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Chapter Sixteen
Global Advertising
MKT 568
Global Marketing Management
Dr. Fred Miller
Sample Essay Question
RapidRelief is a US producer of fast acting pain relief products.
The firm wishes to build upon its success in North American
markets by expanding to Europe, Asia and South America.
1. Identify and describe the three general international marketing
strategies. (6 points)
2. For each element of the marketing mix (product, price, promotion
and distribution), identify and describe one benefit of a global
strategy and one constraint to implementing such a strategy. (12
points)
3. Which of the three general marketing strategies do you
recommend to Rapid Relief? Explain why. (2 points)
Global Advertising
Strategic Options
global (with or without localization), multidomestic
International Advertising Characteristics
volume, local media distribution (WWW), global media,
Web advertising, strategic concerns
Components of Global Advertising
message: identical, prototypes, standardized patterns
Components: media, strategy, organization, message/creative
Adeater (WWW) – a collection of worldwide television ads
Advertising Intensity
in Selected Nations 1999
15-2
Country
North America
Canada
United States
Latin America
Argentina
Brazil
Chile
Asia
China
Hong Kong
India
Japan
Singapore
South Korea
Australia
New Zealand
Europe
France
Germany
Italy
Spain
Sweden
Switzerland
UK
Russia
Total
($US bil)
$US per
capita
$4.8
$157.00
$120.20 $445.00
2.7
5.2
$0.60
$76.00
$32.00
$43.00
3.4
2.8
1.2
$33.30
$0.70
3.3
4.6
$0.70
$3.00
$419.00
$1.20
$262.00
$222.00
$70.00
$246.00
$185.00
9.3
$18.90
6.8
4.7
1.9
2.5
15.0
$0.04
$157.00
$230.00
$118.00
$120.00
$211.00
$356.00
$252.00
$0.02
TV
Print
Radio
Cinema
Outdoor
37.7%
37.4
46.5%
47.2
12.9%
13.5
0.8%
2.0%
1.9
49.7
58.6
43.1
32.8
31.8
39.3
7.7
4.1
10.9
2.2
0.3
7.6
5.5
6.4
0.3
0.7
2.6
24.4
1.4
4.6
0.6
4.3
2005
47.1
4.5
41.0
$27116.7
billion4.4
2.3
41.7
5.7
$903 per
capita
51.7
3.9
48.4
51.8
55.9
62.5
38.4
26.8
33.7
36.6
70.2
53.8
49.5
2.4
7.4
12.9
35.1
23.3
52.1
42.4
21.0
13.8
32.1
74.0
45.6
69.2
37.2
43.8
70.3
71.2
57.8
18.3
6.8
3.2
5.4
9.3
3.9
3.1
4.3
1.8
0.8
1.0
0.7
1.0
0.5
1.0
0.4
0.9
0.9
11.9
3.3
4.7
3.5
4.4
4.9
4.9
6.0
Media Spending in the Triad, 2000
Total $22B
Per Capita $238
Total $33B
Per Capita $263
Germany
Japan
USA
Total $134B
Per Capita $438
Examples of Transit Advertising
Examples of Transit Advertising
Examples of Transit Advertising
Managing Global Advertising
When Global Advertising is Appropriate
costs, global markets, global products
similarity in image, symbols, features and usage
Decisions
objectives: brand image to consumer action
budgeting: % of sales, competitive parity,
objective and task
Global Advertising Agencies
globalization of agencies (WWW)
local knowledge, global/regional campaigns, creative
work, media
value of local agencies
Competitive Parity Analysis
Coffee Shares and Ad Spending in USA, 1995
Brand
Folgers
Maxwell House
Private
GF Intl Brands
Tasters Choice
Totals
One Share Point =
SoM 95 % Chng
27.4%
19.2%
7.6%
4.7%
4.0%
$3.4 Bil
$34 Mil
7.9%
11.0%
2.7%
-11.3%
-14.9%
SoA 95
% Chng SoA/SoM Index
29.2%
31.9%
0.0%
15.5%
4.0%
29.5%
29.6%
0.0%
-22.9%
-62.5%
$239.7 Mil
$2.4 Mil
$185.4 Mil
$ 1.9 Mil
107
166
0
330
99
Advertiser/Agency Relationships (WWW)
Scope of Advertising Agencies’ Participation
in Multicountry Campaigns
Market scope
Number of agencies
Percent of total
Agencies doing one type
of multicountry campaign
Global
Major
Regional
Agencies executing more than
one type of multicountry
campaign
Global-major
Global-regional
Major-regional
Global-major-regional
Total
Exhibit
Exhibit
15.7
15.6
Source: Adapted from Hill and Shao, 1994, p.39..
15
35
103
153
6.5%
15.1
44.4
66.0
5
16
29
29
79
2.2%
6.9
12.5
12.5
34.1
232
100.0%
TV Ad Globalization Potential Exercise
Identify and explain the three criteria for
evaluating the "Globalization Potential" of
television advertising.
Of the ads we reviewed, identify the ad with
the MOST potential for globalization. Explain
Of the ads we reviewed, identify the ad with
the LEAST potential for globalization.
Explain
KFC in Japan Video
This video has content relevant for several topics in the
course. Describe the challenges KFC has confronted in
TWO of the following areas. Has the firm responded to
these challenges effectively? Explain.
Japanese management styles and practices
Corporate strategies for international markets
multidomestic, global, global with localization
Product and branding strategies
Market entry strategies
Promotion strategies
Distribution and locational strategies
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Chapter Sixteen
Global Advertising
MKT 568
Global Marketing Management
Dr. Fred Miller