im chapter review- chapter 13

8/12/2019 Im Chapter Review- Chapter 13

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CHAPTER 13: GLOBAL MARKETING COMMUNICATIONS DECISIONS I: ADVERTISING AND PUBLIC

RELATIONS

Table of Contents

GLOBAL ADVERTISING ................................................................................................................................... 2Global Advertising Content: Standardization Versus Adaptation ............................................................. 2

ADVERTISING AGENCIES: ORGANIZATIONS AND BRANDS ........................................................................... 3

Selecting and Advertising Agency ............................................................................................................. 3

CREATING GLOBAL ADVERTISING ................................................................................................................. 4

ART DIRECTION AND ART DIRECTORS....................................................................................................... 4

Copy and Copywriters ............................................................................................................................... 4

Cultural Considerations ............................................................................................................................. 4

GLOBAL MEDIA DECISIONS ........................................................................................................................... 4

Global Advertising Expenditures and Media Vehicles .............................................................................. 5

PUBLIC RELATIONS AND PUBLICITY .............................................................................................................. 5

The Growing Role of PR in Global Marketing Communications ............................................................... 5

How PR Practices Differ Around the World .............................................................................................. 5


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GLOBAL ADVERTISINGThe environment in which marketing communications programs and strategies are implemented variesfrom country to country.

The concept of Integrated Marketing Communications(IMC): An approach to brand communications

where the different modes work together to create a seamless experience for the customer and arepres ented with a similar tone and style that reinforces the brands core message. Its goal is to make allaspects of marketing communication such as advertising, sales promotion, public relations, directmarketing, personal selling, online communications and social media work together as a unified force,rather than permitting each to work in isolation, which in turn maximizes their cost effectiveness.

Advertising: Any sponsored paid message that is communicated in a nonpersonal way.

Advertising is designed to communicate into 2 areas:-

i. A single country or a Regional/Pan-Regional or market area.

ii. Global Advertising which can be defined as messages whose art, copy, headlines,photographs, taglines and other elements have been developed expressly for theirworldwide suitability.

Companies have been using taglines to advertise:-

i. McDonald Im loving It ii. BP Beyond Petroleum iii. De Beers A Diamond is Forever

The potential for effective global advertising also increases as companies recognize and embrace new

concepts such as Product Cultures. Example: The culture of drinking coffee has embra ced and opensthe opportunity for Starbucks to advertise its product.

Some market segments can be defined on the basis of global demography youth culture or anemerging middle class. Example: Advertising for athletic shoes can be targeted for worldwide segmentof 18-25 years old male.

Global advertising also offers companies economies of scale in advertising as well as improved access todistribution channels. Example: Retailers will put priority for the shelves to be filled with products fromcompanies who has a Global Advertising instead of those who has only done local advertising. This is toensure that the revenue generated is kept at maximum.

Global Advertising Content: Standardization Versus AdaptationThe message is at the heart of advertising.

Overall requirements of effective communication and persuasion are fixed and do not vary from countryto country.

Four major difficulties can refrain from the advertising to reach its target audiences:-
http://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Direct_marketinghttp://en.wikipedia.org/wiki/Direct_marketinghttp://en.wikipedia.org/wiki/Social_mediahttp://en.wikipedia.org/wiki/Cost-effectiveness_analysishttp://en.wikipedia.org/wiki/Cost-effectiveness_analysishttp://en.wikipedia.org/wiki/Social_mediahttp://en.wikipedia.org/wiki/Direct_marketinghttp://en.wikipedia.org/wiki/Direct_marketinghttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Brand


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i. Advertising may not reach the target audiences/reci pients. Causes: Advertisers lack ofknowledge.

ii. Advertising may reach the target audiences/recipients but may not be understood or mayeven be misunderstood. Causes: Advertisers inadequate understanding of the targetaudience.

iii. Advertising reach the target and understood by the audiences/recipients, but does not givesany impact to them as the audiences/recipients does not make any action. Causes: Lack ofcultural knowledge on the target audience.

iv. The effectiveness of the message can be impaired by noise . Noise is an external influencesuch as competitive advertising. These can distract the audience and result in inefficiency ofthe advertising efforts.

