International Advertising and Promotion

Key Learning Objectives
‡ The importance of international marketing ‡ Factors in the international environment and how they influence advertising and promotion ‡ Pros and cons of global versus localized marketing and advertising ‡ The role of other promotional mix elements in the international IMC program

Int Marketing Communications?
‡³In a shrinking world, communications are becoming increasingly important in providing the means of differentiating firms and their products services from those of competitors« ‡«However, communications are extremely culturally sensitive and without attention to detail, they can be the source of many problems«´ ‡ Doole & Lowe, 1999, p.458

Reasons for the Importance of International Markets
Domestic markets for many products and services are stagnant

Many companies rely on foreign markets to survive, particularly those with small domestic markets

International markets offer growth opportunities for many companies

Competition has become global and marketers must be able to compete globally

Many Multinational Companies are Focusing on China for Growth .

Tourism Australia Uses a Global Campaign to Attract Visitors .

The Role of International Advertising and Promotion .

The International Environment Economic Environment International Marketing And Cultural Environment Promotional Decisions Demographic Environment Political/Legal Environment .

International Economic Environment Economic environment ‡ ‡ ‡ ‡ ‡ ‡ ‡ Stage of economic development Economic infrastructure Standard of living Per capita income Distribution of wealth Currency stability Exchange rates International Marketing And Promotional Decisions .

International Demographic Environment International Marketing And Promotional Decisions Economic environment ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Size of population Number of households Household size Age distribution Occupation distribution Education level Employment rate Income level .

International Cultural Environment Cultural environment ‡ ‡ ‡ ‡ ‡ ‡ Language Lifestyles Values Norms and customs Ethics and moral standards Taboos International Marketing And Promotional Decisions .

Intercultural Knowledge & IMC: Note Translation Difficulties! ‡ An American campaign using various shades of green was disaster in Malaysia where the colour symbolizes death and diseases ‡ General Motor¶s Vauxhall ³Nova´: µNo go¶ in Spain ‡ Pepsi¶s ³Come Alive with Pepsi´: ³Come Alive out of the Grave´ in Germany. and ³bring your ancestors back from the dead´ in Asia ‡ In Saudi Human nudity and face of women are forbidden in ads Dr Kwabena Frimpong .

Intercultural Knowledge & IMC: Note translation difficulties! ‡ Japanese Hotel: µyou are invited to take advantage of the chambermaid¶ ‡ Inscription at Laundry in Rome: µLadies leave your clothes here and spend the afternoon having fun¶ ‡ Hong Kong Dentist: Tooth extraction µby latest Methodists¶ Kwabena 1992) (Sunday Times.Frimpong .. 22DrNov.

style. it is perceived as warm. purple is associated with luxury. serious.Intercultural Knowledge & IMC: Symbols ‡White is colour of mourning in Japan while black has similar symbolism in the USA and Europe. youth and femininity in Britain. old. a little sad but dignified Dr Kwabena Frimpong . sophistication. ‡Green and white and blue have sectarian connotations in Glasgow ‡A recent study showed that Cadbury¶s dominant colour. but in Taiwan. quiet. the equivalent colour in Singapore is green.

International Political/Legal Environment International Marketing And Promotional Decisions Political/legal environment ‡ ‡ ‡ ‡ ‡ Government policies Laws and regulations Political stability Nationalism Attitudes toward multinational companies .

Advertising Aspects Subject to Regulation Type of products that may be advertised The content or creative approach used The media advertisers are permitted to use The amount of advertising one can use The use of foreign languages in ads Use of ad materials from outside the country Use of local versus international ad agencies The specific taxes levied on advertising .

marketing. and advertising to each of several societies throughout the world? Should we offer the same product.Global Marketer¶s Dilemma Should we adapt the product. and advertising throughout the world? . marketing.

distribution Lower costs with less in planning and control Lower advertising and production costs Ability to exploit good ideas worldwide Ability to introduce products quickly.Global Marketing and Advertising Advantages Economies of scale in production. company identity Simplification of coordination and control . worldwide Consistent international brand.

