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


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


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

• 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

• 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

• 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

Effective international messages must

transcend cultural and ethnic

boundaries


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


• 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


• 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)


• 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”


• 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)


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

• 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

• 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

• 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 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


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


• 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

chapter 15 managing global advertising. copyright © houghton mifflin company. all rights...

Documents

global advertising slide

difficult slide

tv slide

advertising theme

pgs advertising

tobacco advertising

beach volleyball slide

alcohol advertising