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Presentation transcript:

ADVERTISING

Benefits of Standardization Scale Economies Global Consumer Segments Consistent Image Creative Talent Cross Fertilization

Challenges Language Cultural Local Attitudes towards Advertising Media availability Advertising regulations

How to overcome? Do not use idioms/slang words. Write little. Involve local advertising agency. Perform meticulous research and testing.

Cultural Barriers Status (high power-distance countries) Testimonials (high uncertainty avoidance countries) Focus on Self (high individualism countries) Performance (high masculinity countries)

Other Cultural Barriers Gestures, expressions Dress/Clothes Colors Role of Men/Women Relationships Role Relevance Humor Body Exposure/Sexual Connotations

Local Attitudes toward Advertising “If advertising were banned tomorrow, I would miss it.” Agree Disagree Japan (78%) Egypt (78%) South Africa (68%) Germany (61%) Bulgaria (57%) Netherlands, Italy (59%) Australia (52%) U.K, Switzerland (55%) Finland (51%) Latvia (51%)

Media Infrastructure Choice of Media Quality of Media Reliable Statistics Cost Variability Reliability of Scheduling Discrimination against foreign firms

Choice of Media TV Radio Print Outdoor Internet Others

Advertising Regulations Government Regulation Self Regulation Advertising of Vice Products Content of Advertising Advertising Directed at Children Location/Timing of Advertising Comparative Advertising

Think about a Pan-European Ad for Jupiter--a light chocolate bar with low fat filling. Your waistline will like it. And you get a free tape to measure it. It is an after-school treat that won’t spoil your evening meal. When the doctor says cut down, reach for Jupiter, with one-third the calories of the other chocolate bars.

Problems: Belgium--can’t make reference to dieting. France--premiums can’t be more than 1% of sale price and no child endorsement. Germany--can’t make comparisons with other candy bars. Denmark--can’t make nutritional claims. U.K.--sweets must be portrayed as only occasional snacks and can’t obtain endorsement of doctors.

Advertising Strategy Standardization Stage of Product Life-Cycle Target Market Needs Consumer Development