Covering

The 4Ps only 3 covered here: Product, Price, Promo+on

- Branding and Product decisions in Global Marke9ng
- Pricing
- Communica9on decisions Adver9sing and PR

Case studies / ar9cles:

[ALON] pg 298-299 Lux: The art of cross-cultural branding

[HOLL] pg 431-437, The Dyson vacuum cleaner: shi^ing from domes+c to interna+onal
marke+ng with the famous bagless vacuum cleaner

Learning Objec9ves - Products, brands

Local, interna9onal, and

global products & brands
Maslows needs
hierarchy
Country of Origin brand
element
Strategic alterna9ves
New product con9nuum
Types of innova9on
110v or 220v ?

Basic Product Concepts

A product is a good,
service, or idea
Tangible A+ributes
Intangible A+ributes

Product classica9on
Consumer goods
Industrial goods

PVC pipe is an example of an

industrial product.

Labeling & Aesthe9cs

Provides consumers with various types of
informa9on
Regula9ons dier by country regarding various
products
Health warnings on tobacco products
American Automobile Labeling Act claries the
country of origin, and nal assembly point
European Union requires labels on all food
products that include ingredients from gene9cally
modied crops
Global marketers must understand the importance of visual
aesthe+cs
Aesthe9c styles (degree of complexity found on a label) dier
around the world

Packaging
Consumer Packaged Goods refers to products whose
packaging is designed to protect or contain the
product during shipping, at retail, or point of use
Eco-Packaging is key because package designers must
address environmental issues
Oers communica9on cues that provide consumers
with a basis for making a purchase decision

Brands
David Ogilvy, the Father of Adver9sing dened a brand as a complex
symbol. [] the intangible sum of a products a+ributes, its name,
packaging and price, its history, reputaAon, and the way its adverAsed. A
brand is also dened by consumers impression of people who use it, as
well as their own experience.


Brand equity

Aaker (91): a set of assets and liabili9es linked to a brands name

and symbol that add or subtract from the value provided by a
product or service to a rm and/or that rms customers

Keller (93): The *dieren+al eect that *knowing the brand name
has on *customer response to the product or its marke+ng.
i.e. the measure of brands ability to capture consumers preference and loyalty
HIGH equity =
q High brand awareness
q High perceived quality
q Strong brand iden+ty
q High brand loyalty

Brand Iden9ty
"...a unique set of brand associa9ons that the brand
strategist aspires to create or maintain. These
associa9ons represent what the brand stands for and
imply a promise to customers from the organiza9on
members.

Brand iden+ty should help establish a rela+onship
between the brand and the customer by genera9ng a
value proposi+on involving func+onal, emo+onal, or
self-expressive benets."
(Aaker, 1996:79)

Brand image
consumers percep+on and interpreta+on of
the brands iden9ty
meaning by which brand is known brands
may mean dierent things across markets
reected in way in which people describe,
remember and relate to brand

Products & Brands

LOCAL
Brands that have achieved success in a single na9onal market
Represent the lifeblood of domes9c companies
Entrenched local products/brands can be a signicant compe99ve hurdle to global
companies
INTERNATIONAL
Oered in several markets in a par9cular region
Euro-brands
Honda 5-door hatchback auto is known as Fit in Japan and Jazz in Europe
GLOBAL
Global products meet the wants and needs of a global market and are oered in all
world regions
Global brands have the same name and similar image and posi+oning throughout
the world
BMW : Ul9mate Driving Machine
GE: Imagina9on at Work
Visa: Life takes Visa
Harley-Davidson: An American Legend

Global Brand Characteris9cs

Quality signalallows a company to charge
premium price in a highly compe99ve market
Global mythmarketers can use global
consumer culture posi9oning to link the brand
iden9ty to any part of the world
Social responsibilityshows how a company
addresses social problems

Branding Strategies
Combina9on or +ered branding allows marketers to
leverage a companys reputa9on while developing a
dis9nc9ve iden9ty for a line of products
Sony Walkman

