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8/7/2019 EMBAIntMkt052010

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Global Advertising

8/1, 2010


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Global Advertising

Globaladvertising canbedefinedas

advertising moreorless uniform across many

countries, often, butnotnecessarily, in mediavehicles withglobalreach

Challenges

Overcomingthelanguagebarrier

Overcomingthe culturalbarrier

Theimpactsofregulations


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The Multicountry Communications

Process

Source Message Channel Receiver

Barrier 1Headofficeoutside

target country;

messagedevised

intarget country

Barrier 2Messages created

by companyoutside

target countryand

disseminatedby

local channels

Barrier 3Company, message

creation, and channel

outsidetarget

country, directed

atlocal consumers


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Advantages of Standardizing

Global Advertising

Creativetalentisscarce

Theeconomicsofglobal campaign

Global markets

Globalbrandnamesand products


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Brand Name same

Theme same

Visual same

Positioning same

Actors same

Words same

Language (local) Media same

Materials same

Slogan same

Brand Name same

Theme same

Visual same

Positioning same

Actors not same

Words not same

Language (local) Media not same

Materials not all same

Slogan same

PROTOTYPE ADVERTISING PATTERN STANDARDIZATION

Global Ads: Same everywhere?


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Global Ad Content: The Extension

versus Adaptation Debate

The message maynotgetthroughtotheintended

recipient

The message mayreachthetargetaudiencebut maynotbe understoodor mayevenbe misunderstood

The message mayreachthetargetaudienceand maybe

understoodbutstill maynotinducetherecipientto

taketheactiondesiredbythesender

Theeffectivenessofthe message canbeimpairedby

noise


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Examples of SloganT

ranslations

Ifyou dontgetit, you dontgetit

WashingtonPost

Ifyou arenotaskingforit, you areaskingforit A BrandofMotorBattery

Ifyou dontlookgood, wedontlookgood

VidalSassoon

TrytoTranslateThefollowingTwoSlogans:

Just DoIt! Nike

CitiNeverSleeps Citicorp


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Cultural Considerations Knowledgeofculturaldiversity, especiallythesymbolism

associated with culturaltraits, isessentialfor creatingadvertising

Useofcolorsand man-womanrelationships canoftenbe

stumblingblocks Menkissing (marriedor unmarried) womenshands?

Theringontheleftorrighthand?

The woman precedingthe man?

Emphasisonthesubjectiveorfunctional productattributes

The useofsexuallyexplicitor provocativeimagery

Foodisthe product category mostlikelytoexhibit culturalsensitivity

Culturaldifferenceshardlyhaveanyeffectontheattitudes,motivators, andneedsinvolvedin purchasingtechnology


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Japanese Creative Strategy

Indirect ratherthandirectformsofexpressionare preferredin

the messages

Thereisoftenlittlerelationship betweenad contentandthe

advertised product

Onlybriefdialogueornarration is usedintelevision commercials,

with minimum explanatory content

Humor is usedto createabondofmutualfeelings

Famous celebrities appearas closeacquaintancesoreveryday

people

Priorityis placedoncompanytrust ratherthan product quality

Theproductname isimpressedontheviewer withshort, 15-

second commercials


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Global Marketing Communications

In the U.K., all advertising is allowed if not specifically

forbidden.

In Germany, everything is forbidden if not specifically

allowed.

In Italy, everything is allowed, even if forbidden, and

In Belgium, nobody knows whats forbidden.


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Public Relations and Publicity

Any companythatisincreasinglyitsactivitiesoutsidethe

home country can utilizePRpersonnelasboundary

spanners betweenthe companyandemployees, unions,

stockholders, customers, the media, financialanalysts,

governments, andsuppliers

Internationally, PRexpendituresaregrowinganaverageof

20 percentannually

IntheUnitedStates, PRisincreasinglyviewedasaseparate

managementfunction;InEurope, PRprofessionalsareviewedas partofthe marketingfunction

The ultimatetestofanorganizations understandingofthe

powerandimportanceofpublic relationsoccursduringa

timeofenvironmentalturbulence, especiallya potentialor

actual crisis


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Global Sales Promotion

In-storeor point-of-purchase promotions

Price packs;Premiums;buyone, getonefree;Sweepstakes

Trade promotions

Couponing

Sampling

Takeadvantageofevent marketing

Cross-Marketing


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Simplified Channel and

Promotion Structure

Manufacturer 1 Manufacturer 2

TradeTradePromotionPromotion

Channel A

(Retailer A)

