1. International Marketing Strategy
Lecture 8
Promotional Strategy 3
Advertising

2. Lecture Outline Global advertising Constraints on global advertising
Agency selection
Managing a campaign
Types of advertising
Creative devices
Media
The Asian market
Watch UK TV ads free - tellyAds adverts

3. Advertising
Advertising is a paid, mediated form of communication from an identifiable source, designed to persuade the receiver to take some action, now or in the future (Shimp, 2010, 182)
Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor (Kotler & Keller, 2009, 538)
Advertising is hard-hitting and powerful … it’s boring and ineffective … enormously creative and entertaining … and it can be simply annoying (Seminik, Allen, O’Guinn & Kaufmann, 2012, 10)

4. Global Advertising A big issue in the 1980’s
Theodor Levitt claimed that markets are becoming increasingly alike worldwide
Saatchi and Saatchi claimed that worldwide brands would soon become the norm and that such an advertising challenge could only be handled by worldwide agencies
Consolidation resulted in large global agencies, including the WPP Group, Omnicom, Interpublic, Saatchi & Saatchi, who were able to manage big global advertising campaigns

5. Global Advertising Global businesses market global brands
The corporate agenda has had an impact on centralisation
Agency networks have made it easier to globalise campaigns
Most advertising does not travel well
Most clients and agencies are looking for a communication idea that can be used globally and adapted

6. Global Advertising
However global, it is rare to find a brand that is in a category that is equally well developed and faces the same competitors
Despite global media, e.g. CNN, media planning and buying, and media consumption are essentially national and local
Increasingly global advertisers aim to control their advertising from the centre
The importance of multicultural teams has grown
Interbrand's top 100 global brands 2011: Coca-Cola still top but Apple gaining fast - Marketing news - Marketing magazine

7. Global Advertising
Both GDP and adspend are expected to be far higher in the BRIC economies than in the developed world
TV is exceptionally dominant in Brazil, accounting for two-thirds of total adspend in 2011
Newspapers are set to attract roughly one in three ad dollars in both China and India
Online’s share of the media mix in the BRICs is low by Western standards across all four nations
Globally, online spend is predicted to grow twice as fast as any other media channel in 2011 and 2012
BBC News - Google and Facebook top 2011's most visited sites in US
(Adstats: Global advertising forecast, 2011)

8. Global advertising spend and economic outlook 2009-2011
Overall expenditure is expected to rise by 5.3%
North America remains the world’s largest ad market and adspend will rise from $138.8bn in 2010 to $143.5bn in 2011
TV remains the most popular ad medium in Latin America with expenditure rising in Brazil by 10.2% in 2011
Online penetration in Chile reached 41% in 2009, Brazil was up to 31% and Mexico rose to 24%
Proportion of Facebook users: 41% South America, 40% Europe
European adspend will account for roughly one-third of the global total in 2011
The fastest european ad growth will be in the east with Russia forecast to increase adspend by 17%
Across the Asia Pacific region, adspend growth will hold steady at 8.4% for both 2010 and 2011 with economic growth predicted to be 10.5%
Japan boasts the world’s largest mobile marketing sector, with around $1bn spent on the channel in 2010
(Clift 2011, 1-8)

9. Constraints on Global Advertising
Promotion is the most visible as well as the most culture bound of the marketing functions
Organisation of international programmes can be complex
The company has to decide whether to present itself as a local, foreign, or multinational organisation
The level of economic development, Government control as well as other cultural factors affect what an organisation can do

10. Constraints on Global Advertising
Some languages are used in more than one country (English), but there are more languages than countries - accents
Local help is of two kinds: national personnel in countries where the firm has subsidiaries, and the advertising agency in the local market
Government regulation limits commercials on radio and television
Communications infrastructure – newspaper coverage varies from 1 paper to 2 persons in Japan, to 1 to 200 persons in Bangladesh and most of Africa

11. Constraints on Global Advertising
Tobacco, alcohol and drugs are subject to specific restrictions
Some countries limit the languages that can be used
There are limits on comparative advertising
Many countries require preclearance of certain commercials
Foreign production may be limited
Ad budgets from foreign multi-nationals may be considered too big – Procter and Gamble
Foreign ownership of agencies is restricted - Indonesia

