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International Advertising
and Promotion
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Reasons for the Importance
of International Markets
Domestic markets for many
products and services are stagnant
Many companies rely on foreign markets to survive,
particularly those with small domestic markets
International markets offer
growth opportunities for many companies
Competition has become global and
marketers must be able to compete globally
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Many Multinational Companies are
Focusing on China for Growth
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Tourism Australia Uses a Global
Campaign to Attract Visitors
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Tourism Australia Uses a Global Campaign to
Attract Visitors
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© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Role of International Advertising and Promotion
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The International Environment
Economic
Environment
Cultural
Environment
International
Marketing
And
Promotional
Decisions
Demographic
Environment
Political/Legal
Environment
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
ICI Dulux Targets Young Households in China
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© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
International Demographic Environment
International Marketing
And Promotional Decisions
Economic environment
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Size of population
Number of households
Household size
Age distribution
Occupation distribution
Education level
Employment rate
Income level
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
NESCAFE President Ad From Japan
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Lay’s Targets China Large Youth Market
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© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Test Your Knowledge
Since the European Union banned the use of food dyes
in seafood, the salmon market has suffered. People
mistakenly believe that salmon is naturally pink.
Unfortunately, salmon is an unappetizing gray color.
This is an example of how _____ factors can
inadvertently hurt small businesses.
A)
economic
B)
demographic
C)
political/legal
D)
cultural
E)
infrastructure
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising Aspects Subject to Regulation
Type of products that may be advertised
The content or creative approach used
The media advertisers are permitted to use
The amount of advertising one can use
The use of foreign languages in ads
Use of ad materials from outside the country
Use of local versus international ad agencies
The specific taxes levied on advertising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Global Marketer’s Dilemma
Should we offer
the same
product,
marketing, and
advertising
throughout the
world?
Should we adapt
the product,
marketing, and
advertising to each
of several societies
throughout the
world?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Global Marketing and Advertising
Advantages
Economies of scale in production, distribution
Lower costs with less in planning and control
Lower advertising and production costs
Ability to exploit good ideas worldwide
Ability to introduce products quickly, worldwide
Consistent international brand, company identity
Simplification of coordination and control
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Gillette Used Global Advertising to Launch
the Mach3
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© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Problems With Global Advertising
Differences in culture, market and economic
conditions make it difficult to use global advertising
Consumers’
needs and
and usage
usage
Consumers needs
patterns often vary by country or region
Media availability or usage may
vary by country or region
Legal restrictions may make it
difficult to develop an effective universal appeal
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
When is Globalization Appropriate
Brands can be adopted for visual appeal,
avoiding problems of translating words
into many languages
Brands promoted with image campaigns
playing to universal appeals such as sex
or wealth
Globalization
Often Works
Best For:
High-tech products, new to the world,
not steeped in the cultural heritage of
the country of origin
Products with with a nationalistic flavor
if the country has a favorable reputation
in the field
Products appealing to a market segment
with universally similar tastes, interests,
needs, and values
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
TAG Heuer’s Global Campaign
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
British Airways Uses Global Advertising
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© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Global Products, Local Messages
An In-between Approach
Standardizing
Products
Localizing Ad
Messages
“Think Globally, Act
Locally”
Adapt Messages to Respond To
Differences in
Language
Differences in
Cultural
Use of Pattern
Advertising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Differences in
Market Conditions
TaylorMade Used Pattern Advertising
to Promote its Ads in the U.S. and U.K.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Test Your Knowledge
Since the European Union banned the use of food dyes
in seafood, the salmon market has suffered. People
mistakenly believe that salmon is naturally pink.
Unfortunately, salmon is an unappetizing gray color.
This is an example of how _____ factors can
inadvertently hurt small businesses.
A)
economic
B)
demographic
C)
political/legal
D)
cultural
E)
infrastructure
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Decision Areas in International Advertising
Organization
Coordination of
Other
IMC Tools
Agency
Selection
Decision Areas
Advertising and
Market
Research
Media Selection
Creative
Decisions
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Centralization of International Advertising
Budgeting
Media
Strategy
Agency
Selection
Central
Authority
Campaign
Development
Creative
Strategy
Research
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Decentralization of 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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Criteria for Selecting an Agency to Handle
International Advertising
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.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Criteria for Selecting an Agency to Handle
International Advertising
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.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising Research
Information on demographic characteristics of
markets
Information on cultural differences such as norms,
lifestyles, and values
Information on consumers’ product usage, brand
attitudes and media preference
Information on media usage and audience size
Copy testing to determine reactions to different
types of advertising appeals and executions
Research on the effectiveness of advertising and
promotional programs in foreign markets
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Coca-Cola Now Adapts its Advertising
for Local Markets
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Local Media Reach Specialized Target
Audiences
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
International Media Selection Issues
Quality
Coverage
Widely Differing
Characteristics
Restrictions
Availability
Availability
Cost
Reliability
Circulation
Audience
Cost
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Media
Information
Problems
International Media Provide Broad Coverage
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Foreign Market Sales Promotion Programs
Major Creation
Considerations
Economic Development
Market Maturity
Consumer Perceptions
Trade Structure
Regulations
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
WD-40 Used Samples to Introduce Its
Product to Russia
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Test Your Knowledge
For global brands, _____decisions are likely to be
made at a corporate headquarters level while _____ is
generally left to local managers.
A)
sales promotional strategy; advertising
strategy
B)
sales promotional strategy; sales
promotion implementation
C)
sales promotional implementation; sales
promotional strategy
D)
sales promotional implementation;
advertising strategy
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Central vs. Local Roles in
International Sales Promotion
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Role of 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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
TaylorMade Developed a Website Specifically
for Japan
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin