1. Managing Global Advertising
Chapter 15
Managing Global Advertising

2. International Marketing Dilemma
versus.
Advertising
Standardization
Advertising
Adaptation

3. 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

4. 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

5. The Center of the World
Change in lifestyles and attitudes among Chinese women
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

6. 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

7. 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.

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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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:
Campaign success information taken from “Facts about the I’m Lovin It Campaign” published by McDonalds here
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.