How globalization and localization can affect brand name strategies

#corporatelanguage, #corporatelanguagestrategy, #branding, #brandingstrategy

In today's interconnected world the dynamics of brand management have evolved significantly. Globalization has enabled brands to reach a broader audience, but simultaneously, localization has emerged as a crucial strategy for connecting with diverse audiences globally. With brands communication with audiences around the globe comes the challenge on how to select brand names that resonates well with these diverse audience groups. In this following article we will focus on some considerations to make when building a brand name strategy that will be the basis for creating brand names for a global-acting organization.

In a first step we will get our concepts straight before diving into further details.

What is globalization?

“The analysis of, and planning for, the development, delivery, and consumption of global content. (Bill Swallow, 2014, p.178)”

With globalization, companies aim to create a universal appeal for their brand names, ensuring consistency and recognition regardless of the market they operate in. However, the one-size-fits-all approach of globalization may not always resonate with local consumers. This is where localization comes into play.

What is localization?

“Adaptation of content to make it more meaningful, appropriate, and effective for a particular culture, locale, or market. (James V. Romano, 2014, p.175)”

Localization involves tailoring products, services, content, brand messages and brand names to meet the specific needs and preferences of local markets. It acknowledges the cultural nuances, language differences, and socioeconomic factors that influence consumer behavior.

What are brand names and trademarks?

Baxter (2023) describe the difference between brand names and trademarks as follows:

"A brand name may be a company name or a name ascribed to a particular product or service. It is what the company uses to represent its goods and services and what consumers use to refer back these goods and services to their source. ...A trade mark is an intellectual property right that protects a brand. A trade mark gives protection to the brand name that it would not otherwise have. ... A trade mark is a type of intellectual property right that protects a brand. It is not necessarily a logo: it may be plain text, a slogan, a design aspect, a smell, a color or even sound. In a similar manner to a brand name, the purpose of a trade mark is to differentiate a product from others in the market, but a trade mark offers the owners protection that an unregistered brand name cannot. (Baxter, 2023)"

How is everything connected to the concept of brand name strategy?

When it comes to brand name strategies, globalization and localization can have contrasting effects. Global brands often opt for standardized brand names that are easy to pronounce and remember across different languages and cultures. These names typically undergo extensive market research and linguistic analysis to ensure they do not inadvertently convey negative connotations or offend local sensibilities.

On the other hand, localized brand names are crafted to resonate with local consumers on a deeper level. They may incorporate cultural references, wordplay, or idiomatic expressions that evoke emotions and foster a sense of belonging.

Brand names are an important part of a corporate language and of an organization strategic communication efforts. Like other parts of the corporate language brand names should be created strategically. Next to an alignment to other strategies like a communication strategy, a corporate language strategy and branding strategy, brand names also need to comply legal standards.

When we look at the legal aspect of brand name usage by organizations especially globalization can bring another level of complexity to developing a brand name strategy. This complexity is strongly tied to different legal standards and trademark registration processes depending on the country.

In the following chapter we will talk about some aspects (audience-tied and legal) which you might want to consider when building a brand name strategy for your organization.

What to consider when developing a brand name strategy?

When developing a brand name strategy there will be some tough decisions to be made. In the following paragraph I summed up questions which might lead to making these tough decisions. The given answers and decision will determine what needs to be checked legally and what needs to be researched on audience side to build well-suited brand names.

Guiding questions:

1. Which of our products and/or services should carry a brand name according to our communication strategy and corporate language strategy?
2. According to our sales and globalization strategy in which countries do we need to register the brand name as a trademark?
3. To which markets are we currently selling the product/service?
4. To which markets will we sell the product/service?

To each of these questions there are some considerations to be taken which might influence the answer and decision:

• Not every product or service needs a brand name. Sometimes using a term is sufficient. This decision depends a lot on the overall branding strategy where the brand name strategy is connected to, the communication strategy and the available resources.
• Brand names and if registered trademarks need to be suitable for the audiences in the target market. Having a great brand name for the current market that causes negative associations in the future markets only causes troubles like rebranding or introducing alternative brand names for certain markets which will cost a lot of resources.

• Registering a brand name as trademark needs to be done at different agents which are responsible for different regions or countries and every registration process costs money and time. ?The more countries the more money is necessary and there more time it takes for the overall process.
• There are different trademark levels one can achieve depending on the country and these different trademark levels might have have different protection levels e. g. TM vs. ?.
• Under which trademark level a brand name is registered might have implications on it’s use in content (source and target languages).

Conclusion

Striking the right balance between globalization and localization in brand name strategies is not always straightforward. Brands must navigate many challenges and risks, including cultural sensitivities, legal considerations, and market dynamics. What works in one market may not necessarily resonate with audiences and authorities in another.

Furthermore, brands need to be mindful of the potential risks associated with globalization and localization. While globalization offers economies of scale and access to larger markets, it also exposes brands to increased competition and regulatory scrutiny. Likewise, overemphasizing localization may lead to inconsistencies in brand messaging and dilution of brand identity across different markets.

The key lies in careful consideration on available resources and a good risk assessment for different options available.

See also

How to make Corporate Language strategic

The influence of language on content experience and user experience

References

Baxter IP, Patent & Trade Mark Attorneys (2023). Brand Name vs Trade Mark. https://www.baxterip.com.au/brand-name-vs-trade-mark

Baxter IP, Patent & Trade Mark Attorneys (2023). Brand Name vs Trade Mark. https://www.baxterip.com.au/brand-name-vs-trade-markRomano, James V., Swallow, Bill, Abel, Scott; Bailie, Rahel Anne (2014). The Language of Content Strategy. XML Press. Kindle-Version.