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INTERNATIONAL
MARKETING MANAGEMENT

MBA.2: IB.A

HARDIK PATEL
ID NO: 0121KMKM0209
LONDON SCHOOL OF COMMERCE
 PART (A)
THEODORE LEVITT’S SEMINAL ARTICLE ‘THE GLOBALISATION
OF MARKET’ (Harvard Business review 1983) CAUSED MANY
COMPANIES TO EXAMINE THEIR INTERNATIONAL ADVERTISING
STRATEGIES AND TO ADOPT A GLOBAL STRATEGY. WHAT
PROBLEMS DO YOU SEE IN SUCH AN APPROACH?

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 INRODUCTION:
International advertising entails dissemination of a commercial message to target audiences in
more than one country. Target audiences differ from country to country in terms of how they
perceive or interpret symbols or stimuli; respond to humor or emotional appeals, as well as in
levels of literacy and languages spoken. How the advertising function is organized also varies. In
some cases, multinational firms centralize advertising decisions and budgets and use the same or
a limited number of agencies worldwide. In other cases, budgets are decentralized and placed in
the hands of local subsidiaries, resulting in greater use of local advertising agencies
(International Business Review, 2008)

International advertising used to be the concern of a limited number of companies using the
specialist sections of an even smaller number of advertising agencies. All limited even further by
a lack of international media markets. Today, the growing number of materialistic richer
consumers, developing international businesses and the increasing globalization of brands means
that thinking and acting internationally have become a necessity. Today, international advertising
is now a normal item in many companies and advertising agencies around the world. Country
borders were once seen as the main determinant of differences in consumption patterns, with
subsequent differences in promotion, product and even manufacturing approaches. (David J.
Hanger, 2005)

An advertising strategy is an operation developed to communicate ideas about products and

services to potential consumers in the hopes of convincing them to buy those products and
services. This strategy, when built in a rational and intelligent manner, will reflect other business
considerations and objectives as well. According to Alexander Hiam and Charles D. Schewe
“A business's advertising strategy "determines the character of the company's public face." Even
though a small business has limited capital and is unable to allocate as much money to
advertising as a large corporation, it can still develop a highly effective advertising campaign..

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Today, most advertising strategies focus on achieving three general goals, as the Small Business
management indicated that Advertising Your Business as : 1) promote awareness of a business
and its product or services; 2) stimulate sales directly and "attract competitors' customers"; and
3) establish or modify a business' image. In other words, advertising seeks to inform, persuade,
and remind the consumer. With these aims in mind, most businesses follow a general process
which ties advertising into the other promotional efforts and overall marketing objectives of the
business. (Adams, Bob, 1996)

Strategy is an international context is a plan for the organization to position itself vis-à-vis its
competitors, and resolve how it wants to configure its value chain activities on a global scale. Its
purpose is to help managers create an international vision, allocate resources, participate in major
international markets, be competitive, and perhaps reconfigure its value chain activities given the
new international opportunities. Global strategy involves: competing everywhere, appreciating
that success demands a presence in almost every part of the world in order to compete
effectively, making the product same for each market, centralized control, taking advantage of
customer needs and wants across international borders, locating their value adding activities
where they can achieve the greatest competitive advantage, integrating and coordinating
activities across borders. There four main advantages of global strategy such as economic of
scale, lower costs, coordination of activities and faster product development (Philip Kotler,
1993) Globalized advertising is generally associated with the use of the same brand name across
the world. However, a company may want to use different brand names partly for historic
purposes. Many global firms have made acquisitions in other countries resulting in a number of
local brands. These local brands have their own characteristic market and a company may find it
counterproductive to change those names. Global advertising themes are most advisable when a
firm may market to customers seeking similar benefits across the world. Once the purchasing
reason has been determined as similar, a common theme may be created to address it. With
global strategy, the headquarters seeks substantial control over its country operations in an effort
to minimize redundancy, and achieve maximum efficiency, learning, and integration worldwide.
(Theodore Levitt, 1975)

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 PROBLEMS:

The main problems see in international advertising strategies are language barrier, cultural
diversity and media limitation as well as customers preferences. The given problems describe as
below:

A) Language barrier: language is one of the major barriers to effective communication through
advertising. The problem involves different languages of different countries, different languages
or dialects within one country. For example: The Bacardi Company wanted to sell the drink
“Pavane” in Germany, but “pavane” is perilously close to “pavian” which means “Babbon”.
Another example, a company marketing tomato paste in the Middle East found that in Arabic the
phrase tomato paste translates as tomato glue. Language translation encounters innumerable
barriers that impact effective. Communication is impeded by the great diversity of cultural
heritage and education which exists within countries and which causes varying interpretations of
even single sentences and simple concept. Some companies have tried to solve the translation
problem by hiring foreign translators.

