“Global Brand Strategies and Pricing
Discussion 6
“Global Brand Strategies and Pricing” Please respond to the following:
· Watch the video titled “How Can Corporate Brands Be Globally Relevant While Locally Applicable?” (4 min 32 s) located below. You may also view the video at http://youtu.be/6wDqOA1KIX0. Using the information from this video and any other resources from this course, speculate on how the criteria for developing a global brand strategy differ from that for a domestic marketing strategy. Provide support for your response.
· Describe how a global pricing strategy differs from a domestic price model. Next, predict what consequences may occur from setting your pricing too high or too low in the global marketplace. Justify your response.
Response 1 (Jasmine) :
· Watch the video titled “How Can Corporate Brands Be Globally Relevant While Locally Applicable?” (4 min 32 s) located below. You may also view the video at http://youtu.be/6wDqOA1KIX0 . Using the information from this video and any other resources from this course, speculate on how the criteria for developing a global brand strategy differ from that for a domestic marketing strategy. Provide support for your response.
Since a global brand strategy is more complex than a domestic marketing strategy, there are some differences between the two. Brand equity and cultural differences are two major differences. Companies must have the ability to invoke some awareness in the customer's mind not just domestically but internationally. It is the collection of liabilities and assets internationally attached to the brand name. Another difference between the strategies are the cultures. It is much easier for a company to develop a marketing strategy for one culture versus multiple. With a global brand strategy, the business must make sure that their brand name, slogan, symbol, etc. is acceptable in all cultures and doesn't offend anyone.· Describe how a global pricing strategy differs from a domestic price model. Next, predict what consequences may occur from setting your pricing too high or too low in the global marketplace. Justify your response.
With a domestic price model, the company only focuses on one type of currency. A global pricing strategy has to consider various currencies, price escalation, transfer pricing, increased competition, and inflation on a larger scale. They also have to be careful not to price a product too low or else they may face dumping claims, which are accusations of selling imports at an unfair price. Pricing too high may lead to gray markets or parallel imports. Middlemen could make a profit off of shipping goods from a low priced country to a higher priced market.Kotabe, M., & Helsen, K. (2017). Global marketing management (7th ed.). Hoboken, N.J.: John Wiley & Sons, Inc.
Response 2 (Edwin) :
Marketing There is a huge difference in pricing in domestic and internal marketing. There are numerous factors to it: law, taxes, the difference in the exchange rate, taste and preferences, production factor, where the good is produced, also the quality makes up the differences in the domestic and international exchange rate. Domestically or locally or internationally or crosswise national borders marketing can be done. Some of the features are here that elaborates that international marketing differs from domestic marketing: Domestic marketing is the sale of a business’s products in the domestic monetary market. It contracts with just one set of problems of economics and competition, that brand it more expedient. Domestic marketing has no language blockades and interpreting and obtaining data on domestic marketing drifts, and customer requirements are faster and easier. This aids the firm progress marketing strategies and makes decisions that are more efficient and effective. The risk too is less with internal marketing, and it requires fewer financial resources. Domestic markets are not as wide as the global market, and maximum firms tend to do business around the world. Whereas, sale and promotion of the products of the company to customers in various countries is international marketing. It is very difficult and necessitates vast financial resources. Each country has its business laws, and a firm that seeks to enter a corporate in another country should first be aware of them. Customer preferences and tastes might also vary, so it is necessary to formulate strategies of marketing to meet the needs of various customers. Global marketing needs more effort and time, not to indicate the fact that it is very hazardous. The global market is much ambiguous, and the firm should always be prepared for unexpected changes. To achieve success in the international market requires a higher-level commitment. Having examined the alterations in the two marketing, we concluded that the world is a market itself, and therefore, the guidelines are universal. It doesn’t make any variation to where the values apply, that is, in the global or local market. The main reason for the differences between international and domestic marketing is the area of its influence and conditions of the market. Setting prices too high or too low will affect the purchasing power of the consumer. In high price, only the specific individuals will enjoy the product, but the quality of product will also get affected with low prices, so in both cases, there is a barrier that will lose the customer.
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