Co-branding features two or more company or

product brands
NutraSweet and Coca-Cola
Intel Inside

CPU

Brand Extension
Brand acts as an umbrella for new products
Example: The Virgin Group
Virgin Entertainment: Virgin Mega-stores and MGM Cinemas
Virgin Trading: Virgin Cola and Virgin Vodka
Virgin Radio
Virgin Rail (UK only)
Virgin Media Group: Virgin Publishing, Virgin Television,
Virgin Net (UK only)
Virgin Hotels
Virgin Travel Group: Virgin America Airways, Virgin Holidays,
Virgin Galac9c

Global Brand Development

Ques9ons to ask when management seeks to
build a global brand:
Does this move t the company and/or its markets?
Will an9cipated scale economies materialize?
How dicult will it be to develop a global brand
team?
Can a single brand be imposed on all markets
successfully?

Global Brand Development

Global Brand Leadership
Using organiza9onal structures, processes, and cultures to
allocate brand-building resources globally, to create global
synergies, and to develop a global brand strategy that
coordinates and leverages country brand strategies

1. Create a compelling value proposi+on

2. Think about all elements of brand iden+ty and select names, marks, and symbols that
have the poten9al for globaliza9on
3. Research the alterna9ves of extending a na+onal brand vs adop+ng a new brand
iden+ty globally
4. Develop a company-wide communica+on system
5. Develop a consistent planning process - assign specic responsibility for managing
branding issues
6. Execute brand-building strategies: harmonize, unravel confusion, and eliminate
complexity

Maslows Hierarchy of Needs

Asian Hierarchy of Needs

Hellmut Schse: geographic breakdown of the $200-plus billion global luxury goods market.
Fully 20 percent of industry sales are generated in Japan alone, with another 22 percent of sales
occurring in the rest of the Asia-Pacic region. Nearly half of all sales revenues of Italys Gucci
Group are generated in Asia.

Country of Origin as Brand Element

Percep9ons about and avtudes toward
par9cular countries owen extend to products
and brands known to originate in those
countries

English tea
French perfume
Jamaican rum
Chinese silk
Italian leather
Japanese electronics
USA: Polo, Land s End, Budweiser, Marlboro
Korea: LG, Hyundai, Daewoo, Samsung

French perfume

Extend, Adapt, Create: Strategic

Alterna9ves in Global Marke9ng
Extension oering product virtually
unchanged in markets outside of home
country
Adapta+on changing elements of design,
func9on, and packaging according to needs of
dierent country markets
Crea+on developing new products for the
world market

Standardisa9on
unlikely to be

Instead

complete uniformity across all countries some uniform features across all
countries

BENEFITS




cost reduc9on;
improved quality;

enhanced customer
preference
asract global
customers,
Segments
Johansson 2009

PROBLEMS
lack of uniqueness;
harder to
accommodate local
customers,
segments
vulnerable to trade
barriers
local compe+tor
threat

Standardisa+on localisa9on adapta+on?

marke+ngs greatest leverage in interna+onal strategy: link to upstream ac+vi+es
e.g. R&D, opera+ons, sourcing - thus saving costs

product design = key role

extent of design dierences

UNIVERSAL product
iden+cal other than
e.g. labelling,
language

Takeuchi & Nonaka 1986

MODIFIED product
physically similar,
same basic design
& technology
for core product
dierences e.g.
voltage, colour,
size, accessories
changes = minimal
cost

COUNTRY TAILORED
product
substan+al
dierences in local
tastes & usage
paperns
produc+on = small
% total costs

GLOBAL VS LOCAL BRAND

NOT global vs local BUT interna+onaliza+on con+nuum
(de Chernatony, Halliburton and Bernath 1995, Hsieh and
Lindridge 2005, Papavassiliou and Stathakopoulos 1997)

The third op+on: the interna+onal brand

- standardizes only a part of its marke9ng strategy and
tac9cs.
WHY? What would be the advantages?... (discuss)

Global brands advantages mostly on

the supply side

- economies of scale
- standardized marke9ng strategy and mix
- cost savings (e.g. R&D, promo9on)
- more investments into marke9ng ac9ons and/or
more compe99ve prices
- global distribu9on channels... beser bargaining
power
- interna9onal brand equity easier to access new
markets, launch new products and brand extensions


BUT added value for consumers too!


