Analysis of International Marketing of Chinese Companies
Global branding provides definite benefits to the international marketer – added value for consumers, lower costs, cross-border learning, and cultural benefits for the company. Global brand building requires an integrated communications effort to which the target consumer can easily relate. Thus, a global brand has been defined as any brand, which has a large global presence and the ability to affect consumer behavior globally and consistently trades around the globe, is a global brand, by the CMO of Samsung Electronics in 2006 (Llle, 2009). Brands such as Coca-Cola, IBM, Microsoft, and Nokia are global brands as they fulfill all the criteria. The internationalization process for global brands must follow a definite strategy. The advertisements around the world should reflect the current brand strategy and each country subsidiary has the right to choose the advertisements (Quelch, 1999). The brand logo and the brand slogan remain the same globally although it could be communicated in the local language. The brand logo becomes its distinguishing feature and all these communication devices help towards building a visual imagery for the brand around the world every day. However, despite the convergence of tastes, consumer behavior is not homogenous in the global marketplace. The cultures, political system and the economies across borders are heterogeneous and hence standardization of the marketing mix would not result in building an effective global brand (Zou, Andrus, Norvell, 1997). Standardization ignores customer needs and can cause local resistance. Therefore, altering the marketing mix is critical to global brands as in the case of McDonald’s. McDonald’s has adopted the principle of ‘think global, act local’ which implies that they have made changes as per local laws, customs and tastes (Vignali, 2001).