Global Branding

I have been doing some reading on how to manage global brands. As is often the case with branding, there is just too much stuff written and published. My reductionist take can be summarized like this

Global standardization matters as it allows us to gain scale and therefore reduce marketing costs. There are synergies in communication; and consistency across global media can help build a stronger brand. In some cases, the "global" aspect of the brand concept can add positive associations. However, there are many marketing decisions that cannot be easily centralized and need to be kept at the local level. Typically, these decisions are related to distribution and pricing.

Pricing needs to be optimized locally because price sensitivity and disposable income vary widely across the globe. Distribution relies too much on existing institutions, which tend to be traditional full of local regulations and cultural norms. A similar argument can be made for sales force management, promotional activities and some product features.

In broad terms, we are distinguishing between the more strategic decisions from the tactical decisions. This is not clear cut, but branding, brand building communication and choosing a price point should be a responsibility of the global brand manager. Tactical activities (the so called "marketing mix") can be customized to the local needs and conditions.