B) Cultural Diversity: Communication is more difficult because cultural factors largely

determine the way various phenomena are perceived. If the perceptual framework is different,
perception of the message it differs. Knowledge of cultural diversity must encompass the total
advertising project.

C) Media Limitation: Media may diminish the role of advertising in the promotional program
and may force the marketers to emphasis the other elements of promotional mix. A marketer’s
creativity is certainly challenged when a television commercial is limited to 10 showing a year
with no two exposures closer than 10 days. In some African countries advertisers run boats up

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and down the rivers playing popular music and broadcasting commercial into the bush as they
travel. (Bovee, Courtland L., and William F. Arens, 1989)

The main problem see while adopting a global strategy is:

1) It is challenging for management, particularly in highly centralized organization, to closely

coordinate the activities of a large number of widely- dispersed international operations.

2) The firm must maintain ongoing communication between headquarters and the subsidiaries, as
well as among the subsidiaries.

3) When carried to an extreme, global strategy results in a loss of responsiveness and flexibility
in local markets.

4) Local managers who are stripped of autonomy over their country operations may become
demoralized, and lose their entrepreneurial spirit. (Hills, Gerald E, 1997)

EXAMPLE:

Sony have successfully created an incredible brand name previously, however, its legend
seem to be falling apart recently. In fact, Sony’s net profit for the July-September quarter for
2006 falling 94% to 1.7 billion Yen, compared to 28.5 billion Yen for the same period last year
(Benson, 8th Nov 2006). The major reasons for the declining profit are affected by the critical
strategic issues faced by Sony which became a main drawback for them. Sony must learn from
their mistake and implement more effective and efficient strategies if they want to get out from
this current unfavorable situation. Besides than their current strategies, alternatives strategies
suggested above should become another major concern for Sony to ensure that they can
effectively rebuilt their poor reputation and regain more market share in the future.
(www.sony.net)

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 CONCLUSION:
Thus we see advertising has multiple layers to it. A lot more than what actually meets the
consumer’s eye goes into creating a successful advertisement or an advertisement campaign. In
today’s era of consumerism the need for advertisements to break the clutter and stand out
becomes absolutely imperative. Advertising has multiple media at its disposal with each having
its respective strengths and limitations. Digital media advertising (internet, mobile and digital
signage) is expected to emerge as the medium of choice for advertisers. Of the available media, it
was the fastest growing segment in 2008. (Shea, Barbara S., 1995). Its better return on
investment and the comparative ease with which its efficacy can be measured will ensure that the
trend continues. International advertising is a creative and cultural challenge. Before conveying
any message one must have a fair idea about the sensitivities that are specific to every culture.
For instance, different cultures have different flavours of humour. An Indian advertisement
cannot humour the elders as it would offend the cultural beliefs that the country represents. An
advertisement campaign is a big challenge. The critical part of making an advertising campaign
is determining a campaign theme, as it sets the tone for the individual advertisements and other
forms of marketing communications that will be used. Advertisement is therefore, has elements
of both an art as well as science.

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 REFERENCE:
1) Adams, Bob. Adams Streetwise Small Business Start-up. Holbrook, MA: Adams Media
Corporation, 1996.

2) International Business Review Volume 17, Issue 3, June 2008, Pages 235-249)

3) David J. Hanger Practice of Advertising (Fifth Edition) 2005, Pages 297-310

4) Theodore Levitt, Harvard Business Review, Marketing Myopia-September-October 1975

5) Philip Kotler, Ronald E. Turner, Marketing Management- seventh edition, 1993

6) Bovee, Courtland L., and William F. Arens. Contemporary Advertising. 3d ed. Homewood,
IL: Irwin, 1989.

