Managing Global Advertising Lecture 26

Recap Global versus local advertising Developing global campaigns The global-local decision Overcoming language barriers

Global Media Strategy Media Availability Global media TV = CNN, BBC World, ESPN, MTV, Satellite stations Print = The Economist, Fortune, Time, Business Week Internet = banner ads But companies cannot expect to use their preferred advertising medium to the fullest extent everywhere  it may not be available! 3

Global Media Strategy Satellite Television Media habits Scheduling international advertising

Organising the Global Advertising Effort Selecting Ad Agencies Domestic Agencies When firm first goes international, typically turns to domestic agency for help But smaller agencies typically don’t have international experience Local Agencies Understands local environment, creates targeted advertising Can be difficult to coordinate across several markets International Advertising Networks Can be difficult to be global and local – instead many companies have formed alliances to serve clients globally with local experience and expertise 5

Organising the Global Advertising Effort Working with Domestic Agencies Working with Local Agencies Working with International Advertising Networks

Advertising Coordination External factors Market diversity Homogeneous customer needs and interests = more standardized, centralized approach Heterogeneous customer needs and interests = more adapted, localized approach Competitive set Similar set of competitors across markets = more standardized, centralized approach Differing local competitors in each market = more adapted, localized approach 7

Advertising Coordination (cont.) Internal factors Decentralization Is only possible if local skill levels and efficiency are acceptable May be preferred by companies priding themselves on giving considerable freedom to subsidiary managers 8

Summary Global media strategy Organizing the global advertising effort

References Gillespie, K., Jeannet, J.P. and Hennessey, H.D. (2004), Global Marketing: An Interactive Approach, Houghton Mifflin, Boston, NY.