By creating a brand name and image of the manufacturer should consider the area in which the brand wants to use and sell their products. In the past, it happened so often that companies that have attempted to use existing local brand when introducing the product into new foreign markets did not affect success.
Mark did not fulfill its task if it was difficult to pronounce and remember, if it sounds ridiculous or was offensive as well as did not induce the desired associations. It could also happen that the brand has already been applied in a given market by another manufacturer. In this situation, companies have been forced to create a new brand for the same product, which was used when selling abroad.
Some companies sell their product in several countries, accompanied by several brands. And there are big investments which corporation spend on promotion, advertising and packaging. In addition, packaging becomes less transparent and less fully informative function.
However, we can observe the phenomenon of a shrinking of global market. The intensity of this trend, we can easily see the example of Europe; very quickly disappear duties and other barriers to trade is thus much more efficient and effective. Companies that designate as an area of the territory of European states seeking to create a so-called. Euro brands, a mark whose name will be responsible for the product regardless of the country in which it will be sold.
For example, a Mars in order to facilitate the gaining of new markets have replaced their brands Bonitas Treets to the world-famous M & M and its third largest brand in the markets Marathon has replaced Europe and the U.S. Snickers brand. Procter & Gamble introduced the European countries, a common brand Ariel, which was crowned with success.
On the other hand there are brands that have gained global acceptance. In the case of such companies as Coca-Cola, Sony and McDonald's which not have to create new brands for different businesses, since the names of these brands are well recognized throughout the global market. It is noted that thanks to a far better possibilities of easy and quick exchange of information and the ability to easily travel the global society is becoming more homogeneous in preferences and better respond to global brands.
The use of global brand has many advantages. Benefits due to the possibility of using standard packaging, labeling, promotion and advertising. The company achieved this way in the above savings areas and an increase in sales because travelers perceive familiar brands offered in other countries. A global brand is gaining more recognition, especially if the country of its origin is widely appreciated. An example is the use of global brands by Japanese companies in the technology industry because their products in this area have a high reputation; customers quickly accept them and have confidence in their quality.
The use of global marketing yet may be combined with high costs and a high degree of risk. Significant costs borne by the company that decides to replace the existing global brand names used on the local market. This involves informing their customers that they may still purchase a product known to the re-branded. Local managers often express dissatisfaction if the command is to re-branding, because it causes the abandonment of local creativity, which could have an impact on strengthening the position of the local market. The risk of global brands associated with the fact that the overall global brand may not be as powerful as a convincing and encouraging the various brands used in local markets. There are also criticisms that the globalization of marketing ignores differences not only between countries but also regions.
Overall, the companies that sensible policy of global brand marketing means only those products where they can bring big savings, and the local terminology used in relation to those elements of its offerings that require such solutions to be able to successfully establish on the market
What impact does brand globalisation have on us?
An important property of the brand is to create consumer confidence in the product and the company that the brand is used. The condition for the creation of this trust can be symbolic (psychological), satisfaction or respected by the brand name product quality assurance function.
The brand is a promise that your product will always represent a specific set of physical features and benefits for the consumer and guarantee product quality. The quality perceived by the client includes the impression of overall quality or superiority of the offer in relation to the effect intended by the purchaser effect compared with alternative offerings. When you buy a particular brand product, the consumer knows what the quality of the product, the sensory qualities, and finally, what level of prices is represented by the brand.
The importance of global brands for the consumer is the fact that the consumer purchases "something" over the goods and benefits. First, he buys a vision, the emotional aspects of the product to the decision to purchase a much greater impact than rational factors.
Mark can also reduce risk for the buyer: Financial (associated with a specific amount of money), the action of the product (in the case of buying an unknown brand), physical (injury to the consumer), social (lack of acceptance), psychological (the mismatch between brand image and the image of her user) and the risk of loss of time.
Globally branded product also gives consumers a sense of security, guarantees quality and reliability. Consumers who value their time will pay a higher price for the certainty that they will not have any problems with the product. Having a branded product gives satisfaction because of the prestige and enhancement of belonging to a particular group.
Benefits offered by the brand include:
• Functional elements, called substantive, concern such as dimensions, weight, wear resistance, performance, reliability, and refer to the functional quality.
• Virtual components - assets, generated in the minds of individuals, because of "the illusory nature brand" consumers purchase no real benefits, but psychological satisfaction.
Consumer choice is not only to express preference for global brand, but also preferences for the size and type of packaging, product formulation, formulation and taste. Therefore the choice of brand is rarely the ultimate choice.
Every purchase is an expression of the brand personality of the purchaser's worldview, way of life, attitudes and desires. The consumer selects the products and brands that suit his/her culture and style and contribute to the construction of such an image of what he/she wanted.