7) Hills, Gerald E. "Market Opportunities and Marketing." The Portable MBA in

Entrepreneurship. Edited by William D. By grave. 2d Ed. New York: John Wiley & Sons, 1997.

8) Cohen, William. The Entrepreneur and Small Business Problem Solver. 2d Ed. New York:
John.

9) Shea, Barbara S., with Jennifer Haupt. Small Business Legal Guide. New York: John Wiley
& Sons, 1995.

10) David Gartner, Ph.D., International Marketing Management (IMM) Course Slides and Notes,
Thunderbird, The American Graduate School of International Management- Summer 2001

11) http://www.sony.net/SonyInfo/CorporateInfo/index.html

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PART (B)
Suggest some of the particular cautions that an individual from a high context
culture should bear in mind when dealing with someone from a low context
culture. Do the same for a low to high context culture situation.

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 • INTRODUCTION:
Edward T. Hall, a Foreign Service veteran, identified the concepts of high-context and low-
context in the 1960’s to categorize differences in communication styles. In his Beyond Culture,
published in 1976 by Anchor Press/Doubleday, in New York, Hall states: “High context
transactions feature pre-programmed information that is in the receiver and in the setting, with
only minimal information in the transmitted message. Low context transactions are the reverse.
Most of the information must be in the transmitted message in order to make up for what is
missing in the context.”(Edward T. Hall, 1976)

The general terms "high context" and "low context" (popularized by Edward Hall) are used to
explain broad-brush cultural differences between societies. High context refers to societies or
groups where people have close relations over a long period of time. Many aspects of cultural
behavior are not made open because most members know what to do and what to think from
years of relations with each other. Your family is most likely an example of a high context
environment. Low context refers to societies where people tend to have many relations but of
shorter duration or for some specific reason. In these societies, cultural behavior and attitude may
need to be spelled out clearly so that those coming into the cultural environment know how to
behave. (Adler, N., 1997)

A culture is not identified as high or low in an absolute sense, but rather, each message can be
presented on a continuum from high to low. Likewise, a culture (French Canadian) may be of a
higher context than one (English Canadian) but lower context than another (Spanish or French).
Likewise, a stereotypical individual from Texas (a higher context culture) may communicate
more with a few words or use of a prolonged silence, than a stereotypical New Yorker who is

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being very explicit, despite both being part of a culture which is overall of lower-context. While
the milieu of individuals in a culture can be diverse, and not all individuals can be described by
strict stereotypes, understanding the broad tendencies of predominant cultures of this world can
help us inform and educate ourselves on how to better facilitate communication between
individuals of differing cultures. (Chatman, J.A. & Barsade, S.G., 1995)

• Humor:

“A high-context joke from a high context culture will not translate well to someone of a different
culture, even another high-context culture. Humor is very much about context, as a joke may not
be considered very funny if it seems like it is over-explained using only low-context messages”.
(Cox, T., 1993)

 An individual from high context culture should bear the below cautions in mind when
dealing with someone from a low context culture:

An individual from a higher context culture may need to caution when dealing to a lower context
culture. A lower context culture demands more independence, and expects many relationships,
but fewer intimate ones. A high context individual is more likely to ask questions rather than
attempt to work out a solution independently, and the questions are likely to be asked from the
same few the same few people. The high context person may be frustrated by people appearing
to not want to develop a relation or continue help them on an ongoing basis. The term ‘Hand-
holding’ might be used in an unintentional derogatory sense.

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High Context culture’s cautions:

 Less verbally explicit communication, less written/formal information

 More internalized understandings of what is communicated

 Multiple cross-cutting ties and intersections with others

 Long term relationships

 Strong boundaries- who is accepted as belonging vs. who is considered an "outsider"

 Knowledge is situational, relational.

 Decisions and activities focus around personal face-to-face relationships, often around a
central person who has authority.

Examples:

Small spiritual congregation, a party with friends, family gatherings, expensive connoisseur
restaurants and neighborhood restaurants with a regular clientele, undergraduate on-campus
friendships, regular pick-up games, hosting a friend in your home overnight. (Gannon, M.
1998).

