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© 2005 Prentice Hall 13-1 Chapter 13 Communications Decisions: Advertising and Public Relations
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Page 1: advertisment's impact

© 2005 Prentice Hall 13-1

Chapter 13 Communications Decisions:

Advertising and Public Relations

Page 2: advertisment's impact

13-2

managing marketing

from global headquarters

©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.

International Marketing Mix DecisionsStrategic Alternatives in international and

global marketing mix decisions. Managerial issues

Creative Challenges in International Communications

• Legal and tax considerations

• Language limitations

• Cultural diversity

• Media limitations

• Production and cost limitations

• Legal and tax considerations

• Language limitations

• Cultural diversity

• Media limitations

• Production and cost limitations

Page 3: advertisment's impact

13-3

managing marketing

from global headquarters

©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.

International Marketing Mix DecisionsStrategic Alternatives in international and

global marketing mix decisions. Managerial issues

Plan globally and act locally

Standardise where possible and adapt where necessary.

– Advertising of “Vice Products” and Pharmaceuticals

– Comparative Advertising

– Content of Advertising Messages

– Advertising Targeting Children

– Other Advertising Regulations: Issues of local languages, tax issues, and advertising rates.

Page 4: advertisment's impact

13-4

managing marketing

from global headquarters

©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.

International Marketing Mix DecisionsStrategic Alternatives in international and

global marketing mix decisions. Managerial issues

Barriers to standardising International Communications

CUSTOMER RESPONSECUSTOMER RESPONSE Language, LiteracyLanguage, Literacy Perception, Association and SymbolismPerception, Association and Symbolism

MEDIAMEDIA Media Availability and ReachMedia Availability and Reach Media Cost EffectivenessMedia Cost Effectiveness

REGULATIONREGULATION Message and Budget RestrictionsMessage and Budget Restrictions Regulation of In-Store Promotions, Direct Marketing, Regulation of In-Store Promotions, Direct Marketing,

Sampling, etc.Sampling, etc.

CUSTOMER RESPONSECUSTOMER RESPONSE Language, LiteracyLanguage, Literacy Perception, Association and SymbolismPerception, Association and Symbolism

MEDIAMEDIA Media Availability and ReachMedia Availability and Reach Media Cost EffectivenessMedia Cost Effectiveness

REGULATIONREGULATION Message and Budget RestrictionsMessage and Budget Restrictions Regulation of In-Store Promotions, Direct Marketing, Regulation of In-Store Promotions, Direct Marketing,

Sampling, etc.Sampling, etc.

Page 5: advertisment's impact

13-5

managing marketing

from global headquarters

©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.

International Marketing Mix DecisionsStrategic Alternatives in international and

global marketing mix decisions. Managerial issues

Example: Sub cultures within the same country

The future is bright, the future

is orange

Page 6: advertisment's impact

13-6

managing marketing

from global headquarters

©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.

International Marketing Mix DecisionsStrategic Alternatives in international and

global marketing mix decisions. Managerial issues

Promoting global communications

The emergence of global media.

The influence of television satellites.

Enlargement and overlapping of media.

Technological and social changes open the door for more specific and segmented marketing.

Advertising agencies internationalise.

The emergence of global media.

The influence of television satellites.

Enlargement and overlapping of media.

Technological and social changes open the door for more specific and segmented marketing.

Advertising agencies internationalise.

Page 7: advertisment's impact

13-7

managing marketing

from global headquarters

©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.

International Marketing Mix DecisionsStrategic Alternatives in international and

global marketing mix decisions. Managerial issues

Benefits of global communications

Significant Cost Savings

Uniform Image (Synergies)

Use of Good Ideas

International Customers

BUT

Difficulty of Finding Universal Appeals

Significant Cost Savings

Uniform Image (Synergies)

Use of Good Ideas

International Customers

BUT

Difficulty of Finding Universal Appeals

Page 8: advertisment's impact

13-8

managing marketing

from global headquarters

©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.

