Wk9 International Advertising

8/7/2019 Wk9 International Advertising

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International Advertisingand PromotionInternational Advertisingand Promotion


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Key Learning Objectives

The importance of international marketing

Factors in the international environment and

how they influence advertising and promotion

Pros and cons of global versus localizedmarketing and advertising

The role of other promotional mix elements inthe international IMC program


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Int Marketing Communications?

In a shrinking world, communicationsare becoming increasingly important inproviding the means of differentiatingfirms and their products services fromthose of competitors

However, communications areextremely culturally sensitive and without

attention to detail, they can be the sourceof many problems

Doole & Lowe, 1999,p.458


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Competition has become global andmarketers must be able to compete globally

International markets offer

growth opportunities for many companies

Many companies rely on foreign markets to survive,particularly those with small domestic markets

Domestic markets for manyproducts and services are stagnant

International markets offer

growth opportunities for many companies

Many companies rely on foreign markets to survive,particularly those with small domestic markets

Domestic markets for manyproducts and services are stagnant

Reasons for the Importanceof International Markets


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Many Multinational Companies areFocusing on China for Growth


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Tourism Australia Uses a GlobalCampaign to Attract Visitors


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The Role of International Advertising and Promotion


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Economic

Environment

Demographic

Environment

Cultural

Environment

Cultural

Environment

Economic

Environment

Demographic

Environment

The International Environment

InternationalMarketing

And

Promotional

Decisions

Political/Legal

Environment


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International EconomicEnvironment

Economic environment

Stage of economic development Economic infrastructure Standard of living Per capita income Distribution of wealth Currency stability Exchange rates

International Marketing

And Promotional Decisions


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International DemographicEnvironment

Economic environment

Size of population Number of households Household size Age distribution Occupation distribution Education level Employment rate Income level




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International CulturalEnvironment

Cultural environment

Language Lifestyles Values Norms and customs

Ethics and moral standards Taboos




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Dr Kwabena Frimpong

Intercultural Knowledge & IMC:Note Translation Difficulties!

An American campaign using various shades ofgreen was disaster in Malaysia where the colour

symbolizes death and diseases

General Motors Vauxhall Nova: No go in Spain

Pepsis Come Alive with Pepsi: Come Alive out

of the Grave in Germany; and bring yourancestors back from the dead in Asia

In Saudi Human nudity and face of women areforbidden in ads


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Dr Kwabena Frimpong

Intercultural Knowledge &IMC: Note translation

difficulties! Japanese Hotel:you are invited to

take advantage of the chambermaid

Inscription at Laundry in Rome:Ladies leave your clothes here andspend the afternoon having fun

Hong Kong Dentist: Toothextraction by latest Methodists

(Sunday Times, 22 Nov., 1992)


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Dr Kwabena Frimpong

Intercultural Knowledge

& IMC: SymbolsWhite is colour of mourning in Japan whileblack has similar symbolism in the USA andEurope; the equivalent colour in Singapore is

green.

Green and white and blue have sectarianconnotations in Glasgow

A recent study showed that Cadburysdominant colour, purple is associated withluxury, style, sophistication, youth andfemininity in Britain, but in Taiwan, it isperceived as warm, old, quiet, serious, a littlesad but dignified


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International Political/LegalEnvironment

Political/legal environment

Government policies Laws and regulations Political stability

Nationalism Attitudes toward multinational

companies




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Type of products that may be advertised

The content or creative approach used

The media advertisers are permitted to use

The amount of advertising one can use

The use of foreign languages in ads

Use of ad materials from outside the country

Use of local versus international ad agencies

The specific taxes levied on advertising

Use of local versus international ad agencies

Use of ad materials from outside the country

The use of foreign languages in ads

The amount of advertising one can use

The media advertisers are permitted to use

The content or creative approach used

Type of products that may be advertised

Advertising Aspects Subject to Regulation


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Global Marketers Dilemma

Should we offerthe sameproduct,

marketing, andadvertising

throughout theworld?

Should we adaptthe product,

marketing, andadvertising to eachof several societies

throughout theworld?


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Lower costs with less in planning and control

Global Marketing and AdvertisingAdvantages

Economies of scale in production, distribution

Lower advertising and production costs

Ability to exploit good ideas worldwide

Ability to introduce products quickly, worldwide

Consistent international brand, company identity

Simplification of coordination and control

Lower costs with less in planning and control

Economies of scale in production, distribution

Lower advertising and production costs

Ability to exploit good ideas worldwide

Ability to introduce products quickly, worldwide

Consistent international brand, company identity


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Legal restrictions may make itdifficult to develop an effective universal appeal

Media availability or usage mayvary by country or region

Consumers needs and usage

patterns often vary by country or region

Differences in culture, market and economicconditions make it difficult to use global advertising

Media availability or usage mayvary by country or region

Consumers needs and usage

patterns often vary by country or region

Differences in culture, market and economicconditions make it difficult to use global advertising

Problems With Global Advertising


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Brands can be adopted for visual appeal,avoiding problems of translating wordsinto many languages

Brands promoted with image campaignsplaying to universal appeals such as sexor wealth

High-tech products, new to the world,not steeped in the cultural heritage ofthe country of origin

Products with with a nationalistic flavor

if the country has a favorable reputationin the field

Products appealing to a market segmentwith universally similar tastes, interests,needs, and values

Brands can be adopted for visual appeal,avoiding problems of translating wordsinto many languages

