1. Marketing 3344

2. 2 Taking on a Huge International Advertising and IBP Challenge

3. International Advertising  Advertising that crosses national and cultural boundaries  Important issue: Cultures not nations define the nature of advertising messages

4. Overcoming Cultural Barriers Barriers to successful international advertising:  Ethnocentrism – Tendency to view and value things through one’s own cultural perspective  Self-Reference Criterion (SRC) – Unconscious reference to own cultural values, experiences, and knowledge to make decisions

5. Cross-Cultural Audience Research  Economic conditions (LDC, NIH, HIC)  Demographic characteristics  Values  Custom and ritual  Product use and preferences

6. Challenges in Executing Advertising Worldwide  The Creative Challenge  The Media Challenge  The Regulatory Challenge

7. Creative Challenge  Written and spoken language  Translation difficulties  Culture-bound “picturing”  Assumptions and inferences  Identifying cross-cultural icons and symbols

8. Why could this ad be used on a world-wide basis? Ad in Context Example

9. The Media Challenge  Availability and Coverage Too few options Too many options Global television now possible though  Costs and Pricing Complex due to many options No set pricing in some markets Global coverage is expensive

10. Regulatory Challenges What are the...  Products that can be advertised?  Appeals that can be used?  Times that products may be promoted?  Rules regarding foreign language use?  Restrictions on using national symbols?  Taxes levied against advertising?

11. Regulatory Challenges  Can you use: Ads directed to children? Foreign languages in ads? National symbols in ads?  Advertising may be taxed

12. International Agency Options Global Agency  Greater integration  Economies of scale Local agency  Highly localized  Execution risks International affiliates  Local market expertise  Cultural adaptation

13. Ad Campaigns: Global versus Local Global Campaigns Message MarketAMarketA MarketBMarketBMarketCMarketC Local Campaigns Message 1 Message 2 Message 3

14. Why can Jack Daniels’ use a global ad campaign when other advertisers often cannot? Ad in Context Example

15. Trends Promoting Global Advertising  Global communications  Global youth  Universal demographics and lifestyle trends  Americanization of consumption values

16. Arguments Against Using Global Campaigns  Audiences in different cultures place value on different brand attributes  Global campaigns can defy local customs or ignore local competition  Local managers will not support a global campaign and message