International Marketing Mix DecisionsStrategic Alternatives in international and

global marketing mix decisions. Managerial issues

Lost in translation : Example Rice Krispies

Page 9: advertisment's impact

13-9

managing marketing

from global headquarters

©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.

International Marketing Mix DecisionsStrategic Alternatives in international and

global marketing mix decisions. Managerial issues

In many Asian countries Ronald McDonald is known as Donald McDonald

..because of problems with the pronuncaition of the letter “R”

Lost in translation

Page 10: advertisment's impact

13-10

managing marketing

from global headquarters

©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.

International Marketing Mix DecisionsStrategic Alternatives in international and

global marketing mix decisions. Managerial issues

Soft drink launched in Japan with the brand namePocari Sweat

To the Japanese this foreign-sounding name which conveyed a positive, healthy, thirst-quenching image

Sweat

Foreign Sounding “Words”

Footing = JoggingParking = Car Park

Lost in translation

Page 11: advertisment's impact

13-11

managing marketing

from global headquarters

©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.

International Marketing Mix DecisionsStrategic Alternatives in international and

global marketing mix decisions. Managerial issues

Names of Japanese Products the Products

1.Clean Life Rubber cleaning gloves2. I’ve shampoo3.Love-love Shaver4.Volume Up Water Hair spray5. Hope Cigarettes6. Mouth Jazz Mouth Liquid7. Creap Powder milk8. Meltykiss Sweets9. Super Winky Condoms

Lost in translation

Page 12: advertisment's impact

13-12

managing marketing

from global headquarters

©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.

International Marketing Mix DecisionsStrategic Alternatives in international and

global marketing mix decisions. Managerial issues

Lost in translation

Page 13: advertisment's impact

13-13

managing marketing

from global headquarters

©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.

International Marketing Mix DecisionsStrategic Alternatives in international and

global marketing mix decisions. Managerial issues

HooverBand-AidPolaroidKleenexSuper-glueQ-TipsXeroxCokePampersScotch TapeLevisAlka Seltzer

Coffee-MateSweet-n-LowTampax

Lost in translation

Page 14: advertisment's impact

13-14

managing marketing

from global headquarters

©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.

International Marketing Mix DecisionsStrategic Alternatives in international and

global marketing mix decisions. Managerial issues

Schweppes

tonic water - “translation” for Italian market

Il Water

Lost in translation

Page 15: advertisment's impact

13-15

managing marketing

from global headquarters

©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.

International Marketing Mix DecisionsStrategic Alternatives in international and

global marketing mix decisions. Managerial issues

© Gerard Ryan. Professor de la Universitat Rovira I Virgili I Professor Col·laborador d’ESADE

Denim o Jean = dzhinsi in RussianParking & FootingFeeling & weekendself service = ‘le self’ in FrenchThe Japanese language has 20,000 English words !

Lost in translation

Page 16: advertisment's impact

13-16

managing marketing

from global headquarters

©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.

International Marketing Mix DecisionsStrategic Alternatives in international and

global marketing mix decisions. Managerial issues

New evening plan from AirtelFor those moments when you let your tongue flow

Lost in translation

Page 17: advertisment's impact

13-17

managing marketing

from global headquarters

©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.

International Marketing Mix DecisionsStrategic Alternatives in international and

global marketing mix decisions. Managerial issues

02/12/05

Europe

2 of December 2005

USA

February 12 2005

Best before...

Lost in translation

Page 18: advertisment's impact

13-18

Global Marketing Communications

The primary purpose of marketing communications is to tell customers abut the benefits and values that a company, product, or service offers

Integrated Marketing Communications (IMC) is becoming more popular because of the challenges of communicating across national borders

Page 19: advertisment's impact

13-19

Global Advertising

Advertising is any sponsored, paid message that is communicated in a non-personal way– Single country

– Regional

– Global

Global advertising is the use of the same advertising appeals, messages, art, copy, photographs, stories, and video segments in multiple country markets

Page 20: advertisment's impact

13-20

Standardization vs. Adaptation

Primary Question– Must the specific advertising message

and media strategy be changed from region to region or country to country?

