19

International Advertising
and Promotion

McGraw-Hill/Irwin Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed

Importance of International Markets

Stagnation of domestic markets

Company survival

Growth and profit opportunities

Trade Balance

19-2
Tourism Australia Uses Global Advertising

19-3
International Advertising & Promotion

Rank Advertiser Outside U.S. Inside U.S.

1 Proctor & Gamble $6,364 $3,367
2 Unilever 4,965 752
3 L’Oreal 3,242 798
4 General Motors 1,442 2,232
5 Toyota Motor Corp. 2,181 1,022
6 Coca-Cola Co. 2,231 442
7 Johnson & Johnson 1,181 1,402
8 Ford Motor Co. 1,436 1,012
9 Reckitt Benckiser 1,842 544
10 Nestlé 1,696 618

Ad Spending in Millions of U.S. dollars

19-4
International Economic Environment

Economic Cultural
Environment Environment

International
Marketing
&
Promotional
Decisions

Demographic Political/Legal
Environment Environment

19-5
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

19-6
Liu Xiang Endorses Nike in China

19-7
International Demographic Environment

International Marketing
And Promotional Decisions

Demographic Environment
• Size of population
• Number of households
• Household size
• Age distribution
• Occupation distribution
• Education levels
• Employment rate
• Income levels

19-8
International Cultural Environment

Cultural Environment
• Language
• Lifestyles
• Values
• Norms and customs
• Ethics and moral standards
• Taboos

International Marketing
And Promotional Decisions

19-9
TaylorMade Translation Issues

Tagline Translation Issues

19-10
New Balance Markets in France

19-11
International Political/Legal Environment

International Marketing
And Promotional Decisions

Political/legal Environment
• Government policies
• Laws and regulations
• Political stability
• Nationalism
• Attitudes toward multinational
companies

19-12
Advertising Areas Subject to Regulation

Products that may be advertised

Content or creative approach used

Media advertisers are allowed to use

The amount of advertising allowed

Use of foreign languages in ads

Materials from outside the country

Local vs. international ad agencies

Specific taxes levied on advertising

19-13
 Global Marketer’s Dilemma

Offer the
Adapt the
same
product,
product,
marketing, &
marketing, &
advertising
advertising
to each
everywhere?
society?

19-14
Global Marketing & Advertising Advantages

Economies of scale in production, distribution

Lower costs due to less planning and control

Lower advertising production costs

Ability to exploit good ideas worldwide

Consistent international brand, company image

Simplification of ad coordination and control

19-15
Mandarin Oriental’s Global Ads

19-16
Problems With Global Advertising

Differences in culture, market &

economic development

Consumer needs & usage patterns

Media availability or usage

Legal restrictions

19-17
Consumer Usage Patterns & Perceptions

Nescafé Instant Coffee

Great market penetration,
United States
but minor share

Continental Major market share, but idea

Europe of instant coffee was new
Tea-drinking Conversion not only to coffee,
Countries but to instant coffee

Preferred coffee couldn’t be

Latin America
duplicated with instant version

Ingrained habit of keeping coffee

Scandinavia
on stove all day long
19-18
NESCAFE President Ad From Japan

19-19
Adapting to Different Countries

19-20
 When is globalization appropriate?

Globalization Brands that can be adapted

for visual appeal
works best
for…
Brands promoted with image
campaigns playing to universal
needs, values, emotions

High-tech products, new to the world

Products with a nationalistic flavor

Products appealing to universally

similar tastes, interests, needs, values

19-21
TAG Heuer’s Global Campaign

19-22
TAG Heuer’s Global Campaign

19-23
Global Products, Local Messages

In-between Approach

Standard
Standard Localizing Ad
Marketing
Products Messages
Strategies

Adapt messages to…

Market
Culture Language
Conditions

19-24
TaylorMade Pattern Advertising

19-25
Decision Areas in International Advertising

Organization
Style
Coordination of
Agency
Other
Selection
IMC Tools

Decision Areas

Media Strategy Advertising

and Selection Research
Creative
Strategy &
Execution

19-26
Centralization of International Advertising

Budgeting

Media Agency
Strategy Selection
Central
Authority
Campaign Creative
Development Strategy

Research

19-27
Decentralized International Advertising

Campaigns
Creative
Region Media
One Research
Budgets

Campaigns
Creative
Central Region Media
Authority Two Research
Budgets

Campaigns
Creative
Region Media
Three Research
Budgets
19-28
 Combination Structure

Home Office

Policy Local
Managers
Guidelines

Operations
Sets Objectives

Approves Budgets
International
Approves Creatives
Manager
Approves Media

19-29
Criteria for Selecting an Agency

1. Ability of agency to cover relevant

markets.
2. Quality of agency work.
3. Market research, public relations, and
other services offered by the agency.
4. Relative roles of company advertising
department and strategy.
5. Level of communication and control
desired by company.

19-30
Criteria for Selecting an Agency

6. Ability of agency to coordinate

international campaign.
7. Size of company’s international business.
8. Company’s desire for local versus
international image.
9. Company organizational structure for
international business and marketing
(centralized versus decentralized).
10. Company’s level of involvement with
international operations.

19-31
 Advertising Research

Demographic characteristics of markets

Cultural differences
such as norms, lifestyles, and values
Consumers’ product usage,
brand attitudes and media preferences

Media usage and audience size

Copy testing

Effectiveness in foreign markets

19-32
 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

19-33
Adapting to Local Markets

19-34
International Media Selection Issues

Types of media available

How much time is spent watching TV
Amount of commercial time available
Clutter
Tolerance for advertising
Coverage, cost, quality, restrictions
Political climate
Limited and unreliable media information

19-35
Jelly is a Popular Fashion Magazine in Japan

19-36
 International Media

• U.S. media with international editions

• Time
• Newsweek
• Reader’s Digest
• National Geographic
• USA Today
• Good Housekeeping
• Seventeen
• Popular Mechanics
• BusinessWeek
19-37
Direct Broadcast by Satellite (DBS)

19-38
 International Sales Promotion

Economic Development
Major Creation
Considerations Market Maturity

Consumer Perceptions

Trade Structure

Regulations

19-39
WD-40 Used Product Samples in Russia

19-40
Public Relations in Global Marketing

Deal with local governments, media, 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

19-41
Worldwide Growth of the Internet

19-42