12. Restrictions on Advertisements for Specific Products in Selected European Countries

13. Agency Selection Criteria in International Markets
Size of company’s international business
Company organisation – decentralisation
Level of involvement between partners – joint ventures
Market coverage – international market segments
Quality of coverage
Marketing and media research

14. Agency Selection Criteria in International Markets
Integration with other marketing communications tools
National or international image
Level of promotion and media expertise
Communication, control of operations, and coordination

15. Top Marketing Organisations
Omnicom Group New York
WPP Group London
Interpublic Group of Cos. New York
Publicis Group Paris
Havas Suresnes, France
Aegis Group London
Hakuhodo DY Holdings Seattle
Asatsu-DK Tokyo
(Top 25 Marketing Organisations, “Advertising Age” 2008 Issue in Czinkota & Ronkainen, 2010, p.581)

16. Advertising – Overview
The average person encounters more than 600 advertisements per day
A company cannot afford to prepare ads for every possible medium
To be effective, an ad first be noticed … be remembered … then, the message must incite some form of action, such as a purchase, a shift in brand loyalty, or … a place in the buyer’s long-term memory
(Clow & Baack, 2010, 144)

17. Advertising Campaign Management
The process of preparing and integrating an advertising programme with the overall IMC message
The message theme is an outline of the key idea
A leverage point is the key element that taps into, or activates, a consumer’s personal value system (value, idea, or concept)
The appeal attracts information and presents information
The executional framework explains how the message will be delivered (slice-of-life)
(Clow & Baack, 2010, 144)

18. Managing an Advertising Campaign
SOSTAC + 4M’s
Where are we now? – Situation
PESTLE, Marketing research, Account/Media planning
Where do we want to go? – Objectives
Corporate, Business, Marketing Communications
How will we get there? – Targeting
Segmentation, targeting and positioning

19. Managing an Advertising Campaign
Message strategy – creative/production (Tactics)
Media strategy – planning and buying
How should we implement/manage our campaign? – Action
What are our resource requirements?
What is our timeframe?
How should we monitor activities, and evaluate success/achievement of objectives – Control
(Smith & Taylor, 2004)

20. Advertising Goals Building brand image Providing information
Persuasion
Supporting marketing efforts
Encouraging action
(Clow & Baack, 2010, pp )

21. Hierarchy of Effects Model
Aids in clarifying the objectives of a campaign and the development of individual ads. There are six steps:
Awareness
Knowledge
Liking
Preference
Conviction
Actual purchase
The approach can help a creative understand how a consumer reaches purchase decisions
(Clow & Baack, 2010, p. 173)

22. The Promotional Message
Creative people must have a clear idea of the characteristics of the audience
The marketer must determine motivations
The ideal situation is to have a world brand
Marketers may develop multiple broadcast and print advertisements
Product related regulations will affect advertising messages
Marketers may want to localise symbols
Aesthetics plays a role
(Czinkota & Ronkainen, 2010, pp

23. The Promotional Message
The need to use different agencies
Environmental influences – culture, economic development and lifestyle
Language
The stage of economic development
(Czinkota & Ronkainen, 2010, pp

24. Creative Briefs Why are we advertising?
What is the advertising trying to do?
Who are we talking to?
What do we know about them that will help us?
What is the main thought we need to put across (USP)

25. Creative Briefs What’s the best way of achieving this?
Why do we think we are saying things the right way?
Essential practical considerations (logo, tel.no., website address)
What other client expectations must we consider?

26. Creative Devices used in Message Strategy
Great-Ads: Infamous Pepsi Ad 'Concert' featuring Michael Jackson
Music
Humour
Slice of life
Testimonials
Comparisons
Fear

27. Creative Devices used in Message Strategy
Problem solving
Talking heads
Characters/cartoons/animals
Celebrities/personalities/experts (Consider likeability, similarity, expertise, trustworthiness, dynamism and professionalism)

28. Creative Devices used in Message Strategy
Facts
News
Emotion
Rationality
Glamour
Symbols
Contests and sweepstakes
Special offers
BBC News - In pictures: Cadbury adverts

