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mk314 - international advertising
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INTERNATIONAL ADVERTISING SEMINAR MATERIAL
SEMINAR 1: i) BACKGROUND: THE ENVIRONMENT AND CHANGE
ii) BRANDING AND MARKETING MANAGEMENT
DEVELOPMENTS IN WORLD REGIONS: ASIA/PACIFIC RIM
VIDEO: "A force to be reckoned with"
This BBC programme is about the economy of Taiwan and business developments there in the
past 50 years. Please consult the list of discussion points while watching.
Taiwan is part of APEC that includes the ASEAN countries as well as Australia and a growing
number of others. Taiwan is moving to a hi-tech, high wage economy, which is more to do with
niche exploitation than copycat and using existing technologies in an innovative way.
This strategy avoids head-to-head contests for techno supremacy. They target niches with worldclass products. They specialise in computer peripherals, microcomputers, and application specific
chips.
This is no one way street though. Motorola, Intel, Glaxo, Apple, Boeing, Lockhead have weighed
up the `tigers' and recognised their high potential and have teamed up with local companies for
manufacturing, applied research and applied design.
Task: Given the events of the last few years this becomes a great illustration of how things
can change. Using a source like one of the broadsheets (say the FT), catch up on the
status quo regarding the Pacific Rim and the knock on effects for the rest of the world.
Compare the pessimism recently to the optimism of the BBC video and notes (please see
me for both).
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BACKGROUND: THE ENVIRONMENT AND CHANGE
Washes Whiter
This series of 5 one hour programmes made by the BBC plots the history of (mostly British)
advertising from the 1950's until the end of the 1980's. It is essentially an attempt to read
advertising "socially" in the context of the times. These and other video materials can be made
available to you.
There are two basic propositions when dealing with the question `what is advertising?':
1. That advertising merely reflects society in order that the marketer can communicate how
products (and companies) fit in with consumers/customers expectations and ways of seeing. This
is particularly true when discussing brands since brands are said to have personalities that match
that of the person who buys particular brands.
2. That advertising shapes society, or at least used to! Technology has always had this
accusation levelled at it but no more so than right now, which takes the heat off advertising
somewhat.
Most advertisers would subscribe to the first view. As Marshall Mcluhan said:
"The ads of our time are the richest and most faithful daily reflections any society ever made of
Its whole range of activities."
One view then is that if you want to see how a country sees itself then look at the ads. This is the
view of one-time ad man and film director David Puttman.
Number five in the 'Washes Whiter' series is entitled `The getaway people' and looks at the
Puttman-type view and explores themes such as nostalgia and community life in the 1950s and
the celebration of today and the metropolis in the 1960s. The extract you have been shown/are
about to see looks at the 1970s and 1980s. It’s all to do with CHANGE but in particular look out
for the following:
* The dream of skyscrapers begins to crumble and the notion of "Modernism" begins to fade.
There is a move away from the notion of what is "British" to a simpler, GLOBAL message in the
form of Coca Cola's "I'd like to teach the world to sing" (Hilltop 1971). Here Coca Cola are said to
have discovered the `counter culture' of being global, anti-capitalist, spiritual yearnings,
communal. Note also Kellogg, Martini and Esso.
* The 1973 oil crisis and austerity where there is no place for the `getaway people' of the previous
decade. The British reaction to the crisis and its use by Parker (Over a barrel 1979).
* The recession following the crisis and the country apparently going in on itself. In times of
trouble where's the safest place to be? A rose-coloured, nostalgic, imagined past where things
were cosy and so were the brands - like Hovis, Galaxy, Mateus Rose, Horlicks.
* The attack on the British market place by "foreign" products like Danish bacon, the Italian Fiat
Strada (Figaro 1979).
* The so-called seachange in the early 1980s with a renewed sense of national purpose with the
Metro (Counter attack - a British car to beat the world 1981) and Esso (Credo 2 1980).
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* The 1980s obsession with money and icons of success where the monologue was an attempt to
create a dialogue with the INDIVIDUAL. Halifax (Money 1987), Renault (Way of life 1985), British
Airways (Boardroom 1988).
* This has been called both ideology (Thatcherism) and not i.e. merely a realistic approach
toward materialism and the desire to display wealth etc. as in Gold Blend 1988. This is said to
reflect the ME generation. It had already begun in the late 1980s - Hamlet (Crash of 87).
* The question for now is ‘is the mood changing?'...to an US orientation where people need to
belong as individuals and are asking `what can I do with my life?'. Midland (Grandson) and a new
sense of community. Coca Cola (General assembly 1989).
