Globalization and Branding The brand environment consists of the brand itself expression, perceptionand rec ognition surrounded

d by internal and external factors that have an influence on th e brand. Only by taking these factors into consideration can management understa nd the entire brand proposition, and how it is affected in different markets. So me factors affect some brand elements more than others, some types of brands are more sensitive to particular factors, and the effect may vary according to mark ets and consumer segments. Globalization has had a tremendous impact on businesses in general. Many theorie s have been proposed to highlight the good, the bad and the ugly of globalizatio n. Over the last decade a number of countries from Asia, Middle East, Scandinavi a and South America have opened their economies and have taken the first step to wards open market economy. The changes, as expected, have been profound. On one hand the integration of these developing/emerging economies into the main stream global economy has created amazing business opportunities for global brands. On the other hand, this very phenomenon has made the global market place a highly complex and highly competitive battleground for companies vying for supremacy. F urther, the sheer diversity of people, their practices, beliefs, consumption pat terns, spending capabilities and so on has made this global market an extremely complicated place to do business in. Globalization and its side effects have had a very profound effect on branding. As markets have integrated, brands have fou nd themselves traveling beyond national borders. Whenever any brand, which was r estricted till then to a national audience, enters a new country, it faces a bar rage of challenges. Culture becomes a very crucial factor that determines the br ands success. Many global brands have dealt with cultural issues very well and ha ve adopted their brands to suit the diverse cultural demands of different region s in which they operate. Coca-Cola, McDonalds, Disney are some the more successfu l brands that have treaded the path of adapting to cultural demands very well. T his article looks at the impact of culture on brands and how global brands can e ffectively handle the challenges posed by diverse cultures in different markets. Global brand management needs to understand how various markets compare on these issues in order to determine how best to manage the brand globally.As for the s ituational factors, the brand perception and the brand recognition provides an u nderstanding of the extent to which the brand is perceived differently across ma rkets, and what causes these differences. A complete analysis offers brand manag ement an appreciation of the core elements of the brand, as expressed and percei ved around the world. This type of information forms the basis for shared strate gizing and planning for the branding process by global, regional and local brand management. Decisions regarding brand extensions, harmonization, rejuvenation, portfolio rationalization, alliances and acquisitions depend on a thorough under standing of a brand and its environment Take an example of the leading mobile brand Nokia in India. Nokia also recognize d the growing importance of rural customers in the Indian mobile telephone marke t which grew from a mere 300,000 subscribers in 1996 to a whopping 55 million su bscribers in 2004. Nokia introduced its dust-resistant keypad, antislip grip and an inbuilt flash light. These features, albeit small, appealed to a specific ta rget of truck drivers initially and then to a broader segment of rural consumers . These features endeared Nokia to the Indian consumer as Nokia displayed a genu ine commitment in responding to local customer needs. Another Example of global brands include Coca-Cola, McDonald s, Marlboro, Levi s etc.. These brands are us ed to sell the same product across multiple markets, and could be considered suc cessful to the extent that the associated products are easily recognizable by th e diverse set of consumers. From these example above, we know now that the brands were global brands with op erations in multiple markets. Nokia recognized the different customer needs and adopted the brand to the preferences of customers. As can be seen from Nokia exa mple, cultural differences mandate that brands be sensitive to different cultura l facets. Further, these cases offers some very important points that should be

fully appreciated by any brand manager that aspires to be successful in cross cu ltural settings that Cultural differences impact branding: Cultural differences are indeed a major factor that has an impact on the success or failure of a brand. As brands enter different cultures, it becomes imperativ e for them to carefully tread the standardization-customization continuum wherei n they not only manage to retain the inherent brand identity which is the very r eason for their acceptance across markets, but also adopt the brand elements (im ages, advertising, channels, and others) to appeal to the local tastes and prefe rence of customers. A global brand is one which is perceived to reflect the same set of values around the world. Global brands transcend their origins and creat es strong, enduring relationships with consumers across countries and cultures. Benefits of Global Branding In addition to taking advantage of the outstanding growth opportunities, the fol lowing drives the increasing interest in taking brands global: Economies of scale (production and distribution) Lower marketing costs Laying the groundwork for future extensions worldwide Maintaining consistent brand imagery Quicker identification and integration of innovations (discovered worldwide) Preempting international competitors from entering domestic markets or locking y ou out of other geographic markets Increasing international media reach (especially with the explosion of the Inter net) is an enabler Increases in international business and tourism are also enablers Therefore, an appreciation of how these differ between global and local brand ma nagement, and vary from country to country, lays the foundation for a global bra nd strategy. And neither globalization nor branding are inherently good or bad, and that each brand has its own particular potential for extending across countr ies, cultures and markets. Online Branding Advertisers in the offline world realize that consumers may not have an immediat e need to purchase a product or service at the moment it is being advertised. Re alizing this aspect of consumer behavior, a common advertising strategy is to bu ild awareness of a product and form positive associations between that product a nd a consumer over time so that when the need arises to purchase from a given ca tegory, a consumer is more likely to consider that advertisers product. While pop ular in the offline world, this notion of an unconscious association between bra nd and consumer has not been readily adopted in the online advertising strategie s of brand-oriented advertisers. These advertisers are blinded by click-through even though it counterintuitive to branding philosophy (Briggs, 1999). Exposure to an online advertisement has value that can be thought of as communica tion effectiveness.Recognizing that banner advertising can have an impact on bran ding, it would be helpful for those designing online advertising to understand t he characteristics of an online ad that are related to its success on brand-orie nted metrics. Marketing communication, selling and transactions, and delivery can all be execu ted digitally. The Web page is not just another channel designed to increase vis ibility and access; it is rapidly becoming the shop window for many players in t he information industry. The first impact that a digital information provider ma kes on a potential user or customer, and the greeting that they provide to retur ning customers is embedded in the home page, and the other parts of the Web site that users frequently visit. A well designed digital experience will also set i n opportunities for e-mail, telephone or personal contact with service agents (i .e. people) and components of service delivery (as embedded in functional elemen ts of the Web site such as a search engine, transactions to deliver print or ele ctronic copies, or the delivery of other items Online Information Review ordered

through the Web site). it is particularly important for information providers t o be at the leading edge of online branding. In addition, the new economy charac terised by digitalisation, customer relationships and globalisation is leading t o rapid change in industry and marketplace structures that affect both private a nd public sector enterprises. In such an environment, intangibles such as brands , designs, patents and trademarks will become the financial bedrock of the futur e corporation (De Kare-Silver, 2000). Brands as search keys In a crowded Internet marketplace, the role of the brand symbol has reasserted i tself. A unique brand name has an important role to play as a keyword in the sea rch process. Unique brands that are well known and are not generic terms can be very effective as key words used with search engines. Even more important is the link between domain name and brand. Consistency between domain name and brand name can reinforce familiarity with the brand, and strengthen the message links between channels. Not all organisations have been successful in achieving priority on the domain brand that aligns most closely with their brand. For example, General Motors does not own t he domain name www.generalmotors.com, although it does own and use www.gm.com Wa rd and Lee (2000) found that consumers used brand names as substitutes for produ ct information when they made online purchase decisions. As customers have greater control over marketing communication Customers no long er wait for leaflets or media presentations to come to them; they cease to be pa ssive consumers of information, and instead become proactive prosumers, and may take the initiative in soliciting information from organisations. The concept of permission marketing (Godin, 1999) in which organizations seek the permission of customers prior to sending direct e-mail or other communication is a response that allows customers greater control over their relationship with an organisation. The bran d experience is determined by the customer, and may be different for each custom er. Customisation and customer relationships Internet interaction, and other channel s of interaction with customers often provide businesses (and some public sector organisations) with the opportunity to gather customer data into large data war ehouses. This data can be used to segment customers and to design specific offer ings to specific segments, or even to interact with the customer on a one-to-one basis (one-to-one marketing). Customisation and targeting to smaller groups may generate diversity of experience with a brand, and lead to the brand meaning