- strong, unique and consistent brand image across
markets
- greater esteem, beser perceived quality and brand
pres9ge.
- consumers feeling of belonging to a superior, more
pres9gious segment


... but cultural dierences are sAll the main barrier to
global branding

CULTURE - THE AGAINST ARGUMENT?

Hofstedes mental programming to emphasise the
importance of culture on peoples general behaviour

- consumers reinterpret the brands marke9ng ac9ons
- brand percep9on diverges from the brand expression
sent by the rm

F local brands proximity to local culture = beser
rela9ons with their consumers and beser response to
their needs;


CULTURE AS A PRO ARGUMENT

Levis (The GlobalizaAon of Markets, 1983)

media,
internet,
electronic mobility,
exposure to MNCs marke9ng campaigns,
use of English worldwide

Convergence of
cultures,
consumers tastes
and desires
(modernity)

new global consumer culture, with shared consump+on

issues

=> SO best op+on from supply side as well as consumers side!

BUT IS IT TRUE... ?


Globaliza+on - Two opposite trends:

1. shared consump+on symbols and lifestyles => transna9onal, global culture
in a sort of sameness on a planetary scale.
2. growing interest for local cultures, customs and lifestyles

F fragmented consumer culture
- combina9on of local + foreign + global
- not sa9sed by a completely globalised oer!

Glocaliza+on

INTERNATIONAL BRAND STRATEGY

1. Range of standardisa+on

Marke+ng mix each element can have more op+ons

I.e. comms strategy the standardiza9on ques9on should address
four dierent elements of this strategy: the mission, the
proposi9on, the concept and the execu9on

Strategic op+ons VS Opera+onal op+ons

Brands core essence / image
standardisa+on
vs
on the execuAon of that vision / markeAng mix
adapta+on
WHY?
.... brand success and con9nuity across markets and cultures

Standardised brand form and

addi9ons (posi9oning:
exclusive)

BUT ....

Dierent meanings of

exclusive dierent

brand communica9on

Voice overs
in ads in 26
languages

Standardised product,
brand name, message,
packaging and visuals

DETERGENTS

Standardised:

brand image
packaging

Adapted:

dierent name, formula+on
(fragrance, phosphate levels,
addi+ves)

Global brands, local tastes

The Standardiza9on versus Adapta9on

Dilemma
Five Alterna9ves
1. The domes9c product is exported with no
adapta+on
2. The domes9c product is exported with
adapta+ons
3. A global standardized product is created for
a transna9onal segment across many
markets
4. A global product is created for a
transna9onal segment, with some
adapta+on for local markets
5. A new product is created to target a foreign
market

The phenomenon is
complex, as it must
take into account
the rela9onship
among market,
industry and
company factors

Advantages and Drawbacks of

Standardiza9on and Adapta9on

So how do managers decide on their

standardisa:on op:ons?

Not an easy problem to solve...

1. products global voca+on

- product category (not all with the same global poten9al);

- six determinants of global voca9on:
universality of needs;
technology intensive/digital products,
products with shared values (ie heroism, romance);
industrial or commercial (B2B easier);
stage of product lifecycle on dierent markets;
cultural aspects (culture free easier to standardise,
than culture bound)



2. geographic range of target segments.

Interna+onal segmenta+on - essen9al in developing interna9onal
strategies and geographic standardisa9on.

- Ver9cal segmenta9on (homogenous group of countries t for
regionalising)
Vs
- Horizontal segmenta9on (true global segments where the
interna9onal brand should globalise its marke9ng). Based on:
consumers needs, desires, tastes; consumer behaviour in general;
shared values/cultural dimensions; accultura9on to the global
consumer culture (cosmopolitanism); socio-economic level.

GLOBAL VOCATION?

Global brand strategy: ... high global voca9on targe9ng a globally homogeneous
public.
= highly standardize brand essence + execuAons.

