Brand identity, being one of the ways to manipulate consumers, helps to distinguish a company or service in the market and ensure maximum income from potential customers. Thus, brand differentiation is significantly important as a component of international marketing strategy (Gao et al., 2018). When it comes to the foreign market, a familiar and well-known name becomes a reference point for the buyer in a growing number of goods and services and an endless stream of advertising. Therefore, having built a clever branding strategy, the company gets the maximum return in the long term, which becomes a key factor for its success in the international market.
The practicality of the use of such a marketing tool depends on the cost-benefit ratio, which is determined by the characteristics of the market, the product, and the company itself. It is not suitable for companies that are not ready to engage in developing distribution and improving the quality of the product provided. In the international market context, it is hard to imagine a firm that does not count on a long-term strengthening of its position among competitors. Hence, it becomes obvious that it is necessary to invest in the development of corporate identity and brand specifically for companies that aims to win the sympathy of foreign clients.
It is important to realize that branding is not a universal tool and not the only reason for the success. Nevertheless, without investing in branding and ignoring the need to introduce a corporate identity for a particular company and service, a business may not develop and will soon go bankrupt, especially if the firm is seeking to conquer the international market. Thus, such an approach to branding has become the basis of marketing in the modern world, crowded with competitive advertising activities.
Reference
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.