1. John Wiley & Sons, Inc c 19981 COMMUNICATING WITH THE WORLD CONSUMER Chapter Fourteen

2. John Wiley & Sons, Inc c 19982 Communicating with the World Consumer Overview 1. Constraints on Global Communications Strategies 2. Setting the Global Advertising Budget 3. Message Strategy 5. Global Media Decisions 6. Choosing an Advertising Agency 7. Other Forms of Communication

3. John Wiley & Sons, Inc c 19983 1. Overview 1. Select target audience and positioning theme 2. Set specific campaign objectives (strategic and operational) 3. Determine the promotional budget 4. Develop the message strategy 5. Decide on the media strategy 6. Monitor and assess campaign effectiveness –Exhibit 14-1 United Parcel Service (UPS),s Pan- European Campaign

4. John Wiley & Sons, Inc c 19984 1. Constraints on Global Communication Strategies Language Barriers –Exhibit 14-2 Five Different Ways for Saying “tires” in Spanish Cultural Barriers Local Attitudes toward Advertising –Exhibit 14-3 Global Attitudes toward Advertising –Exhibit 14-4 Ranked Responses for Why Customers Choose a Brand Leader

5. John Wiley & Sons, Inc c 19985 1. Constraints on Global Communication Strategies (cont) Media Infrastructure Advertising Regulations –Advertising of “Vice Products” and Pharmaceuticals –Comparative Advertising –Content of Advertising Messages –Advertising toward Children

6. John Wiley & Sons, Inc c 19986 1. Constraints on Global Communication Strategies (cont) actions to cope with advertising regulations –1. Keep track of regulations and pending legislation –2. Lobbying activities –3. Challenge regulations in court –4. Adapt marketing mix strategy

7. John Wiley & Sons, Inc c 19987 2. Setting the Global Advertising Budget –Exhibit 14-5 European Computer Advertising; Ad Spending in US$ by Top 9 Marketers for January-December 1992 Percentage of Sales Competitive Parity Objective-and-Task –Exhibit 14-6 Survey on International Ad Budget Allocation Practices

8. John Wiley & Sons, Inc c 19988 3. Message Strategy The “Standardization” versus “Adaptation” Debate Merits of Standardization –Scale Economies –Consistent Image –Global Customer Segments –Creative Talent

9. John Wiley & Sons, Inc c 19989 3. Message Strategy (cont) –Cross-Fertilization –Exhibit 14-7 Agency Survey: Mean Importance of Reasons for Standardizing Multinational Advertising

10. John Wiley & Sons, Inc c 199810 3. Message Strategy (cont) Barriers to Standardization –Cultural Differences –Exhibit 14-8 Adaptation of Siemens Print Ad –Advertising Regulations –Market Maturity –“Not-Invented-Here” Syndrome

11. John Wiley & Sons, Inc c 199811 3. Message Strategy (cont) Approaches to Creative Advertising Copy –Export Advertising –Exhibit 14-9 Examples of Universal Appeals –Prototype (Pattern) Advertising –Concept Cooperation Advertising

12. John Wiley & Sons, Inc c 199812 4. Global Media Decisions Media Infrastructure –Exhibit 14-10 Ad Spending by Medium Media Limitations –Exhibit 14-11 Media Vehicles used by Pepisco in Vietnam –Exhibit 14-12 Media Advertising Costs

13. John Wiley & Sons, Inc c 199813 4. Global Media Decisions (cont) Recent Developments in the International 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

14. John Wiley & Sons, Inc c 199814 4. Global Media Decisions (cont) –Improved monitoring –Improved TV-viewership measurement –Exhibit 14-13 How Switching to People Meters Affected TV Ratings Worldwide

15. John Wiley & Sons, Inc c 199815 5. Choosing an Advertising Agency 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 a local office of a large international agency –4. Select an international network of ad agencies that spans the globe

16. John Wiley & Sons, Inc c 199816 5. Choosing an Advertising Agency (cont) criteria –Market coverage –Quality of coverage –Expertise in developing a central international campaign –Scope and quality of support services –Desirable image (“global” versus “local”) –Size of agency –Conflicting accounts

17. John Wiley & Sons, Inc c 199817 6. Coordinating International Advertising Monetary Incentives (Cooperative Advertising) Advertising Manuals Feedback via the Internet Lead-Country Concept Global or Pan-Regional Meetings

18. John Wiley & Sons, Inc c 199818 6. Coordinating International Advertising (cont) guidelines –1. Top management must be dedicated to going global. –2. A third party (e.g., the ad agency) can help sell key managers the benefits of going global. –3. A global brief based on cross-border consume research can help persuade managers to think in terms of global customers.

19. John Wiley & Sons, Inc c 199819 6. Coordinating International Advertising (cont) guidelines (cont) –4. Find product champions and give them charter for the success of the global marketing program. –5. Convince local staff that they have an opportunity in developing a global campaign. –6. Get local managers on the global marketing team: have them do the job themselves.

20. John Wiley & Sons, Inc c 199820 7. Other Forms of Communication Sales Promotions –Economic development –Market maturity –Cultural perceptions –Trade structure –Government regulations Event Sponsorships Trade Shows