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International Advertising and Promotion
McGraw-Hill/Irwin
2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
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
Markets such as China offer strong growth opportunities for many companies
International Advertising
The U.S. accounts for over half of the worlds advertising expenditures Advertising expenditures outside the U.S. are growing more rapidly than inside Every country in the world has advertising of one form or another The more affluent the country, the more monies spent on advertising
The International Environment
Economic Environment International Marketing
And
Political/Legal Environment
Promotional Decisions Cultural Environment
Demographic Environment
Economic Environment
Stage of economic development Economic infrastructure Standard of living Per capita income Distribution of wealth Currency stability Exchange rates
Demographic Environment
Size of population Number of households Household size Age distribution Occupation distribution Education levels Employment rates Income levels
Cultural Environment
Language Lifestyles Values Norms and customs Ethics and moral standards Taboos
Political/Legal Environment
Government policies Laws and regulations Political stability Nationalism Attitudes toward multinationals
The Big Question . . .
Should the global marketer offer the same product, marketing, and advertising throughout the world?
OR
Should the global marketer adapt the product, marketing, and advertising to individual markets throughout the world?
Saab used a global campaign since its customers are similar around the world
Source: Courtesy Lowe & Partners Worldwide (The Martin Agency, Lowe Brindfars for SAAB Automobile AB).
Global Marketing and Advertising Advantages
Economies of scale in production, 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, worldwide Consistent international brand, company identity Simplification of coordination and control
When is Globalization Appropriate?
Brands can be adopted for a visual appeal,
avoiding the problems of trying to translate words into different languages campaigns that play to universal appeals such as sex or wealth the world for the first time, not steeped in cultural heritage of the country country has a reputation in the field
Brands that are promoted with image
High-tech products and new products coming to
Products with with a nationalistic flavor if the Products that appeal to a market segment with
universally similar tastes, interests, needs, and values
Young people are a global market segment for many products
Global Products, Local Messages
An in-between approach:
Standardizing products Localizing advertising messages Think globally, act locally
Adapt messages to respond to differences in language, cultural, and market conditions.
Pattern advertising
Continental Airlines used pattern advertising to promote its BusinessFirst class
Decision areas in international advertising
Organization Agency Selection Advertising and market research Creative Decisions Media Selection Coordination of other IMC tools
International Ad Agencies
Many large, American general agencies operate internationally Foreign billings account for over a third of total billings by the top 10 American agencies Large multinational companies often deal with large, international agencies Overseas offices are usually staffed with multilingual, multinational personnel
Foreign Local Agencies
Staffed with local talent who understand local attitudes, culture, media, and conditions Especially effective for launching consumer products in a single, new geographic area Poses some problems if a product is to be launched in multiple, local, foreign markets
Criteria for Selecting an Agency for International Advertising
Ability of agency to cover relevant markets Quality of agency work Market research, PR, and other services offered Roles of company advertising department and agency Level of communication and control desired Ability of agency to coordinate internationally Size of companys international business Companys desire for local vs. international image Company organizational structure
Centralized vs. decentralized
Company level of involvement with international operations
Advertising and market research areas
Information on demographic characteristics of markets Information on cultural differences such as norms, lifestyles and values Information on consumers product usage, brand attitudes, and media preferences 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
Creative Decisions
Creative decisions involve determining the appropriate advertising message for each market and are similar in process and procedure to those for domestic advertising
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
Media Selection Decisions
Media differ in various countries with respect to factors such as:
availability cost usage quality restrictions
Media options include use of local, national or international media
Commercials Shown Per Hour in various countries
Turkey 57 Philippines 40 China 38 France 36 Mexico 34 Thailand 33 Australia 30 United Kingdom 16 0 10 20 30 40 50 60
Factor to consider in developing sales promotion programs for foreign markets
Economic development Market maturity Consumer perceptions Trade structure Regulations
WD-40 used samples to introduce its product to Russia
Who Allows What Promotions
Promotion In-pack premiums Multi-purchase offers Extra product Free product Mail-in offers Purchase-with-purchase Cross-promotions Contests Self-liquidating premiums Sweepstakes Money-off coupons Next-purchase coupons Cash rebates In-store demos U.K. Spain Germany France Italy Yes Yes No Maybe Yes Yes Yes Maybe Yes Yes Yes Yes Maybe Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes No Yes Yes Yes Yes No Yes Yes Yes Yes Maybe Yes Yes Yes Yes No Yes Yes Maybe Maybe No Maybe Maybe Yes Yes No Yes Maybe Yes Yes No Yes Maybe Yes Yes Maybe Yes No Yes Yes Yes Yes Yes
Central vs. Local Roles in International Sales Promotion
Minimum Design Execution Adoption + Adaptation Strategy Design Execution Strategy Design Execution Strategy Cross-fertilization Information transfer
Maximum
Cross-Fertilization
Information transfer
Information Transfer
Maximum
Local
Low
Regional International brand uniformity
Global
High
Minimum
Headquarters Influences
Subsidiary Influences
Role of 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
Gillette products have web sites for many different countries such as Italy
