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Transcript of Global Marketing Communications. Top 10 Companies by Ad Spending Outside the U.S. © The McGraw-Hill...
![Page 1: Global Marketing Communications. Top 10 Companies by Ad Spending Outside the U.S. © The McGraw-Hill Companies, Inc., 1998 Irwin/McGraw-Hill Slide 20-1.](https://reader036.fdocuments.in/reader036/viewer/2022062409/56649e4a5503460f94b3e6b9/html5/thumbnails/1.jpg)
Global Marketing Communications
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Top 10 Companies by Ad Spending Outside the U.S.
Unilever
Nestle SA
PSANissan
GM
Volkwagen
0.00
1000.00
2000.00
3000.00
4000.00
5000.00
6000.00
P & G Toyota PhilipMorris
Mars Inc.
Outside U.S.U.S. Worldwide
© The McGraw-Hill Companies, Inc., 1998Irwin/McGraw-Hill
Slide 20-1
Figure 20-1
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SmartBeep
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Hyundai - Sweden
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Global Attitudes Towards Advertising
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Advantages of Global Marketing and Advertising
Economies of scale in production and distribution
Lower marketing and advertising costs Ability to exploit good ideas on a worldwide
basis Consistent brand and/or company image in all
markets Simplification of coordination and control of
marketing and promotional programs
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Problems with Global Advertising
Differences in market and economic development, consumer needs, media availability and legal restrictions
Cultural differences make advertising standardization difficult
Usage patterns and perceptions of a product may vary from one country to another
© The McGraw-Hill Companies, Inc., 1998Irwin/McGraw-Hill
Slide 20-3
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When is Globalization Appropriate?
Brands that can be adapted for a visual appeal
© The McGraw-Hill Companies, Inc., 1998Irwin/McGraw-Hill
Slide 20-4
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BA – Visual Appeal
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BA Casablanca
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When is Globalization Appropriate?
Brands that can be adapted for a visual appeal Brands that are promoted with image campaigns
that play to universal appeals
© The McGraw-Hill Companies, Inc., 1998Irwin/McGraw-Hill
Slide 20-4
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Latin America
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Continental – Universal Appeal
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Wedding - France
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When is Globalization Appropriate?
Brands that can be adapted for a visual appeal Brands that are promoted with image campaigns
that play to universal appeals High-tech products and new products coming to
the world for the first time
© The McGraw-Hill Companies, Inc., 1998Irwin/McGraw-Hill
Slide 20-4
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IBM
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Gillette – Standardized Advertising
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When is Globalization Appropriate?
Brands that can be adapted for a visual appeal Brands that are promoted with image campaigns
that play to universal appeals High-tech products and new products coming to
the world for the first time Products with nationalistic flavor
© The McGraw-Hill Companies, Inc., 1998Irwin/McGraw-Hill
Slide 20-4
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Latin American
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BA Football
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BA Manhattan
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When is Globalization Appropriate?
Brands that can be adapted for a visual appeal Brands that are promoted with image campaigns
that play to universal appeals High-tech products and new products coming to
the world for the first time Products with nationalistic flavor Products that appeal to a market segment with
universally similar tastes, interests, needs and values
© The McGraw-Hill Companies, Inc., 1998Irwin/McGraw-Hill
Slide 20-4
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Levis - Elevator
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Levis – Tainted Love
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Levis - Clayman
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Standardizing Advertising: It’s All about degree
ThinkGlobally
Act Locally
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Standardized Advertising: It’s all about DEGREE
The Chameleon An advertising strategy with different
meanings in different cultures, but with positive associations for the target audience in all of them.
When this happens, it can be a truly global campaign.
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Marlboro Man
Saudi Arabia France
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Marlboro Man
Turkey Singapore
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Marlboro Man
Germany Sweden
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Marlboro Man
Latin AmericaUS (circa 1988): no logo needed
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Coca Cola Light/Diet Coke
Coca Cola Light campaign "Just for the Taste of It" was used in many different countries, the execution of that strategy was tailored to cultural differences.
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France: cooling off France: hugging
Coca Cola Light/Diet Coke
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Coca Cola Light/Diet CokeFrance: cooling off Korea: behind the back
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Coca Cola Light/Diet Coke
Thailand: red & white
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Standardizing advertising strategy across countries while the execution is modified to fit in with local cultural mores.
Drakkar Noir
USA – “Feel the Power”
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Drakkar Noir
French Version Spanish Version Saudi Arabia
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Communicating withWorld Consumers
Legal and Tax ConsiderationsLegal and Tax Considerations
Language LimitationsLanguage Limitations
Cultural DiversityCultural Diversity
Media LimitationsMedia Limitations
Production and Cost LimitationsProduction and Cost Limitations
Challenges
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Creative Challenges of Global Advertising
Legal and Tax ConsiderationsLegal and Tax Considerations
•Legal•Comparative Advertising
•No - Germany•Indirect - U.K., Spain, Ireland, Portugal•Heavily regulated in Asia
•Amount of advertising•Kuwait - 32 minutes per day
•Taxation on advertising•Britain, France and Australia•Austria - Huge taxes on print and t.v.
- Cinema advertising 11% of ad revenue per year
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l Phonetic Problems with Brand Names•Bardok in Russia•Big John In French -speaking Canada - Gros Jos
l Translations
Intent Translation- Stepping Stone - Stumbling Block- Car Wash - Car Enema- Highly Rated - Over Rated
Symbols- Owl - Bad Luck in India
- Airline Log in Australia - EMU
Language LimitationsLanguage Limitations
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Function of Advertising:– Interpret or translate the need/want satisfying
qualities of product and services in terms of consumer needs, wants, desires, and aspirations.
– Emotional appeals, symbols, persuasive approaches etc.must coincide with cultural norms to be effective.
Cultural DiversityCultural Diversity
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General Mills Cake Mixes– US and UK
Homemaker’s guilt
– Japan Don’t eat cakes Concerned about failing Easy as rice
Subcultures
Cultural DiversityCultural Diversity
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Localization
FranceSweden
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Japan United Kingdom
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Latin America Japan
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Advertising as a MirrorIndividualism vs. Collectivism
Germany: man diving South Africa: cigarette party
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Latin America: footprint in the sand Taiwan: Samsonite suitcase ad
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Korean: nutritional supplement and the family France: birds of a flock
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Brazil: soccer players United Kingdom: shark
Pakistan: "Rhythm Wythm"
Gender Roles
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Availability– Political position– Literacy rates - selective
Cost– Media costs subject to negotiation– Agent discounts split with client
Coverage– National vs. regional– Fragmented
Media LimitationsMedia Limitations
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Media Selection
Newspapers
Magazines
Radio & Television
Satellite and Cable Television
Direct Mail
Other Media
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Household Penetration of Cable, Satellite, and Internet Top 10 Media Markets 1997
Country Cable Satellite Internet
United States 66.9 4.1 21.3
Japan 22.9 22.9 9.9
Germany 59.9 20.7 11.6
UK 7.0 15.0 5.0
France 7.0 8.0 1.7
Brazil 4.3 5.2 0.003
So. Korea 14.0 N/A 1.8
China 25.8 25.8 N/A
Italy N/A 3.4 1.9
Mexico 7.5 1.5 0.06
SOURCE: Abstracted from: “Top Global Advertising Market” Ad Age International May 1997. p. 17.
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Tactical Considerations
Availability
Cost
Coverage
Lack of Market Data
Media Planning & Analysis
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Other Forms of Communication
Sales Promotions Event Sponsorships Trade Shows Direct Marketing Public Relations