In a short essay, explain why MNEs use global positioning strategies to win over consumers. Explain, too, why consumers prefer global brands. Provide examples of representative brands
What will be an ideal response?
MNEs aim for a global positioning strategy, which positions the offering similarly in the minds of buyers worldwide. Sony, Starbucks, and Volvo successfully use this approach. Consumers worldwide view these strong brands in the same way. Global positioning strategy reduces international marketing costs by addressing the shared expectations of a global customer market segment.
Certain brands build a worldwide customer base for the following reasons:
-Some are highly visible, conspicuous consumer products, such as jeans and consumer electronics.
-Some serve as status symbols worldwide, such as cars and jewelry.
-Many have widespread appeal because of innovative features that seem to fit everyone's lifestyle, such as mobile phones, credit cards, and cosmetics.
-Some are identified with the country of origin and command a certain degree of country appeal, such as Levi's (U.S. style) and IKEA furniture (Scandinavian style).
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