1. Global Marketing Management
Masaaki Kotabe & Kristiaan Helsen Second Edition John Wiley & Sons, Inc., 2001
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

2. Communicating with the
Chapter 14
Communicating with the
World Customer
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

3. Kotabe & Helsen's Global Marketing Management, Second Edition
Chapter Overview
1. Global Advertising and Culture
2. Setting the Global Advertising Budget
3. Creative Strategy
4. Global Media Decisions
5. Advertising Regulations
6. Choosing an Advertising Agency
7. Coordinating International Advertising
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

4. Chapter Overview (contd.)
8. Other Communication Tools
9. Globally Integrated Marketing Communications
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

5. Kotabe & Helsen's Global Marketing Management, Second Edition
Introduction
There are many cultural challenges that advertisers face in global marketing.
Global advertising encompasses areas such as advertising planning, budgeting, resource allocation issues, message strategy, and media decisions. Other areas include: local regulations, advertising agency selection, coordination of multi-country communication efforts and regional and global campaigns.
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

6. 1. Global Advertising and Culture
Language Barriers
Language is one of the most formidable barriers in global marketing.
Three types of translation errors:
Simple carelessness
Multiple-meaning words
Idioms
Other Cultural Barriers
Religion
Cultural traps/cultural dimensions
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

7. 1. Global Advertising and Culture (contd.)
Geert Hofstede’s cultural grid can be used to assess the appropriateness of comparative advertising campaigns (see Exhibit 14-2). The five cultural dimensions include:
Power distance
Uncertainty avoidance
Individualism
Masculinity
Long-termism
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

8. 2. Setting the Global Advertising Budget
Percentage of Sales
Competitive Parity
Objective-and-Task Method
Resource Allocation
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

9. Kotabe & Helsen's Global Marketing Management, Second Edition
3. Creative Strategy
The Standardization versus Adaptation Debate
Merits of Standardization
Scale Economies
Consistent Image
Global Consumer Segments
Creative Talent
Cross-Fertilization
Barriers to Standardization
Cultural Differences
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

10. 3. Creative Strategy (contd.)
Advertising Regulations
Market Maturity
“Not-Invented-Here” (NIH) Syndrome
Approaches to Creating Advertising Copy
Export Advertising
Global Prototype Advertising
Pattern Standardization Advertising
Modular Approach
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

11. 4. Global Media Decisions
Media Infrastructure
Media Limitations
Recent Developments in the Global Media Landscape
Growing commercialization and deregulation of mass media
Shift from radio and print to TV advertising
Rise of global media
Growing importance of multimedia advertising tools
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

12. 4. Global Media Decisions (contd.)
Improved monitoring
Improved TV-viewership measurement
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

13. 5. Advertising Regulations
Vice Products and Pharmaceuticals
Comparative Advertising
Content of Advertising Message
Advertising Toward Children
Other Advertising Regulations:
Use of advertising in the local language
Tax on ad spending
Strategies to deal with advertising regulations:
Keep track of regulations and pending legislation
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

14. 5.Advertising Regulations (contd.)
Lobbying activities
Challenge regulations in court
Adapt marketing mix strategy
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

15. 6. Choosing an Advertising Agency
In selecting an ad agency, the international marketer has several options:
1. Work with the agency that handles the advertising in the firm’s home market.
2. Pick a purely local agency in the foreign market.
3. Choose the local office of a large international agency.
4. Select an international network of ad agencies that spans the globe.
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

16. 6. Choosing an Advertising Agency (contd.)
When screening ad agencies, the following set of criteria can be used:
Market coverage
Quality of coverage
Expertise with developing a central international campaign
Scope and quality of support services
Desirable image (“global” versus “local”)
Size of the agency
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

17. 6. Choosing an Advertising Agency (contd.)
Conflicting accounts
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

18. 7. Coordinating International Advertising
Monetary Incentives (cooperative advertising)
Advertising Manuals (brand book)
Lead-Country Concept
Global or Pan-Regional Meetings: Six guidelines to implement a global or pan-regional advertising approach include:
1. Top management must be dedicated to going global.
2. Use a third party (e.g., the ad agency) to help sell key managers the benefits of a global
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

19. 7. Coordinating International Advertising (contd.)
advertising approach.
3. A global brief based on cross-border consumer research can help persuade managers to think in terms of global consumers.
4. Find product champions and give them a charter for the success of the global marketing program.
5. Convince local staff that they have an opportunity in developing a global campaign.
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

20. 7. Coordinating International Advertising (contd.)
6. Get local managers on the global marketing team -- have them do the job themselves.
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

21. 8. Other Forms of Communication
Sales Promotions: Sales promotion refers to a collection of short-term incentive tools that lead to quicker and/or larger sales of a particular product by consumers or the trade.
Rationales explaining the local character of promotions:
Economic development
Market maturity
Cultural perceptions
Trade structure (pull vs. push promotions)
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

22. 8. Other Forms of Communication (contd.)
Government regulations
Direct Marketing
Event Sponsorships
Trade Shows: When attending an international trade show, the following guidelines might prove useful:
Decide on what trade shows to attend at least a year in advance.
Prepare translation of product materials, price lists, selling aids.
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

23. 8. Other Forms of Communication (contd.)
Bring plenty of literature. Bring someone who knows the language or have a translator.
Send out, ahead of time, direct-mail pieces to potential attendees.
Find out the best possible space. – for instance, in terms of traffic.
Plan the best way to display your products and to tell your story.
Do your homework on potential buyers from other countries.
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

24. 8. Other Forms of Communication (contd.)
Assess the impact of trade show participation on the company’s bottom line. Performance benchmarks may need to be adjusted when evaluating trade show effectiveness in different countries since attendees might behave differently.
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

25. 9. Globally Integrated Marketing Communications (GIMC)
Integrated Marketing Communications (IMC):
IMC coordinates different communication vehicles – mass advertising, sponsorships, sales promotion, packaging, point-of-purchase displays, so forth.
Globally Integrated Marketing Communications (GIMC):
GIMC is a system of active promotional management that strategically coordinates global communications in all of its component
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

26. 9. Globally Integrated Marketing Communications (GIMC)
parts, both horizontally (country-level) and vertically (promotion tools).
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition

27. Copyright © John Wiley & Sons, Inc., 2001
Chapter 14
Kotabe & Helsen's Global Marketing Management, Second Edition