marketing presentation on international advertising strategy

8/8/2019 Marketing Presentation on International Advertising Strategy

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Marketing Management

Thursday Morning ClassTo: Dr. Yusniza

By: Muhammad Zia


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International Advertising StrategyA Review, Reassessment and Recommendation

ByT. C. Melewar & Claes Vemmervik


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K ey Concepts

1. Standardization

2. Adaptation

3. Compromise Approach

4. Contingency Approach

5. International Advertising Strategy & Value Creation


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Internationalization of Businesses

Increasing Globalization of Markets

Global Competition

Cost Effectiveness


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The International Marketing Environment Today

7

3. Economy

Environmentaluncontrollablescountry market A

Environmentaluncontrollablescountrymarket B

Environmentaluncontrollablescountrymarket C

1. Competition

1. Competition

2. TechnologyPrice Product

Promotion Place or Distribution

6. Geography andInfrastructure

Foreign Environment

(Uncontrollables)7. Structure of Distribution

3. Economy

5. Political-Legal

Domestic environment(Uncontrollables)

(Controllables

)

2 .Technology

4.Culture

5. Political-Legal

4. Culture

TargetMarket


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WILL OUR STRATEGY BE EFFECT IV E?


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SCOPE OF THE PAPAER:

The Standardization debate in International Advertising Strategy has been going on for thelast more than 40 years, without a clear solution

This paper discusses about this debate of Standardization in International AdvertisingStrategy

It provides only a literature review and critique of this important issue


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STANDARD IZAT ION:

First of all, there is no clear definition of standardization in advertising process

However, strictly speaking, an advertisement is

global if it is virtually unchanged in all countriesexcept for translation

Still, the debate about standardizedelements/parts in the process of International

Advertising is going on in literature.

Picture, layout, topic/idea, language etc are theelements in question in this context


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STANDARD IZAT ION:

Why Standardization?

Emerging Global Market Segments

(through technology and increased communication)

Economies of Scale

Consistent Brand I mage


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ADAPTAT ION: Adaptation, on the other extreme, hold the opposite

view to standardization to create a differentialadvantage by keeping in mind:

L ocal Sensitivity

Stages of Economic Development

Political and L egal Systems

L ocal Cultures

Customer V alue & L ife styles


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COMPROM ISE APPROACH:

This is a middle of the road approach that recognizeslocal differences but also advocates that .

Standardization is possible

Standardization is also desirable

Should be viewed as a continuum

Difference is in degree rather thankind


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CONT INGENCY APPROACH:

This approach focuses on factors within and outsidefirms. Harvey (1993) identified six variables

Degree of Universality of the Product

Competitive Environment

Organizational Experience & Control

Media I nfrastructure

Governmental Regulations

Cultural & Social differences


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DIFF ICULT IES FOR PRACT INIONERS :

The authors then gave their critique on the academicswork, from the practitioners point of view. However, theyargues that its difficult to make a survey on soft issueslike culture and values, and found four factors that makesurvey comparisons difficult ..

Sample selection of companies

Definition of Standardization

Statistical method and analysis

Time between surveys


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VAL UE CREAT I ON


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VALUE CREAT ING ASPECT :

Criticizing on the lack of financial implications for valuecreation by the strategy adopted, they recognized that thisdebate is segmentation and customer psychology acrossnations, but dont provide insights for financialperformance issues like shareholders value.

Sales I ncreases

Cost I ncreases

They suggested for further research to separate under-given points for the benefit of practitioners:

marketing presentation on international advertising strategy

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