20
International
Advertising and
Promotion
McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Reasons for International Importance
Stagnation of domestic markets
Company survival, particularly those with small
domestic markets
Growth and profit opportunities
Economic necessity
Focusing on China for Growth
Tourism Australia Uses Global Campaign
International Advertising & Promotion
Rank Advertiser
Outside U.S.
Inside U.S.
$4,995
$3,527
1
Proctor & Gamble
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
Daimler/Chrysler
578
1,425
10
Ad spending in millions of U.S. dollars
The International Environment
Economic
Environment
Cultural
Environment
International
Marketing
&
Promotional
Decisions
Demographic
Environment
Political/Legal
Environment
International Economic Environment
Economic environment
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Stage of economic development
Economic infrastructure
Standard of living
Per capita income
Distribution of wealth
Currency stability
Exchange rates
International Marketing
And Promotional Decisions
ICI Dulux Targets Young Households in China
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International Demographic Environment
International Marketing
And Promotional Decisions
Demographic environment
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•
•
•
•
•
•
•
Size of population
Number of households
Household size
Age distribution
Occupation distribution
Education levels
Employment rate
Income levels
International Cultural Environment
Cultural environment
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Language
Lifestyles
Values
Norms and customs
Ethics and moral standards
Taboos
International Marketing
And Promotional Decisions
Heineken Translation Issues
Lay’s Targets China Youth Market
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International Political/Legal Environment
International Marketing
And Promotional Decisions
Political/legal environment
•
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Government policies
Laws and regulations
Political stability
Nationalism
Attitudes toward multinational
companies
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
Economies of scale in production, distribution
Lower costs with less in planning and control
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
Differences in culture, market and economic
development make it difficult to use global advertising
Consumer needs and usage
patterns often vary by country or region
Media availability or usage may
vary by country or region
Legal restrictions may make it
difficult to develop an effective universal appeal
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
Globalization
Often Works
Best For:
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
TAG Heuer’s Global Campaign
British Airways Uses Global Advertising
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Global Products, Local Messages
An In-between Approach
Standardizing
Products
Localizing Ad
Messages
“Think Globally,
Act Locally”
Adapt Messages to Respond To
Differences in
Language
Differences in
Cultural
Use of Pattern
Advertising
Differences in
Market Conditions
TaylorMade Used Pattern Advertising
Decision Areas in International Advertising
Organization
Style
Coordination of
Other
IMC Tools
Agency
Selection
Decision Areas
Media Strategy
and Selection
Advertising
Research
Creative
Strategy &
Execution
Centralization of International Advertising
Budgeting
Media
Strategy
Agency
Selection
Central
Authority
Campaign
Development
Creative
Strategy
Research
Decentralized International Advertising
Campaigns
Region
One
Creative
Media
Research
Budgets
Campaigns
Central
Authority
Region
Two
Creative
Media
Research
Budgets
Campaigns
Region
Three
Creative
Media
Research
Budgets
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
markets
Information on cultural differences such as norms,
lifestyles, and values
Information on consumers’ product usage, brand
attitudes and media preferences
Information on media usage and audience size
Copy testing to determine reactions to different
types of advertising appeals and executions
Research on the effectiveness of advertising and
promotional programs in foreign markets
Creative Decisions
Creative decisions should be based on advertising
and communication objectives
Copy platforms must be
developed that include major selling ideas
Specific appeals and
execution styles must be selected
Appeals may have to be
adapted for local market conditions
Coca-Cola Adapts to Local Markets
International Media Selection Issues
Quality
Coverage
Widely Differing
Characteristics
Restrictions
Availability
Availability
Reliability
Circulation
Audience
Cost
Cost
Media
Information
Problems
Specialized Target Audiences
Broad Coverage of International Media
© 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
International Sale Promotion
Major Creation
Considerations
Economic Development
Market Maturity
Consumer Perceptions
Trade Structure
Regulations
WD-40 Used Product Samples in Russia
Central vs. Local Roles
Public Relations in Global Marketing
Deal with local governments, media, trade
associations, and the general public
Present the company as a good corporate citizen
Serve as part of the IMC program and help
market the product or service
Deal with specific issues and problems the
company may face in foreign markets
Worldwide Growth of the Internet