1. Chapter 11 INTERNATIONAL MARKETING COMMUNICATION Prepared by Robin Roberts Griffith University

2. Learning objectives

• After studying this chapter you should be able to:

• Explain the influence of culture on marketing communication

• Describe the methods used to set an international advertising budget

• Discuss the main drivers of creative strategy

• Explain how international media decisions are made

3. Learning objectives

• Assess differences in marketing communication regulations around the globe

• Explain core factors in choosing a suitable advertising agency

• Understand that the benefits of diverse elements of the marketing communication mix differ around the globe

4. International advertising and culture

• Culture provides a big hurdle in international marketing communication

• Language barriers

• • things dont always translate the way they should

• Other cultural barriers

• • the culture itself can throw up challenges to a marketing communication strategy

5. Language barriers

• The challenge of idioms

• • How to translate the Australian saying Wrap your laughing gear around this

• • • translates roughly to eat this

• Translations dont always translate

• • In the United States the Pepsi slogan, Come alive with the Pepsi Generation

• • • in Taiwan it becomes, Pepsi will bring your ancestors back from the dead

6. Other cultural barriers

• Involve local advertising agencies

• • They have a greater sensitivity to the local language

• Dont translate

• • Sheer Driving Pleasure for BMW worldwide

• • Dont crack under pressure for TAG Heuer

7. Other cultural barriers

• Political sensitivities

• • referring to Hong Kong and Taiwan as countries when in China

• Poor taste

• • what is poor taste in one country is not necessarily poor taste in another

• Value systems are different

• • is it reasonable to use comparative advertising in all cultures?

8. Other cultural barriers Figure 11.1 comparative advertising

9. Setting the international advertising budget

• Many of the approaches used in domestic communications are also used in international communications:

• • Percentage of sales

• • Competitive parity

• • Objective and task

• • Resource allocation

10. Setting the international advertising budget

• Percentage of sales

• • using a percentage of past sales or future sales or a combination of both to determine the budget

• • still one of the most common methods

• Competitive parity

• • determining budget based on activities of one or more competitors

• • allows the organisation to maintain its share of voice

11. Setting the international advertising budget

• Objective and task

• • relating the advertising budget to the sales objectives

• • one of the most appealing methods amongst marketing communicators

• Resource allocation

• • involves the allocation of resources across different countries

• • subsidiaries determining their own budgets

• • headquarters determines budgets

12. Creative strategy

• To standardise or adapt

• • similar argument to that of product adaptation/standardisation

• • can still be considered standardised if a global campaign is used and only minor changes to comply with local regulations are undertaken

• • • substantial changes would be considered an adapted creative strategy

13. Creative strategy Table 11.1 Advantages and disadvantages of global advertising

14. Merits of standardisation

• Economies of scale

• Consistent image

• • Nike swoosh

• Global consumer segments

• • business-class traveler

• Cross fertilisation

15. Barriers to standardisation

• Cultural differences

• • advertising makeup in the middle east

• Advertising regulations

• • direct comparative advertising is not permitted in Singapore

• Degree of market development

• • Body Shop is not the dominant eco-friendly provider in some mature markets

• Not invented here (NIH) syndrome

16. Approaches to creating advertising copy

• Universal

• • uniform globally with minor changes locally

• • • changes such as voice over in local language

• • • • • Patek Philippe Begin your own tradition

• Prototype

• • using same basic advertising message globally

• • • head office allows for (approved) variations locally

• • • • • Dove adapts campaign to allow for local look

17. Approaches to creating advertising copy

• Platform

• • a central theme or position is created centrally

• • • local creative execution is allowed

• • • greater flexibility locally

• • • • Pure thrill

• • • • Smirnoffs campaigns exemplify this approach

18. International media decisions

• Media buying is a critical element

• • variations exist across different countries

• • • published readership levels of magazines are accurate in Australia but less so in China

• Media infrastructure

• • issues of access and affordability

• • • television media in the Philippines is relatively cheap

• • • internet bandwidth is large in China

• • • • fibre optic point-to-point across China

19. International media decisions

• Media limitations

• • cost

• • availability of certain types in some markets/sub-markets

• • overall quality of media in some countries

• Developments

• • increasing global deregulation

• • shift from free to air television to pay-tv and web streaming/download

• • rise of global and regional media companies

20. Advertising regulation

• Advertising of some products comes under greater scrutiny

• • for example, alcohol and pharmaceuticals

• Advertising clutter

• • lobby groups and government regulate to reduce clutter

• Targeting children

• • some advertisements are excluded from childrens viewing

21. Choosing an advertising agency

• What is their market coverage?

• Can they develop/be part of a global campaign?

• Creative reputation

• Scope and quality of services

• Local know-how

• Size of agency

• • big isnt always best

• • small agencies could be more creative/innovative

22. Coordinating international advertising

• Monetary incentives to local distributors

• • co-operative advertising

• • • providing incentives at a local level to reward those who are consistent in their delivery of the global message

• Advertising manuals

• • books, DVD, CD, etc to provide some structure

• International or global meetings

23. Other elements of the marketing communication mix

• Advertising is a critical element of the marketing mix but not the only element

• An integrated approach is needed

• • Integrated Marketing Communication (IMC)

• • there are also a number of other elements which need to be considered

• • • sales promotion

• • • direct marketing

• • • event sponsorship

• • • trade shows

24. Sales promotion

• Usually a local effort

• Many of the same promotions as domestic SP

• • point of sale

• • coupons

• • discounts

• • allowances

25. Sales promotion

• Why so local?

• • level of economic development

• • • developing countries like sampling

• Market maturity

• • products in an early stage of their introduction may warrant promotions that allow the consumer to trial the product

• Government regulations

• • coupons are used heavily in the US and less so in Australia

26. Direct marketing

• Telemarketing

• • Japanese telemarketing firms based in Shanghai now

• Direct Mail

• • demonstrations

• • Mary Kay cosmetics throughout Asia

• Developing home grown data bases

• • internal customer data used to build an effective Customer Relationship Management system (CRM)

27. Direct marketing

• Interactive/web based

• Dell utilises both phone and internet to market its product directly in Thailand

• Hangzhou (China) based Alibaba is a centre for buyers and sellers worldwide

• • on the internet

28. Event sponsorship

• Globally one of the fastest growing promotional tools

• • $40 billion in 1990

• • $200 billion in 2000

• Heavily skewed towards sports

• • other events gaining ground

• • • concerts

• There is the risk of ambush marketing

• • non-sponsors giving the impression to consumers they are in fact sponsors

29. Trade shows

• Over 15,000 trade shows a year now

• Good opportunity for business-to-business

• Can provide immediate access to customers in foreign markets

30. Summary

• You should now have an understanding of:

• The influence of culture on marketing communication

• The methods used to set an international advertising budget

• The main drivers of creative strategy

• How international media decisions are made

31. Summary

• Differences in marketing communication regulations around the globe

• Core factors when choosing a suitable advertising agency

• The benefits of diverse elements of the marketing communication mix differ around the globe

32.