Influence of Effective Branding Strategies on Competitive Advantage for International Businesses

Influence of Effective Branding Strategies on Competitive Advantage for International Businesses
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Influence of Effective Branding Strategies on Competitive Advantage for International Businesses
Abstract
Businesses are always trying to gain competitive advantage over their competitors. One way they do this is by adopting effective branding strategies. By adopting effective branding strategies, businesses are able to distinguish themselves from their competition while gifting themselves the best opportunity to compete favorably. In this paper, focus will be on how international organizations can grow their influence by adopting effective branding strategies. Globalization has made it easier for companies from all over the world to compete with each other. So, this brings about opportunities to set an organization apart and shift consumer opinions. As the study reveals, firms, both local and international, can only remain effective and competitive through the application of effective branding strategies.
Introduction
The process involved in positioning a product as well as the management of a global brand is the key to establishing a competitive advantage for international businesses within the global markets (Liu et al., 2018). Effective branding, as well as the positioning of a product, provides some formal competitive marketing strategy for marketing the services and products. The concept of effective branding largely focuses on the customer and the creation of a distinction amongst various entities capable of satisfying consumer’s need, therefore, benefits both buyer and suppliers. The aspect of global branding provides cases of differentiation between competitive factors that result in positioning within the international markets. The different strategies involved in effective branding help in the creation of the image on product’s quality to consumers in the market, therefore, displaying the product’s uniqueness in comparison to the rest of the products in the market. However, the success of developing an effective brand depends fully on the nature of approach on brand description that uses the marketing mix for the purposes of brand positioning. Therefore, brand positioning can be described as the part of brand identity as well as value proposition, usually communicated to the active target audience. This requires the interaction of all marketing tools through the use of marketing communication that shapes consumer perceptions (Adina et al., 2015).
The concept of building strong brands is a priority for the multinational companies since it helps in a number of advantages on the international market platform. For instance, effective brands help companies establish their identity within the market, help in providing greater sales margins as well as providing room for competitive actions. This is despite the markets providing companies with essential opportunities alongside difficulties. In this case, the global branding benefits the company since it provides customers with added value lower costs, guarantees cultural benefits as well as providing cross-border learning. The various companies which have not applied the principles of effective branding within the global competition for the past two decades have lost significant market power (Davcik & Sharma, 2015). Consumers in the market are never only interested in tangible benefits from products or services but also intangible benefits. This encompasses the prestige or character that they obtain by using the specific brands. Other benefits include an increase in positive perception for the product’s value as well as guaranteeing the possibility of developing new products more quickly and efficiently to the market. Effective branding provides value to the product or service even at the point of its release.
The brand is considered effective in the event that effective positioning of the firm leads to the development of a distinct selling proposition. This may refer to but not limited to distinct benefit or rather point of difference for the products through different marketing mechanisms such as advertising as well as personal selling. Consequently, in the event that the company consistently creates value out of the product, there is a high chance of creating powerful brand equity that eventually yields attraction alongside retention of valuable customers (Liu et al., 2018).
Research question
How do effective branding strategies help in providing a competitive advantage for international businesses?
Problem statement
The globalization of the markets and the increase in competition at the global scale drives companies to increasingly expand their operations across geographic territories as well as making acquisitions and also making alliances. The development and spread of the global digital media have led to widespread development of retailing on the international platform and also the movement of goods and services across borders. This has made the markets to become more integrated, which calls for firms to pay more attention towards coordination as well as the integration of marketing strategy across markets. The branding policy provides one of the most important elements that underlie a firm’s overall marketing strategy. Strong brands provide the necessary grounds for the establishment of an identity within the marketplace alongside the development of a sustainable customer franchise. It also provides the necessary weapon capable of countering the growing retailer influence. This is since they provide a very good basis that stimulates brand extensions capable of enhancing value as well as strengthening the firm’s position (Özçelik, 2015).
The major challenge to companies in the present business environment involves standing out amidst numerous competitors. Strong brands on the international market platform help in communicating the image of the product to consumers. This creates awareness amongst consumers on the basis of trust, consistency, and quality that eventually makes consumers create a perception of dependency upon the product (Liu et al., 2018). However, there are underlying assumptions in global marketing that the value and quality of the product are the same irrespective of the geographical differences. There is also the perception that consumers in different countries and regions are simply different in terms of needs, wants, varied levels of income alongside shopping patterns and unique product preferences. In this case, there is a gap in failing to fulfill the principles of adaptive marketing. This brings to the question the influences of effective branding techniques to companies especially in tailoring the international products to the target country’s specific cultural needs while maintaining the imminent quality and brand image (Anttiroiko, 2015).
Background of the Problem
There is the general perception in the market that focuses on the aspect of effective branding as well as positioning as the essential components of modern marketing in the global platform. This is further supported by clear evidence indicating a positive relationship between a company’s efficiency or profitability and well-executed branding. In this case, effective branding should not only be considered as part of the strategy but as a key element to any business plan. The concept of competitive advantage on the international markets has attracted so much attention especially in the discussions surrounding business strategies. The various comments about competitive advantage may be valid, but in the real sense, the precise definition upon review of the term refers to the theme of value creation (Özçelik, 2015).
The stiff competition within the international markets that also encompass entry of other players competing for similar products and services guarantees the use of competitive strategies for sustainability purposes. Majority of the businesses tend to focus on the brand positioning strategy as one of the market strategies. In this case, an effective branding strategy guarantees customers the incentive of maintaining quality alongside the required satisfaction. The brand image represents the different perceptions as well as beliefs that customers hold in their memory concerning a specific product (Liu et al., 2018). International, as well as local brands, present one of the common approaches that firms utilize to extend their domestic marketing strategies into the international market. This means that most of these firms pursue the standardized approach towards branding. In the process of expanding activities, the various standardized approach to branding leads them to embrace global branding mechanisms. Global branding is more feasible in markets where there is so much customer mobility. This makes the international businesses to seek for branding opportunities within the global platform. The aspect of developing global brands on the international platform guarantees various opportunities that enable capitalizing on economies of scale, development of global markets as well as pursuant of multiple market segments. Such benefits from an economic perspective are a true reflection of the significance of branding. Other benefits of effective branding, as earlier discussed in this paper, involves giving the customer an added value. Also they provide the necessary cross-border learning capable of maximizing on cultural benefits for the company at lower costs. Such benefits justify the use of effective branding for international businesses (Öz&cc...