Presentation on : International Advertising

Consumers are not morons , she is your wife ! David Ogilvy

ADVERTISING : A non personal communication by an identified sponsor across international borders, using broadcast, print, &interactive media.

Global Advertising

For Standard Advertising

Against Standard Advertising Cultural differences are such that a message that works in one nation can fail in another Advertising regulations can block implementation of standardized advertising (Kellogg cornflakes) Hybrid = select some features to include in advertising campaigns & localize other features -> build international brand recognition yet customize ads to different cultures

Significant economic advantages – lowers the cost of value creation by spreading cost over many countries Creative talent is scarce so one large effort better than 40-50 small Justification = many brand names are global – project single brand image

Media Restrictions
• Limitations imposed by existing media:
   

Limiting number and types of ads Cultural differences Clustered ads Media scheduling

International Formats, Features, and Trends
Ads on Outdoor Umbrellas & Awnings Ads on Sides of Private Homes Billboards and Bus Stops

Product Placement
Placing brands in movies & TV programming with purpose of promoting products to viewers.

Shopping
QVC, Home Shopping Network (HSN) Home Order Television

Barriers to standardisation
Communication Infrastructure Agencies might not serve a particular market. Consumer Literacy Legal Restrictions & Self-Regulation Differing Values & Purchase Motivations Attitudes Toward Product Country of Origin

Budgeting Decisions
Objective-and-Task Method:
Identify advertising goals. Conduct research Determine cost of achieving goals. Allocate the necessary sum.

Percent-of-Sales Method
Base budget on past or projected sales.

Budgeting Decisions (contd.)
Competitive Parity
Use international competitors’ budgets as benchmark.

Executive-judgment method
Use collective executive opinion.

All-You-Can-Afford Historical Method
Base budget on past expenditures giving more weight to recent expenditures. Best suits small and medium firms.

International Advertising Infrastructure
Develop Ads In-House Local Advertising Agencies Home-Country Agencies International Agencies:
Top agencies are: Omnicom Group Interpublic Group Young & Rubicam (U.S.) WPP Group (U.K.) Dentsu, Inc. (Japan)

“Good advertising does not just circulate information. It penetrates the public mind with desires and belief.” Leo Burnett

Thank you