di fferent things to different groups, or alternatively to the proliferation of a r ange of brands. Many online merchants are taking the opportunity offered by the Internet to conv ert products into service experiences. Amazon, for example, does not just sell b ooks; it adds considerable value through information based service elements such as ratings, reviews, excerpts, categorisations, recommendations, and communitie s of interest. The term infobrand has been coined to describe brands that blur t he boundary between information and promotion. For example, retailers of health products (such as Boots) offer online health advice as part of their online serv ice, contextualising promotions for their products within general advice. Also t hrough M-commerce has the potential to change brand experience radically. With m -commerce the brand builder can know where customers are at any time, and has th e opportunity to send customised messages that are consistent not only with the customers profile, but also with their location. For example, if they are about t o enter a store that sells televisions, a targeted message can be communicated t o the customer in that location. In this situation, the brand message needs to b e targeted to the here and now, and communicated in a sound bite. Web site element s that communicate brand values and messages Web sites communicate messages abou t the brand through both their design and functionality. Many library and inform ation Web sites reveal a preoccupation with functionality, and the traditional emphasis on access to, and the organisation of, information

and services. At the lower levels in a university library Web site it is not unu sual to find that library jargon and complex and lengthy help systems that deman d a level of reading on screen that most users would find uncomfortable. Whilst help is always welcome, every effort should be made to avoid. Managers need to take a systematic approach to the development of brands in the online marketplace. A model for an online brand development process is proposed, and its stages are discussed below. It is however important to remember that th is model focuses on what the business can do to build the brand. Ultimately, a brand is only as good as the brand image that it generates in the minds of consu mers. Brand marks can be seen as representative of the accumulated experience of the brand; a bran d mark evokes memories of previous brand experiences. The task for the brand bui lder is to tease out and communicate brand values that take the organisation whe re it wants to go, whilst acknowledging and building on any existing values, att ributes or personality traits that existing users associate with the organisatio n. In the sense that all brands are dynamic they must provide leadership, and no t just echo how they are currently perceived. On the other hand their message mu st be initially credible and ultimately deliverable. Setting the context for the brand Any brand mark, such as that for a public or an academic library needs to be designed taking into account, and possibly echoing, the corporate brand. Val ues embedded in the corporate brand need to be translated into the library brand , but interpreted to match the unique services offered by the library, and the values associated with that service that are shared by library managers and thei r staff. Public libraries are part of a local authority. Academic libraries are part of a university or college. Another important element of context is any oth er existing brands that the library has used. A new online branding initiative m ay provoke a review of offline brands. Certainly managers need to be able to identify elements of consistency and elements of dif ferentiation between offline and online modes. The values embraced and communica ted offline should be echoed in online channels. So offline values such as frien dliness of staff, relaxed atmosphere, space for study, helpful signage, informat ive help desk, attractive displays and environment may be represented online thr ough friendly tone of voice, simple site, uncluttered, easy navigation, similar colour palette to that in the library building, and helpful e-mail contact point s. Deciding on brand objectives and message Marketing communications across all media need to deliver a consistent message. This message may relate to the purpo se of the library, a set of values, or even be an encapsulation of the personali ty of the organisation. The first stage is to understand what that message might be, focussing on the concept of brand as a set of values. Brand values must be launched. In addition to simply making the Web site available, it is important t o continue building brand presence offline, through, for example, publicity, lau nch events, and word-of mouth in training seminars. Brands In Asia As we know there are many ingredients that add up to the success of a brand, and one of the ingredient that makes a successful brand is personality. Today s lea ding brands are personalities in their own right and are well known in all socie ties and cultures as film heroes, cartoon characters, sports stars or great lead ers. In Asia, Coca Cola, Sean Connery, Nestle, Sony, Batman, Mercedes and Michael Jac kson are equally well known. Thousands of people relate to brand personalities i n the same way as they do to human personalities. The secret to successful bran ding is to influence the way in which people perceive the company or product, an d brands can affect the minds of customers by appealing to those four mind funct ions, or combinations of them. This is how it happens. Some brands appeal to the rational part of a person, to the elements of logic an d good sense (the thinking dimension) such as toothpaste which prevents decay an d cholesterol-free foods. Others appeal to the senses of smell, taste, sight and sound such as fashion and cosmetic products. Some brands attract the emotional part of people appealing to the feelings dimension to which consumers react wit

