module 3 - global adv

8/8/2019 Module 3 - Global Adv

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Global Marketing Management

Warren J. Keegan

Chapter 14 Global Advertising


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Keegan: Global Marketing Management Chapter 14 / 2

Overview

Global Advertising & Branding

Extensions versus Adaptation Debate

Selecting an Advertising Agency

Advertising Appeals & Product Characteristics

Creating Advertising

Summary


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Learning Objectives

Know the elements & objectives of global marketing

communication

Know two contrasting positions regarding localisationor globalisation of advertising content

Know points to consider when selecting an advertising

agency and creating a campaign


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Advertising

May be defined as any sponsored, paid

message placed in a mass medium

Global advertising refers to the use of thesame advertising appeals, messages, art,

copy, photographs, stories, and video

segments in multiple-country markets


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Keegan: Global Marketing ManagementChapter 14 / 5

Global Advertising and Branding I

The global marketer

has to pay attention to the interaction of the

elements of the communication mix has to ascertain that the right message is

communicated and received by prospective

consumers (i.e. cultural diversity, media

limitations, legal problems) Needs to take care of cultural diversity, media

limitations, legal differences, etc.


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Global Advertising and Branding II

Global campaigns

help to build long-term product identities

offer significant savings in production costs

Global advertising

offers companies economies of scale in

advertising

improves access to distribution channels


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Growing Popularity of Global

Advertising

Spur short-term sales

Build long-term product identities

Significant savings

Growth of Pan-European brands


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Top 15 Categories by Ad Spending

1. Automotive

2. Personal care

3. Food

4. Entertainment

5. Drugs

6. Soft Drinks

7. Electronics

8. Cleaners

9. Fast Food

10.Computers

11.Beer, wine & liquor

12.Toys

13.Retail

14.Cigarettes

15.Cell Phones


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Top 10 Global Marketers

1. Unilever

2. Procter & Gamble

3. Nestle

4. Coca-Cola

5. Ford

6. General Motors

7. LOreal

8. Volkswagen

9. Toyota

10.Peugeot


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The Extension versus Adaptation

Debate I

Four major difficulties

message may not get through to intended

recipient message may reach target audience but may not

be understood or may even be misunderstood

message may reach target audience & may be

understood but still not induce the recipient totake the action desired by the sender

effectiveness of the message can be impairedby noise


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The Extension versus Adaptation

Debate II

Key question for global marketers

Does the specific advertising message & media

strategy need be changed because ofenvironmental requirements?

Two positions

one world, one voice approach

localized approach


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Extension versus Adaptation Debate

III

Nick Brien of Leo Burnett says:

As the potency of traditional media declines on a

daily basis, brand building locally become morecostly and international brand building becomemore cost effective. The challenge for advertisersand agencies is finding ads which work in

different countries and cultures. At the same timeas this global tendency, there is a growing localtendency. Its becoming increasingly important tounderstand the requirements of both.


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Selecting an Advertising Agency I

Options:

create ads in-house

use an outside agency

combine both strategies

One or more outside agencies

can serve product accounts on a multi-country or

global basis


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Selecting an Advertising Agency II

In selecting an advertising agency, the following

issues should be considered:

Company organization

National responsiveness

Area coverage

Buyer perception


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Advertising Appeals & Product

Characteristics

The most effective appeal may vary products might be at different stages in their life

cycle in various national markets

basic cultural, social & economic differences

Identify opportunities where:

economies of scale exist

barriers to standardisation such as culturaldifferences are not significant

products satisfy similar functional & emotionalneeds across different cultures


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Creating Advertising

Art Direction

Copy

Cultural considerations

values & motives

advertising form

execution of the advertising


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Japanese vs. American Advertising

Indirect forms of expression preferred

Little relationship between ad content & product

Brief dialogue

Humor used to create bond of mutual feeling

Celebrities appear as close acquaintances

Company trust over product quality 15 or 20 second commercial used to impress name


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5 Copy Approaches in Japan

Connectors (30%): fostering person bonds

between brand & consumer

Product Pushers (19%): focuses on productsstrengths

Ubiquity Seekers (19%): desire to win awards

Cut-through (18%): celebrities & memorableassociations

Entertainers (14%): entertaining or newsworthy


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Global Media Considerations

Media decisions

Availability varies around the world

Government regulations

Censorship

Media expenditures

Largest per capita advertising expenditures occurred in

highly developed countries

Basis of compensation


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Summary

Marketing communications includes advertising,

public relations, sales promotion, and personal

selling

Selecting an advertising agency is difficult

Either local adaptation or distinct local

campaigns may be required

Media usage varies around the world

module 3 - global adv

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