Chapter 14Kotabe & Helsen's Global Marketing Management, Second Edition 1 Global Marketing...

Chapter 14 Kotabe & Helsen's Global Marketing Management, Second Edition

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Global Marketing ManagementGlobal Marketing Management

Masaaki Kotabe & Kristiaan HelsenMasaaki Kotabe & Kristiaan HelsenSecond EditionSecond Edition

John Wiley & Sons, Inc., 2001John Wiley & Sons, Inc., 2001


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Chapter 14Chapter 14

Communicating with the Communicating with the

World CustomerWorld Customer


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Chapter OverviewChapter Overview

1. Global Advertising and Culture1. Global Advertising and Culture

2. Setting the Global Advertising Budget2. Setting the Global Advertising Budget

3. Creative Strategy3. Creative Strategy

4. Global Media Decisions4. Global Media Decisions

5. Advertising Regulations5. Advertising Regulations

6. Choosing an Advertising Agency6. Choosing an Advertising Agency

7. Coordinating International Advertising7. Coordinating International Advertising


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Chapter Overview (contd.)Chapter Overview (contd.)

8. Other Communication Tools8. Other Communication Tools

9. Globally Integrated Marketing 9. Globally Integrated Marketing CommunicationsCommunications


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IntroductionIntroduction

There are many cultural challenges that advertisers There are many cultural challenges that advertisers face in global marketing.face in global marketing.

Global advertising encompasses areas such as Global advertising encompasses areas such as advertising planning, budgeting, resource advertising planning, budgeting, resource allocation issues, message strategy, and media allocation issues, message strategy, and media decisions. Other areas include: local regulations, decisions. Other areas include: local regulations, advertising agency selection, coordination of advertising agency selection, coordination of multi-country communication efforts and regional multi-country communication efforts and regional and global campaigns.and global campaigns.


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1. Global Advertising and Culture1. Global Advertising and Culture

Language BarriersLanguage Barriers– Language is one of the most formidable barriers Language is one of the most formidable barriers

in global marketing.in global marketing.– Three types of translation errors:Three types of translation errors:

» Simple carelessnessSimple carelessness» Multiple-meaning wordsMultiple-meaning words» IdiomsIdioms

Other Cultural BarriersOther Cultural Barriers– ReligionReligion– Cultural traps/cultural dimensionsCultural traps/cultural dimensions


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1. Global Advertising and Culture 1. Global Advertising and Culture (contd.)(contd.)

» Geert Hofstede’s cultural grid can be used to Geert Hofstede’s cultural grid can be used to assess the appropriateness of comparative assess the appropriateness of comparative advertising campaigns (see Exhibit 14-2). advertising campaigns (see Exhibit 14-2). The five cultural dimensions include:The five cultural dimensions include:

Power distancePower distanceUncertainty avoidanceUncertainty avoidance IndividualismIndividualismMasculinityMasculinityLong-termismLong-termism


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2. Setting the Global Advertising Budget2. Setting the Global Advertising Budget

Percentage of SalesPercentage of Sales Competitive ParityCompetitive Parity Objective-and-Task MethodObjective-and-Task Method Resource AllocationResource Allocation


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3. Creative Strategy3. Creative Strategy

The Standardization versus Adaptation DebateThe Standardization versus Adaptation Debate Merits of StandardizationMerits of Standardization

– Scale EconomiesScale Economies– Consistent ImageConsistent Image– Global Consumer SegmentsGlobal Consumer Segments– Creative TalentCreative Talent– Cross-FertilizationCross-Fertilization

Barriers to StandardizationBarriers to Standardization– Cultural DifferencesCultural Differences


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3. Creative Strategy (contd.)3. Creative Strategy (contd.)

– Advertising RegulationsAdvertising Regulations– Market MaturityMarket Maturity– ““Not-Invented-Here” (NIH) SyndromeNot-Invented-Here” (NIH) Syndrome

Approaches to Creating Advertising CopyApproaches to Creating Advertising Copy– Export AdvertisingExport Advertising– Global Prototype AdvertisingGlobal Prototype Advertising– Pattern Standardization AdvertisingPattern Standardization Advertising

» Modular ApproachModular Approach


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4. Global Media Decisions4. Global Media Decisions

Media InfrastructureMedia Infrastructure Media LimitationsMedia Limitations Recent Developments in the Global Media Recent Developments in the Global Media

LandscapeLandscape– Growing commercialization and deregulation Growing commercialization and deregulation

of mass mediaof mass media– Shift from radio and print to TV advertisingShift from radio and print to TV advertising– Rise of global mediaRise of global media– Growing importance of multimedia Growing importance of multimedia

advertising toolsadvertising tools


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4. Global Media Decisions (contd.)4. Global Media Decisions (contd.)

– Improved monitoringImproved monitoring– Improved TV-viewership measurementImproved TV-viewership measurement


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5. Advertising Regulations5. Advertising Regulations

Vice Products and PharmaceuticalsVice Products and Pharmaceuticals Comparative AdvertisingComparative Advertising Content of Advertising MessageContent of Advertising Message Advertising Toward ChildrenAdvertising Toward Children Other Advertising Regulations:Other Advertising Regulations:

– Use of advertising in the local languageUse of advertising in the local language– Tax on ad spendingTax on ad spending

Strategies to deal with advertising regulations:Strategies to deal with advertising regulations:– Keep track of regulations and pending Keep track of regulations and pending

legislationlegislation


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5.Advertising Regulations (contd.)5.Advertising Regulations (contd.)

