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Transcript of Chapter 15 Managing Global Advertising. Copyright © Houghton Mifflin Company. All rights...
Chapter 15
Managing Global Advertising
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 2
Advertising
StandardizationAdvertising
Adaptation
versus.
International Marketing Dilemma
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 3
Outdoor Radio Print Media Cinema Van &
Loudspeaker Direct Mail, Flyers Packaging
Particularly important for developing
country markets
Telephone booth ad in Cordoba, Spain
Not All Advertising is on TV
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 4
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
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 5
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
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 6
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.
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 7
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
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 8
The Creative Challenge
Effective international messages must
transcend cultural and ethnic
boundaries
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 9
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
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 10
• 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 Strategies
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 11
• Requirements1. A standardized global brand name or trademark,
pronounced identically across markets.
2. Similar lifecycle stages across markets
3. Similar consumer brand attitudes and segments across markets
Global Advertising (cont’d)
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 12
• 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”
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 13
• 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
Japan - Land of the “Soft Sell” (cont’d)
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 14
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
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 15
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
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 16
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
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 17
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
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 18
• 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
Scheduling International Advertising
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 19
Advertising Coordination
• External factors– Market diversity• Homogeneous customer needs and interests =
more standardized, 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
Copyright © Houghton Mifflin Company. All rights reserved. Chapter 15 | Slide 20
• 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
McDonalds: I’m Lovin’ ItGlobal Advertising Campaign