INTRODUCTION the importance of brand issue will be the


Brand is a term that the primary
source of a firm’s competitive advantage. It has the ability to create value
that add emotion and trust to the products and services that provide clues that
simplify consumers’ choice. One of the main benefits of branding is its ability
to build purchase confidence and improve customer loyalty.

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desires and expectations are continuously changing and today’s

shoppers are more intelligent and concerning about
their individual preferences. In the

global market place, “brand” issue has become one of
the most important factors affecting consumer purchasing behavior. Brands not
only satisfy the physical needs of

consumers, but also psychological needs (Aaker, 1996).
Consumers are following ashion and selecting brands which define who they are
or who they want to be. Fulfilling the esteem needs and self actualization
needs (Maslow, 1954) brands serve for self fulfillment and assure self respect
and recognition to the individuals. So far, the importance of brand issue will
be the milestone of this study.

A series
of studies have highlighted the strategic importance of a strong corporate
brand and its impact on various corporate dimensions. A strong corporate brand
is thought to enable a company to attract qualified employees, attract capital,
select suppliers and achieve significant financial performance (Beatty, Ritter,
1986) but there is not consistent or reliable research conducted to develop a
scale to measure this strength of corporate brand. In literatüre there is a
wide gap about corporate brand equity which is defined by Keller (2000) as the
differential response by consumers, customers, employees, other firms, or any
relevant constituency to the words, actions, communications, products or
services provided by an identified corporate brand entity. Therefore, it is
significant and necessary to explore consumer based corporate brand equity

brand building could strengthen a producer’s competitive position to withstand
the increasing power of retailers. The high costs associated with the launching
of new brands and the high failure rates of new products as well as increasing
costs of advertising and distribution are some of the reasons for building
strong brand. Brand building can also bring advantages such as defending
against competitors and building market share. Hence, a better understanding of
brand equity measurement is essential for an enriched practice of brand
management (Pappu et al, 2005).

In the
progress of the globalization, the developing cities are effective on the
people of the city. Cities in the way of global integration entered into a
transformation progress as parallel to the economic, social, cultural and
publicity that have to revised by conditions of the day. Today it is not a
unknown fact that cities are under a burden which consists of people and their
activies because of global processes. It is widely seen in the literature that
since the 1980s, globalization has changed a lot of cities around the world and
has taken to a new social atmoshere. A new city approach occurred. According to
this concept, a city has to accommodate a lot of relations such as working
class, living class, many activities by people and so a lot of things on.

In recent
research, as it is seen, the branding concept is very common issue for huge
firms. Huge firms like McDonalds, Lc Waikiki and so on, research the many field
to spread their brands. The brand, each passing day, is very important object
for prople. Especially in many huge cities the brand is very common issue.

There are many benefits of branding. For example, some families have babies
and they care about them. For this reason they want to use branding for health,
security and so on. Brand equity can be evaluated as large retail market. Brand
equity bears very commercial targets in terms of trade, finance, and
information resulted from the recent improvement in all aspects of life. This
is what we see as the tip of the iceberg, it is not the exact definition.
Globalization is actually the spread of capitalism with its all principles and
institutions. The relation between globalization and power of marketing is very
important in terms of the development. With the effects of the globalization,
multinational companies and local markets have various effects in market areas.











The late twentieth century has
seen the rapid growth of internationa trade and cooperation. This phenomenon,
dubbed “globalization,” has resulted in the rise of large
multinational corporations whose power and influence extends beyond one nation
or one trading bloc. Today, names like Coca-Cola, Exxon, and IBM are recognized
in the most distant, least industrialized corners of the world. With
corporations holding such influence, many have wondered what role the state
will play in this new economic system. There are some who claim that the state
will maintain its leadership in shaping economic policy. Nevertheless, the high
popularity and high growth of multinational companies in the world economy is a
reality to the fact that the corporation is becoming the dominant power in
conducting and shaping economic policy. This phenomenon is most evident in
developing nations, where multinational companies have surpassed the state in
influence and power.

Multinational firms, relocating
their operations beyond the boundaries of their home country, influence and are
influenced by the political, economical, social and cultural environment of the
host state. These impacts may be both positive and negative ones. It can be
observed that the multinationals may have a positive contribution to the trade
balance of the host developing country by producing goods that used to be imported
(import substitution) and which can ever be exported (reversal of the direction
of trade). In this study, we will examine the multinational companies’ power on
government. The trade is in front of the management. Nowadays governments care about
the trade. The management is in the second plan as these taxes are very
important for the government’s power. Multinationals or huge firms mean the
taxes or income fort hat government. The governments have to take under the
control countyr’s economy. Becuase, the states have to live. But the firms can
be destroyed in some crises (Kotler 1991).  

2.1. Branding

branding is growing more and more and affects all the sectors such as,
economic, industry, health, chemistry, biology, computer and the environment.
And each passing day, a crisis emerges in the world. All the crises affect the
all the population in all over the world. The people that are affected by all
these innovations face to the crisis every day (Kotler 1991).

