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ADVERTISING
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Benefits of Standardization
Scale Economies Global Consumer Segments Consistent Image Creative Talent Cross Fertilization
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Challenges Language Cultural Local Attitudes towards Advertising
Media availability Advertising regulations
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How to overcome? Do not use idioms/slang words. Write little.
Involve local advertising agency. Perform meticulous research and testing.
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Cultural Barriers Status (high power-distance countries)
Testimonials (high uncertainty avoidance countries) Focus on Self (high individualism countries) Performance (high masculinity countries)
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Other Cultural Barriers
Gestures, expressions Dress/Clothes Colors Role of Men/Women Relationships Role Relevance Humor Body Exposure/Sexual Connotations
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Local Attitudes toward Advertising
“If advertising were banned tomorrow, I would miss it.” Agree Disagree Japan (78%) Egypt (78%) South Africa (68%) Germany (61%) Bulgaria (57%) Netherlands, Italy (59%) Australia (52%) U.K, Switzerland (55%) Finland (51%) Latvia (51%)
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Media Infrastructure Choice of Media Quality of Media
Reliable Statistics Cost Variability Reliability of Scheduling Discrimination against foreign firms
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Choice of Media TV Radio Print Outdoor Internet Others
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Advertising Regulations
Government Regulation Self Regulation Advertising of Vice Products Content of Advertising Advertising Directed at Children Location/Timing of Advertising Comparative Advertising
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Think about a Pan-European Ad for Jupiter--a light chocolate bar with low fat filling.
Your waistline will like it. And you get a free tape to measure it. It is an after-school treat that won’t spoil your evening meal. When the doctor says cut down, reach for Jupiter, with one-third the calories of the other chocolate bars.
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Problems: Belgium--can’t make reference to dieting.
France--premiums can’t be more than 1% of sale price and no child endorsement. Germany--can’t make comparisons with other candy bars. Denmark--can’t make nutritional claims. U.K.--sweets must be portrayed as only occasional snacks and can’t obtain endorsement of doctors.
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Advertising Strategy Standardization Stage of Product Life-Cycle
Target Market Needs Consumer Development
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