Glocal brand strategy: ... weak global voca9on targe9ng a globally homogeneous
public. = standardize essence across markets + adapts execuAons to regional /local
condiAons.

Regional brand strategy: ... Products global voca9on is weak, and regional public
= dierent regional brand line + AdaptaAons consistent with the global brand

Dieren+ated brand strategy: ... Product is highly global, demand has regional
characteris9cs
= standardize execuAons + dierenAate its essence (mainly through communicaAon
and brand personality) to meet regional targets.

Benets of Standardiza9on
Dierences in environmental factors
Cost reduc9on
Economies of scale in R&D, produc9on, marke9ng,
managerial and organiza9onal processes

Global image
Strong corporate image (e.g. Nike, Coca Cola, McDonalds)

Easier planning and control

Development and Implementa9on of Strategies

Diusion of innova9on
Quick ROI favors spread of product innova9on

Benets of Adapta9on
Mo9va9on of local managers
S9mulates Crea9vity

Higher sa9sfac9on of local consumers

Increases companys compe99ve poten9al

Legal issues and dierences in technical

standards
E.g. video game standards

Costs of distribu9on, coordina9on and

personal clients services
Localiza9on Advantages

Product Asributes
One of the main issues dening the interna9onal
product oer is to determine which product
apributes can be standardized and which must be
adapted.
Product asributes which have to be analyzed are
the following:
regula9ons and standards
style and design, color and product quality
packaging
branding
country of origin
service asributes

Global Product Planning:

Strategic Alterna9ves

Strategy 1: Common for B2B

Strategy 2: Low-cost because the product is unchanged, communica9on is adapted
Strategy 3: Cadillac wanted to sell 20,000 autos outside the U.S. by 2010; adapted to local
market requirements
Strategy 4: Combines local market condi9ons recognized in Strategies 2 and 3

Strategy 1: Dual Extension

Product-Communica+on Extension
May be very protable, simple
Almost no adapta9on
Same adver9sing and promo9onal appeals
Used with B2B or industrial products

Apple iPhone
Loc9te adhesives
Microsow Windows 7

Strategy 2: Product ExtensionCommunica+ons Adapta+on

Products may serve the same or dierent needs
in dierent markets
No product changes reduce expense
Costs in market research adver9sing, sales
promo9on, point-of-sale material
Ben& Jerrys changed packaging color in the U.K

Strategy 3: Product Adapta+onCommunica+ons Extension

Adapt the product to local use but the message
stays the same
Cadillac BTS in Sweden is 6 shorter that the CTS;
available in diesel
Oreos in China failed un9l they were reformulated to be less sweet
and expensive

Strategy 4: Product- Communica+ons

Adapta+on
Dual Adapta+on
Both may need to change for legal, cultural or other
environmental reasons
Regional managers may simply act independently

Nike global shoes and Just Do It approach

didnt work in China
Less expensive shoes created in country and ads
featuring Chinese athletes in line with cultural
principles of harmony and respect for authority

How to Choose a Strategy?

Two errors that management makes in
choosing a strategy
NIH (Not invented here) syndrome means
managers ignore the advancements of
subsidiaries overseas
Managers impose policies upon subsidiaries
because they assume what is right for customers
in one market is right in every market

Case study
[ALON] pg 298-299 LUX: THE ART OF CROSS-CULTURAL
BRANDING

You need to visit websites!

Pricing - Learning Objec9ves

Pricing Concepts
Global Pricing Objec9ves and
Strategies
Incoterms
Price Impacts of Environmental
Inuencers
Ethnocentric/polycentric/geocentric

pricing decisions
Gray market goods
Dumping
Price xing
Transfer pricing
Countertrade

Global Pricing Objec9ves and Strategies

The Global Manager must develop systems
and policies that address
Price Floor: minimum price
Price Ceiling: maximum price
Op9mum Prices: func9on of demand

Must be consistent with global

opportuni+es and constraints
Be aware of price transparency created by
Euro zone, Internet

