Development of global brands (MC, unit 3)

standardisation of technologies = economies of manufacture = lower price = more competitive positioning

Why go global? saturated home market, market entry costs might be lower, exploit differential pricing (sell for lower cost in second market if marginal costs are covered)
What slows standardisation? national/cultural characteristics, different levels of economic growth, environmental factors (French reluctance to take on US culture/language), legal & regulatory forces, political environment

Some degree of local adaptation may still be required. Product often differs for local taste but branding and imagery are the same e.g. MacDonalds

GLOBAL MARKETING COMMUNICATIONS

Polarised approaches:
a) similar campaigns in many markets b) international brands that operates locally

Standardised MC:
cost effective, eliminates problem of conflicting messages in adjacent territories difficult if brand at diff stages of development, danger of creating something bland if seek universal appeal, may demotivate staff who have no involvement in campaign creation, length of time needed to produce global campaign can reduce ability to respond quickly at local level