One last thought. Advertising tells a story but any cultural historian will tell you the best truth is
fiction. Good fiction is more real than fact.
Task: The problem with advertisements is that they become perfect copies of originals
that never existed!! Read in particular the two basic propositions at the front of this piece
and be prepared to debate the ideas behind them.
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BACKGROUND: THE ENVIRONMENT AND CHANGE
ADVERTISING IN CHINA
Part One. The History of Advertising in China
In the 1970s, people living in China knew nothing about advertising. The national economy was
planned and enterprises didn’t need to advertise. Advertisements were still seldom broadcast in
the early 1980s. At that time, people believed the content of advertisements because they
believed deeply that broadcasts, TV programs, newspapers and magazines normally report facts.
The companies that adopted a persuasive form of advertising got much benefit from this. Some
enterprises kept large stock levels and consequently had cash-flow problems. By advertising,
products were sold more rapidly. Along with the increase of advertising activities, many more
people felt cheated by some untruthful advertisements. Some people even become doubtful that
any advertising could be truthful.
Example: Stud martens available, 1500 Yuan for one pair, 6-10 young martens bred p.a., buy
back grown up martens at 600 Yuan for each. Long-term contract of buying & selling
necessary.
This advertisement seems to offer a good opportunity to earn money. 1500 Yuan invested, 36006000 Yuan can be achieved. Actually, this advertisement is only a tactic of a company to sell stud
martens at a high price. The contracts of buying back grown up martens are normally very strict.
For example, the weight of grown up martens must be in the range from 2.5kg to 2.75kg. More or
less than that does not qualify. Also, some other parameters, such as “high quality fur” are
important. The wording may suggest a fail-safe proposition but it is not by any means definite that
the buying back" will take place. There is no binding contract.
Disputes related to advertising cannot normally be resolved because there is nowhere to
complain. If customers are not satisfied with a product's quality, they can complain to consumers
association. This association is basically a mediation organisation, but it doesn’t deal with the
complaints of untruthful advertisements due to very limited power. It is not surprising, then, that
some phrases appear frequently such as “this product is your best choice”, “the total efficiency of
this drug is 99.6%”. Some arguments are non-scientific and even some data are fabricated.
In the early 1990s, problems existing in advertisement activities emerged gradually. A law that
regulates advertising was needed and such advertising law was passed in 1991. This is looked at
in part two below.
Part Two. Advertising Law
Advertising law came into force on 1 February 1991. This is a comprehensive law that regulates
the activities of advertisers, advertising agents and others involved in the industry. It deals with
general products and some special merchandise such as medicines and tobacco.
Tobacco Advertising
The law prohibits releasing tobacco advertising by broadcasts, films, TV channels, newspapers
and periodicals. It’s not permitted to install tobacco advertising in any kind of waiting room,
cinema or theatre, conference hall, sport stadia or other public arena. All tobacco advertisements
must carry a “smoking is harmful to health” warning.
Medicines Advertising
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a) Advertisements of drugs and medical equipment are not permitted to include the following
content:
-unconfirmed scientific information
-unsubstantiated cure rates
-comparison of functions or security with other drugs or medical equipment;
-the honour or name of medical research institutions, academic organisations,
medical units or specialists, doctors and patients;
-other content prohibited by laws or administrative regulations.
b) The contents of drug advertisements must be consistent with the booklet of directions that is
ratified by the hygiene administrative departments of the state council or the province.
Advertisements of prescription drugs i.e. drugs that should be used according to a doctor's advice
must contain the phrase “buying and using under prescription”.
c) Certain drugs including anaesthesia drugs, psychosis drugs, poison drugs, radiation drugs and
other special drugs cannot be advertised.
Prohibited Items in Advertising Activities
Chinese advertising law says that the basic principles of advertising are to improve the quality of
merchandise and services, to protect consumers’ legal rights, to make people abide by social
morality and ethic, to safeguard the state dignity and interests. For these reasons, the situations
described below are not permitted to occur in advertisements.
a) using the national flag, national emblem or national anthem;
b) the name of government department or of government staff;
c) using the phrases of “state level”, “highest level” or “best”;
d) impairing social stability and the safety of human life or property, or damaging
social public interests;
e) impairing public order or violating prevailing customs in society;
f) containing obscenity, superstition, terror and violence;
g) including discrimination of nationality, race, religion and gender;
h) hampering protection of environment and natural resources;
i) other situations prohibited by laws and administrative regulations.
