Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
15
Global Advertising
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The Global Advertising Job
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Global Advertising
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Advertising that is fairly uniform across many countries
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Multidomestic advertising is international advertising deliberately
adapted to particularly markets and audiences in message and/or
creative execution
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Problems facing the decision maker in global advertising
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Allocation of advertising budget amount to several market countries
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Developing the message to use in the selected market countries
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Deciding what media to select to advertise in the selected countries
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The International World of Advertising
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Advertising Volume
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Advertising intensity varies a great deal between countries
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Not a very common form of communication in some countries
Generally, the higher the GDP,
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The more is spent on advertising in per capita terms
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The more developed the country, the more money is allocated to
advertising
Advertising is an unusually important medium in the U.S
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This is a result of the cultural diversity that makes social norms and
interpersonal communication relatively less reliable
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The International World of Advertising
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Media Spending
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Important media in various countries
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Outdoor advertising is much more important in India than in the West
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Cinema can be of great value in countries like Argentina and Singapore
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Print media in European countries are strong
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Europeans avoid the use of radio for advertising
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Television advertising is strong in China, India, Japan, and Latin America
Global media are emerging in television, magazines, newspapers,
and on the Internet
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The International World of Advertising
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Web ads
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Banner ads
“Tickers
Pop-up ads
Transactional ads
“Roadblocks”
“Rich media”
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The International World of Advertising
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Strategic Implications
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Advertising expenditures create barriers to entry into an industry
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Several countries in which media is scarcely available have made
advertising a competitive weapon of limited usefulness
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The communication objectives realistically achieved through various
media differ among countries
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The so-called hierarchy of effects traces the effects of advertising
through brand awareness to knowledge, attitude, liking, trial, and
adoption
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The International World of Advertising
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Strategic Implications
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Television
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Radio
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Radio is a true mass medium in many countries, but very focused on
specific segments in other markets
Newspapers
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Television is a true mass medium for creating awareness, but provides a
status association for the brand in other markets
Newspapers are the only available medium in some countries and have to
fulfill the standard role of a direct action influence
Outdoor
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Where literacy levels are low broadcast and outdoor advertising will
outweigh print media in importance
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
What Does Global Advertising Involve?
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Components of Global Advertising
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Strategy
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Organization
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Global advertising is typically directed from headquarters with the help of
advertising agencies with a global network
Media
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Global advertising often involves products and services that are
positioned similarly across markets
Global advertising draws on media with global reach such as satellite TV
and international editions of periodicals to create spillovers
Message and Creative
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The copy and visualization go to the center of the global campaign
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
What Does Global Advertising Involve?
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Identical Ads
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Prototype Advertising
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Global prototypes involve voice-over and visuals are changed to avoid language and
cultural problems
Pattern Standardization
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The ads can be identical usually with localization only in terms of language voiceover changes and simple copy translations
Utilized when the positioning theme is unified but the actual execution of ads differ
between markets
Globalization Examples
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Coca-Cola develops prototypes of advertising messages and layouts in the U.S. and
sends them to representatives abroad
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Pros and Cons of Global Advertising
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Cost Advantages
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The creative ideas of globally uniform campaigns, once developed,
can be used globally
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Global Markets
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Globalized campaigns can also be the basis for savings in media buying
Global advertising, in general, will be most useful when the market
itself is global
Global Products and Brands
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It is often indicated that global products and brands need global
advertising
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Pros and Cons of Global Advertising
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A summary of conditions for global advertising
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The image communicated can be identical across countries
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The symbols used carry the same meaning across countries
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The product features desired are the same
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The usage conditions are similar across markets
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The Global Advertiser’s Decisions
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Strategic Objectives
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Most managers approach global advertising with the intention of
using the global reach of media and the similarity of message to
enhance the awareness and unique positioning of the brand or product
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The boost to the brand image and global brand equity is usually the
most immediate benefit
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However, the effect of global advertising can also be more direct and
be close to buyer action
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The Global Advertiser’s Decisions
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Budgeting for Global Advertising
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Percentage-of-sales
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Setting a certain percentage of last year’s sales as next year’s budget
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Although percentage-of-sales is popular among firms from most
countries, it is not a very useful method for setting global advertising
budgets
Competitive parity approaches
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Where advertising budgets are set on the basis of what competitors spend
Objective-task method
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Typically involved with budgeting for global advertising and favored
domestically by more sophisticated marketers
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The Global Advertising Agency
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Agency Globalization
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Most large agencies in the U.S. and Europe have global reach
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However, the ability to execute the global campaign can vary because of
uneven local capability
The Agency’s Job
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The global advertiser will generally develop the message and media
schedule working intimately with an advertising agency that has local
representation in the various markets
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According to researchers, the emphasis on pan-regional campaigns is
mainly due to the emergence of regional groupings and trading blocs
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The Global Advertising Agency
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Message Creation
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Message creation and language translation
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Message translation
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Are the aspects most consistently and thoroughly discussed in the
literature on global advertising
Is complicated because of the cultural diversity among the various
countries of the world
Media Selection
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If message creation needs the collaboration of the agency and the
advertiser, media selection is an area where the agency and its local
representatives rule
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
The Global Advertising Agency
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Media Selection
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The type of media selected depends on the objectives of the campaign
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For awareness
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For attitude change and image building
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Television serves well in many countries where it is generally available
Television and magazine advertising are generally more useful
To affect behavior directly, the media chosen have to be timely reaching
the audience near the time of purchase
Once the media types have been decided upon
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The particular vehicles to be used within each type are usually selected on
the basis of some efficiency criterion
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Close-Up: Goodyear in Latin America
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Goodyear in Latin America
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The planning process of the Goodyear standardized approach to
advertising involved six stages
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Preliminary Orientation (September)
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Regional Meeting to Define Communications Strategy (October)
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The beginning stage was an educational one, allowing both headquarters and
local subsidiary staff to understand each other’s perspectives
The purpose was to develop an “umbrella” campaign theme that would fit all
countries but with subsidiary autonomy to prepare local advertising
Advertising Creative Meeting (November)
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The task force met to consider six alternative concepts developed by the
creative teams
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Close-Up: Goodyear in Latin America
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Goodyear in Latin America
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Goodyear six stages (cont’d)
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Qualitative Research Stage (November-December)
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The research on the proposed concept storyboards focused on two issues
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Research Review Meeting (January)
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The customers’ degree of concern about safety and security of the tires
and the customers’ reaction of various creative themes
The aim was to reach a consensus on one unique selling proposition
Final Creative Review (March)
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Each team’s concept was presented without indicating the team identity or the
country in which the campaign originated
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Close-Up: Goodyear in Latin America
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Lessons
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Pattern standardization in pan-regional advertising
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First
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Second
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The early involvement of country subsidiaries and agency professionals helps
broaden the sources of powerful campaign concepts
Third
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By focusing on regions it may be possible to reap the scale benefits and cost
efficiencies of global advertising
The process by which pattern standardization is arrived at needs to allow open
and free exchange
Fourth
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Even when the company has operative for years in a market research is still
necessary, especially when conditions are changing
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.