20

International
Advertising and
Promotion

McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Reasons for International Importance

Stagnation of domestic markets

Company survival, particularly those with small

domestic markets

Growth and profit opportunities

Economic necessity
Focusing on China for Growth
Tourism Australia Uses Global Campaign
 International Advertising & Promotion

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

1 Proctor & Gamble $4,995 $3,527
2 Unilever 3,689 848
3 General Motors 1,145 2,208
4 LOreal 2,336 753
5 Toyota Motor Corp. 1,895 1,203
6 Ford Motor Co. 1,168 1,701
7 Time Warner 298 1,838
8 Nestl 1,509 605
9 Johnson & Johnson 674 1,351
10 Daimler/Chrysler 578 1,425

Ad spending in millions of U.S. dollars

 The International Environment

Economic Cultural
Environment Environment

International
Marketing
&
Promotional
Decisions

Demographic Political/Legal
Environment 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
ICI Dulux Targets Young Households in China

*Click outside of the video screen to advance to the next slide

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
 International Cultural Environment

Cultural environment
Language
Lifestyles
Values
Norms and customs
Ethics and moral standards
Taboos

International Marketing
And Promotional Decisions
Heineken Translation Issues
Lays Targets China Youth Market

*Click outside of the video screen to advance to the next slide

International Political/Legal Environment

International Marketing
And Promotional Decisions

Political/legal environment
Government policies
Laws and regulations
Political stability
Nationalism
Attitudes toward multinational
companies
 Test Your Knowledge

Since the European Union banned the use of food dyes

in seafood, the salmon market has suffered. People
mistakenly believe that salmon is naturally pink.
Unfortunately, salmon is an unappetizing gray color.
This is an example of how _____ factors can
inadvertently hurt small businesses.
A) economic
B) demographic
C) political/legal
D) cultural
E) infrastructure
Advertising Subject to Regulation

Products that may be advertised

Content or creative approach used

Media advertisers are permitted to use

The amount of advertising one may do

Use of foreign languages in ads

Use of materials from outside the country

Use of local vs. international ad agencies

Specific taxes levied on advertising

 Global Marketers Dilemma

Offer the Adapt the

same product,
product, marketing,
marketing, and
and advertising
advertising to each
everywhere society?
?
Global Marketing & Advertising Advantages

Economies of scale in production, distribution

Lower costs with less in planning and control

Lower advertising production costs

Ability to exploit good ideas worldwide

Ability to introduce products quickly, worldwide

Consistent international brand, company image

Simplification of coordination and control

Gillette Launches Mach3 Globally
 Problems With Global Advertising

Differences in culture, market and economic

development make it difficult to use global advertising

Consumer 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
 When is globalization appropriate?

Brands can be adopted for visual

appeal, avoiding translation problems

Brands promoted with image

campaigns playing to universal needs,
values, emotions

Globalization High-tech products, new to the world,

Often Works not steeped in the cultural heritage of
Best For: the country of origin

Products with a nationalistic flavor,

if the country has a favorable
reputation in the field

Products appealing to a market

segment with universally similar
tastes, interests, needs, values
TAG Heuers Global Campaign
British Airways Uses Global Advertising

*Click outside of the video screen to advance to the next slide

 Global Products, Local Messages

An In-between Approach

Standardizing Localizing Ad Think Globally,

Products Messages Act Locally

Adapt Messages to Respond To

Differences in Differences in Differences in

Language Cultural Market Conditions

Use of Pattern
Advertising
TaylorMade Used Pattern Advertising
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
Centralization of International Advertising

Budgeting

Media Agency
Strategy Selection
Central
Authority
Campaign Creative
Development Strategy

Research
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
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.
Criteria for Selecting an Agency

6. Ability of agency to coordinate

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

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 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 Adapts to Local Markets
International Media Selection Issues

Quality

Coverage
Widely Differing
Restrictions
Characteristics
Availability

Cost
Availability

Reliability
Media
Circulation Information
Problems
Audience

Cost
Specialized Target Audiences
Broad Coverage of International Media

2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 International Sale Promotion

Major Creation
Economic Development
Considerations

Market Maturity

Consumer Perceptions

Trade Structure

Regulations
WD-40 Used Product Samples in Russia
Central vs. Local Roles
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
Worldwide Growth of the Internet