1. Advertising Planning: An International Perspective Chapter 9

2. Ch 9: International 2 International Advertising Advertising that crosses national and cultural boundaries Important issue: Cultures not nations define advertising messages

3. Ch 9: International 3 International Advertising Ad Spending (billions) 2000 population (millions) Top Ad Category Top TV Program Ad Rate for Top Show (000) USA $147.1281.4AutomotiveSurvivor$200 Japan 39.7127.9CosmeticsHero150 (2 spots) Germany 20.782.9Mass MediaMillionaire72 UK 16.559.5FinanceCoronation St.147 France 10.759.7RetailJulie Lescaut83 Italy 8.457.9TelecommSan Remo109 S. Korea 6.447.7ComputersThree Friends5

4. Ch 9: International 4 Overcoming Cultural Barriers Barriers to successful international advertising –Ethnocentrism Tendency to view and value things through one’s own culture –Self-Reference Criterion (SRC) Unconscious reference to own cultural values, experiences, and knowledge to make decisions

5. Ch 9: International 5 Cross-Cultural Audience Research Economic conditions (LDC, NIH, HIC) Demographic characteristics Values Custom and ritual Product use and preferences

6. Ch 9: International 6 Executing Advertising Worldwide The Creative Challenge The Media Challenge The Regulatory Challenge

7. Ch 9: International 7 Creative Challenge Written and spoken language Translation difficulties Culture-bound picturing Assumptions and inferences Identifying cross-cultural icons

8. Ch 9: International 8 Media Challenges Availability and coverage –Not all media are pervasive –Some ads are not acceptable –Local knowledge is important for print Costs and Pricing –Rates must be negotiated –Global coverage is expensive –Bidding can escalate prices further

9. Ch 9: International 9 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?

10. Ch 9: International 10 Regulatory Challenges Can you use: –Ads directed to children? –Foreign languages in ads? –National symbols in ads? Advertising may be taxed

11. Ch 9: International 11 International Agency Options Global Agency –Greater integration –Economies of scale Local agency –Highly localized –Execution risks International affiliates –Local market expertise –Cultural adaptation

12. Ch 9: International 12 Ad Campaigns: Global versus local Global Campaigns Message MarketAMarketAMarketBMarketBMarketCMarketC Local Campaigns Message 1 Message 2 Message 3

13. Why can Jack Daniels’s use a global ad campaign when other advertisers often cannot?

14. Ch 9: International 14 Trends Promoting Global Advertising Global communications The global teenager Universal demographics and lifestyle trends Americanization of consumption values

15. McDonalds uses an “international” rather than “global” advertising strategy as evidenced by this ad. What’s the difference between the the two?