1. Literature Review
1.1 Chapter Overview
Generally, this study will proficiently demonstrate the knowledge and information about the management of efficient and prominent branding over geographic boundaries. Generally, the literature study will provide the importance of branding and different approaches for managing branding in the international market. Moreover, on the other hand, the impact of strong brand tactics on consumers and organizational performance also will be demonstrated and highlighted in this study.
1.2 Brief Overview of Managing Brands Over Geographic Boundaries – International Branding
According to the statement of Swaminathan et al. (2020), all firms, whether they are compelled to be global players or just wish to be, need to have marketing strategies that can establish and maintain brand equity across regional borders and market sectors to succeed. If marketers are planning a worldwide marketing strategy, they will first need to grasp the local market. Businesses are increasingly focused on regional markets as a way to combat globalization, which is an intriguing development. In this kind of regionalization, corporations concentrate on specific geographic regions and regard them as distinct market segments. As per the statement of Keller and Brexendorf (2019), Pepsi, for example, has divided the United States into four areas, each of which focuses on a certain market niche and develops a marketing strategy for that group. Because of the increasing variety in terms of culture, demography, and other factors, businesses are turning to a regional strategy rather than a national one.
Based on the statement of Wijesooriya et al. (2020), there is a demand for marketing initiatives that can target the Asian, Hispanic, and African American populations in a typical metropolitan American metropolis. The globe is flattening out in other ways as well, thanks to improvements in communication and transportation. As a result, every business is gearing up to take advantage of the ongoing trend of globalization. A company’s decision to become a global player might have a variety of causes. China and India, two of the world’s most populous countries, provide infinite potential for both consumers and producers, hence lowering the total cost of becoming a global player. As stated by Hewett et al. (2022), diversity reduces risk by serving a variety of markets. The benefits of becoming global are obvious, but so are the advantages of using global marketing strategies. As manufacturing grows, the cost per unit of the product will reduce, which will lower the marketing program’s costs as well.
It is expected that the cost of packaging, distribution, and other marketing operations will be reduced as a result of uniformity. The worldwide appeal of Sony’s marketing campaign, for example, makes it appealing to individuals throughout the globe. Another benefit is the increased customer trust that comes with having a worldwide presence and being widely accepted. Al-Abdallah, Dandis, and Al Haj Eid (2022) stated that when one considers the international demand for goods, one feels a sense of pride and belonging. This is particularly crucial for mobile customers, who are more likely to remember a company’s name if they see it everywhere. Another benefit for businesses is the possibility to offer an excellent product globally all at once, getting a full first-mover advantage.
Mind Map: Managing Brands over Geographic Boundaries – International Branding
(Source: Al-Abdallah, Dandis and Al Haj Eid, 2022)
1.3 Importance of Branding for Organisations in the International Market
According to the viewpoint of Khajeheian and Ebrahimi (2020), confusion arises as a result of the abundance of available goods. Customers may deal with these challenges by sticking with well-known and trusted companies. Brands that are well-known and trusted are seen as less dangerous than those that are not. As a result, people tend to assume that items from well-known companies are usually superior. As seen by the findings, this is the case. The longer a company invests in Branding, the better off it will be. Confusion arises as a result of the abundance of available goods. As per the viewpoint of Ashraf et al. (2018), customers may deal with these challenges by sticking with well-known and trusted companies. Brands that are well-known and trusted are seen as less dangerous than those that are not. That’s why they think a brand’s product will always perform better if it is heavily promoted. And that’s true because the numbers back it up.
Based on the viewpoint of Khan and Fatma (2019), in the long term, the more significance an organization places on Branding, the better off it will be. As a result of actual product quality concerns with Toyota vehicles in 2009, the company’s reputation was damaged. Despite this, the firm has spent years promoting its “quality” reputation, which has allowed it to navigate the crisis and restore consumer confidence in its goods. A significant portion of marketing budgets is devoted to enhancing consumer awareness of a company’s brand. People need to know that the brand represents a certain thing. As viewed by Iyer, Davari, and Paswan (2018), this company’s ultimate purpose is to ensure that all of its customers, new and old, are aware of the company’s beliefs and how participating in its activities may benefit them. Its capacity to connect with clients on an emotional level and be instantly recognizable sets us apart from our competition.
Companies must establish a distinct brand identity if they want to increase their visibility. Customer recognition is easier when the brand has a distinct and consistent visual identity. To successfully convey the company’s values and messages, this visual depiction of the brand identity is critical. Hien et al. (2020) viewed that when it comes to consumers remembering their company, consider them as a visual aid. Consistent use across the marketing materials will help the brand be remembered by the target audience while also ensuring that the marketing message is unified. Consistency in a brand’s identity helps customers recognize it.