Global Pricing Objec9ves and Strategies

Managers must determine the objec9ves for the pricing
objec9ves
Unit Sales
Market Share
Return on investment

They must then develop strategies to achieve those

objec9ves
Penetra9on Pricing
Market Skimming

a product may be posiAoned as a low-priced, mass-market product in some countries and a
premium-priced, niche product in others

Market Skimming & Financial Objec9ves

Market Skimming
Charging a premium
price
May occur at the
introduc9on stage of
product life cycle
Luxury goods marketers
use price to dieren9ate
products
LVMH, MercedesBenz

Penetra9on Pricing and Non-Financial

Objec9ves
Penetra9on Pricing
Charging a low price in order
to penetrate market quickly
Appropriate to saturate
market prior to imita9on by
compe9tors

Packaged food product makers,
with products that do not merit
patents, may use this strategy
to get market satura9on before
compe9tors copy the product.

1979 Sony Walkman

The Target-Cos9ng Process

Determine the segment(s) to be targeted, as well as the
prices that customers in the segment will be willing to
pay.

Compute overall target costs with the aim of ensuring the
companys future protability.

Allocate the target costs to the products various
func9ons. Calculate the gap between the target cost and
the es9mated actual produc9on cost.

Obey the cardinal rule: If the design team cant meet the
targets, the product should not be launched.

Pricing Factors for Goods That Cross Borders

1. Does the price reect the products quality?
2. Is the price compe++ve given local market condi9ons?
3. Should the rm pursue market penetra9on, market
skimming, or some other pricing objec+ve?
4. What type of discount (trade, cash, quan9ty) and
allowance (adver9sing, trade-o) should the rm oer its
interna9onal customers?
5. Should prices dier with market segment?
6. What pricing op+ons are available if the rms costs
increase or decrease? Is demand in the interna9onal
market elas9c or inelas9c?
7. Are the rms prices likely to be viewed by the hostcountry government as reasonable or exploita+ve?
8. Do the foreign countrys dumping laws pose a problem?

Cost-Plus Pricing
Rigid cost-plus pricing means that companies
set prices without regard to the eight pricing
considera9ons

Flexible cost-plus
pricing ensures that
prices are compe99ve
in the contest of the
par9cular market
environment

Ina9onary Environment
Dened as a persistent
upward change in price levels
Can be caused by an increase in
the money supply
Can be caused by currency
devalua9on

Essen9al requirement for

pricing is the maintenance of
opera9ng margins
Brazil ina9on in late 1980s (2000%) prices changed several 9mes / day

Global Pricing:
Three Policy Alterna9ves
Extension or Ethnocentric
Adapta9on or Polycentric
Geocentric

Mercedes moved beyond ethnocentric

pricing when Toyota began oering
Lexus at $20k less. In 1993, Mercedes
boosted employee produc9vity,
increased low-cost suppliers and
invested in produc9on facili9es in the
U.S. to move to beser pricing.

Extension Pricing
Ethnocentric
Per-unit price of an item is the same no maser where in the world the
buyer is located
Importer must absorb freight and import du9es
Fails to respond to each na9onal market

"In the past, Mercedes vehicles would be priced for the European
market, and that price was translated into U.S. dollars.
Surprise, surprise: You're 20 percent more expensive than the
Lexus LS 400, and you don't sell too many cars.

-Joe Eberhardt, Chrysler Group Execu9ve VP for Global Sales,
Marke9ng, and Service

Adapta9on or Polycentric Pricing

Permits aliate managers
or independent
distributors to establish
price as they feel is most
desirable in their
circumstances
(Ikea, McGraw Hill)
AIDS drugs meant for Africa
are smuggled into Europe

Sensi9ve to market condi9ons but creates

poten9al for gray marke9ng

Geocentric Pricing
Intermediate course of
ac9on
Recognizes that several
factors are relevant to
pricing decision
Local costs
Income levels
Compe99on
Local marke9ng strategy