 An individual from low context culture should bear the below cautions in mind when
dealing with someone from a high context culture:

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An individual from a low context culture may need to cautions when dealing to a higher context
culture. Higher context culture expects small close groups, and reliance on that group. Groups
can actually be relied upon to support each other, and it may be difficult to get support outside of
your group. Professional and person lives often intertwine. A lower context individual may be
more likely to try to work things out on their own and feel there is a lack of self-service support,
rather than ask questions and take time to develop the relationships needed to accomplish the
things that need to be done.

Low Context culture’s cautions:

• Rule oriented, people play by external rules

• More knowledge is codified, public, external, and accessible.

• Sequencing, separation--of time, of space, of activities, of relationships

• More interpersonal connections of shorter duration

• Knowledge is more often transferable

• Task-centered. Decisions and activities focus around what needs to be done, division of
responsibilities.

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Examples:

Large US airports, a chain supermarket, a cafeteria, a convenience store, sports where rules are
clearly laid out, a motel. (Gannon, M., 1998).

• Entering High and Low Context Situations

High contexts can be complicated to enter if you are a foreigner (because you don't carry the
context information within, and because you can't directly create close relationships). Low
contexts are comparatively easy to enter if you are a foreigner (because the environment contains
much of the information you need to contribute, and because can you form relationships rather
soon, and because the important thing is accomplishing a task rather than feeling your way into a
relationship). Remember that every culture and every situation has its high and low aspects.
Often one situation will contain an internal high context core and an outer low context hoop for

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those who are less involved. For instance, a PTA is usually a low context situation: any parent
can join, the dates of the meetings, who is president, what will be discussed, etc. are all explicitly
available information and it is usually fairly clear how to take part in the meetings. However, if
this is a small town, maybe the people who run the PTA all know each other very well and have
many overlapping interests. They may "agree" on what should be discussed or what should
happen without ever really talking about it, they have insensible, constrained values that
influence their decisions. Other parents from outside may not understand how decisions are
actually being made. So the PTA is still low context, but it has a high context subgroup that is in
turn part of a high context small town society. (Hall, E., 1990)

• Conclusion:
Culture is the main point behind inter cultural communication, understanding that culture is the
most important key in inter cultural communication. There are some important main aspects in
communication such as power, social framework, non-verbal communication, and time. Study
the history and language of the other culture. Begin to develop a warm personal relationship with
the other side's negotiator even before negotiations start. Do not assume the other side interprets
things in the same way that you do. Be alert and sensitive to nonverbal or indirect
communication, and be aware of your own nonverbal cues. Be aware of and respect the
importance of maintaining face. Well your negotiating strategy to the opponent's cultural needs,
haggling when suitable or starting from general principles. Compromising in the face of an
opponent's inflexibility may simply confuse the situation, since their inflexibility is often
calculated to make you reveal your bottom line. Low context negotiators must cultivate patience.
Finally, agreements must be presented in a form which preserves face all around.
Communication itself is an exchange of information between senders and receivers, and thus,
people easily refer it as a simple matter. However, communication is very complex and high-
technological context to understand and to use. This complex context becomes more difficult
when culture is involved. Different cultures have different ways to communicate, and by
understanding how these cultures communicate, effective inter-cultural communication can be
achieved.

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 • Reference:
1) Edward T. Hall, a Foreign Service veteran, identified the concepts of high-context and low-
context in his book: “Beyond Culture”, published by Anchor Press/Doubleday, New York, 1976

2) Adler, N. (1997). International Dimensions of Organizational Behavior, 2nd Ed. Boston:

South-Western College Publishing.

3) Chatman, J.A. & Barsade, S.G. (1995). Personality, organizational culture, and cooperation:
Evidence from a business simulation. Administrative Science Quarterly, 40, 423-443.

4) Cox, T. (1993). Cultural Diversity in Organizations. San Francisco: Berrett-Koehler..

5) Gannon, M. (1998). Integrating context, cross-cultural dimensions, and cultural metaphors in

management education and training. Paper presented at the Biennial International Conference of
the Western Academy of Management, Istanbul, Turkey, June 28-July 2, 1998.

6) Hall, E. (1990). Understanding Cultural Differences. Yarmouth, ME: Intercultural Press.

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