Advertising law also stipulates that advertising should not impair mental and physical health of
under-age people and disabled people; it should not defame the merchandise or services of other
producers or sellers.
Advertising Activities
Clients, media and agents should make a contract on the basis of the advertising law in every
advertising activity to make rights and duties clear for each party. Clients designing, producing or
releasing advertisements by themselves or by other people should have truth, legal and valid
certification documents as below:
a) business license and other documents to certify eligibility of production and sale;
b) certification document about product quality issued by a quality examination
organisation;
c) other certification documents to confirm the truthfulness of the advertisement.
Agents and media should check related certification documents according to laws and
administrative regulations, and verify the advertising content. Agents should not supply services
of designing, producing or acting as a deputy to advertisements which are not true or without
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sufficient certification documents. The media should only publicise the kind of advertisements that
conform to this.
Legal Punishment
Advertising supervisory bodies must order clients to stop releasing advertisements that propagate
their products or services improperly. Clients should have the correct kind of publicity regarding
the advertising. If not they could be fined 1-5 times the cost of the advertisement. Irresponsible
agents and media could see their work confiscated and be fined 1-5 times the sum of the income.
If there is a serious problem, their advertising business could be closed by law i.e. if they are
criminals, they should be punished for their crime.
Advertising supervisory bodies should fine the clients who supply false certification documents
between 10,000 and 100,000 Yuan (£1=12 Yuan); Advertising supervisory bodies should
confiscate the illegal income due to fabricating, altering or transferring advertising audit figures
and fine in the range of 10,000-100,000 Yuan. Criminal responsibilities should be investigated if
there are any.
If clients, agents or media violate this law and take one of the actions below, they should
undertake civil responsibility.
a) impairing mental or physique health of under-age or disabled people;
b) imitating a patent that belongs to other people;
c) depreciating merchandise or services of other producers or sellers;
d) using names or figures without permission;
e) other behaviours invading legal civil rights of anyone else.
Business administration departments of county governments or superior governments are the
advertising supervision bodies. If litigants refuse to accept administrative punishment they can
apply for reconsideration to the superior body of the previous one within 15 days after getting
acknowledgement; they can also go to court during that period.
Part Three. The Media and cost of advertising
China is a big country. There are 30 provinces, direct municipalities or autonomy regions
(province, direct municipality and autonomy region are in the same administrative level, so each
of them can be called province) in mainland China. There are more than 10 municipalities under
each province. There are at least 1 broadcast station, 1 TV channel, and 2 newspapers in every
municipality. There are 2 or 3 broadcast stations, 2 or 3 TV channels on provincial level in each
province. There are 3 mandarin broadcast stations and 6 TV channels in central China. In the
whole country, there are about 600 broadcast stations and 400 TV channels in total. Generally
speaking, a person can choose a program from 10 TV channels. If cable is used, the number of
choice can be up to 20. The amount of newspaper and magazine varieties is in the thousands.
Cost of advertising has changed a lot according to the popularity of the program quantities of
newspaper and magazine sales.
a) The average advertising charges in Liaoning Education TV channel
Liaoning is a province that lies in the northeast part of China. Provincial level TV channels in the
province are Liaoning TV1, Liaoning TV2, Liaoning Education TV, Liaoning cable TV. The last
one doesn’t run advertising. Liaoning Education TV is not as popular as Liaoning TV1 and
Liaoning TV2.
Table 1. Advertisement Charge Details of Liaoning Education TV
Yuan (£1=12 Yuan)
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DURATION
10s
15s
20s
30s
45s
60s
before or after
education
before or after
cartoon/news
before or after
film
interposing during
film
special topic in
economy
150
200
250
300
450
600
200
300
400
500
750
1000
300
400
500
700
1050
1400
450
600
750
1050
1575
1820
5m
4000/
2000
10m
5000/
3500
concentration
showing
production/
3000/
releasing
1500
3m
50m×2
15000
notes:
1. on Saturday or Sunday, plus 30%; in festival and 1 day before, plus 50%.
2. for joint-venture plus 50%; single foreign investment enterprise plus 100%.
3. sequential 30 times 10% off; sequential 100 times 15% off; more than 200 times
20% off.
b) The average advertising charges in Liaoning 21st Century Advertising Company. This is an
advertisement production company that has a co-operative relationship with Liaoning TV1,
Liaoning TV2 and Liaoning Education TV. Its charges are:
Table 2. Dealing Charge Details of Liaoning 21st Century Advertising Company
yuan
DURATION
15s
20s
30s
45s
60s
characters
500
650
800
products
2000
2500
3000
4500
5500
business information
1500
2000
2500
3500
4500
imaginative
10000
12000
15000
20000
25000
artistic
25000
30000
40000
50000
60000
specially invited
negotiable
actor/actress
cartoon
3000/s
joint-venture plus 50%; single foreign investment enterprise plus 100%
c) Price of advertising on Shenyang Daily Shenyang, the 4th biggest city in China, is the capital of
Liaoning Province. Shenyang Daily is a principal newspaper in the city.