– Lobbying activitiesLobbying activities– Challenge regulations in courtChallenge regulations in court– Adapt marketing mix strategyAdapt marketing mix strategy


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6. Choosing an Advertising Agency6. Choosing an Advertising Agency

In selecting an ad agency, the international In selecting an ad agency, the international marketer has several options:marketer has several options:1. Work with the agency that handles the 1. Work with the agency that handles the

advertising in the firm’s home market.advertising in the firm’s home market.2. Pick a purely local agency in the foreign 2. Pick a purely local agency in the foreign

market.market.3. Choose the local office of a large international 3. Choose the local office of a large international

agency.agency.4. Select an international network of ad agencies 4. Select an international network of ad agencies

that spans the globe.that spans the globe.


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6. Choosing an Advertising Agency 6. Choosing an Advertising Agency (contd.)(contd.)

When screening ad agencies, the following set of When screening ad agencies, the following set of criteria can be used:criteria can be used:– Market coverageMarket coverage– Quality of coverageQuality of coverage– Expertise with developing a central Expertise with developing a central

international campaigninternational campaign– Scope and quality of support servicesScope and quality of support services– Desirable image (“global” versus “local”)Desirable image (“global” versus “local”)– Size of the agencySize of the agency


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6. Choosing an Advertising Agency 6. Choosing an Advertising Agency (contd.)(contd.)

Conflicting accountsConflicting accounts


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7. Coordinating International Advertising7. Coordinating International Advertising

Monetary Incentives (cooperative advertising)Monetary Incentives (cooperative advertising) Advertising Manuals (brand book)Advertising Manuals (brand book) Lead-Country ConceptLead-Country Concept Global or Pan-Regional Meetings: Six guidelines Global or Pan-Regional Meetings: Six guidelines

to implement a global or pan-regional advertising to implement a global or pan-regional advertising approach include:approach include:1. Top management must be dedicated to going 1. Top management must be dedicated to going

global.global.2. Use a third party (e.g., the ad agency) to help 2. Use a third party (e.g., the ad agency) to help

sell key managers the benefits of a globalsell key managers the benefits of a global


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7. Coordinating International Advertising 7. Coordinating International Advertising (contd.)(contd.)

advertising approach.advertising approach.

3. A global brief based on cross-border consumer 3. A global brief based on cross-border consumer research can help persuade managers to think in research can help persuade managers to think in terms of global consumers.terms of global consumers.

4. Find product champions and give them a 4. Find product champions and give them a charter for the success of the global marketing charter for the success of the global marketing program.program.

5. Convince local staff that they have an 5. Convince local staff that they have an opportunity in developing a global campaign.opportunity in developing a global campaign.


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7. Coordinating International Advertising 7. Coordinating International Advertising (contd.)(contd.)

6. Get local managers on the global marketing 6. Get local managers on the global marketing team -- have them do the job themselves.team -- have them do the job themselves.


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8. Other Forms of Communication8. Other Forms of Communication

Sales Promotions: Sales promotion refers to a Sales Promotions: Sales promotion refers to a collection of short-term incentive tools that lead to collection of short-term incentive tools that lead to quicker and/or larger sales of a particular product quicker and/or larger sales of a particular product by consumers or the trade.by consumers or the trade.– Rationales explaining the local character of Rationales explaining the local character of

promotions:promotions:» Economic developmentEconomic development» Market maturityMarket maturity» Cultural perceptionsCultural perceptions» Trade structure (pull vs. push promotions)Trade structure (pull vs. push promotions)


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8. Other Forms of Communication 8. Other Forms of Communication (contd.)(contd.)

» Government regulationsGovernment regulations Direct Marketing Direct Marketing Event SponsorshipsEvent Sponsorships Trade Shows: When attending an international Trade Shows: When attending an international

trade show, the following guidelines might prove trade show, the following guidelines might prove useful:useful:– Decide on what trade shows to attend at least a Decide on what trade shows to attend at least a

year in advance.year in advance.– Prepare translation of product materials, price Prepare translation of product materials, price

lists, selling aids.lists, selling aids.


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– Bring plenty of literature. Bring someone who Bring plenty of literature. Bring someone who knows the language or have a translator.knows the language or have a translator.

– Send out, ahead of time, direct-mail pieces to Send out, ahead of time, direct-mail pieces to potential attendees.potential attendees.

– Find out the best possible space. – for instance, Find out the best possible space. – for instance, in terms of traffic.in terms of traffic.

– Plan the best way to display your products and Plan the best way to display your products and to tell your story.to tell your story.

– Do your homework on potential buyers from Do your homework on potential buyers from other countries.other countries.


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– Assess the impact of trade show participation Assess the impact of trade show participation on the company’s bottom line. Performance on the company’s bottom line. Performance benchmarks may need to be adjusted when benchmarks may need to be adjusted when evaluating trade show effectiveness in different evaluating trade show effectiveness in different countries since attendees might behave countries since attendees might behave differently.differently.


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9. Globally Integrated Marketing 9. Globally Integrated Marketing Communications (GIMC)Communications (GIMC)

Integrated Marketing Communications (IMC):Integrated Marketing Communications (IMC):– IMC coordinates different communication IMC coordinates different communication

vehicles – mass advertising, sponsorships, sales vehicles – mass advertising, sponsorships, sales promotion, packaging, point-of-purchase promotion, packaging, point-of-purchase displays, so forth.displays, so forth.

Globally Integrated Marketing Communications Globally Integrated Marketing Communications (GIMC):(GIMC):– GIMC is a system of active promotional GIMC is a system of active promotional

management that strategically coordinates management that strategically coordinates global communications in all of its componentglobal communications in all of its component


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9. Globally Integrated Marketing 9. Globally Integrated Marketing Communications (GIMC)Communications (GIMC)

parts, both horizontally (country-level) and parts, both horizontally (country-level) and vertically (promotion tools).vertically (promotion tools).


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Copyright © John Wiley & Sons, Inc., 2001Copyright © John Wiley & Sons, Inc., 2001

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