THARAKA DIASMBA(USA), BBA(USA), Dip in Mgt, ACIM(UK), FAEA(Dip in AEA-UK),

FinstSMM(UK), CPM(Asia), MSLIM, PM(Sri-Lanka) 1

List both the advantages and the special requirements of standardized campaigns.

Define the global theme approach to advertising, and explain how it differs from a totally standardized campaign.

Explain the market and cultural limitations on the advertising message or on its execution.

Identify key issues related to advertising that tend to be regulated by national governments.

Cite ways to avoid faulty translations and ways to minimize the need to translate.

Explain how media availability, media habits, and scheduling international advertising all affect the advertising campaign.

Differentiate among the three options of utilizing domestic advertising agencies, using local advertising agencies, and using international advertising networks.

List the external and internal factors that influence a firm’s decision to centralize or localize its advertising decisions.

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Global versus local advertisingDeveloping global campaignsThe global-local decisionOvercoming language barriersGlobal media strategyOrganizing the global advertising

effort

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Some markets or regions require multilingual advertising

Proper linguistic translation is imperative and challenging Can be difficult to translate critical words

Concepts also may not translate well culturally adaptations may be necessary Benetton’s nursing black mother Fed Ex’s naked soccer players

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Types of products that can be advertised

Types of appeals that can be used

Times that certain products can be promoted

Use of foreign languages in advertisements

Use of national symbols in advertisements

Taxes levied against advertising expenditures

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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

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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!

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Domestic Agencies When firm first goes international, typically turns to

domestic agency for help But smaller agencies typically don’t have international

experience Local Agencies

Understands local environment, creates targeted advertising

Can be difficult to coordinate across several markets International Advertising Networks

Can be difficult to be global and local – instead many companies have formed alliances to serve clients globally with local experience and expertise

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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 approach9

Internal factors Decentralization▪ Is only possible if local skill levels and

efficiency are acceptable▪ May be preferred by companies priding

themselves on giving considerable freedom to subsidiary managers

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