Chapter Fifteen Global Advertising Global Advertising Strategic Options global (with or without localization), multidomestic International Advertising Characteristics volume, local media distribution, global media, strategic concerns Components of Global Advertising message: prototypes and standardized patterns media, strategy, organization 15-2 Advertising Intensity in Selected Nations 1993 Country North America Canada United States Latin America Argentina Mexico Asia India Indonesia Japan Malaysia South Korea Australia Europe Belgium France Germany Italy Sweden United Kingdom Advertising as percent of gross domestic product 1.17% 2.49 1.08 0.16 0.28 0.39 0.82 0.85 1.21 1.20 0.54 0.65 0.82 (1990) 0.57 0.63 1.35 Source: Distribution Economics Institute, Survey on International Comparison on the Distribution Industry, May 1990. 15-3 Media Usage in Various Countries* Nation TV Print Radio Cinema Transit Argentina 148 155 43 16 47 Brazil 126 77 10 — 4 France 2,712 4,717 611 57 1,108 Germany 2,826 13,423 641 157 550 133,434 12,900 1,913 — 5,231 South Korea 1,083 1,755 188 — 708 Spain 2,386 4,569 873 62 384 143 1,560 — 13 82 4,621 9,071 287 84 530 45,410 67,536 14,022 — 1,672 Japan Sweden United Kingdom United States Exhibit 15.2 *In U.S. dollars Source: International Marketing Data and Statistics 1995 and European Marketing Data and Statistics 1995. Managing Global Advertising When Global Advertising is Appropriate costs, global markets, global products similarity in image, symbols, features and usage Decisions communication flow: encoding, decoding, opinion leadership, feedback objectives: evolving from reminder to purchase stimulation budgeting: % of sales, competitive parity, objective and task Managing Global Advertising Global Advertising Agencies globalization of agencies local knowledge, global/regional campaigns, creative work, media value of local agencies 15-6 A Model of the International Mass Communications Process Producer/ marketer/ advertiser Sets objectives and advertising budget Advertising agency Mass Media Develops message (encoding) and selects media Carries the message Coordination and control Sender’s cultural setting Generate feedback on effects Receiver’s cultural setting Opinion leaders, individuals Receive the message and interpret (decoding) Individuals Think, feel and act (hierarchy of effects) Scope of Advertising Agencies’ Participation in Multicountry Campaigns Market scope Number of agencies Percent of total Agencies doing one type of multicountry campaign Global Major Regional Agencies executing more than one type of multicountry campaign Global-major Global-regional Major-regional Global-major-regional Total Source: Adapted from Hill and Shao, 1994, p.39.. 15 35 103 153 6.5% 15.1 44.4 66.0 5 16 29 29 79 2.2% 6.9 12.5 12.5 34.1 232 100.0% Chapter Terms and Essay Terms Global advertising, global prototypes, hierarchy of effects, identical ads, localized advertising, multidomestic advertising, pattern standardization, objective and task, competitive parity, percentage of sales Essay Identify and describe two advantages and two disadvantages of globalized advertising. Using two ads from the Global TV Advertising exercise as examples, explain the difference between an ad with high globalization potential and an ad with low globalization potential. TV Ad Globalization Potential Exercise Identify and explain the three criteria for evaluating the "Globalization Potential" of television advertising. For the country assigned to you, identify the ad with the MOST potential for globalization. Explain For the country assigned to you, identify the ad with the LEAST potential for globalization. Explain Chapter Fifteen Global Advertising