Global Marketing 13

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Global Marketing

Decisions I:Advertising and

Global MarketingChapter 13

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Chapter topics:

Establish promotional budget

Pus ing vs. pu ing

Standardization vs. adaptation

Global ad agencies & key roles of personnel

Global media decisions

2011 Pearson Education, Inc.

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o e o an u c ty

Integrated MarketingCommunications

Marketing communications tell customers about the benefitsand values that a company, product, or service offers

more popular because of the challenges of communicatingacross national borders

We have an integrated marketing model that involves allelements of the marketin mix from di ital to s ortsmarketing, from event marketing to advertising toentertainment, all sitting at the table driving ideas.

Trevor Edwards, VP for global brandand category management at Nike


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Affordable

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ompet t ve Par ty

Objective-and-Task


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.

Pushing strategy: promotional effort by a seller

stimulate personal selling of the good or service,

ulling strategy: promotional effort by a seller to

stimulate demand among final users, who will

then exert pressure on the distribution channel tocarry the good or service, pulling it through the


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.

Marketing Marketing

Producer diaries End users

Demand

Marketing activities

ProducerDemand Interme-

diariesDemand

End users


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Advertising is any sponsored, paid message that is

communicated in a non-personal way

Single country

Global

Global advertising is the use of the same advertisingappeals, messages, art, copy, photographs, stories,and video segments for worldwide suitability


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Globalization and ProductCultures

Products such asco ee an eerhave emerged astrue g o a pro ucts

Starbucks and theco ee cu ure

Irish pubs in the U.S. erman-sty e eer

halls in Japan


Standardization vs.Adaptation

Primary Issue

Must the specific advertising message

region to region or country to country?

Think of cultural and legal issues


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Standardization vs.Adaptation

Four difficulties that compromise an orgns

The message may not get through to the intendedrecipient

The message may reach the target audience but maynot be understood or may even be misunderstood

he message may reach the target audience and maybe understood, but still may not induce the recipient

The effectiveness of the message can be impaired bynoise


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A middle round between 100%standardization and 100% adaptation

as c pan-reg ona or g o acommunication concept for which copy,artwork, or other elements can be

ada ted as re uired for individualcountries


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Similar:Dominant visuals on leftBrand signature and slogan

PhotosBody copy is localized,


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Advertising Agencies:Organizations and Brands

Understanding the term organizationis key

Umbrella corporations/holding companies haveone or more core advertising agencies

ac organ za on as un s spec a z ng n recmarketing, marketing services, public relations, orresearch

Individual agencies are considered brands

services such as market research, media buying,and direct marketing


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Company organization

leave the choice to the local subsidiary

National res onsiveness Is the global agency familiar with local culture and

buying habits of a particular country?

Area coverage

Does the agency cover all relevant markets? Buyer perception

What kind of brand awareness does the company


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wan o pro ec

Creative strategy a statement or

concept of what a particular message orcampaign wi say

B g ea T e as o insig t t at synthesizes the purpose of the strategy,

desire in a fresh, involving way, brings the

subject to life, and makes the reader orau ence s op, oo , an s en.


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o n oo e, egen ary a man

Rational approach

speaks to the consumersintellect; based on theconsumers need forinformation

mo ona approac Tugs at the heartstrings


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or uses umor

Selling proposition

he promise or claim that captures the reason for buying

the product or the benefit that ownership confers Since products are at differing stages of the product life

cyc e n eren na ona mar e s an ecause ocultural, social and economic differences, the mosteffective a eal or sellin ro osition ma var .

Creative execution

sell, scientific evidence, demonstration, comparison, sliceof life, animation, fantas , dramatization


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Absolut vodka ads

& personality of magazine/city where it appears

Capture spiritof 3 Asian cities:

Ban kok Bei in & K oto


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Art Directors andArt Direction

Art Directors

who has the generalresponsibility for theoverall look of an ad

Will choose graphics,, ,

other visual elements that

appear in an ad Art Direction

The visional presentation


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of an advertisement

spoken communication

Copywriters are

who develop headlines,,

copy


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In Asia, Pepsis Come Alive was interpreted

as as ng o r ng ances ors ac rom edead

In China, Citicorps Citi Never Sleeps wastaken to mean that Citi had a sleepingdisorder, like insomnia

McDonalds does not use multi le 4s in

advertising prices in China; four sounds likethe word death


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Rolls-Royce Motor CarsAdvertising


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Rolls-Royce Motor CarsAdvertising


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Images of male/female intimacy are in bad taste inJa an ille al in Saudi Arabia

Wedding rings are worn on the right hand in Spain,Denmark, Holland, and Germany

uropean men ss e an s o marr e womenonly, not single women

In German France and Ja an a man enters a doorbefore a woman; no ladies first


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Japanese and AmericanCultural Differences

n rec ra er an rec orms o express on arepreferred in the messages

the advertised product

Only brief dialogue or narration is used in televisioncommercials, with minimal explanatory content

Humor is used to create a bond of mutual feelings

Famous ce e rities appear as c ose acquaintances oreveryday people

quality

he roduct name is im ressed on the viewer with short,


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Think and FeelCountry Clusters


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Effective Advertising AppealAlternatives


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Which medium or media to use?

magazines with regional, national, or internationalaudiences

Electronic media like broadcast TV, cable TV,radio, and the internet

Other such as outdoor, transit, and direct mail

Must know countr -s ecific re ulations

Ex. France bans TV ads by retailers


Global Ad Expendituresand Media Vehicles

More money spent in U.S. than anywhere else in theworld; $151 billion in 2010

Japan is #2 at $43 billion 1/3 of current growth in ad spending in BRIC

Russia has a $7.8 billion ad market with 30%growth annually; U.S. and European growth is

4-5%

Worldwide, TV is the #1 medium with estimated

spending of $176 billion in 2008; TV spendingincreased 78% between 1990 and 2000 in the EU


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n ermany newspapers are a ver s ng ve c e


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The availability of TV, newspapers and other media

In developed countries, newspapers are declining as

In India, newly redesigned papers are growing

,to Internet service

30,000 cars, there are 3 million, creating massivetraffic jams and captive audiences


Media Decisions:Arab Countries

People are depicted less often than in the US Women may only appear in those commercials

that relate the advertised product

Women must wear long dresses

Brevity is a virtue in ads

Use of comparative advertising claims very

limited US ads have more price information


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Media Decisions:Scandinavia

Limited TV ads in

, ,and Denmark

children under 12 in

Spending on print

higher than TV


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Fosters goodwill and understanding

Generates favorable publicity

oo s News releases

e a s

Press conferences

Articles in trade and prof journals

Special events

Social media


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Corporate web sites


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Negative PublicityAffecting Global Marketers


Corporate advertising Compensates for lack of control over publicity

Calls attention to the companys othercommun cat on e orts

Image advertising

Enhances the publics perception, creates goodwill

Advocacy advertising Presents the companys point of view on a

particular issue


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The Growing Role of PRin Global Marketing

PRs role is growing in the post global recession

Build consensus and understanding

Create harmony and trustArticulate and influence public opinion

Anticipate conflicts and resolve disputes

mar p ones , roa anInternet, social media,

to stay in touch with mediaanywhere, anytime


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PR PracticesAround the World

Public relations practices can be

affected by: Cultural traditions

Social and political contexts

Public relations professionals must

the message appropriately


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Documents

Global Marketing 13