Download 19 International Advertising and Promotion

19
International Advertising
and Promotion
McGraw-Hill/Irwin
Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed
Importance of International Markets
Stagnation of domestic markets
Company survival
Growth and profit opportunities
Trade Balance
19-2
Tourism Australia Uses Global Advertising
19-3
International Advertising & Promotion
Rank Advertiser
Outside U.S.
Inside U.S.
$6,364
$3,367
1
Proctor & Gamble
2
Unilever
4,965
752
3
L’Oreal
3,242
798
4
General Motors
1,442
2,232
5
Toyota Motor Corp.
2,181
1,022
6
Coca-Cola Co.
2,231
442
7
Johnson & Johnson
1,181
1,402
8
Ford Motor Co.
1,436
1,012
9
Reckitt Benckiser
1,842
544
Nestlé
1,696
618
10
Ad Spending in Millions of U.S. dollars
19-4
International Economic Environment
Economic
Environment
Cultural
Environment
International
Marketing
&
Promotional
Decisions
Demographic
Environment
Political/Legal
Environment
19-5
International Economic Environment
Economic Environment
•
•
•
•
•
•
•
Stage of economic development
Economic infrastructure
Standard of living
Per capita income
Distribution of wealth
Currency stability
Exchange rates
International Marketing
And Promotional Decisions
19-6
Liu Xiang Endorses Nike in China
19-7
International Demographic Environment
International Marketing
And Promotional Decisions
Demographic Environment
•
•
•
•
•
•
•
•
Size of population
Number of households
Household size
Age distribution
Occupation distribution
Education levels
Employment rate
Income levels
19-8
International Cultural Environment
Cultural Environment
•
•
•
•
•
•
Language
Lifestyles
Values
Norms and customs
Ethics and moral standards
Taboos
International Marketing
And Promotional Decisions
19-9
TaylorMade Translation Issues
Tagline Translation Issues
19-10
New Balance Markets in France
19-11
International Political/Legal Environment
International Marketing
And Promotional Decisions
Political/legal Environment
•
•
•
•
•
Government policies
Laws and regulations
Political stability
Nationalism
Attitudes toward multinational
companies
19-12
Advertising Areas Subject to Regulation
Products that may be advertised
Content or creative approach used
Media advertisers are allowed to use
The amount of advertising allowed
Use of foreign languages in ads
Materials from outside the country
Local vs. international ad agencies
Specific taxes levied on advertising
19-13
Global Marketer’s Dilemma
Offer the
same
product,
marketing, &
advertising
everywhere?
Adapt the
product,
marketing, &
advertising
to each
society?
19-14
Global Marketing & Advertising Advantages
Economies of scale in production, distribution
Lower costs due to less planning and control
Lower advertising production costs
Ability to exploit good ideas worldwide
Consistent international brand, company image
Simplification of ad coordination and control
19-15
Mandarin Oriental’s Global Ads
19-16
Problems With Global Advertising
Differences in culture, market &
economic development
Consumer needs & usage patterns
Media availability or usage
Legal restrictions
19-17
Consumer Usage Patterns & Perceptions
Nescafé Instant Coffee
United States
Great market penetration,
but minor share
Continental
Europe
Major market share, but idea
of instant coffee was new
Tea-drinking
Countries
Conversion not only to coffee,
but to instant coffee
Latin America
Preferred coffee couldn’t be
duplicated with instant version
Scandinavia
Ingrained habit of keeping coffee
on stove all day long
19-18
NESCAFE President Ad From Japan
19-19
Adapting to Different Countries
19-20
When is globalization appropriate?
Globalization
works best
for…
Brands that can be adapted
for visual appeal
Brands promoted with image
campaigns playing to universal
needs, values, emotions
High-tech products, new to the world
Products with a nationalistic flavor
Products appealing to universally
similar tastes, interests, needs, values
19-21
TAG Heuer’s Global Campaign
19-22
TAG Heuer’s Global Campaign
19-23
Global Products, Local Messages
In-between Approach
Standard
Marketing
Strategies
Standard
Products
Localizing Ad
Messages
Adapt messages to…
Culture
Language
Market
Conditions
19-24
TaylorMade Pattern Advertising
19-25
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
19-26
Centralization of International Advertising
Budgeting
Media
Strategy
Agency
Selection
Central
Authority
Campaign
Development
Creative
Strategy
Research
19-27
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
19-28
Combination Structure
Home Office
Policy
Guidelines
Operations
International
Manager
Local
Managers
Sets Objectives
Approves Budgets
Approves Creatives
Approves Media
19-29
Criteria for Selecting an Agency
1. Ability of agency to cover relevant
markets.
2. Quality of agency work.
3. Market research, public relations, and
other services offered by the agency.
4. Relative roles of company advertising
department and strategy.
5. Level of communication and control
desired by company.
19-30
Criteria for Selecting an Agency
6. Ability of agency to coordinate
international campaign.
7. Size of company’s international business.
8. Company’s desire for local versus
international image.
9. Company organizational structure for
international business and marketing
(centralized versus decentralized).
10. Company’s level of involvement with
international operations.
19-31
Advertising Research
Demographic characteristics of markets
Cultural differences
such as norms, lifestyles, and values
Consumers’ product usage,
brand attitudes and media preferences
Media usage and audience size
Copy testing
Effectiveness in foreign markets
19-32
Creative Decisions
Creative decisions should be based on
advertising and communication objectives
Copy platforms must be
developed that include major selling ideas
Specific appeals and
execution styles must be selected
Appeals may have to be
adapted for local market conditions
19-33
Adapting to Local Markets
19-34
International Media Selection Issues
Types of media available
How much time is spent watching TV
Amount of commercial time available
Clutter
Tolerance for advertising
Coverage, cost, quality, restrictions
Political climate
Limited and unreliable media information
19-35
Jelly is a Popular Fashion Magazine in Japan
19-36
International Media
• U.S. media with international editions
• Time
• Newsweek
• Reader’s Digest
• National Geographic
• USA Today
• Good Housekeeping
• Seventeen
• Popular Mechanics
• BusinessWeek
19-37
Direct Broadcast by Satellite (DBS)
19-38
International Sales Promotion
Economic Development
Major Creation
Considerations
Market Maturity
Consumer Perceptions
Trade Structure
Regulations
19-39
WD-40 Used Product Samples in Russia
19-40
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
19-41
Worldwide Growth of the Internet
19-42