1. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 19 International Advertising and Promotion

2. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Role of International Advertising and Promotion  Reasons for having different strategies for foreign markets  Unfamiliar marketing environment  Difference in values, customs, consumption patterns, and habits of consumers  Language issues  Lack of availability of media options 2

3. 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

4. International Demographic Environment Demographic Environment Size of population Number of households Household size Age distribution Occupation distribution Education levels Employment rate Income levels International Marketing And Promotional Decisions

5. International Cultural Environment Cultural Environment Language Lifestyles Values Norms and customs Ethics and moral standards Taboos International Marketing And Promotional Decisions

6. International Political/Legal Environment Political/legal Environment Government policies Laws and regulations Political stability Nationalism Attitudes toward multinational companies International Marketing And Promotional Decisions

7. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Global Marketing and Advertising  Global marketing: Using a common marketing plan for all countries  Global advertising: Way to implement global marketing strategy by using the same basic advertising approach in all markets 7

8. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Global Products, Local Messages  Methods  Pattern advertising: Ads follow a basic approach, but themes, copy, and visual elements are adapted to differences in local markets  Producing a variety of ads and messages and letting the regional managers choose the best suited 8

9. Decision Areas in International Advertising Organization Style Creative Strategy & Execution Agency Selection Advertising Research Coordination of Other IMC Tools Media Strategy and Selection Decision Areas

10. Centralization of International Advertising Budgeting Research Agency Selection Creative Strategy Media Strategy Campaign Development Central Authority

11. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Organizing for International Advertising  Centralization at the home office or headquarters  Can be done when:  Market and media conditions are similar from one country to another  Company has only one or a few international agencies handling all of its advertising  Company can use standardized advertising  Company wants a consistent image worldwide 11

12. Decentralized International Advertising Budgets Media Campaigns Creative Research Budgets Media Campaigns Creative Research Budgets Media Campaigns Creative Research Region One Region Two Region Three Central Authority

13. Combination Structure Operations Policy Guidelines International Manager Home Office Approves Creatives Sets Objectives Approves Budgets Approves Media Local Managers

14. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Agency Selection  Types of agencies that can handle international advertising  Agency with both domestic and overseas offices  Agency that belongs to a network of foreign agencies  Local agency 14

15. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Creative Decisions for Different Approaches  Standardized approach - Advertisement must transcend cultural differences and communicate effectively in every country  Localized advertising: Type of selling idea, ad appeal, and execution style that will work are determined to position the product in a market 15

16. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Media Selection  Local media  Print is the most used medium worldwide  Radio, direct mail, billboards, cinema, and transit advertising provide flexibility and opportunity to reach specific market segments  International media  Has multimarket coverage  Primary focus has been magazines and newspapers  Direct broadcast by satellite (DBS): Small, low-cost receiving dishes that can receive signals from satellite networks 16

17. International Sales Promotion Market Maturity Trade Structure Economic Development Consumer Perceptions Regulations Major Creation Considerations

18. Public Relations in Global Marketing Deal with specific issues and problems the company may face in foreign markets Serve as part of the IMC program and help market the product or service Present the company as a good corporate citizen Deal with local governments, media, trade associations, and the general public

19. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Digital and Social Media  Helps marketers to:  Promote companies  Build brands  Engage in e-commerce transactions  Used by international marketers to:  Drive consumers to their websites  Provide more information to consumers  Conduct business with them  Reach consumers on the go 19