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Peggy Simcic Brønn Chapter 28 Marketing communications across borders.

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Presentation on theme: "Peggy Simcic Brønn Chapter 28 Marketing communications across borders."— Presentation transcript:

1 Peggy Simcic Brønn Chapter 28 Marketing communications across borders


3 Peggy Simcic Brønn The International Environment International Marketing And Promotional Decisions Cultural Environment Economic Environment Demographic Environment Political/Legal Environment

4 Peggy Simcic Brønn Economic Environment zStage of economic development zEconomic infrastructure zStandard of living zPer capita income zDistribution of wealth zCurrency stability zExchange rates

5 Peggy Simcic Brønn Cultural Environment zLanguage zLifestyles zValues zNorms and customs zEthics and moral standards zTaboos

6 Peggy Simcic Brønn Demographic Environment zSize of population zNumber of households zHousehold size zAge distribution zOccupation distribution zEducation levels zEmployment rates zIncome levels

7 Peggy Simcic Brønn Political/Legal Environment zGovernment policies zLaws and regulations zPolitical stability zNationalism zAttitudes toward multinationals

8 Peggy Simcic Brønn The Big Question... zShould the global marketer offer the same product, marketing, and advertising throughout the world? or zShould the global marketer adapt the product, marketing, and advertising to each of several societies throughout the world?

9 Peggy Simcic Brønn Global Marketing and Advertising Advantages zEconomies of scale in production, distribution zLower costs with less in planning and control zLower advertising and production costs zAbility to exploit good ideas worldwide zAbility to introduce products quickly, worldwide zConsistent international brand, company identity zSimplification of coordination and control

10 Peggy Simcic Brønn When is Globalization Appropriate zBrands can be adopted for a visual appeal, avoiding the problems of trying to translate words into dozens of languages zBrands that are promoted with image campaigns that play to universal appeals such as sex or wealth zHigh-tech products and new products coming to the world for the first time, not steeped in cultural heritage of the country zProducts with with a nationalistic flavor if the country has a reputation in the field zProducts that appeal to a market segment with universally similar tastes, interests, needs, and values

11 Peggy Simcic Brønn International Advertising zThe U.S. accounts for over half of world advertising expenditures zAdvertising expenditures outside the U.S. are growing more rapidly than inside zEvery country in the world has advertising of one form or another zThe more affluent the country, the more is spent on advertising

12 Peggy Simcic Brønn International Ad Agencies zMany large, American general agencies operate internationally zForeign billings account for over a third of total billings by the top 10 American agencies zLarge multinational companies often deal with large, international agencies zOverseas offices are usually staffed with multilingual, multinational personnel

13 Peggy Simcic Brønn Foreign Local Agencies zStaffed with local talent who understand local attitudes, culture, media, and conditions zEspecially effective for launching consumer products in a single, new geographic area zPoses some problems if a product is to be launched in multiple, local, foreign markets

14 Peggy Simcic Brønn Criteria for Selecting an Agency for International Advertising zAbility of agency to cover relevant markets zQuality of agency work zMarket research, PR, and other services offered zRoles of company advertising department and agency zLevel of communication and control desired zAbility of agency to coordinate internationally zSize of company’s international business zCompany’s desire for local vs. international image zCompany organizational structure yCentralized vs. decentralized zCompany level of involvement with international operations

15 Peggy Simcic Brønn Areas of Foreign Market Research z Information on demographic characteristics of markets z Information on cultural differences such as norms, 1ifestyles and values z Information on consumers’ product usage, brand attitudes, and media preferences z Information on media usage and audience size z Copy testing to determine reactions to different types of advertising appeals and executions z Research on the effectiveness of advertising and promotional programs in foreign markets

16 Peggy Simcic Brønn Commercials Shown Per Hour United Kingdom Australia Thailand Mexico France China Philippines Turkey

17 Peggy Simcic Brønn Who Allows What Promotions In-pack premiumsYesYesNo Maybe Yes Multi-purchase offersYesYes Maybe YesYes Extra productYesYes Maybe YesYes Free productYesYesYesYesYes Mail-in offersYesYes No YesYes Purchase-with-purchaseYesYes No YesYes Cross-promotionsYesYes No YesYes ContestsYesYes Maybe YesYes Self-liquidating premiumsYesYes No YesYes SweepstakesMaybe Maybe No Maybe Maybe Money-off couponsYesYes No Yes Maybe Next-purchase couponsYesYes No Yes Maybe Cash rebatesYesYes Maybe Yes No In-store demosYesYesYesYesYes PromotionU.K.SpainGermanyFranceItaly

18 Peggy Simcic Brønn

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