Introduction
The relevance of locally supported brands and enterprises has been growing significantly over the last decade. Today, youthful audiences push global brands to develop more authentic communication channels between themselves and their target audiences. Essentially, the multinational players are required to display a deeper comprehension of their markets’ preferences- the brand has to demonstrate they understand their target audiences (Ritz et al., 2019). In the case of St.Catharines, the stakeholders had to adopt policies that would aid in diversifying the local economy. Through well-developed marketing campaigns and increased public investments, the City was able to effectively retain their previously reducing youth demographic within the population, appeal to outside investors, and offer more sources of cultural entertainment (Kurylovich, 2019). The main issue addressed in the current synopsis essay is how local regions have adopted to the reality of globalization and developed post-industrial means of marketing their uniqueness or resources as opposed to global brands. Implying that it is the local populations that are up for grabs. Whichever side, either the multinational or the regional brand(s), can master how to effectively communicate with the local audiences easily wins their patronage as well (Gao et al., 2018).
The Theory of Brand Orientation
Brand orientation refers to the strategy through which all the processes of the corporation revolve around the creation, development, and protection of their brand identity while actively engaging with their target consumers (Chang et al., 2018). The primary objective of brand orientation is to obtain a lasting/ sustainable competitive advantage in an otherwise globalized market. Chang et al. (2018) hypothesized that brand orientation directly, and indirectly, influences brand success through the encouragement of consumer value co-creation. Basically, as the suppliers apply their knowledge or developed capacities to production and branding of their products, the consumers in turn utilize their capacities and knowledge in their use of said products/ services. Global corporations grasp this critical aspect of operating within the market, which would help explain the observed growth in investments toward brand orientation activities. Establishing and maintaining effective brands requires considerable resource allocation on almost all business fronts. Chang et al. (2018) drew on the Upper-echelon theory, and the resource-based view, to suggest that there were two main factors that affect the brand orientation procedures of any firm: their marketing capabilities and the management’s entrepreneurial orientation.
Entrepreneurial Orientation– or EO, represents the practices, processes, and decision-making activities that help guide entrepreneurial actions or decisions (Chang et al., 2018). Additionally, the adoption of a brand orientation is considered as an entrepreneurial undertaking. Research suggests that maintaining a brand presents plenty of opportunity costs for the respective organizations. This would help explain why some managers are still adamant on implementing brand orientation initiatives- they seem perilous to them (Chang et al., 2018). Thus, managers must first develop long-term objectives then be willing to pursue them proactively while taking significant risks at times. Implying that EO helps foster the development of innovative capabilities within firms while simultaneously identifying new opportunities for growth.
Marketing Capability– this refers to the firm’s ability to coordinate the main elements of its marketing mix with the resource inputs to develop and adopt effective marketing campaigns (Gao et al., 2018). Without this component, even with EO, its would be difficult for the firms in question to adopt and or pursue strategic initiatives such as brand orientation. According to Chang et al. (2018), marketing capability is heavily reliant on the management of market information/ data and the execution of previously made marketing strategies. Marketing capability among firms enable them to gain valuable market insights and by extension, a better comprehension of the dynamic markets they operate in. With this understanding it is not hard to imagine why scholars believe that marketing capability is positively correlated with improved brand performance (Gao et al., 2018).
Building on the resource-based theory, international marketing research concluded that market-based relations, such as ties linking international brands with local consumers, are invaluable resources for firms looking to enter local markets. However, the true power of such relational ties is that they are near impossible for the competitors to re-create or imitate (Ritz et al., 2019). Essentially, in today’s globalized market economy differentiating your brand from other competitors is crucial for positioning. Gao et al. (2018) contributed to the opinion that multinational brands ought to promptly and efficiently integrate publicly available resources, such as social media, to establish a sustainable competitive advantage as a brand within local markets. The article maintains that each global brand’s ability to utilize their social media influences effectively as incentives is unique and quite inimitable.
The Stakeholders
Research indicates that small business operators are often required to develop, change, and evolve their marketing approach intelligence via their use of social media (Gao et al., 2018). While multinational corporations can easily recruit outside expert help to manage their websites or social media-related campaigns. By steadily working toward becoming hubs for entertainment and relaxation, most post-industrial cities market themselves to their desired targets around the globe. Following the St.Catharine’s example, the stakeholders understood that to create a vibrant and unique downtown community they would first need to offer amenities that would help improve the general quality of life. What’s more, the policy frameworks adopted helped ensure that future investments or developments within the Downtown urban fabric supported the artistic and creative concept of the Wine Region as a cultural centre (Kurylovich, 2019). According to Ritz et al. (2019), a lot of the available literature on digital marketing is concentrated on activities concerning multinational corporations and the smaller businesses are significantly overlooked in this regard.