Problems With Global Advertising Differences in culture. market and economic conditions make it difficult to use global advertising Consumers¶ needs and usage Consumers needs and usage patterns often vary by country or region Media availability or usage may vary by country or region Legal restrictions may make it difficult to develop an effective universal appeal .

needs. new to the world. avoiding problems of translating words into many languages Brands promoted with image campaigns playing to universal appeals such as sex or wealth Globalization Often Works Best For: High-tech products.When is Globalization Appropriate Brands can be adopted for visual appeal. interests. not steeped in the cultural heritage of the country of origin Products with with a nationalistic flavor if the country has a favorable reputation in the field Products appealing to a market segment with universally similar tastes. and values .

TAG Heuer¶s Global Campaign .

Act Locally´ Adapt Messages to Respond To Differences in Language Differences in Cultural Use of Pattern Advertising Differences in Market Conditions .Global Products. Local Messages An In-between Approach Standardizing Products Localizing Ad Messages ³Think Globally.

Unilever¶s Dove Soap ± Same positioning and concept but different personalities .

.TaylorMade Used Pattern Advertising to Promote its Ads in the U.S. and U.K.

Decision Areas in International Advertising Organization Coordination of Other IMC Tools Agency Selection Decision Areas Media Selection Creative Decisions Advertising and Market Research .

Centralization of International Advertising Budgeting Media Strategy Central Authority Campaign Development Research Creative Strategy Agency Selection .

Standardise or globalise: ‡ the core message or idea (formula) ‡ advertising budget decisions ‡ use company-wide identity and design standards ‡ use globalised agency .

Adapt or localise: ‡ international symbols ‡ visuals ‡ language ‡ aesthetics. etc. .

but tap into local market knowledge through constant interaction . e.The Campaign Approach ‡ The key decisions include: ± the selection of outside agency to use ‡ depends on quality of coverage the agency can offer.g. McCann-Erickson cover up to 100 countries ± extent of centralisation or decentralisation of promotional decisions ‡ hold on to the benefit of strong central control.

Decentralization of International Advertising Campaigns Region One Creative Media Research Budgets Campaigns Central Authority Region Two Creative Media Research Budgets Campaigns Region Three Creative Media Research Budgets .

2. public relations. 3. Quality of agency work. 5. Relative roles of company advertising department and strategy. 4. Level of communication and control desired by company. and other services offered by the agency. .Criteria for Selecting an Agency to Handle International Advertising 1. Ability of agency to cover relevant markets. Market research.

Ability of agency to coordinate international campaign. 7. Company¶s desire for local versus international image. 10. . Size of company¶s international business. Company organizational structure for international business and marketing (centralized versus decentralized). 8. Company¶s level of involvement with international operations.Criteria for Selecting an Agency to Handle International Advertising 6. 9.

lifestyles. brand attitudes and media preference Information on media usage and audience size Copy testing to determine reactions to different types of advertising appeals and executions Research on the effectiveness of advertising and promotional programs in foreign markets .Advertising Research Information on demographic characteristics of markets Information on cultural differences such as norms. and values Information on consumers¶ product usage.

Creative Decisions Creative decisions should be based on advertising and communication objectives Copy platforms must be developed that include major selling ideas Specific appeals and execution styles must be selected Appeals may have to be adapted for local market conditions .

Coca-Cola Now Adapts its Advertising for Local Markets .

Local Media Reach Specialized Target Audiences .

International Media Selection Issues Quality Coverage Widely Differing Characteristics Restrictions Availability Cost Availability Reliability Circulation Audience Cost Media Information Problems .

International Media Provide Broad Coverage .

Foreign Market Sales Promotion Programs Major Creation Considerations Economic Development Market Maturity Consumer Perceptions Trade Structure Regulations .

trade associations and the general public Present the company as a good corporate citizen Serve as part of the IMC program and help market the product or service Deal with specific issues and problems the company may face in foreign markets .Role of Public Relations in Global Marketing Deal with local governments. media.

Public Relations/Publicity. Personal Selling.Summary/Conclusion ‡ International marketing communications mgt is an integrated function comprising key components such as: Advertising. Sales Promotions and Direct Marketing .

Summary/Conclusion ‡ Decision as to which aspects of the international marketing communication mix should be standardised or localised to achieve maximum impact is very critical ‡ Most times this depends on the structure of a particular company and its resources of nature of products .