29. Creative Brief – Del Monte
The objective – increase awareness of the smaller size cans with pull-top lid
Target Audience – senior citizens, expecially those who live alone and suffer from arthritis
Message Theme – the cans not only contain a small portion, but are easier to open
Constraints – copyright logo, toll free number, website address, legal requirements of a coupon and what is meant by a small serving
(Clow & Baack, 2010)

30. Nike Shoes
Professional athletes were shown in various executions playing hockey, volleyball, baseball, bowling, boxing etc
The brilliance was in the juxtaposition of famous athletes with sports other than those for which they are known:
Andre Agassi played baseball
Lance Armstrong portrayed as an accomplished boxer
Serena Williams made a vicious serve in volleyball
(Shimp, 2010, 216)

31. Absolut Vodka Absolut Ad
Three brands (Stolichnaya, Finlandia, Wybrowa made up less than 1 percent of the total US Vodka market
Campaign based on print advertising
With a two word headline
Absolut described the brand e.g. Absolut perfection
Characterised the consumer e.g. Absolut Sophisticate
Associated with places, people, events e.g. Absolute Barcelona
Replaced in 2007 with “In an Absolute World”
(Shimp, 2010, 214)

32. Media Strategy Consider: Target audience characteristics
Campaign objectives
Budget
Media availability
Local versus global media

33. Main Forms of Media Broadcast Print Outdoor Digital media In-store
Other
Interactive marketing communications
(Fill, 2009, )

34. Types of Advertising Full display ads Semi display ads
Classified advertising (lineage/word ads)
Advertorials
Infomercials
Direct response ads
Web/home pages
Banner ads and hypertext links
Intermercial – appears between the content of a website

35. Benefits of Advertising
It can reach mass audiences (large coverage)
It is able to target selectively
It has a low unit cost (cpt)
It is economical, efficient, and effective at reaching large audiences
It is effective in establishing brand image and brand development in international markets

36. The Effectiveness of Using a Global Look in an Asian Market
For most consumers in East Asian countries, a Western look is synonymous with a global look
English brand names also signal the global quality of a brand
The influence of ethnicity is limited to perceptions of product quality
The influence of language is limited to perceptions of brand friendliness, brand trust and brand liking

37. The Effectiveness of Using a Global Look in an Asian Market
The influence of Western models is positive
The influence of English brand names is negative
Chinese brand names activate a positive home-country bias
The use of Asian models does not improve consumer’s perceptions of products on affective domains regarding brand friendliness and brand liking
(Chang, 2008)

38. China
The Chinese ad market is already the world’s fourth-largest in terms of spend
Toiletries are currently the biggest-spending ad category in China
Most urban-dwelling year olds believe using “famous” brands can enhance their social standing
The nation’s largest demographic group is now aged reflected in a rapid increase in online adspend
(Adstats: China, 2012)

39. References
Adstats: Global advertising forecast (2011). Retrieved March 20, 2012 from Adstats: China (2012). Retrieved March 20, 2012 from Chang, C., (2008) The Effectiveness of Using a Global Look in an Asian Market. Journal of Advertising Research 48, 2, (June). Clift, J. (2011) Global advertising spend and economic outlook Retrieved March 20, 2012 from Clow, K.E, & Baack, (2010) Integrated Advertising, Promotion and Marketing Communications, 4e. Upper Saddle River, NJ: Pearson Prentice Hall Czinkota M.R. & Ronkainen, I.A., (2010) International Marketing, 9e. Mason, OH: Cengage Fill, C., (2009) Marketing Communications, Interactivity, Communities and Content, 5e. Harlow: Pearson Education

40. References
Goodman, C., (2009) Creating the best online advertising. Retrieved March 20, 2012 from Minami, I., (2008) Why western brand advertising has not been established in Japan. Nikkei Advertising Research Institute, Japan, (February) Semenik, R.J. (2012) Advertising and Promotions, An Integrated Brand Approach, 6e, Mason, OH: South-Western Cengage Learning Shimp, T. (2010) Integrated Marketing Communication in Advertising and Promotion, 8e. Mason, OH; Cengage Learning Smith P.R. & Taylor, J., (2004) Marketing Communications, An Integrated Approach. London: Kogan Page Yuxian, G., Deepender, R., & Moulee, S., (2007) The ingredients for successful advertising in China. Admap Magazine, (February). Retrieved from