R. Srinivasan

Role of International promotion:• Estimated world wide ad expenditures: $ 450 billion- 50 % in US, increased ad. Spend in

China, India, Brazil etc.

• Why effective promotional programs ?• Most visible of the marketing function- • Other functions – Passive quieter way.

Analysing the International Marketing Environment• Economic• Demographic• Cultural• Political/ Legal

Cultural Environment• Language• Taste / traditions- cosmetics in France• Values• Religion

Other factorsThe Media Infrastructure2. Advertising Regulations3. Standardization vs Adaptation

1. The Media Infrastructure• Media Availability

– Media infrastructure differs from country to country• Media Reliability• Media Restrictions• Media Costs• Media Formats

– Advertising Posters on Kiosks and Fences– Sides of Private Homes– Plastic Shopping Bags– Outdoor Umbrellas– Billboards

– Shift from radio and print to TV advertising– Rise of global and regional media– Growing spread of interactive marketing– Growing popularity of text messaging– Improved monitoring– Improved TV-viewership measurement

2. Advertising Regulations• The major types of advertising regulations include:

– Comparative Advertising– The major types of advertising regulations include :– Advertising Targeting Children– Advertising of “Vice Products” and Pharmaceuticals

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R. Srinivasan

– Content of Advertising Messages– Other Advertising Regulations : Issues of local languages, tax issues, and

advertising rates.–

Standardization vs Adaptation• The “Standardization” versus “Adaptation Debate”• Merits of Standardization:

– Scale Economies– Consistent Image– Global Consumer Segments– Creative Talent– Cross-Fertilization

• Assumption: Consumers everywhere share the same wants and needs– Maintaining consistent image– Reducing confusion among world travelers– Implementing single-coordinated campaign across countries– Reducing development, media, and other costs

Adapted Advertising• Assumption: Insurmountable cultural, economic, infrastructural, and political differences

across countries– Increasing effectiveness by tailoring ads to local conditions– Giving more freedom to subsidiaries

• Barriers to Standardization: – Cultural Differences

• Language is one of the most formidable barriers in global marketing.– Religion– Communication Infrastructure– International Agencies may not serve a market– Consumer Literacy Levels– Advertising Regulations– Market Maturity– Values and Purchase Motivations– “Not-Invented-Here” (NIH) Syndrome

Creative challenges.Media Regulations –

comparative advertising – e.g., Germany prohibits use of superlatives. time allocations – e.g., In Italy 12% ads per hour., special taxes – e.g., Japan, type of product, type of copy and illustration, etc.

• 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

Products Suitable for Standardized Advertising• Luxury products• High-tech products

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R. Srinivasan

• Experiential products• Favorable country image

Five Global Product and Promotion Strategies

Pattern advertising• Plan globally act locally.• Broad outlines or basic positioning given but details can be adapted.• Assuming that there are some differences in culture and consumer behavior even if

primary function is the same.

Global Advertising– 7 Steps in International Advertising

• 1. Perform marketing research• 2. Specify the goals of the communication• 3. Develop the most effective message• 4. Select effective media• 5. Compose and secure a budget• 6. Execute the campaign• 7. Evaluate the campaign relative to the goals specified

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