Brands promoted with image campaignsplaying to universal appeals such as sexor wealth

High-tech products, new to the world,not steeped in the cultural heritage ofthe country of origin

Products with with a nationalistic flavor

if the country has a favorable reputationin the field

When is Globalization Appropriate

GlobalizationOften Works

Best For:


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TAG Heuers Global Campaign


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StandardizingProducts

Think Globally, ActLocally

Localizing AdMessages

Differences in

Language

Differences in

Language

Differences in

Market Conditions

Differences in

Cultural

Differences in

Market Conditions

Differences in

Cultural

Think Globally, ActLocally

Localizing AdMessages

StandardizingProducts

Global Products, Local Messages

An In-between Approach

Adapt Messages to Respond To

Use of PatternAdvertising


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Unilevers Dove Soap Same positioning andconcept but different personalities


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TaylorMade Used Pattern Advertisingto Promote its Ads in the U.S. and U.K.


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Organization

CreativeDecisions

AgencySelection

Advertising and

MarketResearch

Coordination ofOther

IMC Tools

Media SelectionMedia Selection

CreativeDecisions

Advertising and

MarketResearch

AgencySelection

Organization

Decision Areas in International Advertising

Decision Areas


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Budgeting

Research

AgencyS

election

CreativeStrategy

MediaS

trategy

CampaignDevelopment

CampaignDevelopment

Research

CreativeStrategy

AgencyS

election

Budgeting

Centralization of International Advertising

CentralAuthority


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Standardise or globalise:

the core message or idea(formula)

advertising budget decisions

use company-wide identity anddesign standards

use globalised agency


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Adapt or localise:

international symbols

visuals

language

aesthetics, etc.


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The Campaign Approach

The key decisions include:

the selection of outside agency to use

depends on quality of coverage the agencycan offer, e.g. McCann-Erickson cover up to100 countries

extent of centralisation ordecentralisation of promotional

decisions hold on to the benefit of strong central

control, but tap into local market knowledgethrough constant interaction


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Decentralization of International Advertising

CentralAuthority

Budgets

Media

Campaigns

Creative

Research

Budgets

Media

CampaignsCreative

Research

Budgets

Media

Campaigns

Creative

Research

RegionOne

RegionTwo

RegionThree

Budgets

Media

Campaigns

Creative

Research

RegionOne

Budgets

Media

CampaignsCreative

Research

RegionTwo


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Criteria for Selecting an Agency to HandleInternational Advertising

1. Ability of agency to cover relevantmarkets.

2. Quality of agency work.

3. Market research, public relations, andother services offered by the agency.

4. Relative roles of company advertisingdepartment and strategy.

5. Level of communication and control

desired by company.


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Criteria for Selecting an Agency to HandleInternational Advertising

6. Ability of agency to coordinateinternational campaign.

7. Size of companys international business.

8. Companys desire for local versusinternational image.

9. Company organizational structure forinternational business and marketing(centralized versus decentralized).

10. Companys level of involvement withinternational operations.


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Information on demographic characteristics of

markets

Information on cultural differences such as norms,lifestyles, and values

Information on cultural differences such as norms,lifestyles, and values

Advertising Research

Information on demographic characteristics of

markets

Information on consumers product usage, brandattitudes and media preference

Information on consumers product usage, brand

attitudes and media preference

Information on media usage and audience sizeInformation on media usage and audience size

Copy testing to determine reactions to differenttypes of advertising appeals and executions

Copy testing to determine reactions to differenttypes of advertising appeals and executions

Research on the effectiveness of advertising andpromotional programs in foreign markets


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Appeals may have to beadapted for local market conditions

Specific appeals andexecution styles must be selected

Copy platforms must be

developed that include major selling ideas

Creative decisions should be based on advertisingand communication objectives

Specific appeals andexecution styles must be selected

Copy platforms must be

developed that include major selling ideas

Creative decisions should be based on advertisingand communication objectives

Creative Decisions


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Coca-Cola Now Adapts its Advertisingfor Local Markets


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Local Media Reach Specialized TargetAudiences


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International Media Selection Issues

Widely DifferingCharacteristics

Cost

Coverage

Restrictions

Availability

Quality

MediaInformationProblems

Cost

Reliability

Circulation

Audience

AvailabilityCost

Coverage

Restrictions

Availability

Quality


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International Media Provide Broad Coverage


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Market Maturity

Trade Structure

Economic Development

Consumer Perceptions

Regulations

Trade Structure

Consumer Perceptions

Market Maturity

Economic Development

Foreign Market Sales Promotion Programs

Major CreationConsiderations


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Deal with specific issues and problems thecompany may face in foreign markets

Serve as part of the IMC program and helpmarket the product or service

Present the company as a good corporate citizen

Deal with local governments, media, tradeassociations and the general public

Serve as part of the IMC program and helpmarket the product or service

Present the company as a good corporate citizen

Deal with local governments, media, tradeassociations and the general public

Role of Public Relations in Global Marketing


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Summary/Conclusion

International marketingcommunications mgt is an integratedfunction comprising key componentssuch as: Advertising, PublicRelations/Publicity, Personal Selling,Sales Promotions and DirectMarketing


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Summary/Conclusion

Decision as to which aspects of theinternational marketingcommunication mix should bestandardised or localised toachieve maximum impact is verycritical

Most times this depends on thestructure of a particular company andits resources of nature of products

Wk9 International Advertising

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Transcript of Wk9 International Advertising