Ritz et al. (2019) stated that interactive technologies, as well as Web 2.0, facilitate 2-way market communication channels that enhance the creation of brands, through increased consumer loyalty and optimized business performance. Despite this fact, data suggests that small businesses are less likely to invest, significantly, on their web presence as opposed to their multinational competitors. Primarily, due to their limited resources, the smaller businesses do not view having an online presence as a priority. Often, in such organizations there is a high probability that the manager/ business owner oversees the firm’s online marketing activities (Ritz et al., 2019). One of the reasons why this is not uncommon is because for the smaller enterprises there is plenty of uncertainty regarding their use of technology. As aforementioned, other financial, managerial, technical, or temporal-related concerns are more highly prioritized (Chang et al., 2018). Having said that, research indicates that stakeholder relationships are perceived as being a form of a relational resource. The relationships developed between the small firms and the local stakeholders is impossible for global competitors to mimic/ recreate. This is because such relations are all unique based on their individual historic, causal, and social undertones (Ritz et al., 2019). Thus, the main problem for the multinational players becomes merging their social media influence with their limited relational resources.
The Resource-Based Theory
The research-based theory, RBT, advances that the organization ought to concentrate on the accumulation of resources that are valuable, rare, imperfectly imitable, and supported by Organizational capacities- VRIO- to sustain a competitive advantage as well as efficient performance (Gao et al., 2018). Following this conception, global brands would need to strategically examine the value of their potential relational resources within local markets. Such evaluation would aid in the development of effective stimulus strategies to transform such valuable, latent, relational resources into proactive brand resources. For example, previous arguments or studies on RBT stressed on the theme of ownership and the control of resources. Whereas, the more recent RBT logic recognizes that numerous, potentially valuable resources reside within the public domain (Gao et al., 2018). Meaning that multinational organizations that can restructure quickly and effectively enough to integrate publicly available resources would boast of significant gains.
Social media is considered as a resource that can exist within the public domain, and it is in no way controlled or owned by the firm. However, the organization(s) in question can easily integrate social media strategies into their marketing approach. Many brands turn to social networks for the opportunity to foster closer ties with their consumers (Chang et al., 2018). Whats more, multinational brands can build relationships with individuals based on their pre-existing relations as social media users and incentives from the brands. The values, culture, and motivators for the target demographic obtained through these networks play a pivotal role in determining the incentives developed by international corporations (Gao et al., 2018). Only by doing that coherently, and consistently, can the multinational players have any hope at competing within local markets.
Criteria for Decision-Making in Future
According to Chang et al. (2018), globalization has made it possible for brands- small or large- to adopt numerous positioning policies and programs that help guide their creation of brand-related content. Consumer culture positioning, or CCP, is a crucial component for alignment as far as social media branding on the global scale is concerned. Gao et al. (2018) suggested that global CCP was viewed as a means of identifying the brand as a symbol of a given global culture. While foreign and local CCP proposed strategies for the location of a brand with a specific foreign or local culture (Gao et al., 2018). For a sustained competitive advantage, especially in the local markets, multinational corporations ought to utilize more informed or refined CCP strategies. Research suggests that the three most essential components required for the establishment of efficient CCP strategies are: aesthetic styles, story themes/ background, and language. As aforementioned, a thorough comprehension of the target market’s preferences is a core requirement for global branding.
From a managerial perspective, it is just as important to promote strategic entrepreneurship among management as it is to develop brand orientations. Naturally, however, plenty of managers are afraid of the idea of branding- specifically concerning business-to-business (B2B) brands. The two main reasons being that i) there’s a relatively high risk associated with B2B branding activities, and ii) the lack of immediate returns from such initiatives (Gao et al., 2018). Hence, to overcome the otherwise cautious nature associated with strategic decision-making, and fully realize the advantages of B2B branding, the leadership has to adopt more proactive, innovative, and aggressive operational policies. On the local market scene, it is imperative that the managers improve on their promotion/ advertising efficacy so as to deliver the brand’s message clearly (Ritz et al., 2019). Additionally, the management needs to closely monitor market trends so as to retrieve valuable insights concerning the consumers’ changing needs. Global brands are well aware of the value local brands possess through their close interactions with their consumers. In such cases, it is the managers who are central to the active engagement between the firm and the consumers- which is geared toward the co-creation of value for the local brand (Ritz et al., 2019).