ChannelB

(RetailerB)

Customers

RetailRetail

PromotionPromotion

ConsumerConsumer

PromotionPromotionConsumerConsumer

PromotionPromotion


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Customer Promotion

Objectives Long-run (relationship

building)

Awarenessenhancement

Imageenhancement

Short-run (transactional)

Current customers

Buy more

Be moreloyal

Buynow Occasional customers (deal

prone;brandswitchers)

Capturenext purchase

Noncustomers

Trial

Sweepstakes, contests, tie-ins

Sponsorships

Volumediscount/specialvalue packages

In pak coupons, premiums, frequentbuyer programs

Rebates, coupons

Coupons, displays, rebates

Trialsizes, sampling

ObjectiveObjective TypicalProgrammingTypicalProgramming


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Trade Promotion Objectives

Transactional:increasestocking

levels

Transactional:Increasesales

efforts

Relationship building

Volumeallowances

Financingterms

Discount/price cuts

Slottingallowances

Advertisingallowances

Displayallowances

Premiums

Contests Salesforcesincentives

Freegoods

ObjectiveObjective TypicalProgrammingTypicalProgramming


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Promotion: A Local Activity

Economic DevelopmentLow levelsofeconomic developmentp freesamplesanddemonstration > coupons

oron-packpremiums

MarketMaturityGrowing marketp consumersamplingand coupons;Mature marketsptrade

allowancesorloyalty programs

PerceptionsConsumerandtrade perceptionsofpromotionalincentivesare culturallyinspired

and canvaryfrom marketto market

LegosBunnySet promotionsucceededinU.S.butfailedinJapan

TheUnitedStatesisbyfarthe worldleaderintermsofthenumberofcouponsissues.In 1997, 276 billion coupons weredistributedandconsumerredeemedabout 1.7 percent withanaveragevalueof64 cents.Couponingaccountsfor 70 percentofconsumer promotionspending.Elsewhere, the percentageis muchlower

InEurope, couponingis widely usedintheUKandBelgium;Couponingisnotas widely usedin Asia wheresavingfaceisimportant

Japanese consumersarereluctantto use couponsatthe checkout counter;a particular premium canbeseenasa wasteofmoney


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Influence and Roles in International

Sales Promotion

Minimum

Maximum

Subsidiary

Influence

Local Regional Global

Low HighInternationalBrandUniformity

Maximum

Minimum

Headquarters

Influence

Strategy

Design

Execution

Adoption + Adaptation

Strategy

Design

Execution

Design

Execution

Information

Transfer

Cross-Fertilization

InformationTransfer

Strategy

Cross-fertilization

InformationTransfer


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Personal Selling

Globalselling (multicountrysalesforce)

Purchasingbehavior

Buying criteria

Language

Businessetiquette

Negotiationstrategies

Localselling (single-countrysalesforce)

Roleoflocalsalesforceand control

Localsalesjob

Foreignsales practices

Recruiting

Compensation


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y PREPARATION

yGREATPRODUCT

y APPEARANCE

y ENTHUSIASM

y SELF-CONFIDENCE

y GREATCLOSEROF

TRANSACTION

y PREPARATION

y

GREATPRODUCTy THEPERSON

y CULTURALAWARENESS

y RELATIONSHIPORIENTED

LOWCONTEXTCULTURES HIGH CONTEXTCULTURES

Culture and Salesmanship


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Special Forms DirectMail

Catalogs

InfomercialandTeleshopping

Sponsorship

ProductPlacement

New mediaandE-Commerce


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IntelinChina distributionofbicyclereflectors

CitibankinThailand credit cardagentsat malls

YonexinIndonesia badmintonteam sponsorship

IMCexamples


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Seven Keys to Effective Sponsorship

Effective

Sponsorship

1. Have clear

Communication

objectives

2.BeProactive

3.Lookforan

Exceptionalfit

4.Ownsponsorships

Ifpossible

5.Lookfor publicity

opportunities

6.Consider multiple

Sponsorship payoffs

7. Actively manage

thesponsorship

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