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Chapter 12 Global Marketing Communications Decisions I: Advertising and Public Relations Contents Introduction to marketing communications Global advertising: Global Advertising Content: The Standardization” vs. “Adaptation” Debate Global advertising agencies Developing Advertising Strategy: • Creating global advertising message • Selecting global advertising media Public relations and publicity 1. Introduction The primary purpose of marketing communications (the promotion of the marketing mix) is to tell customers about the benefits and values that a company, product or service offers. Integrated Marketing Communications (IMC/整合 营销传播) is becoming more popular because of the challenges of communicating across national borders. IMC coordinates different communication vehicles – mass advertising, sponsorships. sales promotion, point-ofpurchase displays (购物点广告), etc. GIMC is a system of active promotional management that strategically coordinates global communications in all of its component parts. Both horizontal (country-level) and vertical (promotion tools) approaches are used in GIMC. All of the elements of the promotion mix can be utilized in global marketing, either alone or in varying combinations. The Marketing Communications / Promotion Mix Four Difficulties that Comprise an Organization’s Communication Efforts The message does not get through to the intended recipient. The message is not understood or is misunderstood. The message does not induce the recipient to take the desired action. The effectiveness of the message is impaired by noise (i.e., because of an external influence). 2. Global Advertising Advertising is any sponsored, paid message that is communicated in a non-personal way: Single country Regional Global Global advertising: Is the use of the same advertising appeals, messages, art, copy, photographs, stories and video segments in multiple country markets. Offers companies economies of scale in advertising as well as improved access to distribution channels. A global company possesses a critical marketing advantage with respect to marketing communications: It has the opportunity to successfully transform a domestic advertising campaign into a worldwide one. Alternatively, it can create a new global campaign from the ground up. 2.1 Global Advertising Content: The Standardization” vs. “Adaptation” Debate Communication experts generally agree that the overall requirements of effective communication and persuasion are fixed and do not vary from country to country. The same thing is true of the component of the communication process: The marketer is the source of the message; the message must be encoded (编码), conveyed via the appropriate channel(s), and decoded (解 码) by a member of the target audience. Please note: Communication takes place only when the intended meaning is transferred from the source to the receiver. Primary question: Must the specific advertising message and media strategy be changed from region to region or from country to country because of environmental requirements? => Think of cultural and legal issues. Proponents of the “one world, one voice” approach to global advertising believe that the era of the global village has arrived and tastes and preferences are converging worldwide. According to the standardization argument, people everywhere want the same products for the same reasons. However, advertisers who prefer the localized approach are skeptical of the global village argument. They assert that consumers still differ from country to country and must be reached by advertising tailored to their respective countries. “Eighteen-year olds in Paris have more in common with 18-year-olds in New York than with their own parents. They buy the same products, go to the same movies, listen to the same music, sip the same colas. Global advertising merely works on that premise.” - William Roedy, Director, MTV Europe Pattern Advertising (模式广告) Global companies have embraced pattern advertising, which calls for developing a basic panregional or global communication concept for which copy, artwork or other elements can be adapted as required for individual country markets. This is a global advertising strategy, with a standardized basic approach that is adapted for local markets when needed, representing a middle ground (中间派) between 100% standardization and 100% adaptation. A global campaign will result in the substantial benefits of cost savings, increased control and the potential creative leverage of a global appeal. A localized campaign will focus on the most important product or brand attributes in each nation or culture. Note: Localized ads are less likely to be required for industrial products or for technology-oriented products sold to either consumers or business customers. As a practical matter, marketing managers may choose to run “both global and local” ads rather than adopt an “either/or” stance. 2.2 Global Advertising Agencies: Organizations and Brands Understanding the term organization is key Each firm is an umbrella corporation/holding company that includes one or more ‘core’ advertising agencies, as well as units specializing in direct marketing, marketing services, public relations, or research. Individual agencies are considered brands (agency brands): Full service brands create advertising, and provide services such as market research, media buying and direct marketing. Selecting an Advertising Agency Company organization: Companies that are decentralized may want to leave the choice to the local subsidiary. National responsiveness: 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 want to project? Top 10 Global Advertising Organizations 2.3 Developing Advertising Strategy Process of advertising: Setting advertising objectives Setting the advertising budget Developing advertising strategy (consisting of 3 major elements): • Creating the advertising message • Selecting the advertising media • Evaluating advertising 2.3.1 Creating Global Advertising Message The message is at the hear of advertising. The particular message and the way it is presented will depend on the advertiser’s objective. Is the advertisement designed to inform, entertain, remind or persuade? Moreover, in a world characterized by information overload, advertisements must break through the clutter (打破无序的状况;突破干扰 局面), grad the audience’s attention and linger in their minds. This