Therefore, in the future it is evident that more and more organizations are going to seek out branding opportunities and partnerships globally. As the global firms seek to increase their market share on the local arena, local corporations are working at establishing and maintaining their success as household names within the local community. From the covered literature on the topic, brand orientations are designed to encourage the management to devote more time and resources into their branding efforts (Chang et al., 2018). I would recommend that in future, both local and the multinational players enhance their efforts to engage with their consumers or stakeholders via joint information sharing, strategic planning, and decision-making procedures. As the local businesses invest in their online presence, it would be important for the multinational organizations to step-up their grass-root promotions and initiatives. For instance, the local media outlets have an easier time generating the relevant data from the population in St. Catharines compared to any global brand. Such data enables them to better comprehend consumer purchase patterns, business growth trajectories within the area, emerging cultural trends and so on. Multinational firms require such insights to gain any meaningful competitive advantages in a highly dynamic global market. My final position on the raised issue is that because local businesses have effectively adopted to their post-industrial reality, they have the upper hand as far as reaching marginalized/ local populations within the global economic market. The only stakeholder I completely agree with is the consumer, after all, it is their demands and preferences that determine the success of brands.
Conclusion
The main issue addressed in the current synopsis essay is how local regions have adopted to the reality of globalization and developed post-industrial means of marketing their uniqueness or resources as opposed to global brands. Implying that it is the local populations that are up for grabs. Whichever side can master how to effectively communicate with the local audiences easily secures their patronage as well. Brand orientation refers to the strategy through which all the processes of the corporation revolve around the creation, development, and protection of their brand identity while actively engaging with their target consumers. Research data suggests that brand orientation directly influences brand success through the encouragement of consumer value co-creation. Because, as the suppliers apply their knowledge or developed capacities to production and branding of their products, the consumers in turn utilize their capacities and knowledge in their use of said products or services. Based on the RBT, international marketing research concluded that market-based relations, such as ties linking international brands with local consumers, are invaluable resources for firms looking to enter local markets. The true power of such relational ties/ resources is that they are near impossible for the competitors to re-create. The RBT advocates for the organization to concentrate on the accumulation of resources that are valuable, rare, imperfectly imitable, and supported by organizational capacities. Only then can they hope to sustain a competitive advantage and have efficient production. Social media is considered as a resource that can exist within the public domain, and it is in no way controlled or owned by the firm. However, the organization(s) in question can easily integrate social media strategies into their marketing approach. Many brands turn to social networks for the opportunity to foster closer ties with their consumers. From a managerial perspective, it is just as important to promote strategic entrepreneurship among management as it is to develop brand orientations. The St.Catharines example, shows the stakeholders had to adopt policies that would aid in the diversification of the local economy. Through well-developed marketing campaigns and increased public investments, the City was able to effectively retain their previously reducing youth demographic within the population, appeal to outside investors, and offer more sources of cultural entertainment. Lastly, the management needs to closely monitor market trends so as to retrieve valuable insights concerning the consumers’ changing needs. Global firms also need such insights to gain some competitive advantages in a highly dynamic global market. Thus, the multinational brands are well aware of the value local brands possess through their close interactions with their consumers.
References
Chang, Y., Wang, X., & Arnett, D. B. (2018). Enhancing firm performance: The role of brand orientation in business-to-business marketing. Industrial Marketing Management, 72, 17-25. https://doi.org/10.1016/j.indmarman.2018.01.031
Gao, H., Tate, M., Zhang, H., Chen, S., & Liang, B. (2018). Social media ties strategy in international branding: An application of resource-based theory. Journal of International Marketing, 26(3), 45-69. https://doi.org/10.1509%2Fjim.17.0014
Kurylovich, D. (2019). Deindustrilization and Economic Development in St. Catharines, Ontario. Retrieved from https://qspace.library.queensu.ca/bitstream/handle/1974/26604/DmitryKurylovich%20_MRP_FinalDraft_Sept18.pdf?sequence=1
Ritz, W., Wolf, M., & McQuitty, S. (2019). Digital marketing adoption and success for small businesses: The application of the do-it-yourself and technology acceptance models. Journal of Research in interactive Marketing. https://doi.org/10.1108/JRIM-04-2018-0062
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