Brand building locally becomes more costly and international brand building becomes more costeffective.

Brands are often at different stages around the world, and that means there are different advertising jobs to do.

Pattern Advertising:-

i. Combination of 100% standardization and 100% adaptation.ii. Example: Ads in a European print campaign for Boeing shared basic design elements, but the

copy and the visual elements were localized on a country-by-country basis.

ADVERTISING AGENCIES: ORGANIZATIONS AND BRANDSExamples of Advertising Organizations:-

i. Dentsu (Japan)ii. Omnicom Group (New York)iii. WPP Group (London)

Selecting and Advertising AgencySome companies have their own in-house advertising agencies which they used to combine withexternal advertising agencies. Example Coca Cola has its own Advertising Agency, Edge Creative.However still uses Leo Burnett.

The following issues need to be considered when selecting an advertising agency:-

i. Company Organization : Companies that are decentralized typically allow managers at thelocal subsidiary to make ad agency selection decisions.

ii. National Responsiveness: The Global Agency must be familiar with local culture and buyinghabits in a particular country.

iii. Area Coverage: Does the candidate agency cover all relevant markets?


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iv. Buyer Perception : The brand awareness that the company want to project. If the productneeds a strong local identification, then it requires a national agency.

CREATING GLOBAL ADVERTISING

The particular message and the way it is presented will depend on the advertisers objective.

The Big Idea is defined as that flash of insight that synthesizes the purpose of the strategy, joins theproduct benefit with consumer desire in a fresh, involving way, brings the subject to life, and makes thereader or audience stop, look and listen.

Ads are made based on:-

i. Rational appeal depends on logic and speak to the audiences intellect.ii. Emotional appeal tug at the heartstrings or tickle the funny bone of the intended

audience and evoke a feeling response that will direct purchase behavior.

Ads provide Selling Proposition Promise or claim that captures the reason for buying the product orthe benefit that ownership confers. And a good Selling Proposition is made using Creative Executionwhich can make a difference between what one says and how one says it.

ART DIRECTION AND ART DIRECTORS

Copy and CopywritersCopywriters are language specialists who develop the headlines, subheads and body copy used in printadvertising and the scripts containing the words that are delivered by spokespeople, actors or hiredvoice talents in broadcast ads.

Copy are words that are spoken or written as a tool of communication elements in advertisements.

Cultural ConsiderationsKnowledge of cultural diversity especially when it is associated with cultural traits is essential forcreating advertising.

Ads that strike viewers in some countries as humorous or irritating may not be perceived that way byviewers in other countries.

Examples of Cultural Considerations:-

i. Images of male/female intimacy are bad taste in Japan and illegal in Saudi Arabia.ii. Wedding rings are worn on the right hand in Spain, Denmark, Holland and Germany.iii. In Germany, France and Japan, a man enters a door before a woman, no ladies first!

GLOBAL MEDIA DECISIONSWhich medium or media to be sued when communicating with target audiences?


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Global Advertising Expenditures and Media VehiclesUS expenditures on advertising USD151 billion

Japan expenditures on advertising USD43 billion

TV is no. 1 advertising medium. 2 nd Newspaper. However, these varies between countries. In Germany,Newspaper comes 1 st .

PUBLIC RELATIONS AND PUBLICITYPR personnel are responsible for fostering goodwill, understanding, and acceptance among a companysvarious constituents and publics.

One of the tasks of a PR practitioner is to generate a favorable publicity.

Corporate advertising:-

i. Compensates for lack of control over publicityii. Calls attention to the companys other communication efforts

Image Advertising:-

i. Enhances the publics perception, creates goodwill

Advocacy advertising:-

i. Presents the companys point of view on a particular i ssue.

The Growing Role of PR in Global Marketing Communications

Public Relations expenditures are growing at an average of 20% per year

Reasons for the growth

i. Increased governmental relations between countriesii. Technologyiii. Societal issues like the environment

How PR Practices Differ Around the WorldPublic relations practices can be affected by:

i. Cultural traditionsii. Social and political contexts

iii. Economic environments

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