requires developing an original (独创的;新颖的) and effective creative strategy (创意战略). Creative strategy: A statement or concept of what a particular message or campaign will say. Big idea (大创意): “The flash of insight that synthesizes the purpose of the strategy, joins the product benefit with consumer desire in a fresh, involving way, brings the subject to life, and makes the reader or audience stop, look, and listen.” Advertising Appeal Is the communication approach that relates to the motives of the target audience (广告诉求是商品广告宣传中所要强调的内容,俗称 “卖点”,它体现了整个广告的宣传策略). Rational appeal (理性诉求): Depend on logic and speak to the consumer’s intellect; based on the consumer’s need for information. Emotional appeal (感性诉求):Tugs at the heartstrings of the audience and evoke a feeling response. Effective global advertising may also require developing different presentations of the product’s appeal or selling proposition: Selling proposition (销售主张): The promise or claim that captures the reason for buying the product or the benefit that ownership confers. Creative execution (创意执行): The way an appeal or proposition is presented - straight sell, scientific evidence, demonstration, comparison, slice of life, animation, fantasy and dramatization. Creative Execution Art direction (艺术指导) The visional presentation of an advertisement Art directors (艺术总监) Advertising professional who has the general responsibility for the overall look of an ad. Will choose graphics, pictures, type styles, and other visual elements that appear in an ad. Copy (文案) is written or spoken communication elements: Advertising executives can prepare new copy for a foreign market in the language of the target country (host country), or translate the original copy into the target language, or leave some or all copy elements in home country language. Copywriters ( 文 案 撰 文 人 员 ) are language specialists who develop headlines, subheads, and body copy. Advertising Copy Mistakes In Asia, Pepsi’s “Come Alive” was interpreted as asking to bring ancestors back from the dead. In China, Citicorp’s “Citi Never Sleeps” was taken to mean that Citi had a sleeping disorder, like insomnia. McDonald’s does not use multiple 4’s in advertising prices in China; “four” sounds like the word “death”. Cultural Considerations Images of male/female intimacy are in bad taste in Japan and illegal in Saudi Arabia. Wedding rings are worn on the right hand in Spain, Denmark, Holland, Germany. European men kiss the hands of married women only, not single women. In Germany, France and Japan, a man enters a door before a woman; no ladies first! Cultural Considerations – Japanese and American Differences (p. 338) Indirect rather than direct forms of expression are preferred in the messages. There is often little relationship between ad content and the advertised product. Only brief dialogue or narration is used in television commercials, with minimal explanatory content. Humor is used to create a bond of mutual feelings. Famous celebrities appear as close acquaintances or everyday people. Priority is placed on company trust rather than product quality. The product name is impressed on the viewer with short, 15-second commercials. Effective Advertising Appeal Alternatives 2.3.2 Selecting Global Advertising Media Major advertising media: Traditional advertising media also includes outdoor advertising. Advantages and Limitations of Different Advertising Media Global Advertising Expenditures and Media Vehicles More money spent in the USA than anywhere else in the world. Japan is the 2nd one. Worldwide, TV is the 1st medium (媒介物) with estimated spending of $176 billion in 2008; TV spending increased 78% between 1990 and 2000 in the EU. Factors Affecting Global Media Decisions Availability Cost Coverage Market data about circulation figure (发行量) Regulation constraints (制度约束) Regulation Constraints – Saudi Arabia Use of comparative advertising claims (比较广告索 赔) is prohibited - 比较广告是指直接将自有产品与竞 争对手产品进行比较,以证明自身产品更为优越的广告 营销形式. Non-censored (非审查) films cannot be advertised. Women may only appear in those commercials that relate to family affairs, and their appearance must be in a decent manner that ensures feminine dignity. Women must wear a long suitable dress which fully covers her body except face and palms. 3. Public Relations (PRs) and Publicity Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off (阻挡) unfavorable rumors, stories and events. Functions of PRs: Foster goodwill and understanding; Generate favorable (product)publicity (公共宣传). Major activities of PRs: Press relations, investor relations, product publicity, corporate communication, annual report (年报), support of charitable or civic events (赞助慈善公益事业和艺术体育 活动), lobbying (游说). Tools of PRs News releases 新闻(发布)稿 Media kits 媒体资料包 Press conferences 新闻(发布)会 (speeches) Articles in trade and professional journals (written materials) Company publications and brochures公司出版物及 小册子 TV and radio talk show appearances (audiovisual materials/视听资料) Special events Tours Role and Impact of PRs Good PRs can be a powerful brand-building tool. It has a strong impact on public awareness at lower cost than advertising, and greater credibility than advertising. However, publicity is often underused (未充分利 用的). The Growing Role of PRs in Global Marketing PRs expenditures are growing at an average of 20% per year. In India, they are reported to be growing by 200% annually. Reasons for the PRs growth: Companies become more involved in global marketing; Increased governmental relations between countries; Technology-driven communication revolution; Societal issues like the environment. Advertising as a PR Function In advertising, a company exerts complete control over the content and pays for message placed in the media, which is different from PRs. While, corporate advertising is generally considered part of the PR function. It compensates for lack of control over publicity, and calls attention to the company’s other communication efforts: Image advertising (形象广告): Designed to enhance the public’s perceptions of a company, create goodwill or announce a major change, such as a merger or acquisition. Advocacy advertising (主张性/倡导型广告): Presents the company’s point of view on a particular issue. PRs Practices around the World PRs practices can be affected by: Cultural traditions; Social and political contexts; Economic environments. PRs professionals must understand these differences and tailor the message appropriately.