As Keller (1993) explained, the
biggest crisis emerged in the economic sector in 1930s in America. Because
people have to work to find to live. The process of globalization has in the
past couple of decades been very rapid but also lopsided. Hundreds of millions
of workers, mainly from Asia, have entered production geared to international
markets. This process has improved, inter alia, the lot of poor Chinese and
Indians workers, while at the same time helping to keep down prices of
manufactured goods and moderating global inflation (Keller, 1993)

In today’s
marketplace, with the change in consumer perceptions and preferences, branding
has attained a crucial importance to provide profitability and sustainability.
Some analysts think that brands are the major enduring assets of a company
which outlast the company?s specific products and facilities (Kotler,
Armstrong, 2001).

understand brand knowledge and its relation with brand equity, some basic
memory principles can be used (Keller 1993).

model formulation is one of the most widely accepted conceptualizations of
memory structure (Wyer, Srull 1989).

network memory model represents each concept, idea, or piece of information
stored in memory as a node and each node or idea is connected to other nodes by
links referred to as associations (Anderson, 1993).

All the
nodes and all the associations between these nodes constitute a complex
associative network. Every piece of information in associative network is
interrelated with other pieces. Closely related ideas are connected directly by
a single association; however, ideas that are less closely related are
connected by a series of associations between many related concepts (Karde?

nodes which are connected to each other by other links, associations comprise brand
knowledge and as seen in figure 2.1, branding is an important agenda in
today’s world in order to analyze the social, economic and political
development in world wide. So, it’s necessary to understand the basic
contradictions and positive-negative aspects of the process. Branding can be
defined as the growing interdependence of the economies of the nation-states (Keller 1993).

Figure 2.1:
Dimension of Brand Knowledge

Source : Keller,
K. L., Conceptualizing, Measuring, and Managing Customer- Based Brand Equity
(1993), 7.


Global companies are in the
position to place themselves on more diverse bases. They have the ability to
produce hundreds of different products which smaller companies can not. This
allows the bigger companies the ability to cope more easily when one of their
products does not succeed in the market place. All the huge companies are
really big like McDonalds or General Motors. They have the very large markets
in the world. They are respected by the other companies.  They are effective on people and states. It
is agreed that they are respectful. Surprisingly though multinational companies
are not as big as it seems. The 37 largest corporations that appear in the list
of the 100 largest economies create value added that represents less than 4% of
the value added created by the top 37 countries in that list. Moreover, the
multinationals have not become, weve larger in relation to the nation-states
during the last twenty years. Why are the perceptions so different from the
observed facts? (Kotler 1991).

The fact that the multinationals
are not as big as we thought and that they have not grownfaster than the nation
states does not say much about the power of these multinationals. The latter
may exert considerable power, and this power may have increased. Although size
and power are correlated, the correlation is far from perfect. Certainly, the
perception today (again) is that the power of multinationals is large and that
this power has increased (Kotler, 2000).

2.1.1. Importance of Branding for Consumers

Companies investing
heavily on innovation mostly have well established marketing structures and
their marketing processes are much more innovative or creative than others in
business (Kotler, 2000). According to Doyle (2002) however, the meaning of
branding and its role on companies are very significant issues. Branding and
marketing cannot be separated as they has very close and mutual relations.
Branding means the process of bringing new approaches
and ideas to solve internal marketing problems and to achieve pecuniary and
non-pecuniary results.

In more
detail, role of Branding
is to provide, an innovative, proactive, and
opportunistic approach to creating value for customers by bringing unique
combinations of public and private resources. Therefore, a company applying
domestic marketing activities exploits economic, social and cultural
opportunities in a changing environment (Ger,
Lascu, 1993). However, they indicate that domestic is vital for successful
marketing strategy due to three facts about it. Domestic motivates and focuses
generation of new ideas that are very significant determinants of innovation,
it leads to product differentiation, which plays a key role on success of the
company in market, and, creativity, as an intangible resource embedded within
the firm, provides competitive advantage to the firm because it is a flexible,
rare and inimitable strategic resource (Stijn et
al. 2000). Therefore, creativity plays a significant positive role on
marketing activities of organizations. The innovative marketing activities of a
company are composed of innovative behaviors of employees working within that
company. Formalization is the degree to which rules defines roles, authority,
communication, norms and sanctions between people working in an organization.
Centralization is the inverse of amount of delegation of decision making
authority throughout the organization. Departmentalization is the number of
departments into which organizational activities are separated and
compartmentalized (Aaker, 1991).



2.2. Importance of Branding for Firms


Brand equity concept brings certain benefits to innovative firms. Some authors claim
that there are six basic perspectives that clarify how domestic marketing
provides certain benefits to companies (Keller,


Strategic development perspective; it asserts that creative
marketing provides well structured technological strategies for companies that
make them more adaptive to changing environment (Keller,
Lehmann, 2006).


Customer creating perspective; it discusses that creative
marketing does not only give what customers want, but also creates new
customers in new and existing markets by discovering new needs of customers (Masayavanij, 2007).


Resource leveraging perspective; it claims that creative marketing
is not bounded with limited resources, however, it leverages resources in
various ways (Keller, Lehmann, 2006).


Calculated risk taking perspective; it argues that creative
marketing process makes the marketing people to take calculated risks in developing
new products or processes, leading customers to new products or to new ways of
using existing products Rio, Vasquez and Iglesias (2001)


Creative imagination perspective; it indicates that creative
marketing provide creative imagination to marketing staff by providing
flexible, exploratory, non-predetermined paths in their problem solving
processes Tong and Hawley (2009)


Sustainable innovation perspective; it specifies that creative
marketing provides sustainable development of new ideas, technology and
knowledge in theory (Lassar, Mittal and Sharma (1995)

In branding customer
characteristics such as age, sex, social class, personality, brand loyalty,
product usage and attitudes toward the given brand are often used as bases for
segmentation Sethuraman (2009). In international markets on the other hand a