Dumping
Sale of an imported product at a price lower than that normally
charged in a domes9c market or country of origin
Occurs when imports sold in the U.S. market are priced at either
levels that represent less than the cost of produc9on plus an 8%
prot margin or at levels below those prevailing in the producing
countries
U.S. law, the Byrd Amendment, provides for payment to companies
harmed by dumping
To prove, both price discrimina9on and injury must be shown

Global An9-Dumping Ini9a9ons from 1995 to 2008

Price Fixing
Representa9ves of two or more companies secretly set
similar prices for their products
Illegal act because it is an9compe99ve
Horizontal price xing occurs when compe9tors within an
industry that make and market the same product conspire to
keep prices high
Ver+cal price xing occurs when a manufacturer conspires
with wholesalers/retailers to ensure certain retail prices are
maintained
For example, in 2011 the European Commission determined that Procter & Gamble, Unilever, and Henkel had conspired
to set prices for laundry detergent. The term horizontal applies in this instance because Procter & Gamble and its coconspirators are all at the same supply chain level (i.e., they are manufacturers).

The European Commission ned Nintendo nearly $150 million awer it was determined that the video game company
had colluded with European distributors to x prices. During the 1990s, prices of Nintendo video game consoles varied
widely across Europe. They were much more expensive in Spain than in Britain and other countries; however,
distributors in countries with lower retail prices agreed not to sell to retailers in countries with high prices.

Global Marke9ng Communica9ons

Learning objec+ves
Dene global adver9sing and companies that are
highest spenders
Learn how global ad agencies are structured
Iden9fy the key roles of ad agency personnel
Look at dierent kinds of media worldwide
Examine the role of PR and Publicity and the nega9ve
impact on companies recently

IMC
Integrated Marke9ng Communica9ons (IMC) is becoming
more popular because of the challenges of communica9ng
across na9onal borders

We have an integrated markeAng model that involves all elements of

the markeAng mix from digital to sports markeAng, from event
markeAng to adverAsing to entertainment, all siSng at the table
driving ideas.

-Trevor Edwards, VP for

global brand and
category management
at Nike

Global Adver9sing

Adver9sing is any sponsored, paid

message that is communicated in a
non-personal way
Single country
Regional
Global

Global adver9sing is the use of
the same adver9sing appeals,
messages, art, copy, photographs,
stories, and video segments for
worldwide suitability

Worldwide Market Segments

Eighteen-year olds in Paris have
more in common with 18-yearolds in New York than with their
own parents. They buy the same
products, go to the same
movies, listen to the same
music, sip the same colas. Global
adverAsing merely works on that
premise.
- William Roedy, Director, MTV
Europe

Standardiza+on vs. Adapta+on

Primary Issue
Must the specic adver9sing message and
media strategy be changed from region to
region or country to country?

Think of cultural and legal issues

DRIVERS FOR COMMUNICATION

Standardisa+on vs adap+on
Standardisa+on
Improve eciency / cost
reduc+ons in planning
and control
Provision of added-value
(perceived)
Consistency
Building an interna+onal
brand, and company
image.

Adap+on
Cultural dierences
Poli9cal and legal
constraints
Local circumstances:
Stage of economic
development, of product
life cycle, media
availability

OR CONTINGENCY APPROACH?
... the most eec9ve adver9sing strategy varies
depending on the situa9on(Kotler,1986)

Agrawal, M (2005): con9ngency = recommending a situa9on analysis before

determining the right adver9sing strategy

Papern Adver+sing
A middle ground between 100% standardiza9on
and 100% adapta9on
A basic pan-regional or global communica9on
concept for which copy, artwork, or other
elements can be adapted as required for
individual countries

Pasern Adver9sing

Similar:
Layout
Dominant visuals on left
Brand signature and slogan

Contrasting:
Photos
Body copy is localized,
not simply translated

Considering the session on

culture...
Adver+sing styles

vAppeal
Reects values and mo9va9ons (emo9onal, ra9onal, selling)
Product values or added values
vCommunica+on style
Verbal vs visual, direct vs indirect
Basic adver9sing form
Lecture style, demonstra9on
Drama, indirect approach
Pure entertainment
vExecu+on
Reec9on of peoples lives

