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Chapter 11

Building Brands in International Markets

Learning Objectives
To explain the concept of branding

To describe various types of branding

To discuss the concepts of brand equity and brand identity

To examine brand-building strategies

To evaluate branding strategies for global markets
Concept of Branding

Branding creates differentiation between the firms and

competitors products, and provides marketing edge to the
brands to price them relatively higher than competitors and
get better margins.

It facilitate coping with market competition and increasing the

life of the product.

It also facilitate consumers by forging an emotional

relationship with them and help in their buying decisions by
enhancing their confidence.
Types Of Brands
No Brand or Branding the Product

Manufacturers Own Brand or a Private Brand

Local, National, or Global Brand

Single or Multiple Brands
Strategies for Building Brands

Branding decisions are generally based on the basic marketing

principle of identifying and satisfying the needs and wants of
consumers that differ widely.

Brand based on Tangible Product Component

Brand Based on Intangible Product Component
Balance Brand Based on Tangible-Intangible Product
Strategy for Building Global Brands
Dominates the domestic market, which generates cash flow to
enter new markets;
Meets a universal consumer need

Demonstrates balanced country-market coverage

Reflects a consistent positioning worldwide

Benefits from positive country of origin effect

Focus is on the product category

Key Concepts for Building Brands

Brand managers need to develop a thorough understanding of

key concepts of strategic brand management such as brand
image, brand equity, brand awareness, brand association,
brand loyalty, brand packaging, brand identity, brand
physique, brand personality, brand culture, brand essence,
brand positioning, and brand revitalization.
The impression created by a brand on the consumer may be
termed as brand image.

It is defined as a set of brand assets and liabilities linked to a
brand, its name, and symbol that add to or subtract from the
value provided by a product or service to a firm and/or to that
firms customers.
Brand Awareness
The ability of potential buyers to recognize or recall a brand as
a member of a certain product category is termed brand

Perceived Quality
It is defined as customers perception of the overall quality or
superiority of a product or service with respect to its intended
purpose, relative to market alternatives.
Brand Association
Anything that links the customers memory to a brand is termed
brand association.

Brand Loyalty
It is a measure of the attachment that a customer has to a
Brand Packaging
It includes the brand name, symbol, or product package,
which play a significant role in enhancing and maintaining
brand equity and serve as a barrier to competitors.

Brand Identity
It is the sum of the brand expressed as a product, organization,
person, and symbol.
Brand Physique
It refers to the physical qualities of the brand. These are the
tangible aspects of the brand and include its core features and

Brand Personality
It is a summation of all the tangible and intangible aspects of a
Brand Culture
It symbolizes the country of origin, the organization, and the
values for which the brand stands.

Self Image
The inward reflection of a brand to the consumer is known as
its self image.
Reflection is the target customers perception of their external

A brand forges relationships with its customers on the basis of
tangible or intangible attributes.
Brand Essence
The basic idea behind the brand when it is conceptualized is
termed brand essence.

Brand Positioning
It refers to the art of creating a distinct image of the brand in
the minds of the customers.
Brand Revitalization
It refers to a change in the existing position of the brand and
modifying marketing communication based on the new

Brand Extension
It refers to extending the brand into other categories that may
be related and unrelated to it.
Implications of Life Cycle Concept in
Brand Building
The stages of development of product categories may be
explained with life cycle concept under following stages



International Branding Strategy

Based on the life cycle stages of the product category and

brand, a firm has to make an assessment of the development
of the category and the brand in the market.

Category development index (CDI) and Brand development

index (BDI) are the most widely applied tools for determining
international branding strategy.