Managing Global Advertising Chapter 15 Managing Global Advertising

International Marketing Dilemma versus. Advertising Standardization Advertising Adaptation

Not All Advertising is on TV Outdoor Radio Print Media Cinema Van & Loudspeaker Direct Mail, Flyers Packaging Telephone booth ad in Cordoba, Spain In international markets outside the USA, non-TV advertising is much more common and important. There are lots of ways to do this. The key is to understand your target market and how best to reach them. Particularly important for developing country markets

Overcoming Language and Cultural Barriers Some markets or regions require multilingual advertising (Switzerland, US) “English is not always English.” Proper linguistic translation is imperative and challenging Can be difficult to translate critical words and copy constructions

The Center of the World Change in lifestyles and attitudes among Chinese women 1990-2000 females in workforce rose from 2.9% to 22.8% “I am the center of the world; I am the focal point.” International Marketers Respond P&G’s advertising for Rejoice shampoo Airline hostess  airline mechanical engineer  girl playing beach volleyball

The Regulatory Challenge Use of sex appeals Illegal in Arab countries and Malaysia Mandatory Inclusions Candy ads require toothbrush symbol in EU Times that certain products can be promoted China: no “sensitive” products advertised during meal times. Types of products that can be advertised EU: Tobacco advertising banned outdoors and in print. Types of appeals that can be used China: superlatives (puffery) often banned

Ad Regulation on the Rise China crackdown on P&G for not citing source of product claims made in ads Australia considering regulations regarding food ads targeted to children Mexico strengthening its privacy laws Russia imposing restrictions on alcohol advertising Villages in Africa are developing advertising regulation standards, making national campaigns extremely difficult Taken from the article: 2005. “Global Crackdown” Delaney Report 16(29) 25 July: 1.

The Creative Challenge Effective international messages must transcend cultural and ethnic boundaries

Global Advertising Global advertising – Standardizing advertising across all markets Philip Morris’s Marlboro campaign – “Come to where the flavor is” Production cost savings Able to spend more time, attention, and $ on campaign itself and media space Prevents confusion of media spillover Prevents confusion for travelers

Global Advertising Strategies Modularized approach – Some features are selected as standard for all advertisements, and other features are localized Global theme approach – Same advertising theme is used around the world but is varied slightly in each local execution

Global Advertising (cont’d) Requirements A standardized global brand name or trademark, pronounced identically across markets. Similar lifecycle stages across markets Similar consumer brand attitudes and segments across markets

Japan - Land of the “Soft Sell” Japan = world’s 2nd largest ad market Soft selling Consumers more moved by emotion rather than logic Kawasarern – process of being convinced to buy product contrary to one’s rational judgment Rarely mention price, shies away from competitive advertising, may even omit key characteristics or features of a product

Japan - Land of the “Soft Sell” (cont’d) Japanese advertisements use foreign themes and words, especially those in English language Highest % of English words of any language U.S. themes popular Firms are less concerned with conflicts of interest among ad agencies

Impact of Recent Change on Advertising in Eastern Europe “The last hundred years of western advertising [experience] have been compressed into just four years for us.” Significant opportunity to build brand awareness in short period of time Underdeveloped advertising infrastructure Cultural differences Happy family gathered around dinner table – family dinner concept unfamiliar to Romanians

Credibility of Advertising Countries view the value of advertising in different ways U.S. = eager to criticize advertising (especially that aimed at children) Asia = advertisements provide good product information, respects consumers’ intelligence Former Soviet Union = most skeptical

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! TV big in Latin America, growing in India

Media Habits Ownership and usage of television and radio and the readership of print media vary considerably country to country Income effect: Higher income, more TV China commuters are just now adopting radio

Scheduling International Advertising Scheduling international advertising is complicated by country differences in Sales peaks Climatic conditions Customs National vacations Religious holidays (i.e. Ramadan) Time needed to think about a purchase

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

McDonalds: I’m Lovin’ It Global Advertising Campaign September 2003 – McDonalds First Ever Global Market Campaign “I’m Lovin’ It” campaign Move away from localized branding, advertising, and promotion. Successful campaign 86% advertising awareness overall among top 10 country markets Information taken from McDonalds press release available at: http://www.media.mcdonalds.com/secured/news/pressreleases/2003/Press_Release09022003_b.html. Campaign success information taken from “Facts about the I’m Lovin It Campaign” published by McDonalds here http://mcdepk.com/ilicreative/. McDonalds has moved from a very localized, adapted approach to advertising to a much more standardized, global approach. The I’m Lovin It campaign is an integrated promotions campaign with advertising as the centerpiece to the communications strategy. It has been a successful campaign, with 86% ad awareness overall; it is particularly successful among the youth and mothers.