Download 15 - Cengage Learning

15
Managing Global
Advertising
Learning Objectives
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List both the advantages and the special requirements of standardized campaigns.
Define the global theme approach to advertising, and explain how it differs from a
totally standardized campaign.
Explain the market and cultural limitations on the advertising message or on its
execution.
Identify key issues related to advertising that tend to be regulated by national
governments.
Cite ways to avoid faulty translations and ways to minimize the need to translate.
Explain how media availability, media habits, and scheduling international
advertising all affect the advertising campaign.
Differentiate among the three options of utilizing domestic advertising agencies,
using local advertising agencies, and using international advertising networks.
List the external and internal factors that influence a firm’s decision to centralize
or localize its advertising decisions.
Chapter Outline
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Global versus local advertising
Developing global campaigns
The global-local decision
Overcoming language barriers
Global media strategy
Organizing the global advertising effort
Overcoming Language and
Cultural Barriers
• Some markets or regions require multilingual
advertising
• Proper linguistic translation is imperative and
challenging
– Can be difficult to translate critical words
• Concepts also may not translate well culturally
 adaptations may be necessary
– Benetton’s nursing black mother
– Fed Ex’s naked soccer players
The Regulatory Challenge
• Types of products
that can be
advertised
• Types of appeals
that can be used
• Times that certain
products can be
promoted
• Use of foreign
languages in
advertisements
• Use of national
symbols in
advertisements
• Taxes levied against
advertising
expenditures
Global Advertising
• Modularized approach – Some features are
selected as standard for all advertisements, and
other features are localized
• Global theme approach – Same advertising
theme is used around the world but is varied
slightly in each local execution
Media Availability
• Global media
– TV = CNN, BBC World, ESPN, MTV, Satellite
stations
– Print = The Economist, Fortune, Time, Business
Week
– Internet = banner ads
• But companies cannot expect to use their
preferred advertising medium to the fullest
extent everywhere  it may not be available!
Selecting Ad Agencies
• Domestic Agencies
– When firm first goes international, typically turns to domestic
agency for help
– But smaller agencies typically don’t have international
experience
• Local Agencies
– Understands local environment, creates targeted advertising
– Can be difficult to coordinate across several markets
• International Advertising Networks
– Can be difficult to be global and local – instead many
companies have formed alliances to serve clients globally
with local experience and expertise
Advertising Coordination
• External factors
– Market diversity
• Homogeneous customer needs and interests =
more standardized, centralized approach
• Heterogeneous customer needs and interests =
more adapted, localized approach
– Competitive set
• Similar set of competitors across markets =
more standardized, centralized approach
• Differing local competitors in each market =
more adapted, localized approach
Advertising Coordination (cont.)
• Internal factors
– Decentralization
• Is only possible if local skill levels and
efficiency are acceptable
• May be preferred by companies priding
themselves on giving considerable freedom to
subsidiary managers