1.4 Different Approaches for Branding in the International Market
Because of the constrained scope of this research, the organizations are unable to provide an in-depth analysis of how brand equity may be quantitatively measured. Brand Image is a consumer’s mental image of a brand, formed via the process of brand association. Three other factors of brand image should not be overlooked. Attributes, attitudes, and advantages are the three subcategories used to organize these brand association categories. According to the opinion of Hao et al. (2019), Non-Product-related characteristics and product-related attributes are once again separated. Functional, experimental, and symbolic benefits are all examples of benefits. It’s common for strong brand loyalty to be the outcome of regular behavior, which simplifies decision-making.
As per the opinion of Bilan et al. (2019), it is feasible to identify a shorter decision-making process and a less significant emotional process by measuring how much mental energy is used on the choice. For the most part, the choice to buy back a brand is a simple one. The sales volume is calculated by multiplying the number of first purchases by the number of subsequent purchases and by the purchasing intention. The primary goal of brand politics is to ensure that customers are satisfied enough with their purchases to keep coming back to the same stores and purchasing the same products. Based on the opinion of Katsikeas, Leonidou, and Zeriti (2019), there are varying levels of brand loyalty among various product categories: Daily-used items with just a tiny brand imprint indicate low to moderate brand loyalty. Consumer products with a high degree of brand loyalty are strongly marked and seldom purchased, with a mild until midway feature.
As opined by Heding, Knudtzen, and Bjerre (2020), another factor that affects repurchase behavior is the age of the consumer. Because older individuals are less willing to take risks and are less adaptable, they tend to be more loyal to brands. In addition, the lower social position due to a lower degree of information processing is important. Worldwide, the number of cross-border mergers and acquisitions continues to climb. In these initiatives, brand equities play a big role since they are often recognized to be an important portion of an enterprise’s worth. Rather, Tehseen and Parrey (2018) opined that brand management at the acquiring company must determine whether or not to keep existing brands or create new worldwide ones after deciding to purchase a company and all of its brands. As a part of this analysis, the topic of which “local” businesses will become “global” mega-brands is given particular attention in this discussion. Alternatively, which one should be retained as a “local” brand?
1.5 Impact of Strong Brand Tactics on Consumers and Organisational Performance
According to the argument of Moliner, Monferrer-Tirado, and Estrada-Guillén (2018), it is common to refer to marketing strategy as a “continuous process” since this should explain a firm where it hopes to go in the long run. In the eyes of many, a marketing strategy is simply the method through which a firm hopes to accomplish its marketing goals. Pricing, product, distribution location, and promotion are all elements of the marketing mix that must be considered by the marketer in any business. For the product to be successful on the market, it must include these crucial elements in a clear and effective strategy. As per the argument of Lu et al. (2020), target market techniques, marketing mix, and marketing budget are all part of this. Many businesses now see expanding their operations internationally as a must to stay competitive in today’s market. If the brands want their company to survive in today’s competitive marketplace, they need a solid marketing plan.
Based on the argument of Iyer et al. (2019), companies may use their respective strengths to better serve customers’ wants in a particular environment by leveraging their marketing strategy to distinguish themselves from their competition. One way to get superior results and a competitive edge in today’s market is via the implementation of a comprehensive marketing plan that includes a variety of tactics designed to achieve both those goals. Marketing strategy may be defined in a variety of ways, and these definitions represent a wide range of viewpoints. As argued by Carlini et al. (2019), a marketing plan provides an avenue for a firm to employ its resources to achieve its stated goals and objectives, however. It is important for companies looking to gain a competitive edge to have a sound marketing plan in place. Developing a marketing strategy is an important part of determining how the different components of a marketing mix interact in a particular situation.
Strategic marketing planning has as its goal the establishment of an organization’s competitive advantage and the defense and maintenance of that position. Strategic marketing requires sound managerial judgment in the face of increasing ambiguity and uncertainty in the external environment. In addition, plans may have other aspects depending on the nature of the firm. Hafez (2018) argued that marketing strategy is at the very core of every company plan. Businesses are set up to fulfill a certain need in the marketplace while also making a profit. There’s nothing wrong with any of this. An organization’s goals must be taken into account, notably the happiness of its consumers and the growth of its sales volume at a profit.
1.6 Literature Gap
Generally, this study has demonstrated the most effective and proficient knowledge through conducting the entire literature study. However, there are still some gaps that make this study a little poor. Generally, the researcher has been able to collect general information only regarding the topic, “Managing Brands Over Geographic Boundaries – International Branding”. Therefore, some specific knowledge and organizational perspectives have not been interpreted. In this aspect, the researcher has decided to conduct further research to fill this literature gap successfully to enhance the significance of this study.
1.7 Summary
In this way, it becomes summarised that the researcher has been able to demonstrate the most efficient and crucial information regarding the study topic. Moreover, the mind map in the above literature review section also made this study more evident and significant for the researchers and readers of this particular study topic.
References
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