h feelings of warmth, affection and belonging. Products such as Harley-Davidson motorcycles and companies like Benetton with its global village branding exempli fy these. In the next 10 years, a rapid changing landscape will emerge in Asia where the opportunities for Asian companies to benefit from branding efforts will be large r than ever before. The growing emphasis on better financial value creation, com petitiveness and differentiation through brand equity will move up the boardroom agenda. Brand leadership will become one of the most prominent management issue s in Asia Pacific, Simply because they have better knowledge, greater curiosity, are more discriminating and exercise their right to choose more carefully and r uthlessly than ever before. Successful global companies recognise that the sourc e of their prowess in world markets is branding, and that investment in plant, t echnology and people is no longer enough to guarantee long-term sustainable prof its. Brand has become a vital strategic issue for Asian companies. In increasing ly turbulent markets, brands are a key to customer loyalty, long-term survival a nd growth. But before this new momentum shift can take place, changes are necessary. Asian companies and their management teams need to undertake 5 important steps to unle ash and reach their untapped potential. First, mindsets and practices need to ch ange in the Asian boardroom. A complete shift in the way Asian boardrooms think of branding is needed: from a tactical view to a long-term, strategic perspectiv e, from fragmented marketing activities to totally aligned branding activities, from a vision of branding as the sole responsibility of marketing managers to br anding as the most essential function of the firm led by the boardroom. Second, this new perspective must be steeped into a more acute perspective on the consum er behaviour patterns. Asia is not a homogenous entity. Even more importantly, A sian countries are more and more traversed by cultural flows permeating the regi on: cinema, music and fashion trends that are present extend beyond national bor ders to capture the imagination of millions. Branding and brands do not operate in vacuum, but are closely linked to developments in society, to people and to c ultures. Korean cosmetic firm Amorepacific and its 10 different brands is a great example of how Asian firms can create and sustain brands based on their own cultures in stead of just replicating already established global brands. The Korean wave has paved the way for Korean firms to expand their brands across the region. Third, managers wanting to succeed in Asia need to abandon the idea of an oriental Asi a of the past. Asian consumers are all vying for an Asian type of modernity that has nothing to do with colonial imagery. The trick is to balance legacy and vin tage with modernity and contemporary edge. Think of the growth of Hong Kong-base d fashion brand Shanghai Tang, and how the firm has built a strong franchise on its modern interpretation of Chinese culture. Fourth, to create iconic brands, A sian managers will have to become trendsetters. The perspective is that, in orde r to be successful, Asian brands need to capture the spirit of the region, but t hey also need to lead the way by creating that spirit. It is therefore important that Asian firms spend more on innovation, design and technology to become tren dsetters. They are forced to move up the R&D value chain and to develop their ow n Intellectual Property and trademarks. Finally, this shift can be achieved only if everybody in the company is convinced by the power of branding and if all st rategies and actions are aligned around the brand. This must be led by the Asian boardroom, its CEO and executives. Brand equity is the new asset in Asia Branding enhances shareholder value, it can become a catalyst for better leaders hip, it enables to drive a shared vision throughout the organization, and it can help to balance short- and long-term perspectives and performance. Brands can a lso help to recruit and maintain better talent, and it can expand a company s ma rket reach and growth potential. The strengths of the Samsung and LG brands have made it easier to recruit and maintain global talents. Complacency is the enemy of strong brands. The strongest brands are focusing heavily on innovation and q uality in all aspects of their operations and maintain consistency. Banyan Tree