Table 3. Price of Advertisement on Shenyang Daily
yuan
whole
half
1/4
35cm× 35cm× 35cm× 14cm× 7cm× 7cm×
page
page
page
20cm
15cm
10cm
10cm
10cm
5cm
88000
44000
22000
40000
30000
20000
8000
4000
2000
colour page plus 50%; joint-venture plus 30%; single foreign investment enterprise plus 100%.
Task: Update this case taking into account the changes that have taken place in the last
few years.
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THEME 1: BRANDS AND MARKETING MANAGEMENT
MINICASE HISTORY: AFTER EIGHT
Et ne dites pas, "ils sont fous ces Anglais", pas avant d'avoir goute des After Eight
This was the final text in the first commercial that introduced After Eight to the French market
place in 1971. Prejudices were overcome and new habits introduced.
The After Eight concept was seen as sacrilege by the French and as nothing at all by the
Germans who knew nothing of after dinner gatherings/habits of the English or the Italians who
were not accustomed to mint and chocolate mixed and used to buying big boxes of chocolates let
alone English-style dinner parties.
THE NAME
This came from inspiration rather than anything else. A Rowntree executive heard of a shirt in
America called 'After Six' and thought 'Why not After Eight'?
PACKAGING
This was designed to be upmarket to reflect special occasions which would communicate both
verbally and pictorially via a trademark i.e. a Louis XIV ormolu clock (moulded, embossed, gilded
bronze) showing the time as a few minutes after eight against a distinctive green background.
The product itself was individually wrapped in brown glassine envelopes also bearing the
trademark.
POSITION
Perceived as uniquely presented to be enjoyed after dinner or on comparable occasions.
Associated with elegance, sophistication, social status of the hostess and guests i.e. reflects
good taste of the giver, flatters receiver but is affordable.
All of this is meant to evoke the dinner party - the candelabra, the crystal brandy glasses, black
ties and cigars, the old English country house, butlers, chauffeurs and Rollers etc. in other words
this is highly ASPIRATIONAL.
ADVERTISING
The tone of voice, choice of cast, and the selected scenarios had to reflect the above evocations.
Tested in 1962 in Scotland then "Dinner Table" was put on air in 1964 on Yorkshire TV - resulting
in 64% sales increase compared with 18% in other parts of the country. Thus the brand acquired
its one and only personality.
INTERNATIONAL
The key and obvious question was 'would the brand's added value apply in other markets. JWT
had handled the UK account but Lintas were given the account for Germany, Holland, Italy,
France. The UK commercials were not simply dubbed to save money. The decision was made to
keep the ENGLISHNESS of the brand but to create quality advertising in each of the chosen
markets to make sure no brand image damage occurred. The English dinner party was a problem
so adaptations had to be made:
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GERMANY - a high society soiree was invented where the entire concept was highlighted using a
butler but emphasising they were made in Germany. Launched via glossy magazines in 1966
After Eight was a major brand by 1969.
HOLLAND/ITALY - Launched in 1969 basically as in Germany with minor adaptations.
FRANCE - In France confectionery products were not associated with social activity, English food
not taken seriously and peppermint in chocolate unheard of. Through qualitative research RM
made the decision to keep the concept, including the Englishness that was dealt with purely
through advertising:
Voice over..."The English have always had a certain way of life - a sense of refinement if you
like...Here is a new fashion from London for after dinner - After Eight. Fine leaves of chocolate
filled with melting mint. Yes, you heard - mint and chocolate. And don't say, 'they are mad, these
English', before having tasted After Eight."
Task: There is some speculation as to what, these days, constitutes a special occasion
and some suspicion of 'crusty lords and bejewelled hostesses'. Does the modern woman
have a different set of values in a different lifestyle? Does After Eight need concept need
revamping without repositioning? Do you think that the company, even though part of
Nestle, will stick to the RM principles and guidelines as laid down in 1985 in terms of
product, position and advertising?