Appeals

Purity
UAI+

Collec9vism:
Group iden9ty
Individualism: Alone

Adver+sing Styles
Japan

IDV
Structure
UAI+

UAI-

Germany

Argen+na
Spain
Italy

Brazil

Arab world

Finland
Personal

Aesthe+cs
Entertainment
Emo+ons

Drama
Metaphors

India

Netherlands
USA
Norway
UK
Sweden
Denmark
Humor

China

Play with
words

Symbolism

Indirect & Implicit

Direct & Explicit

Austria

IDV/COL

France

Singapore

COL

IDV
PDI-

PDI+

Direct-Indirect

Explicit - Implicit
Verbal - Visual
Facts - Symbols
Lecture style - Entertainment

Direct address

Direct address

Indirect: Spain: Indirect way to tell here is a group of people with Friday feeling

Thai airlines: small world

Indirect approach
Metaphors, symbols
Spain

Belgium

France
Japanese Do Co Mo
in intl journal

Visual & symbolic

Symbolism

Adver+sing and cultural dimensions

(more details)

Individualis+c vs collec+vis+c cultures

Japanese ads focus on inducing posi9ve feelings rather than provide
informa9on; China and Korea - focus on in-group benets, harmony
and family are more eec9ve vs US - appeals to individual benets
and preferences, personal success and independence (Han & Shavis
1994).
Timing of ads: typical Japanese ad - iden9ca9on of the brand/
company name/product appears later than in US commercials
(Miracle et al. 1992)

 The use of celebri+es in adver9sing is related to collec9vism,

where the func9on of a celebrity is to give a face to the brand in a
world of brands with similar product asributes (Praet 2001).
Direct style of individualis9c cultures may be oensive to
members of collec9vis9c cultures. This also applies to
communica9ons on the internet.

Low power vs high power distance:

low power and individualis+c: consumers want to be informed,
gather info and solve problems (ads help buyers make a choice
from various alterna9ves)
informa+on is an instrument to persuade consumers!

Appeals individualis+c / collec+vis+c:

IDV
- Direct approach: You, We, I [Nike, Lucky Strike]
- Keeping nice things for oneself [Magnum awer
dinner print ad and TV commercial, Evers]
- Alone can be relaxing [Germany: Jever beer]


COL
- Individuals part of groups [Chiyoda and
Ballen9nes]
- Sharing [Hermesetas]
- Spain: Enjoyment in the group [L&M, Mahou]

I get, I choose

Spain: beser in a group

Magnum awer dinner

The typical thing to share, but keeping it for oneself.

Sharing vs keeping for oneself

Portugal:
It is so good you have to share

Denmark:
It is so good you have to
keep it for yourself

Collec9vism: together

Japanese bank ad

Spain

Appeals - power distance:

PDI+
Boss must show status [Saideria Home, Japan]
Respect for boss [Boss canned coee]
Elder advises younger [Ace Poland]
Children dependent [Granorolo]; Adolescents keep
living at home [Barilla Italy]
PDI-
Younger advises elder [Fairy Germany, Yes Sweden]
Drive your boss mad [Lipton] or cheat your boss
[Smirno Ice, UK]
Children independent [Blue Band]

PDI+: Status: blue blood, tall ships

PDI+
genera9ons

PDI+: Old people

should dress like old people
Japan: independence is something foreign

PDI-: Denmark: drive your boss mad

Appeals Masculinity vs Femininity:

Masculine

Hype: Be the best, the greatest [SAP, Nikon, Skiny]

Show o [Seat Cordoba]
The big Mac, King of clubs [Taco Bell]
Role dieren9a9on [Jethro, Triumph, Casa Modena, Honda,
Swier US, Na9onal Japan]
Women can be tough [Hitachi, Japan]

Feminine

Caring, sowness, small [Norilsk]

Understatement [Carlsberg, Philips]
Dont show o [Audi]
Overlapping roles [Matas, Gronvang, Gallina Blanca, La Piara,
Maggi, Ajax, Yellow Pages Thailand, Familjen Dafgard Sweden]
Men can be tender [Asia Telecom, Thailand]

Masculine: The best, winning

Feminine: Small

Feminine: Understatement

Masculine: Show o

Italy:
A Seat Cordoba
must always be seen
Glass door in garage

Feminine: Dont show o

Netherlands: The neighbors cannot see the car, anyway, the

most important part is under the bonnet, nobody can see it.

