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International Advertising and
Promotion
International Advertising and
Promotion
20
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Reasons for International Importance
Economic necessityEconomic necessity
Growth and profit opportunitiesGrowth and profit opportunities
Company survival, particularly those with small domestic markets
Company survival, particularly those with small domestic markets
Stagnation of domestic marketsStagnation of domestic markets
Focusing on China for Growth
Tourism Australia Uses Global Campaign
International Advertising & Promotion
Rank Advertiser Outside U.S. Inside U.S.
1 Proctor & Gamble $4,995 $3,527
2 Unilever 3,689 848
3 General Motors 1,145 2,208
4 L’Oreal 2,336 753
5 Toyota Motor Corp. 1,895 1,203
6 Ford Motor Co. 1,168 1,701
7 Time Warner 298 1,838
8 Nestlé 1,509 605
9 Johnson & Johnson 674 1,351
10 Daimler/Chrysler 578 1,425
Ad spending in millions of U.S. dollars
The International Environment
EconomicEnvironmentEconomic
Environment
DemographicEnvironment
DemographicEnvironment
CulturalEnvironment
CulturalEnvironment
InternationalMarketing
&
PromotionalDecisions
InternationalMarketing
&
PromotionalDecisions
Political/LegalEnvironment
Political/LegalEnvironment
International Economic Environment
Economic environment
• Stage of economic development• Economic infrastructure• Standard of living• Per capita income• Distribution of wealth• Currency stability• Exchange rates
Economic environment
• Stage of economic development• Economic infrastructure• Standard of living• Per capita income• Distribution of wealth• Currency stability• Exchange rates
International MarketingAnd Promotional Decisions
International MarketingAnd Promotional Decisions
ICI Dulux Targets Young Households in China
*Click outside of the video screen to advance to the next slide
International Demographic Environment
Demographic environment
• Size of population• Number of households• Household size• Age distribution• Occupation distribution• Education levels• Employment rate• Income levels
Demographic environment
• Size of population• Number of households• Household size• Age distribution• Occupation distribution• Education levels• Employment rate• Income levels
International MarketingAnd Promotional Decisions
International MarketingAnd Promotional Decisions
International Cultural Environment
Cultural environment
• Language• Lifestyles• Values• Norms and customs• Ethics and moral standards• Taboos
Cultural environment
• Language• Lifestyles• Values• Norms and customs• Ethics and moral standards• Taboos
International MarketingAnd Promotional Decisions
International MarketingAnd Promotional Decisions
Heineken Translation Issues
Lay’s Targets China Youth Market
*Click outside of the video screen to advance to the next slide
International Political/Legal Environment
Political/legal environment
• Government policies• Laws and regulations• Political stability• Nationalism• Attitudes toward multinational
companies
Political/legal environment
• Government policies• Laws and regulations• Political stability• Nationalism• Attitudes toward multinational
companies
International MarketingAnd Promotional Decisions
International MarketingAnd Promotional Decisions
Test Your Knowledge
Since the European Union banned the use of food dyes in seafood, the salmon market has suffered. People mistakenly believe that salmon is naturally pink. Unfortunately, salmon is an unappetizing gray color. This is an example of how _____ factors can inadvertently hurt small businesses.
A) economic
B) demographic
C) political/legal
D) cultural
E) infrastructure
Advertising Subject to Regulation
Products that may be advertised
Content or creative approach used
Media advertisers are permitted to use
The amount of advertising one may do
Use of foreign languages in ads
Use of materials from outside the country
Use of local vs. international ad agencies
Specific taxes levied on advertising
Global Marketer’s Dilemma
Offer the same
product, marketing,
and advertising everywhere
?
Adapt the product,
marketing, and
advertising to each society?
Global Marketing & Advertising Advantages
Lower costs with less in planning and control
Economies of scale in production, distribution
Lower advertising production costs
Ability to exploit good ideas worldwide
Ability to introduce products quickly, worldwide
Consistent international brand, company image
Simplification of coordination and control
Gillette Launches Mach3 Globally
Problems With Global Advertising
Legal restrictions may make it difficult to develop an effective universal appeal
Legal restrictions may make it difficult to develop an effective universal appeal
Media availability or usage may vary by country or region
Media availability or usage may vary by country or region
Consumer needs and usage patterns often vary by country or region
Consumer needs and usage patterns often vary by country or region
Differences in culture, market and economic development make it difficult to use global advertising
Differences in culture, market and economic development make it difficult to use global advertising
When is globalization appropriate?