and Starbucks never advertised but used many of the other customer touch points to create strong customer experiences, so the customers became brand ambassadors for the brand and helped the brands to grow. The business landscape is changing almost every day in every industry. Hence the corporation needs to evaluate and possibly adjust the branding strategy on a regular basis. Obviously, a brand sh ould stay relevant, differentiated and consistent throughout time, so it is a cr ucialbalance. The basic parts of the branding strategy are not to be changed often as they are the basic components. The changes are rather small and involve the thousands of daily actions and interpersonal behaviors, which the corporations employ as par t of the brand marketing efforts. Thus, as we created the strong brands are the ones which are driven forward by o wners whom never get tired of raising their own bars. They become their own chan ge agents - and brand champions for great brands. Successful global companies re cognise that the source of their prowess in world markets is branding, and that investment in plant, technology and people is no longer enough to guarantee long -term sustainable profits. Brand has become a vital strategic issue for Asian co mpanies. In increasingly turbulent markets, brands are a key to customer loyalty , long-term survival and growth. Branding In the Future The future of brands is linked to the future of business. In fact, the future of brands is the future of business if it is to be about sustainable wealth creati on. Further, because of the interaction of brands with society, and since so man y socially influential brands are in the not-for-profit sector, the future of br ands is also inextricably linked to the future of society. However, Trusted bran ds provide ideal navigation for consumers across sectors, and as the strongest w ill be able to leap into categories without having a previous product or service track record, no brand will be sacred in its marketplace anymore. The Virgin br and is another good example of this leaping ability. It has a strong vision and values around being peoples champion, innovative and irreverent, and through popu lar support has managed to transcend markets from airlines to cosmetics, from fi nancial services to mobile telephony, from soft to hard drinks and many more. The issue of category-defying life brands is also relevant when looking at those new or growth categories that would seem most likely to produce strong brand gr owth in the future. These include: health and well-being, including more holistic and organic lifestyles; leisure, entertainment and new adventure experiences; physical and emotional security; serv ices for a new generation of the new old (a critical trend in industrialized count ries); lifelong education; information and lifestyle management (relevant to the prediction of Sonys personal robots); biotechnology and genetics. These areas could yield entirely new global brands in the future; it may well be that the most valuable brand in the next 25 years has not been invented yet. Ho wever, it is equally possible that an existing, trusted brand may extend or cros s into these new areas. As part of this, the blurring of the online and offline worlds (a distinction that is already barely recognized by global teenagers) wil l mean that any brand can become powerful both as a medium and as a retailer, vi rtual or otherwise. Current product-based brands will find it harder than service or retail brands t o deepen and broaden their relationships with their audiences. This is not just because they are having to invest so much of their marketing support in retail d istribution, rather than spending it on consumer communication. It is also becau se in their current form, they lack the ability to control the total customer ex perience, and so engage their audiences as fully as they would like. The increas ing importance of experience in building brands, and we should expect to see in the future many more manu-retailers: productbased brand companies developing their own retail experiences and direct relationships with their consumers, both offl ine and online. Further brand management considerations

In maximizing and sustaining the value of brands in the future there needs to be more focus on Understanding the value and value drivers of a brand. Focus on br and value and measuring performance on the basis of the brand value added can bu ild momentum and create sustainable growth. It is also crucial management inform ation for mergers, acquisitions and divestments, which will continue in the futu re as markets shake out and consolidate. Few mergers currently deliver long-term shareholder value, largely because of overemphasis on financials and practical operations. Greater focus on brand value would help mergers succeed as well as g enerating real organic growth. Second is to clarity of brand positioning. Clarit y of vision, values and positioning overall are often given insufficient attenti on in practice. The majority of corporate and brand visions are interchangeable, bland and viewed with cynicism. In an over communicated world, lack of clarity will substantially reduce effectiveness and efficiency, and complex brand and su b-brand structures without a real audience rationale will reduce this still furt her. Clarity of strategy is also one of the leading criteria by which companies are judged. Brands as total experiences, and as central organizing principles, rather than j ust products and logos. As well as culture and needs continually evolve, brands must change in order to remain effective. And that means that the companies behi nd the brands must be structured in a way that facilitates change. Branding has a future, but its practice is not the same as its past. Brands rema in critical assets that drive and deliver value. As we move into the 21st century, the challenge for marketers and practitioners is to understand how brands can e volve and facilitate growth for the benefit of investors, stakeholders, consumer s, customers and employees.