Download Global marketing - McGraw Hill Higher Education

Chapter 19
International
Advertising
and
Promotion
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
Role of International Advertising and
Promotion
 Reasons for having different strategies for foreign
markets
 Unfamiliar marketing environment
 Difference in values, customs, consumption patterns,
and habits of consumers
 Language issues
 Lack of availability of media options
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
2
International Economic
Environment
Economic Environment
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Stage of economic development
Economic infrastructure
Standard of living
Per capita income
Distribution of wealth
Currency stability
Exchange rates
International Marketing
And Promotional Decisions
International Demographic
Environment
International Marketing
And Promotional Decisions
Demographic Environment
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Size of population
Number of households
Household size
Age distribution
Occupation distribution
Education levels
Employment rate
Income levels
International Cultural Environment
Cultural Environment
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Language
Lifestyles
Values
Norms and customs
Ethics and moral standards
Taboos
International Marketing
And Promotional Decisions
International Political/Legal
Environment
International Marketing
And Promotional Decisions
Political/legal Environment
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Government policies
Laws and regulations
Political stability
Nationalism
Attitudes toward multinational
companies
Global Marketing and Advertising
 Global marketing: Using a common marketing
plan for all countries
 Global advertising: Way to implement global
marketing strategy by using the same basic
advertising approach in all markets
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
7
Global Products, Local Messages
 Methods
 Pattern advertising: Ads follow a basic approach,
but themes, copy, and visual elements are adapted to
differences in local markets
 Producing a variety of ads and messages and letting
the regional managers choose the best suited
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
8
Decision Areas in International
Advertising
Organization
Style
Coordination of
Other
IMC Tools
Agency
Selection
Decision Areas
Media Strategy
and Selection
Advertising
Research
Creative
Strategy &
Execution
Centralization of International
Advertising
Budgeting
Media
Strategy
Agency
Selection
Central
Authority
Campaign
Development
Creative
Strategy
Research
Organizing for International Advertising
 Centralization at the home office or headquarters
 Can be done when:
 Market and media conditions are similar from one country
to another
 Company has only one or a few international agencies
handling all of its advertising
 Company can use standardized advertising
 Company wants a consistent image worldwide
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McGraw-Hill Education.
11
Decentralized International
Advertising
Campaigns
Region
One
Creative
Media
Research
Budgets
Campaigns
Central
Authority
Region
Two
Creative
Media
Research
Budgets
Campaigns
Region
Three
Creative
Media
Research
Budgets
Combination Structure
Home Office
Policy
Guidelines
Operations
International
Manager
Local
Managers
Sets Objectives
Approves Budgets
Approves Creatives
Approves Media
Agency Selection
 Types of agencies that can handle international
advertising
 Agency with both domestic and overseas offices
 Agency that belongs to a network of foreign
agencies
 Local agency
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McGraw-Hill Education.
14
Creative Decisions for Different
Approaches
 Standardized approach - Advertisement must
transcend cultural differences and communicate
effectively in every country
 Localized advertising: Type of selling idea, ad
appeal, and execution style that will work are
determined to position the product in a market
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McGraw-Hill Education.
15
Media Selection
 Local media
 Print is the most used medium worldwide
 Radio, direct mail, billboards, cinema, and transit
advertising provide flexibility and opportunity to reach
specific market segments
 International media
 Has multimarket coverage
 Primary focus has been magazines and newspapers
 Direct broadcast by satellite (DBS): Small, low-cost
receiving dishes that can receive signals from satellite
networks
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
16
International Sales Promotion
Economic Development
Major Creation
Considerations
Market Maturity
Consumer Perceptions
Trade Structure
Regulations
Public Relations in Global
Marketing
Deal with local governments, media, trade
associations, and the general public
Present the company as a
good corporate citizen
Serve as part of the IMC program and help
market the product or service
Deal with specific issues and problems the
company may face in foreign markets
Digital and Social Media
 Helps marketers to:
 Promote companies
 Build brands
 Engage in e-commerce transactions
 Used by international marketers to:
 Drive consumers to their websites
 Provide more information to consumers
 Conduct business with them
 Reach consumers on the go
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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