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Chapter 13
Communicating with the
World Consumer
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 13

Chapter Overview
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1. Global Advertising and Culture
2. Setting the Global Advertising Budget
3. Creative Strategy
4. Global Media Decisions
5. Advertising Regulations
6. Choosing an Advertising Agency
7. Other Means of Communication
8. Globally Integrated Marketing Communications
(GIMC)
Copyright (c) 2009 John Wiley & Sons, Inc.
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Introduction
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
There are many cultural challenges that advertisers face in global marketing.

Global advertising encompasses areas such as advertising planning, budgeting, resource allocation issues, message strategy, and media decisions. Other areas include: local regulations, advertising agency selection, coordination of multi-country communication efforts and regional and global campaigns.
Copyright (c) 2009 John Wiley & Sons, Inc.
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1. Global Advertising and Culture
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
Language Barriers

Language is one of the most formidable barriers in global marketing.

Three types of translation errors can occur in international marketing:
 Simple carelessness

Multiple-meaning words

Idioms
(See Exhibit 13-1.)
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Exhibit 13-1: Five Different Ways of
Saying Tires in Spanish
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1. Global Advertising and Culture
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
Other Cultural Barriers

Religion

Cultural traps/cultural dimensions
 Geert Hofstede’s cultural grid can be used to assess the appropriateness of comparative advertising campaigns. The five cultural dimensions include:
 Power distance
 Uncertainty avoidance
 Individualism
 Masculinity
 Long-termism
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 13

2. Global Advertising Budget
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
Companies rely on different kind of advertising
budgeting methods:

Percentage of Sales

Competitive Parity

Objective-and-Task Method

Resource Allocation

The U.S. has the largest ad expenditures, followed by Europe
Copyright (c) 2009 John Wiley & Sons, Inc.
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Exhibit 13-2: Top 15 Global Advertisers–
Measured Media Only (2007)
Copyright (c) 2007 John Wiley & Sons, Inc.
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Exhibit 13-3: Measured Advertising
Spending by Region (2007)
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Exhibit 13-4: Measured Ad Spending
Comparison: P&G versus Unilever (2007)
Copyright (c) 2007 John Wiley & Sons, Inc.
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Exhibit 13-5: 2007 Ad Spending Allocation by 3
Biggest Advertisers in Key Markets
Copyright (c) 2007 John Wiley & Sons, Inc.
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3. Creative Strategy
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
The “Standardization” versus “Adaptation” Debate

Merits of Standardization:

Scale Economies

Consistent Image

Global Consumer Segments

Creative Talent

Cross-Fertilization
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 13

3. Creative Strategy
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Successful universal appeals include:
1) superior quality
2) new product/service
3) country of origin
4) heroes and celebrities
5) lifestyle
6) global presence
7) market leadership
8) corporate image
Copyright (c) 2007 John Wiley & Sons, Inc.
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3. Creative Strategy
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
Barriers to Standardization:

Cultural Differences

Advertising Regulations

Market Maturity

“Not-Invented-Here” (NIH) Syndrome
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Exhibit 13-6: Examples of Universal
Appeals
Copyright (c) 2007 John Wiley & Sons, Inc.
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3. Creative Strategy
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
Approaches to Creating Advertising Copy:

“Laissez Faire”

Export Advertising

Global Prototype Advertising

Prototype Standardization

Regional Approach

Concept Cooperation

Modular Approach
Copyright (c) 2009 John Wiley & Sons, Inc.
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4. Global Media Decisions
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


Media Infrastructure
Media infrastructure differs from country to country

Media Limitations
The major limitation in many markets is media availability.
Copyright (c) 2009 John Wiley & Sons, Inc.
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Exhibit 13-7: Average Cost of a Prime-Time
30 Second TV Spot (2007)
Copyright (c) 2007 John Wiley & Sons, Inc.
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4. Global Media Decisions
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
Recent Developments in Global Media

