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Chapter 18
Global Advertising
1
Introduction
The top world wide markets began
spending more than 50% of their
advertising dollars outside the U.S. in the
early 1990s.
Non-U.S. gross income of the top 500
agencies reached $9 million as the
twentieth century drew to a close.
Of the top 25 agencies, more than half
are headquartered in the U.S. with the
remainder in Great Britain or Japan.
2
Top 10 Companies by Ad
Spending Outside the U.S.
6000.00
5000.00
Unilever
4000.00
GM
3000.00
Nestle SA
Nissan
PSA
2000.00
Volkwagen
Outside U.S.
U.S.
Worldwide
1000.00
0.00
P&G
Toyota
Philip
Morris
Mars Inc.
3
EXH 2-24
4
Global Brands
A Global Brand is one that has the
same name, design, and creative
strategy everywhere in the world
and is marketed in most of the
major regional market blocs.
i.e. McDonald’s, Rolex, Gillette
5
The Global Debate and
Advertising
Theodore Levitt:
Phillip Kotler:
Companies
Should Operate
as If There Were
Only One Global
Market Since
People Are
Motivated by
Same Desires
and Wants.
Success is
Based on
Variation, Not
Offering the
Same Product
Everywhere.
Two Views
on How to
Achieve
Global
Coverage
6
Global Marketing &
Advertising
Arguments for globalization
Economies of scale
 Consistent image

Arguments for localization

Different consumers
Decision making process
 Involvement with product category
 Product usage pattern and perception
 Attitude toward advertising
 Preferences, tastes and life styles

7
EXH 3-26
8
Global Mktg & Advertising
(cont’d)
Arguments for localization (cont’d)






Different economies and marketing environments:
4Ps
Different media landscapes: availability & cost
Different government regulations
Different cultures
Different perception of advertising
--> More general and standardized the advertising
strategy and execution, more bland and less
compelling its impact on target audience ---> A
balancing act
9
Perceptions of Advertising, Europe and United States
Advertising is
perceived as
mostly
secondarily
not
United Kingdom
France
Germany
United States
entertaining,
humorous
informative
informative
easy to
understand
informative
believable,
easy to
understand
believable,
easy to
understand
entertaining,
informative
humorous,
easy to
understand
believable
humorous,
entertaining
believable,
entertaining
10
The Global Debate and
Advertising
The Outgrowth of This Debate Is Three Schools of Thought on
Advertising:
Localization
Globalization
(Standardization)
(Adaptation)
Contingency
(Moderate)
May be Best Strategy
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Global Mktg & Advertising
(cont’d)
Globalization ------------------Localization

More globalization possible with:
TV than print
 B-to-b and high tech categories (“Crosscultural cohorts”)
 Emotion or image oriented product categories


More localization possible with:


more resources for local operations
Proctor & Gamble’s simplification strategy
12
The Adaptability Continuum
13
Advantages of Global Marketing
and Advertising
Economies of scale in production and
distribution
Lower marketing and advertising costs
Ability to exploit good ideas on a
worldwide basis
Consistent brand and/or company image
in all markets
Simplification of coordination and control
of marketing and promotional programs 14
Problems with Global Advertising
Differences in market and economic
development, consumer needs, media
availability and legal restrictions
Cultural differences make advertising
standardization difficult
Usage patterns and perceptions of a
product may vary from one country to
another
When is Globalization Appropriate?
Brands that can be adapted for a visual appeal
Brands that are promoted with image
campaigns that play to universal appeals
High-tech products and new products coming to
the world for the first time
Products with nationalistic flavor
Products that appeal to a market segment with
universally similar tastes, interests, needs and
values
16
Station Break
Go to the following Web sites: a) FedEx at
www.fedex.com, b) UPS at www.ups.com, and c)
DHL at www.dhl.com.
Which of these parcel delivery services seems to
present itself as an internationally-oriented carrier?
Which do you perceive to be a global brand?
After examining the mission statement of each one,
would you change your answers to the above two
questions?
What international image is projected (if any) by
each of the carriers? Discuss findings.
17
Lingua Franca
Language affects the creation of the
advertising.
Verbal techniques don’t cross borders well
so international campaigns are not usually
translated; they are rewritten.
Some languages do not have English
equivalent expressions.
Best solution to translation problems is to
use bilingual copywriters.
18
Special International
Considerations
Laws and
Regulations
Fear of Not
Knowing
Local
Laws
Customs and
Culture
Customs
Can be
Stronger
Than
Laws
Time
Everything
Takes
Longer
In Other
Countries
Inertia,
Resistance,
Rejection,
and Politics
Usually Mean
“Not Invited
Here”
19
The Global Advertising Plan
The Strategic Advertising Plan Outlines the
Marketing Strategy.
Market-Analysis Model
Culture-Oriented Model
Based on Data &
Observations From Several
Countries.
Emphasizes Cultural
Differences Among People and
Nations.
20
Station Break
Go to the following international advertising agency
Web sites: a) J. Walter Thompson at www.jwt.com, b)
Young and Rubicam at www.youngandrubicam.com,
and c) Saatchi & Saatchi at www.saatchi.com.
Which agency seems to be more international in its
direction?
You might determine this by examining mission
statements, a list of clients, or recent advertisements.
Evaluate at least one commercial from each site.
Critique what you found and discuss in class.
21
Centrally Controlled Campaigns
National
Success Story


Modified for use
in other
countries.
Impulse, body
spray.
Centrally
Conceived
Campaigns


Team from
around the
world agree on
basic strategy
for campaign.
Allow some
local autonomy.
22
Positioning the Product and
Setting the Budget
Positioning the
Global Product
Determine Problems &
Opportunities in Each Market
Position
Based on
Local
Market
Standardized
Positioning
Strategy
Setting the
Budget
Factors Affecting the
International Budget
International
Exchange
Rate
Budgetary
Tradition
23
Selecting Media and
Executing the Campaign
Selecting Media
Global Media Currently
Don’t Exist But May Involve
Satellite
Transmission
The
Web
Executing the
Campaign
Execution of an International
Campaign is More Complex
Greater
Latitude Must
Be Allowed
Place of
Purchase is a
Factor
Media Choices
Vary
24
The Global Creative Effect
Determine the Copy
Content
Execute the Content
Through a Central Idea
Address Advertising
Objectives &
Reflect Product’s
Positioning
Produce the Advertising
25