Main Source: Rijkens, R European Advertising Strategies
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THEME 1: BRANDS AND MARKETING MANAGEMENT
MINICASE HISTORY: GORDON'S GIN
United Distiller’s sells Gordon’s worldwide. It's a primary gin brand within the growing white spirits
market but gin as a category has been in decline and this has affected Gordon's - but it is still the
world leader selling primarily in the UK, USA, Spain and South Africa where it is produced in each
and collectively these represent 90% of world volume. In the USA it is no.2 to Seagram's and in
Spain it faces stiff competition from Larios (a Gordon's "me too" originally). In South Africa it is
strong but does have a rival in Mainstay. In Germany, France, Italy it is brand leader but these
are small markets. Duty free is increasing with UK, Germany and USA sales accounting for
almost half.
THE NAME AND POSITION
Gordon's has a global reputation. It has heritage and credibility with consumers and the trade but
its market position varies from culture to culture and the stage in the life cycle and of course
competition. In the USA and Spain Gordon's has a low image linked with a low price and
therefore is price-sensitive in these markets. In contrast Gordon's is viewed as rather up-market
in the UK, a mature market where the brand has a premium price.
RESEARCH AND IMAGE
In 1988 Gordon's commissioned motivational research in 6 markets - USA, UK, Spain, France,
Germany and Italy in order to develop a global strategy. The research suggested two market
types: mature markets of UK, USA, Spain; and up-and-coming markets of the type of the other
three.
USA - Gordon's were up against "social" brands such as Absolut that were highly prestigious.
The main findings were:
1. Young adults seek prestige brands
2. A trend toward easy to take spirits
3. Greater health consciousness
4. Greater fashionability of vodka, tequila and white rum
5. Greater use of wine/champagne in drink situations
6. Slow decline of Martini
Where neat, Martini was perceived as having quality, strength and mellowness. These seem
important variables for brand acceptance. Gordon's was not seen as a Martini base but medium
priced spirits like Gordon’s were seen as the base for a mixer. Gordon's seen as mass-market,
blue collar/ordinary white collar - adequate, acceptable, and everyday. Not to be mixed with
Martini, Gordon's was seen as inferior to Beefeaters, Tanqueray, and Bombay. It was seen as
functional and American "bottom shelf" - not at all English.
SPAIN - The research indicated:
1. Gin has high status, is fashionable, youthful and fun when used as a mixer but is seen as
masculine, older, quiet, contemplative and relaxed when neat.
2. There has been a decline in non-mixable spirits
3. High alcohol proof spirits are associated with status
4. Brand images express self-image
5. English imported is associated with high status
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For many then the image is high quality - if worst of the premium brands, not as good as
Beefeater and Tanqueray but in competition with Larios
GERMANY - Gin not an established spirit. However the research indicated that where gin was
known it had a positive image, described variously as:
1. it is yuppie
2. it is luxury
3. it is stylish man
4. it is modern
and associated with the British elite, masculine, independently minded people as well as being
fun, sociable, friendly, sexy and frivolous. Apparently men in Germany usually approve the
drinking of spirits, which is very much, a social activity. The image therefore one of high class,
high status - the best gin available.
ITALY - Gin in Italy has high status value where known because of its "imported" nature. It was
seen as a versatile mixer associated with festivity and liveliness yet with relaxation and
contemplation and mature distinguished men such as English lords. There was evidence that it
was seen as best taken neat and regarded as a friendly drink.
FRANCE - In France gin is a mixer in a wider sense than that in the UK and associated with
warm weather, fun, frivolity, sexuality and sophistication. The physical aspects were important too
i.e.:
1. appetite appeal/refreshingness
2. clarity of the liquid
3. freshness
4. coolness
5. bubbliness (with tonic)
Englishness was regarded as a reinforcing element. Seen as being the best gin available.
Authentic London gin added to status yet yuppie and aspirational associated with successful
lifestyles.
THE UK - Gin is almost universally associated with tonic i.e. G&T, classic, establishment yet
aspirational and yuppie and maturity - a passage to adulthood. Here frivolity and excitement were
much less likely to be associations.
Task: 1. Gordon's are looking for distinct target groups out of this. What would you
advise?
2. Communication strategy options are required. What would you suggest?
Main Source: Hankinson and Cowking, Branding in Action
THEME 1: BRANDS AND MARKETING MANAGEMENT
Find the article by Laverick, S. and Johnston, K. (1997)‘The marketing of a consumer icon: Mini
Cooper into Japan – coals to Newcastle’, Marketing Intelligence and planning, 15, 4, pp.179-184.
Task: Read this article with a view to explaining brand bonding and exploring spatial
variations across country markets and target markets.
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