Introduction
Globalisation is referred to as a set of profound material changes that have an impact on relations between societies in the past few decades. The identifiable features of these material changes are witnessed in the development and growth of web, satellite transmission, fibre-optic technology, broadband operations, transnational corporations and the emergence of World Trade Organisation.
Globalisation is transformation of how ideas travel and the nature of their final destination leading to increase in international trade thereby increased competition. Firms expand by penetrating established markets to create new markets for their products. This necessitates them to have identity for them by establishing trademarks by way of branding and keep on administering to create value. While expanding and penetrating newer markets; developing, promoting and performing marketing operations using different trade marks for different countries become costlier. The more the countries a trademark is known, the greater is its value and the greater the need to protect the same by registering at the global level. Trademark registration involves not only higher costs but also procedural constraints while registering the same in every country.
Brands have become part of not only an economic market, but also a metaphorical market because they involve and propagate a system of using signs to control meaning and language as brands fulfils several different economic functions.
Identification: On a basic level, it serves an identification function by associating a product with a company.
Communication: More abstractly, it has an informative function, in that it provides a vehicle for the efficient communication of information, thereby reducing consumer search costs in choosing a product. Signaling: The use of branding in advertising also serves a signaling function, in that, it suggests that a company who is willing to expend a substantial sum on its advertising must have developed a good product. Expression: Lastly, branding also serves an expressive function, in the sense that it links a particular consumer identity or essence with a product.
Mega – branding Strategy
Branding involves not just the product name, advertisements, or the use of a logo, but the core assumptions and beliefs that are conjured up when one thinks of the brand. The best brands were those who could generate a certain psychological feeling about the product. Thus, the “brand essence” moved away from a focus on the product and toward a psychological association of the brand with a certain identity. Today, firms undertake “mega-branding” strategy, in which firms devote a substantial portion of their income towards placing their logo on a variety of different products and events, further amplifying the link between psychological, cultural and corporate association. In this way manufacturers control both supply and demand by manipulating consumer trends through the skilful promotion of the brand.