Global Marketing Communications. Top 10 Companies by Ad Spending Outside the U.S. © The McGraw-Hill...

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Global Marketing Communications

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.

Global Marketing Communications

Page 2: 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.

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

Page 3: 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.

SmartBeep

Page 4: 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.

Hyundai - Sweden

Page 5: 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.

Global Attitudes Towards Advertising

Page 6: 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.

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

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Page 8: 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.

When is Globalization Appropriate?

Brands that can be adapted for a visual appeal

© The McGraw-Hill Companies, Inc., 1998Irwin/McGraw-Hill

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Page 9: 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.

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

Page 12: 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.

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

Page 16: 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.

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

Page 19: 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.

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.

Page 33: 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.

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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Page 44: 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.

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

Page 45: 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.

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

Page 46: 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.

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

Page 50: 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.

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

Page 54: 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.

Media Selection

Newspapers

Magazines

Radio & Television

Satellite and Cable Television

Direct Mail

Other Media

Page 55: 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.

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.

Page 56: 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.

Tactical Considerations

Availability

Cost

Coverage

Lack of Market Data

Media Planning & Analysis

Page 57: 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.

Other Forms of Communication

Sales Promotions Event Sponsorships Trade Shows Direct Marketing Public Relations