Growing commercialization and deregulation of mass media

Shift from radio and print to TV advertising

Rise of global and regional media

Growing spread of interactive marketing

Growing popularity of text messaging

Improved monitoring

Improved TV-viewership measurement
Copyright (c) 2009 John Wiley & Sons, Inc.
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5. Advertising Regulations
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
Major advertising regulations:

Advertising of “Vice Products” & Pharmaceuticals

Comparative Advertising

Content of Advertising Messages

Advertising Targeting Children

Issues of local languages

Tax issues

Advertising rates
Copyright (c) 2009 John Wiley & Sons, Inc.
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5. Advertising Regulations
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
Strategies to deal with advertising regulations:

Keep track of regulations and pending legislation

Screen the campaign early on

Lobbying activities

Challenge regulations in court

Adapt marketing mix strategy
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 13

6. Choosing an Advertising Agency
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
Options for choosing an ad agency:
1. Work with the agency that handles the advertising in the firm’s home market.
2. Pick a purely local agency in the foreign market.
3. Choose the local office of a large international agency.
4. Select an international network of ad agencies that spans the globe.
Copyright (c) 2009 John Wiley & Sons, Inc.
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Exhibit 13-9: World’s Top 10 Ad Agencies
(2007)
Copyright (c) 2007 John Wiley & Sons, Inc.
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6. Choosing an Advertising Agency
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
When screening ad agencies, consider:

Market coverage

Quality of coverage

Expertise with developing a central international campaign

Creative reputation

Scope and quality of support services

Desirable image (“global” versus “local”)

Size of the agency

Conflicting accounts
Copyright (c) 2009 John Wiley & Sons, Inc.
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7. Other Means of Communication
Sales Promotions
Sales promotion refers to a collection of short-term incentive tools that lead to quicker and/or larger sales of a particular product by consumers or the trade.

Rationales explaining the local character of promotions:
 Economic development
 Market maturity
 Cultural perceptions
 Trade structure (pull vs. push promotions)
 Government regulations (See Exhibit 13-10.)
Copyright (c) 2009 John Wiley & Sons, Inc.
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Exhibit 13-10: Which Techniques Are
Allowed in Europe
Copyright (c) 2009 John Wiley & Sons, Inc.
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7. Other Means of Communication
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
Direct Marketing

Event Sponsorships

Mobile Marketing

Product Placement

Viral Marketing

Global Public Relations & Publicity

Trade Shows
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Exhibit 13-11: Examples of International PR
Campaigns
Copyright (c) 2007 John Wiley & Sons, Inc.
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7. Other Means of Communication
Trade Shows

Decide on what trade shows to attend at least a year in advance.
 Prepare translation of product materials, price lists, selling aids.





Bring plenty of literature.
Bring someone who knows the language or have a translator.
Send out, ahead of time, direct-mail pieces to potential attendees.
Find out the best possible space, for instance, in terms of traffic.
Plan the best way to display your products and to tell your story.
Copyright (c) 2009 John Wiley & Sons, Inc.
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7. Other Means of Communication
Trade Shows

Do your homework on potential buyers from other countries.
 Assess the impact of trade show participation on the company’s bottom line. Performance benchmarks may need to be adjusted when evaluating trade show effectiveness in different countries since attendees might behave differently.

On-line information on trade show events is plentiful (e.g., www.tsnn.com
). A recent phenomenon is the emergence of
“virtual trade shows” (e.g., www.unisfair.com/Showcase.asp)
Copyright (c) 2009 John Wiley & Sons, Inc.
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8. Globally Integrated Marketing
Communications (GIMC)

Integrated Marketing Communications (IMC):

IMC coordinates different communication vehicles – mass advertising, sponsorships, sales promotion, packaging, point-of-purchase displays, so forth.
Copyright (c) 2009 John Wiley & Sons, Inc.
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8. Globally Integrated Marketing
Communications (GIMC)

Globally Integrated Marketing Communications
(GIMC):

GIMC is a system of active promotional management that strategically coordinates global communications in all of its component parts.

Both horizontal (country-level) and vertical (promotion tools) approaches are used in GIMC.
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 13