Globalization and digitalization are two of the most significant dimensions when anybody builds a brand. This is an era of postmodernism. Like every business in the globe has to develop its name, identity and trademark for customer relationship management(CRM). That’s why we have to understand the worth of building and developing a brand in this digital economy. Most of the firms have to provide their services through the usage of the internet into the utilization of that service type business in multiple ways. First of all, we have to understand the nature and real meaning of globalization.
What is the simple meaning of globalization?
Globalization is a complex process but in simple words, “its an interconnection, interdependence and integration between various corporate companies, states and cities to make data, information and communication more easily and reliably flow from one place to another through the internet connection”. This process has not only to influence socially but also economically as well as politically.
The product is manufactured in one country but sells into another country which represents that all distance reduces through the internet and removing another barrier of trade. For example, When Alibaba started its venture CEO Jack Ma had to believe that its product on the store does not sell domestically but also globally since he knows the worth of the internet.
He converts its threats of branding into opportunities just to remind himself of philosophy about globalization. Because it’s not about a company’s existence domestically but also international trade. You can see now his worth of business approximately $48.2 billions all over the globe just to utilize its approach to digitalization by the help of globalization.
Concept of Digitalization:
Digitalization is defined as a transformation of analogue data to digital and reshapes of every activity to the digitization. For example, an organization which has a physical existence and their main objective are to enhance its products and services not only domestically but also internationally.
They are developing their brand website and marketing their services with the help of online pages on the social website (Facebook, Instagram and LinkedIn). Because these market platforms engage their customers to the products and services and also creates brand loyalty.
How globalization affects the digital economy?
In this globalization digital era, brands are more concerned about the quality of products and services. Digital platforms are the key success indicators.
Most of the Small medium enterprises have provided their services on Facebook approximately 50 million. These platforms give the more and more cohesive connection among the diverse audience but the question is this, the digital economy boosted GDP. The answer is big yes, we can understand it by the help of the well-known organization which is Skype. Skype origin of the country is Estonia.which is quite amazing as of Estonia freedom from the Union of soviet socialist Republic ( US.S.R.) in 1991.
And after that, it focuses on the more digital economy and develops its society by facilitating a lot of skill development courses freely in the early ages of its citizens. So skype companies give huge benefits to the state microeconomics and macroeconomics factors such as Inflation, employment opportunities Foreign direct investment F.D.I. and taxes collection etc.
Therefore a digital economy of any state has supported a revenue stream for the government. And a state government must focus on the service type enterprises as Estonia is doing.
Why is branding a must?
Today, most of the firms have to try best to become a brand for their customers and clients. Those companies who become a brand are generating high value for the product. A brand is a symbol, design or logo which differentiate from one seller’s to another and make the product or service relevant to the customer needs, wants and demands.
The most integral part of branding is a competitive advantage: what you have in your pocket doesn’t have others. That is only possible when clients represent their products admirably and the customer satisfies their products.
In this globalized digital era, famous firms have focused their identities, recognition and create value for the customers when he/she seems that products/services they know can be made better for it.
Resultantly, positive word of mouth, brand image, customer brand engagement arises up to level. we can understand it by the help of an example, there is a service type business which offers multiple products like Devhouse.co which assist in developing a game, app and graphics. The human resource of this software house becomes its strength and logo, design and their identities become a brand. When anybody wants to develop its website they search on google and find out relevant services which have good reviews regarding its services.
Famous brands shifting their marketing style:
Most of the popular brands like coca-cola, Pepsi, Nestle and tesla have changed their style of marketing from the convention marketing style to digital marketing style.
Whenever they launched a product they were advertising it in magazines, newspapers and billboards which related to the traditional style but at that time the way of marketing has changed because of social networking websites like Facebook, LinkedIn, and youtube. Now the way of marketing shifted towards personalized advertisement on google also they are using social networking websites to reach its customers more aggressively. Coca-cola has spent $4 billion on digital marketing.
They are spending more on advertising and marketing rather than on soft drinks. What does it prove? It showed that customers are more concerned about the quality of products that will only come when brand awareness and brand attachment is strongly committed by it.
So that it ultimately converts brand loyal. If anybody wants to buy a soft bottle it comes to the customer’s mind that coke is here. The consumer behaviour changes with the passage of time due to the digital economy as well as brand digitalization.
Hurdles faced by digital economy in branding:
There are multiple reasons behind the digital economy faced in branding but into our point of view there are three key reasons
Lack of Adaptability:
The most significant reason is adaptability in the brand whenever a trend has changed the style of marketing must be verified to the adaptable trends. The more you adapt the fewer chances to default. Any software house who works for the clients on the basis of skills must have to adapt the trend because customer needs change.
In Devhouse.co human resource of developers always works to adopt the new skills if it is not doing this they will fall to the ground state.
The communication gap:
Persuasive communication is the main hurdle between the departments. those brands who communicated their messages to other functional areas they are successfully performing well.In such a way that a sales executive person did not know about why their services did not sell then the purpose of sales ultimately decreases because it did not communicate the entire message of the brand.
Improper marketing strategy
Integrated marketing communication channels are not performed well because of the issue of planning. Integrated marketing communication means to align all the multiple channels into achieving organizational goals. This problem occurs due to Research and development of the products and services.
Solutions of these hurdles
For digital marketing, mobile app development, website development needs to enhance the skills. When change occurs in the marketplace you have to notice that change and build a brand on the basis of variety.
The more you have a variety of services your business is sustained and rapidly grows to the margins and Return on Investment(ROI) improves.
According to the porter five forces model, competition in the industry must notice. Competitors are the key to succeed in business. For the purpose of getting more sales and revenue streams generation, it is obligatory to research on it. There are five simple questions
1.what are the threats of the new entrants, (Innovation and development)
2.what alternatives products they are providing(substitutes)
3. What are the various tools to utilize it and get more clients(power of clients)
4. What is our competitive advantage (competitive positioning)
5.what are the bargaining power of the supplier(Expertise)
Whenever a brand goes through these questions they ultimately find out the brand equity of a specific brand in terms of creativity and image in the mind of the customers.
Alignment of Integrated marketing communication channels(IMCC)
This is the most significant element of this digitalization era. Effective communication between the customer and brand depends on it. For example, if a brand launches campaigns related to discounts to multiple social media like Facebook, Instagram and youtube.
When campaigns launched than one channel are not performed well like Facebook organic campaigns than the personalized advertisement on youtube have an alternative way to reach the desired audience and this alignment might be generating more sales than the expectation. So the alignment between the channel must do it as a unified way as well as symmetrically.
In a nutshell, this is the era of digitalization. The trends are shifting from traditional ways to modern ways. Adaptability, Integrated marketing communication channels and skills enhancement must do its brands for the purpose of getting more brand equity and brand attachment to the clients. The most famous brands have spent their expenditure on digital marketing. So it is advisable to all brands focus on the modern ways of communication rather than traditional ways.