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Chapter 15 Managing Global Advertising. Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 2 Advertising Standardization Advertising.

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Presentation on theme: "Chapter 15 Managing Global Advertising. Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 2 Advertising Standardization Advertising."— Presentation transcript:

1 Chapter 15 Managing Global Advertising

2 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 2 Advertising Standardization Advertising Adaptation. versus. International Marketing Dilemma

3 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 3 Outdoor Radio Print Media Cinema Van & Loudspeaker Direct Mail, Flyers Packaging Particularly important for developing country markets Telephone booth ad in Cordoba, Spain Not All Advertising is on TV

4 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 4 Overcoming Language and Cultural Barriers Some markets or regions require multilingual advertising (Switzerland, US) “English is not always English.” Proper linguistic translation is imperative and challenging –Can be difficult to translate critical words and copy constructions

5 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 5 The Center of the World Change in lifestyles and attitudes among Chinese women – females in workforce rose from 2.9% to 22.8% –“I am the center of the world; I am the focal point.” International Marketers Respond –P&G’s advertising for Rejoice shampoo Airline hostess  airline mechanical engineer  girl playing beach volleyball

6 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 6 The Regulatory Challenge Types of products that can be advertised –EU: Tobacco advertising banned outdoors and in print. Types of appeals that can be used –China: superlatives (puffery) often banned Use of sex appeals –Illegal in Arab countries and Malaysia Mandatory Inclusions –Candy ads require toothbrush symbol in EU Times that certain products can be promoted –China: no “sensitive” products advertised during meal times.

7 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 7 Ad Regulation on the Rise China crackdown on P&G for not citing source of product claims made in ads Australia considering regulations regarding food ads targeted to children Mexico strengthening its privacy laws Russia imposing restrictions on alcohol advertising Villages in Africa are developing advertising regulation standards, making national campaigns extremely difficult

8 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 8 The Creative Challenge Effective international messages must transcend cultural and ethnic boundaries

9 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 9 Global Advertising Global advertising – Standardizing advertising across all markets –Philip Morris’s Marlboro campaign – “Come to where the flavor is” + Production cost savings + Able to spend more time, attention, and $ on campaign itself and media space + Prevents confusion of media spillover + Prevents confusion for travelers

10 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 10 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 Global Advertising Strategies

11 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 11 Requirements 1.A standardized global brand name or trademark, pronounced identically across markets. 2.Similar lifecycle stages across markets 3.Similar consumer brand attitudes and segments across markets Global Advertising (cont’d)

12 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 12 Japan = world’s 2 nd largest ad market Soft selling –Consumers more moved by emotion rather than logic –Kawasarern – process of being convinced to buy product contrary to one’s rational judgment –Rarely mention price, shies away from competitive advertising, may even omit key characteristics or features of a product Japan - Land of the “Soft Sell”

13 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 13 Japanese advertisements use foreign themes and words, especially those in English language –Highest % of English words of any language U.S. themes popular Firms are less concerned with conflicts of interest among ad agencies Japan - Land of the “Soft Sell” (cont’d)

14 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 14 Impact of Recent Change on Advertising in Eastern Europe “ The last hundred years of western advertising [experience] have been compressed into just four years for us.” Significant opportunity to build brand awareness in short period of time Underdeveloped advertising infrastructure Cultural differences –Happy family gathered around dinner table – family dinner concept unfamiliar to Romanians

15 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 15 Credibility of Advertising Countries view the value of advertising in different ways –U.S. = eager to criticize advertising (especially that aimed at children) –Asia = advertisements provide good product information, respects consumers’ intelligence –Former Soviet Union = most skeptical

16 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 16 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! TV big in Latin America, growing in India

17 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 17 Media Habits Ownership and usage of television and radio and the readership of print media vary considerably country to country –Income effect: Higher income, more TV China commuters are just now adopting radio

18 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 18 Scheduling international advertising is complicated by country differences in –Sales peaks Climatic conditions Customs National vacations Religious holidays (i.e. Ramadan) –Time needed to think about a purchase Scheduling International Advertising

19 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 19 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

20 Copyright © Houghton Mifflin Company. All rights reserved.Chapter 15 | Slide 20 September 2003 – McDonalds First Ever Global Market Campaign “I’m Lovin’ It” campaign Move away from localized branding, advertising, and promotion. Successful campaign –86% advertising awareness overall among top 10 country markets McDonalds: I’m Lovin’ It Global Advertising Campaign


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