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Branding in the new world economy

Written by: Steve Cranford

Article Overview: Effective branding is about being smarter with what you have.

Branding in the new world economy

Effective branding is about being smarter with what you have.
The beauty of world class branding is the best answers are often the most simple and least expensive, IF working with brand strategists who truly understand the human mind.
This understanding is critical for countries with emerging economies intent on gaining share of market. Effective brand strategy, by creating competitive advantage, drives economic growth as recognized in three reports from Turkey, China, and Malaysia.
Republic of Turkey officials understand the importance of effective brand strategy in attracting foreign investment, as reported in the Turkish Daily News:
Industry and Trade Minister Ali Coskun…noted the reality of globalization and said the only way for Turkey to survive in today’s world was to increase the country’s competitive advantage by creating new brands through the innovation and designs of Turkish entrepreneurs.
“We have undertaken initiatives to open the way for investors by fostering a modern environment. Efforts to heighten awareness of the importance of brands have also intensified,” [said Minister Coskun].
China intends to increase exports and attract foreign investment through use of brand strategy, according to the China 2005 Draft Plan for National Economic Development as reported by the People’s Daily Online:
Striving to raise the quality and level of opening up and making better use of both domestic and international markets and resources…[w]e will implement a name-brand strategy and support and increase the export of products and services…bearing our own brand names….
We will encourage foreign investors to invest in new and high technology industries, advanced manufacturing industries, modern services, modern agriculture and environment-friendly industries and to participate in the reorganization and technological upgrading of state-owned enterprises. We will encourage and attract multinational corporations to set up R&D and purchasing centers, regional headquarters and advanced manufacturing bases in China…
And in Malaysia, the Prime Minister personally encourages businesses to develop brand strategies–with government funding to assist–as detailed in this story from the Daily Express:
Prime Minister Datuk Seri Abdullah Ahmad Badawi has called on companies to seriously consider brand development in their overall business strategies and make use of the RM200 million brand promotion grant.
The Prime Minister said…the grant was made available in 2003….
The Prime Minister said brand development and brand building were investment intensive and for that reason the government had decided to allocate the amount for the grant….
The Prime Minister said…both [the private and public sectors] can work together to make Malaysia a truly competitive nation.
These governments each recognize that for their developing economies, one of the smartest means of developing competitive advantage and encouraging capital investment is by becoming smart through use of effective brand strategy.
As the world becomes more connected and layered with multiple communications channels, owning mental real estate in the mind of the market is vital to attracting investment and driving growth.
Otherwise, whatever a country or organization may say about itself or its product runs the risk of never rising above the white noise of global contemporary, even global, culture.
When a brand becomes the first thought within the mind of the market for any industry or category, that single brand owns valuable mental real estate, and thus secures for itself enormous competitive advantage.
And, first-rate brand strategy need NOT be investment intensive. One powerful benefit that comes with the intelligent use of brand strategy is the potential to decrease, and even eliminate, advertising expense. For any entrepreneurial CEO, or even Prime Minister, this benefit carries with it the ability to materially accelerate the growth cycle as precious early-stage cash may be diverted to other pressing needs, such as infrastructure development, rather than advertising.
Very smart.

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