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Chapter 15. Managing Global Advertising. International Marketing Dilemma. versus . Advertising Standardization. Advertising Adaptation. Not All Advertising is on TV. Outdoor Radio Print Media Cinema Van & Loudspeaker Direct Mail, Flyers Packaging.

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chapter 15

Chapter 15

Managing Global Advertising

international marketing dilemma
International Marketing Dilemma

versus.

Advertising

Standardization

Advertising

Adaptation

not all advertising is on tv
Not All Advertising is on TV
  • Outdoor
  • Radio
  • Print Media
  • Cinema
  • Van & Loudspeaker
  • Direct Mail, Flyers
  • Packaging

Telephone booth ad in Cordoba, Spain

Particularly important for developing

country markets

overcoming language and cultural barriers
Overcoming Language and Cultural Barriers
  • Some markets or regions require multilingual advertising (Switzerland, US)
  • “English is not always English.”
  • Proper linguistic translation is imperative and challenging
    • Can be difficult to translate critical words and copy constructions
the center of the world
The Center of the World
  • Change in lifestyles and attitudes among Chinese women
    • 1990-2000 females in workforce rose from 2.9% to 22.8%
    • “I am the center of the world; I am the focal point.”
  • International Marketers Respond
    • P&G’s advertising for Rejoice shampoo
      • Airline hostess  airline mechanical engineer  girl playing beach volleyball
the regulatory challenge
The Regulatory Challenge

Types of products that can be advertised

EU: Tobacco advertising banned outdoors and in print.

Types of appeals that can be used

China: superlatives (puffery) often banned

Use of sex appeals

Illegal in Arab countries and Malaysia

Mandatory Inclusions

Candy ads require toothbrush symbol in EU

Times that certain products can be promoted

China: no “sensitive” products advertised during meal times.

ad regulation on the rise
Ad Regulation on the Rise
  • China crackdown on P&G for not citing source of product claims made in ads
  • Australia considering regulations regarding food ads targeted to children
  • Mexico strengthening its privacy laws
  • Russia imposing restrictions on alcohol advertising
  • Villages in Africa are developing advertising regulation standards, making national campaigns extremely difficult
the creative challenge
The Creative Challenge

Effective international messages must transcend cultural and ethnic boundaries

global advertising
Global Advertising
  • Global advertising – Standardizing advertising across all markets
    • Philip Morris’s Marlboro campaign – “Come to where the flavor is”
  • Production cost savings
  • Able to spend more time, attention, and $ on campaign itself and media space
  • Prevents confusion of media spillover
  • Prevents confusion for travelers
global advertising strategies
Global Advertising Strategies
  • Modularized approach – Some features are selected as standard for all advertisements, and other features are localized
  • Global theme approach – Same advertising theme is used around the world but is varied slightly in each local execution
global advertising cont d
Global Advertising (cont’d)
  • Requirements
    • A standardized global brand name or trademark, pronounced identically across markets.
    • Similar lifecycle stages across markets
    • Similar consumer brand attitudes and segments across markets
japan land of the soft sell
Japan - Land of the “Soft Sell”
  • Japan = world’s 2nd largest ad market
  • Soft selling
    • Consumers more moved by emotion rather than logic
    • Kawasarern– process of being convinced to buy product contrary to one’s rational judgment
    • Rarely mention price, shies away from competitive advertising, may even omit key characteristics or features of a product
japan land of the soft sell cont d
Japan - Land of the “Soft Sell” (cont’d)
  • Japanese advertisements use foreign themes and words, especially those in English language
    • Highest % of English words of any language
  • U.S. themes popular
  • Firms are less concerned with conflicts of interest among ad agencies
impact of recent change on advertising in eastern europe
Impact of Recent Change on Advertising in Eastern Europe

“The last hundred years of western advertising [experience] have been compressed into just four years for us.”

  • Significant opportunity to build brand awareness in short period of time
  • Underdeveloped advertising infrastructure
  • Cultural differences
    • Happy family gathered around dinner table – family dinner concept unfamiliar to Romanians
credibility of advertising
Credibility of Advertising
  • Countries view the value of advertising in different ways
    • U.S. = eager to criticize advertising (especially that aimed at children)
    • Asia= advertisements provide good product information, respects consumers’ intelligence
    • Former Soviet Union = most skeptical
media availability
Media Availability
  • Global media
    • TV = CNN, BBC World, ESPN, MTV, Satellite stations
    • Print= The Economist, Fortune, Time, Business Week
    • Internet = banner ads
  • But companies cannot expect to use their preferred advertising medium to the fullest extent everywhere  it may not be available!
  • TV big in Latin America, growing in India
media habits
Media Habits
  • Ownership and usage of television and radio and the readership of print media vary considerably country to country
    • Income effect: Higher income, more TV
  • China commuters are just now adopting radio
scheduling international advertising
Scheduling International Advertising
  • Scheduling international advertising is complicated by country differences in
    • Sales peaks
      • Climatic conditions
      • Customs
      • National vacations
      • Religious holidays (i.e. Ramadan)
    • Time needed to think about a purchase
advertising coordination
Advertising Coordination
  • External factors
    • Market diversity
      • Homogeneous customer needs and interests = morestandardized, centralized approach
      • Heterogeneous customer needs and interests = more adapted,localized approach
    • Competitive set
      • Similar set of competitors across markets = more standardized, centralized approach
      • Differing local competitors in each market = more adapted, localized approach
mcdonalds i m lovin it global advertising campaign
McDonalds: I’m Lovin’ ItGlobal Advertising Campaign
  • September 2003 – McDonalds First Ever Global Market Campaign
  • “I’m Lovin’ It” campaign
  • Move away from localized branding, advertising, and promotion.
  • Successful campaign
    • 86% advertising awareness overall among top 10 country markets