Global Marketing Communications. Top 10 Companies by Ad Spending Outside the U.S. © The McGraw-Hill...
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Transcript of Global Marketing Communications. Top 10 Companies by Ad Spending Outside the U.S. © The McGraw-Hill...
Global Marketing Communications
Top 10 Companies by Ad Spending Outside the U.S.
Unilever
Nestle SA
PSANissan
GM
Volkwagen
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P & G Toyota PhilipMorris
Mars Inc.
Outside U.S.U.S. Worldwide
© The McGraw-Hill Companies, Inc., 1998Irwin/McGraw-Hill
Slide 20-1
Figure 20-1
SmartBeep
Hyundai - Sweden
Global Attitudes Towards Advertising
Advantages of Global Marketing and Advertising
Economies of scale in production and distribution
Lower marketing and advertising costs Ability to exploit good ideas on a worldwide
basis Consistent brand and/or company image in all
markets Simplification of coordination and control of
marketing and promotional programs
Problems with Global Advertising
Differences in market and economic development, consumer needs, media availability and legal restrictions
Cultural differences make advertising standardization difficult
Usage patterns and perceptions of a product may vary from one country to another
© The McGraw-Hill Companies, Inc., 1998Irwin/McGraw-Hill
Slide 20-3
When is Globalization Appropriate?
Brands that can be adapted for a visual appeal
© The McGraw-Hill Companies, Inc., 1998Irwin/McGraw-Hill
Slide 20-4
BA – Visual Appeal
BA Casablanca
When is Globalization Appropriate?
Brands that can be adapted for a visual appeal Brands that are promoted with image campaigns
that play to universal appeals
© The McGraw-Hill Companies, Inc., 1998Irwin/McGraw-Hill
Slide 20-4
Latin America
Continental – Universal Appeal
Wedding - France
When is Globalization Appropriate?
Brands that can be adapted for a visual appeal Brands that are promoted with image campaigns
that play to universal appeals High-tech products and new products coming to
the world for the first time
© The McGraw-Hill Companies, Inc., 1998Irwin/McGraw-Hill
Slide 20-4
IBM
Gillette – Standardized Advertising
When is Globalization Appropriate?
Brands that can be adapted for a visual appeal Brands that are promoted with image campaigns
that play to universal appeals High-tech products and new products coming to
the world for the first time Products with nationalistic flavor
© The McGraw-Hill Companies, Inc., 1998Irwin/McGraw-Hill
Slide 20-4
Latin American
BA Football
BA Manhattan
When is Globalization Appropriate?
Brands that can be adapted for a visual appeal Brands that are promoted with image campaigns
that play to universal appeals High-tech products and new products coming to
the world for the first time Products with nationalistic flavor Products that appeal to a market segment with
universally similar tastes, interests, needs and values
© The McGraw-Hill Companies, Inc., 1998Irwin/McGraw-Hill
Slide 20-4
Levis - Elevator
Levis – Tainted Love
Levis - Clayman
Standardizing Advertising: It’s All about degree
ThinkGlobally
Act Locally
Standardized Advertising: It’s all about DEGREE
The Chameleon An advertising strategy with different
meanings in different cultures, but with positive associations for the target audience in all of them.
When this happens, it can be a truly global campaign.
Marlboro Man
Saudi Arabia France
Marlboro Man
Turkey Singapore
Marlboro Man
Germany Sweden
Marlboro Man
Latin AmericaUS (circa 1988): no logo needed
Coca Cola Light/Diet Coke
Coca Cola Light campaign "Just for the Taste of It" was used in many different countries, the execution of that strategy was tailored to cultural differences.
France: cooling off France: hugging
Coca Cola Light/Diet Coke
Coca Cola Light/Diet CokeFrance: cooling off Korea: behind the back
Coca Cola Light/Diet Coke
Thailand: red & white
Standardizing advertising strategy across countries while the execution is modified to fit in with local cultural mores.
Drakkar Noir
USA – “Feel the Power”
Drakkar Noir
French Version Spanish Version Saudi Arabia
Communicating withWorld Consumers
Legal and Tax ConsiderationsLegal and Tax Considerations
Language LimitationsLanguage Limitations
Cultural DiversityCultural Diversity
Media LimitationsMedia Limitations
Production and Cost LimitationsProduction and Cost Limitations
Challenges
Creative Challenges of Global Advertising
Legal and Tax ConsiderationsLegal and Tax Considerations
•Legal•Comparative Advertising
•No - Germany•Indirect - U.K., Spain, Ireland, Portugal•Heavily regulated in Asia
•Amount of advertising•Kuwait - 32 minutes per day
•Taxation on advertising•Britain, France and Australia•Austria - Huge taxes on print and t.v.
- Cinema advertising 11% of ad revenue per year
l Phonetic Problems with Brand Names•Bardok in Russia•Big John In French -speaking Canada - Gros Jos
l Translations
Intent Translation- Stepping Stone - Stumbling Block- Car Wash - Car Enema- Highly Rated - Over Rated
Symbols- Owl - Bad Luck in India
- Airline Log in Australia - EMU
Language LimitationsLanguage Limitations
Function of Advertising:– Interpret or translate the need/want satisfying
qualities of product and services in terms of consumer needs, wants, desires, and aspirations.
– Emotional appeals, symbols, persuasive approaches etc.must coincide with cultural norms to be effective.
Cultural DiversityCultural Diversity
General Mills Cake Mixes– US and UK
Homemaker’s guilt
– Japan Don’t eat cakes Concerned about failing Easy as rice
Subcultures
Cultural DiversityCultural Diversity
Localization
FranceSweden
Japan United Kingdom
Latin America Japan
Advertising as a MirrorIndividualism vs. Collectivism
Germany: man diving South Africa: cigarette party
Latin America: footprint in the sand Taiwan: Samsonite suitcase ad
Korean: nutritional supplement and the family France: birds of a flock
Brazil: soccer players United Kingdom: shark
Pakistan: "Rhythm Wythm"
Gender Roles
Availability– Political position– Literacy rates - selective
Cost– Media costs subject to negotiation– Agent discounts split with client
Coverage– National vs. regional– Fragmented
Media LimitationsMedia Limitations
Media Selection
Newspapers
Magazines
Radio & Television
Satellite and Cable Television
Direct Mail
Other Media
Household Penetration of Cable, Satellite, and Internet Top 10 Media Markets 1997
Country Cable Satellite Internet
United States 66.9 4.1 21.3
Japan 22.9 22.9 9.9
Germany 59.9 20.7 11.6
UK 7.0 15.0 5.0
France 7.0 8.0 1.7
Brazil 4.3 5.2 0.003
So. Korea 14.0 N/A 1.8
China 25.8 25.8 N/A
Italy N/A 3.4 1.9
Mexico 7.5 1.5 0.06
SOURCE: Abstracted from: “Top Global Advertising Market” Ad Age International May 1997. p. 17.
Tactical Considerations
Availability
Cost
Coverage
Lack of Market Data
Media Planning & Analysis
Other Forms of Communication
Sales Promotions Event Sponsorships Trade Shows Direct Marketing Public Relations