The Difference between Local, International, and Global Products

Marketing refers to the set of activities that are undertaken by a company in order to give customers satisfaction through cultivating good relations and value addition so as to raise the value of its brand. Marketing identifies and then changes needs into services and products in a bid to satisfy the customers’ wants. Businesses usually give customers the first priority in order to be successful. To amaze the customer’s, brandings needs to be considered, simply because branding helps to build complex image bundles as well as experiences in the mind of a customer. The brand of a company has two significant functions which build the most for a company, thus giving it a positive boost. The first thing is that a brand helps the company by presenting its promise about a certain product. A brand is simply a quality clarification tool for a company. Secondly, brands help the customers to clearly organize their needs and experiences simply because it helps them find whatever they are in need of. The brand image stands out as the best competitive tool in the similar industrial sector as it helps in differentiating products made by different companies, for instance, Nokia and Apple. Also, there is brand equity, which is a kind of brand concept. The brand concept represents the total value which accrues to the specific product due to the cumulative investments of the company in the brand marketing. Branding helps both businesses, whether local, international, and global in the same sector. Companies usually develop their distinctive packaging, logos, and other different communication devices which aid in visual representing and marketing of their brands. Particularly, the distinctive packaging and logos make the brand of a particular company be set apart from those of other competitors. Similarly, local, international and global products have differences in the way that they market and brand their products. For instance, global products are more distinctive in brand and packaging compared to international and local products thus the reason for acquiring the status global products. 

Local products are also referred to as domestic products simply because they are mainly products produced within a specific country and the commercialization of these products is entirely within that country. Then there are international products which from the name it is clear that these are products selling overseas across many countries, the sale and services of these products is not limited to any specific country. And finally, there are global products. In most cases, global products are usually considered to be the same as international products, but this should not be the case, simply because global products consider the world to be a single large market thus views the world as one. 

Local Products and Brands 

Local brands and products usually gain their success by selling nationally across the country markets. Local products must not necessarily be from a local firm or company, sometimes global companies usually come in a particular country and manufacture local brands and products in the effort to deliver services and attend to the preferences and needs of the market of a particular country. An example of a global firm producing local products is Coca-Cola in Japan and India (Clients). Local brands and products represent the domestic companies’ lifeblood. The entrenched local brands and products can prove hard thus posing a challenge to any new international products entering the markets of a particular country. All the same local brands usually fill the markets of their independent countries until completion of international and global products and brands come in. Local brand fighting for a spot in the region's markets sometimes find it hard and can only acquire a small percentage of it. The main reason why local products and brands may have a small market share in their areas of operations is that compared to the international and global products and brands they fail to represent a strong brand foundation (Kapferer & Schuiling, 2003). Compared to the international and global brands and products, local brands and products are limited in one country and have only a small area to serve. More so, the interference from the government to a local brand and products is very less compared to the other two international and global brands and products. Also, the capital required in operating an international and global brand and products are very high compared to the local brand and products similar to the risk factor. In addition, the local brands and products are eminent in their localities and markets, which aid in building strong relations with the people (local consumers) around every day and are thus readily available compared to the international and global brands and products which may be rendered out of stock (Schuiling & Kapferer, 2004). In most cases, consumers are believed to be completely identified by the local brands and products compared to other brands and products simply because they are usually positioned in a way that they understand the culture as well as the local needs (Ing et al., 2016). And the local products and brands tend to be trusted more compared to international and global brands and products (Mühlbacher et al., 2006). 

International Products and Brands 

International brands and products are usually offered within several markets of a particular region in a number of states. Production, distribution, selling, promotion and advertising activities are extended beyond a country’s geographical limits. For instance, some Euro brands and Euro products like the two-seat Daimler Smart car available in Europe; it was lately launched in America. This products and brands from Euro acquired international status the moment they expanded to the U.S. International products and brands, unlike the local products and brands are complex and are of high value. International brands and products employ a great deal of research about the market that is required simply because of lack of adequate information about foreign markets. The level of technology applied to the international brands and products is also of high value. Compared to the local brands and products, it is quite challenging when it comes to dealing with the customers simply because of the different segments, habits and tastes and preferences, for local brands and products is quite simple because of nature similarities. International brands are of a great quality compared to the local brands and products. Compared to a local brand, international products and brand fail to benefit traditionally from high attractiveness and awareness levels within their international markets. 

Global Products and Brands 

Globalization is pressuring companies with the aim to have them develop brand and products which would sale globally and influence brand equity across the globe. Global products and brands usually meet the needs and wants of any global market. Global products and brands are those which are offered on every corner of the world despite its status. Global brands and products have no difference from each other having the same name similar positioning and image all over the world. Normally the global products and brands compete on their own or against one another. They represent the recognizable characteristics and a particular brand and product awareness. Throughout the globe, all global products and brands are similar so that they can at least satisfy similar customers’ needs across the world. Because of this reason, global products and brands enjoy the benefits which arise from the economy of scale in matters related to their costs of production. Compared to both local and international products and brands, global products and brands can easily enter the local market at a lesser price than other brands simply because of the reputation that they have across the world (Tantiwongwat, 2013). Global brands and products are considered to be high-quality products within the developing and developed nations due to their premium charges and global acceptance (Ing, et. al., 2016). Furthermore, it was found that compared to the local and international brands and products, global products are highly regarded to have a higher status and are essentially preferred due to their brand globalness factor with regards to being demanded and desired internationally. In addition, global products and brands appeal to the local markets and customers as well because of the higher perceived prestige, quality and status (Ing et al., 2016). 

Brands play a very significant role in any business setting. Despite the type of brand, for instance, local, international or global, they all have significant functions the business world. Local brands in most cases are subdued by the global and international brands and products whenever they flow in the local markets. All the same local products still manage to maintain a portion of the market share competing favorably against the giant brands and products. Compared to the local brands international are comparatively expensive and has complex requirements and is expensive since capital required is huge. On the hand, global products and brands freely roam the markets ruling the brand markets. Global products are usually readily accepted within the markets compared to the local and international products and brands simply because global brands have established trust and care for the customers across the globe. It is clear that the brands completely differ from each other with the global branding benefiting more as it rules all over the world compared to other which are limited to one state and to a few states. 

Reference 

Ing, P. W., Phing, T. T. G., Peng, N. C., Ho, Y. S. J., & Teik, D. O. L. (2016) Global Versus Local Brand: Perceived Quality and Status-Seeking Motivation in the Automobile Industry. World Review of Business Research. 2 (4). 1 – 12. 

Kapferer, J-N & Schuiling, I. (2003). How unique are local brands? An empirical comparison of local and international brands in the food industry . IAG Working Papers.   

Mühlbacher, H., Dahringer, L., & Leihs, H. (2006). International marketing: A global perspective . London: Thomson Learning. 

Schuiling, I & Kapferer, J-N. (2004) Real Differences between Local and International Brands: Strategic Implications for International Marketers. Journal of International Marketing,12 (4): 97-112. 

Tantiwongwat, U. (2013). Local Brand versus Global Brand: A Case Study of the Cola Soft Drink Industry in Thailand . Master’s Thesis. Karlstad Business School. Retrieved from http://www.diva-portal.org/smash/get/diva2:646904/FULLTEXT01.pdf