Brands can be adopted for visual appeal, avoiding translation problems
Brands promoted with image campaigns playing to universal needs, values, emotions
High-tech products, new to the world, not steeped in the cultural heritage of the country of origin
Products with a nationalistic flavor, if the country has a favorable reputation in the field
Products appealing to a market segment with universally similar tastes, interests, needs, values
Globalization Often Works
Best For:
TAG Heuer’s Global Campaign
British Airways Uses Global Advertising
*Click outside of the video screen to advance to the next slide
Global Products, Local Messages
Standardizing Products
“Think Globally, Act Locally”
Localizing Ad Messages
An In-between Approach
Differences in Language
Differences in Market Conditions
Differences in Cultural
Adapt Messages to Respond To
Use of Pattern Advertising
TaylorMade Used Pattern Advertising
Decision Areas in International Advertising
Organization Style
Organization Style
Creative Strategy & Execution
Creative Strategy & Execution
Agency SelectionAgency
Selection
Advertising Research
Advertising Research
Coordination of Other
IMC Tools
Coordination of Other
IMC Tools
Media Strategy and Selection
Media Strategy and Selection
Decision AreasDecision Areas
Centralization of International Advertising
BudgetingBudgeting
ResearchResearch
AgencySelectionAgency
Selection
CreativeStrategyCreativeStrategy
MediaStrategyMedia
Strategy
CampaignDevelopment
CampaignDevelopment
Central AuthorityCentral
Authority
Decentralized International Advertising
CentralAuthorityCentral
Authority
Budgets
Media
Campaigns
Creative
Research
Budgets
Media
Campaigns
Creative
Research
Budgets
Media
Campaigns
Creative
Research
RegionOne
RegionOne
RegionTwo
RegionTwo
RegionThree
RegionThree
Criteria for Selecting an Agency
1. Ability of agency to cover relevant markets.
2. Quality of agency work.
3. Market research, public relations, and other services offered by the agency.
4. Relative roles of company advertising department and strategy.
5. Level of communication and control desired by company.
Criteria for Selecting an Agency
6. Ability of agency to coordinate international campaign.
7. Size of company’s international business.
8. Company’s desire for local versus international image.
9. Company organizational structure for international business and marketing (centralized versus decentralized).
10. Company’s level of involvement with international operations.
Advertising Research
Information on demographic characteristics of marketsInformation on demographic characteristics of markets
Information on cultural differences such as norms, lifestyles, and valuesInformation on cultural differences such as norms, lifestyles, and values
Information on consumers’ product usage, brand attitudes and media preferencesInformation on consumers’ product usage, brand attitudes and media preferences
Information on media usage and audience sizeInformation on media usage and audience size
Copy testing to determine reactions to different types of advertising appeals and executionsCopy testing to determine reactions to different types of advertising appeals and executions
Research on the effectiveness of advertising and promotional programs in foreign marketsResearch on the effectiveness of advertising and promotional programs in foreign markets
Creative Decisions
Appeals may have to be adapted for local market conditions
Appeals may have to be adapted for local market conditions
Specific appeals and execution styles must be selected
Specific appeals and execution styles must be selected
Copy platforms must be developed that include major selling ideas
Copy platforms must be developed that include major selling ideas
Creative decisions should be based on advertising and communication objectives
Creative decisions should be based on advertising and communication objectives
Coca-Cola Adapts to Local Markets
International Media Selection Issues
Widely Differing Characteristics
Widely Differing Characteristics
CostCost
CoverageCoverage
RestrictionsRestrictions
AvailabilityAvailability
QualityQuality
Media Information Problems
Media Information Problems
CostCost
ReliabilityReliability
CirculationCirculation
AudienceAudience
AvailabilityAvailability
Specialized Target Audiences
Broad Coverage of International Media
© 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
International Sale Promotion
Market MaturityMarket Maturity
Trade StructureTrade Structure
Economic DevelopmentEconomic Development
Consumer PerceptionsConsumer Perceptions
RegulationsRegulations
Major Creation ConsiderationsMajor Creation Considerations
WD-40 Used Product Samples in Russia
Central vs. Local Roles
Public Relations in Global Marketing
Deal with specific issues and problems the company may face in foreign markets
Deal with specific issues and problems the company may face in foreign markets
Serve as part of the IMC program and help market the product or service
Serve as part of the IMC program and help market the product or service
Present the company as a good corporate citizenPresent the company as a good corporate citizen
Deal with local governments, media, trade associations, and the general public
Deal with local governments, media, trade associations, and the general public
Worldwide Growth of the Internet