How companies from developing and emerging countries can leverage their brand equity in terms of place branding

Abstract

Purpose

The purpose of this conceptual paper is to present a new approach that will enable marketers in developing and emerging countries to promote their products, irrespective of their country of origin’s image. Many companies in emerging and developing countries, intent on exporting their products/services, struggle to overcome the negative “made-in” image barrier. Despite tremendous efforts by the governments of these countries to change the unfavorable image of products made there, their good quality products are still perceived as inferior compared to companies whose products are “made-in” in countries with a positive image, mainly developed countries.

Design/methodology/approach

The proposed conceptual model hinges on two dimensions – global political status and human capital capabilities. Using this framework, four different types of country destination positioning emerge, each with its own country branding strategy.

Findings

Companies from emerging and developing countries can compete on an equal footing with Western companies by changing their country branding strategy. Companies from countries such as China and Costa Rica can promote themselves better by implementing region and continent branding strategies.

Practical implications

The proposed conceptual model enables marketers to cope even with the most negative “made-in” country stereotypes and improve their marketplace positions.

Originality/value

The literature review demonstrates that researchers have not dealt with these two dimensions. Consequently, the paper offers marketers a new perspective on the complex issue of country positioning and how to leverage their strengths to maximize their company’s profits.

Citation

Herstein, R., Berger, R. and D. Jaffe, E. (2014), "How companies from developing and emerging countries can leverage their brand equity in terms of place branding", Competitiveness Review, Vol. 24 No. 4, pp. 293-305. https://doi.org/10.1108/CR-04-2013-0046