What Is Global Branding? (With Benefits and Best Practices)

Updated November 14, 2022

Many companies implement branding strategies to reach individuals from various countries and cultures. They usually perform global branding to achieve an international brand whose advertising strategy, positioning, appearance, and personality are consistent across different countries. Learning about various strategies a company can use when operating globally can help you reduce marketing costs and enter new markets. In this article, we define global branding, discuss its benefits, highlight strategies for building a global brand, and provide tips for developing international campaigns.

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What is global branding?

Global branding, or international branding, is a marketing strategy that enables companies to sell their products or services in multiple countries using the same name. It describes how companies manage their brand in various world regions to increase achieve strategic goals. International branding often involves planning how a company wants customers in that location to perceive its brand.

This strategy aims to create a consistent brand voice, feel, and look around the world while appealing to customers of different cultures. For example, a company that uses the same advertising strategy in various places can ensure consistency in presenting the brand's value in every market.

Benefits of international branding

Expanding and marketing a brand on an international level often enables companies to save production costs by increasing their output. Here are the benefits of international branding:

Improves brand value

Brands that customers typically recognize globally often gain market value. When customers see a particular brand in various countries they visit, they may trust the product. This means customers can buy the brand's item for what it offers, regardless of the price. A valuable brand can quickly increase its sales and market share. Market share is the total sales a particular company generates in an industry.

Related: What Is Sub-Branding? (With Advantages and Considerations)

Increases customer awareness

International branding can increase customers' awareness of a company. It can enable customers to know the product or services the company offers quickly. A company can introduce a new product and improve its return on investment (ROI) through increased customer awareness. ROI is a metric that companies use to determine the profitability of an investment.

When customers are aware of the products or services a company provides, they may become loyal customers by helping it to generate leads and sales. Customer awareness can also reinforce brand equity. Brand equity refers to a company's value premium from a product with a recognizable name.

Generates more revenue

International branding typically enables businesses to generate more revenue by widening their target audience. Global brands often earn more profit by launching a single campaign that fits each country, rather than implementing various campaigns for different markets. When businesses market globally, they can build their brand's perception and influence customers' decision-making to increase revenue.

Saves production costs

Through international branding, a company can spend less on production by maintaining a consistent package design worldwide. This means the company may use the same machine, material, and transportation to manufacture its product for various countries. By doing this, a global brand can reduce wastage and use its resources efficiently. Digital marketing also becomes cost-effective because companies can create similar landing pages and e-mails to promote their product.

Improves customer experience

International branding requires that companies understand customer behaviour because it varies across countries. Through this strategy, a company can determine how it can satisfy its customer's needs by improving its product or service. This can help them increase stability and improve the quality of their customer relationships. Companies that provide a reliable customer experience can position themselves as the best in the industry.

Offers competitive advantage

Businesses that expand into the global market increase their competitive advantage by creating more goods or offering services. This is because it often enables them to have more loyal customers. With international branding, a company can also implement strategies to make its products more desirable than its competition. By doing this, they can influence a wider market and reach more customers.

Strategies for building a global brand

The following are effective strategies to help you build a global brand:

Family branding

Family branding, or umbrella branding, usually involves using a company's parent name to market multiple products. For example, a company may use one brand to market books, pencils, and rulers. Family branding differs from marketing individual products, which often involves giving each product its own image and name. Companies that use this strategy aim to make all their products profitable and desirable by letting them have one recognizable name.

A company can build its recognition and improve customer loyalty with this strategy. When a company changes an old product or introduces a new one, it can depend on customer loyalty to ensure that its target market purchases the new item. Family branding also enables companies to save costs on advertising campaigns because they can market several products at once.

Related: What Are Branding Strategies? (With Definition and Benefits)

Solo branding

Solo branding means that each product has a separate marketing identity. Companies that use solo branding usually sell each product under a different brand name. For example, a cosmetics company can sell lipstick, powder, soap, and lotion using various images and names. A company can target specific consumer groups and market segments through solo branding. Many food companies often use this strategy to maintain various levels of consistency across their product lines.

Extension branding

This is a marketing strategy where companies use an already established brand name to introduce new products to customers. Businesses with a pre-existing brand name often use this approach to extend their reputation and existing image to another product. A company can advertise new ideas without creating a new brand by performing extension branding. For example, an electronic company can extend its brand from mobile phones to televisions, dishwashers, washing machines, and refrigerators. A successful extension branding can strengthen a brand's success with similar products that suit their audience.

Hallmark branding

Hallmark branding strategy means a company uses its corporate brand for all its services or products. This strategy usually enables companies to operate a flexible service by associating with their corporate brand name without adopting sub-brands. Many banks around the world often use this strategy.

Related: How to Establish a Personal Brand

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Tips for international branding

Here are the best practices to implement international branding successfully:

Perform research

Implementing global marketing requires you to research the target market effectively. Consider determining the cultural associations for various colours and images in the market where the company wants to introduce its product. You can also check distribution channels in the target market to determine how customers prefer to buy the product. For example, in some countries, customers prefer to patronize brands closer to their homes rather than those in industrial areas.

Check for translations

Check if the brand's name sounds like a specific local language. The way customers may interpret the brand in a particular region may differ in other places. When building a marketing campaign, ensure you find an image that can be appealing to every customer. You can also determine whether the brand name and core messaging translate well to the local language. Minor revisions might improve how the target audience perceives the brand.

Related: Marketing Job Titles (Examples and Hierarchy)

Adopt borderless marketing

You can use several digital platforms to adopt a unified marketing strategy. Ensure you find content and brand stories that can cross borders internationally. For example, if you create a social media post about a product, customers from various parts of the world may likely view it. Using a common strategy can enable them to perceive a brand the same way.

Find local partners

To successfully enter a new market, a company can collaborate with small markets, artisans, and stores in other countries. Partnering with local businesses, such as advertising agencies, distributors, suppliers, and startups, can help the company win customers' trust. It can also help a brand maintain consistent quality in a particular country.

Expand the company's product

Expanding a company's product can help it improve customer loyalty. A company can create more options to satisfy its customer's needs. For example, a potato chip company that only produces salty chips can create sour and peppery options for customers who hardly eat salt in their country. By doing this, a brand can attract new customers and sell more products to increase profit.

Hire local employees

Hiring locals within a company's market can help you determine customer trends and understand how they make purchasing decisions. Local employees are more likely to understand the culture, which is essential for entering a market successfully. A company can navigate cultural differences with local employees and increase its team diversity.

Related: What Are Global Marketing Strategies? (Types and Examples)

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