Masculine: role dieren9a9on

Mexico

Feminine: Overlapping roles

Denmark

MAS: Control

But some+mes it all goes wrong...

Transla9ng adver9sing copy is like pain9ng the 9p of an iceberg and hoping the whole
thing will turn red (S. Anholt)

Do great ideas travel?

Most concepts do not travel
Not understood or
Misunderstood
LOral: Because I am worth it changes into because
you are worth it in Asia

Some well-known, very strong brands can aord to

develop strong adver9sing ideas and/or execu9ons that
do travel [Honda, Audi R8]

Adver+sing
+
Marke+ng
+
Foreign
Culture
=

Parker

Parker Pen marketed a ball-point pen in Mexico

Ads meant to say It wont leak in your pocket and embarrass you.
Translated embarrass as embarazar

Ads actually said: It wont leak in your pocket and make you pregnant.

Campaign
transla+on



Coca-Cola

Product name!
The Coca-Cola name in China:

Kekoukela, actually meaning Bite the Wax Tadpole or
Female Horse Stued with Wax, depending on the
dialect.

40,000 characters searched; found a phone9c equivalent
kokoukole, transla9ng into Happiness in the Mouth.

Global Media Decisions

Which medium or media to use?
Print such as daily and weekly newspapers to
magazines with regional, na9onal, or interna9onal
audiences
Electronic media like broadcast TV, cable TV, radio, and
the internet
Other such as outdoor, transit, and direct mail

Must know country-specic regula9ons

Ex. France bans TV ads by retailers

Global Adver+sing Expenditures

and Media Vehicles
More money spent in U.S. than anywhere else in the
world; $160 billion in 2012
Japan is #2 at $52 billion
1/3 of current growth in ad spending in BRIC
Russia has a $9.7 billion ad market with 13% growth
annually; U.S. and European growth is 3.5-4.5%

Worldwide, TV is the #1 medium with es9mated spending

of $163 billion in 2012; TV captured slightly more than
40% of global ad spending
In Germany newspapers are #1 adver+sing vehicle

Media Decisions
The availability of TV, newspapers and other media
varies widely globally
In developed countries, newspapers are declining
as Internet usage rises
In India, newly redesigned papers are growing
300 daily papers, only 4 million Indians subscribe to
Internet service

In Moscow, billboards are #1; In a city built for

30,000 cars, there are 3 million, crea9ng massive
trac jams and cap9ve audiences

Media Decisions: Arab Countries

People are depicted less owen than in the U.S.
Women may only appear in those commercials
that relate the adver9sed product
Women must wear long dresses
Brevity is a virtue in ads
Use of compara9ve adver9sing claims very
limited
U.S. ads have more price informa9on

Media Decisions: Scandinavia

Limited TV ads in
Sweden, Norway, and
Denmark
No adver9sing to
children under 12 in
Sweden
Spending on print
media is 3 9mes higher
than TV

Public Rela9ons
Fosters goodwill and
understanding
Generates favorable publicity
Tools

News releases
Media kits
Press conferences
Tours
Ar9cles in trade, professional journals
TV and radio talk show appearances
Special events
Social media
Corporate Web sites

Role of Public Rela9ons in Global

Marke9ng
PRs role is growing in the post global recession
Build consensus and understanding
Create harmony and trust
Ar9culate and inuence public opinion
An9cipate conicts and resolve disputes
Smartphones, broadband
Internet, social media,
satellite links allow PR
pros to stay in touch with
media anywhere, any9me

Case study
[HOLL] pg 431-437,
The Dyson vacuum cleaner: shi^ing from
domes+c to interna+onal marke+ng with the
famous bagless vacuum cleaner