to the following proposition. P1: GBM is the outcome of the continuing evolution, integration, and interaction of world markets necessitating new conceptualizations, theories, and methods to its study. A prerequisite for an emerging field to coalesce into a more established field is for the discipline to establish an acceptable definition that captures all the major aspects of the concept (Parvatiyar & Sheth, 2001). The abundance of definitions of GBs has caused some confusion. Özsomer and Altaras (2008) document numerous definitions of global brands in the literature and categorize them as capturing either a supply or demand focus. For example, studies on standardization have defined global brands as those that use similar brand names, positioning strategies, and marketing mixes in most of their target markets. Some brands are more global than others with respect to differing levels of achieved standardization (Aaker & Joachimsthaler, 1999; Johansson & Ronkainen, 2005; Kapferer, 2005). Thus, in this research stream, the definition of a global brand is based on the extent to which brands employ standardized marketing strategies and programs across markets. The second stream, focusing on consumer perceptions (Alden, Steenkamp, & Batra, 2006; Batra, Ramaswamy, Alden, Steenkamp, & Ramachander, 2000; Dimofte, Johansson, & Ilkka, 2008; Hsieh, 2002; Steenkamp et al., 2002; Steenkamp, J.-B, Batra, & Alden, 2003; Strizhakova, Coulter, & Price, 2008; Zhang & Khare, 2009) defines global brands as the extent to which the brand is perceived by potential and existing customers as global and as marketed not only locally but also in some foreign markets. This definition implies that as the perceived multimarket reach and recognition of a brand increases, the perceived brand globalness increases as well (Steenkamp et al., 2003). Both demand and supply based approaches complement each other and have made significant contributions to the GB literature. We believe a working definition of GBs should incorporate both perspectives, although different studies may focus only on one dimension. This leads to our second proposition: P2: The field of GBM has begun to converge on a common definition.

From “A global brand management roadmap” Aysegül Özsomer, Rajeev Batra, Amitava Chattopadhyay and Frenkel ter Hofstede

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