Page 21: advertisment's impact

13-21

Standardization vs. Adaptation

Four difficulties that compromise an organization’s communication efforts– The message may not get through to the intended

recipient. – The message may reach the target audience but may not

be understood or may even be misunderstood. – The message may reach the target audience and may be

understood but still may not induce the recipient to take the action desired by the sender.

– The effectiveness of the message can be impaired by noise.

Page 22: advertisment's impact

13-22

Standardization vs. Adaptation

“Eighteen-year olds in Paris have more in common with 18-year-olds in New York

than with their own parents. They buy the same products, go to the same movies,

listen to the same music, sip the same colas. Global advertising merely works on that

premise.”

- William Roedy, Director, MTV Europe

Page 23: advertisment's impact

13-23

Advertising Agencies: Organizations and Brands

Understanding the term organization is key– Umbrella corporations/holding companies have one or

more ‘core’ advertising agencies– Each ‘organization’ has unites specializing in direct

marketing, marketing services, public relations, or research

Individual agencies are considered brands– Full service brands create advertising, and provide

services such as market research, media buying, and direct marketing

Page 24: advertisment's impact

13-24

Selecting an Advertising Agency

Company organization– Companies that are decentralized ma want to leave the

choice to the local subsidiaryNational responsiveness– Is the global agency familiar with local culture and

buying habits of a particular country?Area coverage– Does the agency cover all relevant markets

Buyer perception– What kind of brand awareness does the company want

to project?

Page 25: advertisment's impact

13-25

Creating Global Advertising

Creative strategyBig ideaAdvertising appeal– Rational approach– Emotional approach

Selling propositionCreative execution– Art & Copy

Page 26: advertisment's impact

13-26

Art Directors and Art Direction

Art Directors– Advertising professional who has the general

responsibility for the overall look of an ad– Will choose graphics, pictures, type styles, and

other visual elements that appear in an ad

Art Direction– The visional presentation of an advertisement

Page 27: advertisment's impact

13-27

Cultural Considerations – Japanese and American Differences

Indirect rather than direct forms of expression are preferred in the messagesThere is often little relationship between ad content and the advertised productOnly brief dialogue or narration is used in television commercials, with minimal explanatory contentHumor is used to create a bond of mutual feelingsFamous celebrities appear as close acquaintances or everyday peoplePriority is placed on company trust rather than product qualityThe product name is impressed on the viewer with short, 15-second commercials

Page 28: advertisment's impact

13-28

Cultural Considerations

Page 29: advertisment's impact

13-29

Global Media Decisions

Prepare new copy for foreign markets in host country’s language

Translate the original copy into target language

Leave some or all copy elements in home country language

Page 30: advertisment's impact

13-30

Media Decisions – Saudi Arabia

Use of comparative advertising claims is prohibitedNon-censored films cannot be advertisedWomen may only appear in those commercials that relate to family affairs, and their appearance must be in a decent manner that ensures feminine dignityWomen must wear a long suitable dress which fully covers her body except face and palms

Page 31: advertisment's impact

13-31

Public Relations and Publicity

Fosters goodwill and understanding

Generates favorable publicity

Tools– News releases

– Media kits

– Press conferences

– Tours

– Articles in trade and professional journals

– TV and radio talk show appearances

– Special events

Page 32: advertisment's impact

13-32

The Growing Role of Public Relations in Global Marketing

Public Relations expenditures are growing at an average of 20% per year

In India they are reported to be growing by 200% annually

Reasons for the growth– Increased governmental relations between countries

– Technology

– Societal issues like the environment

Page 33: advertisment's impact

13-33

Public Relations Practices around the World

Public relations practices can be affected by:– Cultural traditions– Social and political contexts– Economic environments

Public relations professionals must understand these differences and tailor the message appropriately

Page 34: advertisment's impact

13-34

Looking Ahead

Chapter 14 Global Marketing Decisions: Sales Promotion, Personal Selling, Special Forms of Marketing Communication


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