International Advertising and Promotion
Dr. George BelchSan Diego State University
International Advertising and Promotion
Dr. George BelchSan Diego State University
Competition has become global and marketers must be able to compete globally
Competition has become global and marketers must be able to compete globally
International markets offer growth opportunities for many companies
International markets offer growth opportunities for many companies
Many companies rely on foreign markets to survive, particularly those with small domestic markets
Many companies rely on foreign markets to survive, particularly those with small domestic markets
Domestic markets for many products and services are stagnant
Domestic markets for many products and services are stagnant
International markets offer growth opportunities for many companies
International markets offer growth opportunities for many companies
Many companies rely on foreign markets to survive, particularly those with small domestic markets
Many companies rely on foreign markets to survive, particularly those with small domestic markets
Domestic markets for many products and services are stagnant
Domestic markets for many products and services are stagnant
Reasons for the Importance of International Markets
Many Multinational Companies are Focusing on China for Growth
Tourism Australia Uses a Global Campaign to Attract Visitors
International Advertising & PromotionRank Advertiser Outside U.S. Inside U.S.
1 Proctor & Gamble $6,364 $3,367
2 Unilever 4,965 752
3 L’Oreal 3,242 798
4 General Motors 1,442 2,232
5 Toyota Motor Corp. 2,181 1,022
6 Coca-Cola Co. 2,231 442
7 Johnson & Johnson 1,181 1,402
8 Ford Motor Co. 1,436 1,012
9 Reckitt Benckiser 1,842 544
10 Nestlé 1,696 618
Ad Spending in Millions of U.S. dollars
Top 10 Global Advertisers
EconomicEnvironmentEconomic
Environment
DemographicEnvironment
DemographicEnvironment
CulturalEnvironment
CulturalEnvironment
CulturalEnvironment
CulturalEnvironment
EconomicEnvironmentEconomic
Environment
DemographicEnvironment
DemographicEnvironment
The International Environment
InternationalMarketing
And
PromotionalDecisions
InternationalMarketing
And
PromotionalDecisions
Political/LegalEnvironment
Political/LegalEnvironment
International Economic Environment
Economic environment
• Stage of economic development• Economic infrastructure• Standard of living• Per capita income• Distribution of wealth• Currency stability• Exchange rates
Economic environment
• Stage of economic development• Economic infrastructure• Standard of living• Per capita income• Distribution of wealth• Currency stability• Exchange rates
International MarketingAnd Promotional Decisions
International MarketingAnd Promotional Decisions
International Demographic Environment
Economic environment
• Size of population• Number of households• Household size• Age distribution• Occupation distribution• Education level• Employment rate• Income level
Economic environment
• Size of population• Number of households• Household size• Age distribution• Occupation distribution• Education level• Employment rate• Income level
International MarketingAnd Promotional Decisions
International MarketingAnd Promotional Decisions
International Cultural Environment
Cultural environment
• Language• Lifestyles• Values• Norms and customs• Ethics and moral standards• Taboos
Cultural environment
• Language• Lifestyles• Values• Norms and customs• Ethics and moral standards• Taboos
International MarketingAnd Promotional Decisions
International MarketingAnd Promotional Decisions
Marketers Must Adapt to Customer Behavior in Various Countries
NESCAFE President Ad From Japan
International Political/Legal Environment
Political/legal environment
• Government policies• Laws and regulations• Political stability• Nationalism• Attitudes toward multinational
companies
Political/legal environment
• Government policies• Laws and regulations• Political stability• Nationalism• Attitudes toward multinational
companies
International MarketingAnd Promotional Decisions
International MarketingAnd Promotional Decisions
Type of products that may be advertisedType of products that may be advertised
The content or creative approach usedThe content or creative approach used
The media advertisers are permitted to useThe media advertisers are permitted to use
The amount of advertising one can useThe amount of advertising one can use
The use of foreign languages in adsThe use of foreign languages in ads
Use of ad materials from outside the countryUse of ad materials from outside the country
Use of local versus international ad agenciesUse of local versus international ad agencies
The specific taxes levied on advertisingThe specific taxes levied on advertising
Use of local versus international ad agenciesUse of local versus international ad agencies
Use of ad materials from outside the countryUse of ad materials from outside the country
The use of foreign languages in adsThe use of foreign languages in ads
The amount of advertising one can useThe amount of advertising one can use
The media advertisers are permitted to useThe media advertisers are permitted to use
The content or creative approach usedThe content or creative approach used
Type of products that may be advertisedType of products that may be advertised
Advertising Aspects Subject to Regulation
Global Marketer’s Dilemma
Should we offer the same product,
marketing, and advertising
throughout the world?
Should we adapt the product,
marketing, and advertising to each of several societies
throughout the world?
Lower costs with less in planning and control Lower costs with less in planning and control
Global Marketing and Advertising Advantages
Economies of scale in production, distribution Economies of scale in production, distribution
Lower advertising and production costs Lower advertising and production costs
Ability to exploit good ideas worldwide Ability to exploit good ideas worldwide
Ability to introduce products quickly, worldwide Ability to introduce products quickly, worldwide
Consistent international brand, company identity Consistent international brand, company identity
Simplification of coordination and control Simplification of coordination and control
Lower costs with less in planning and control Lower costs with less in planning and control
Economies of scale in production, distribution Economies of scale in production, distribution
Lower advertising and production costs Lower advertising and production costs
Ability to exploit good ideas worldwide Ability to exploit good ideas worldwide
Ability to introduce products quickly, worldwide Ability to introduce products quickly, worldwide
Consistent international brand, company identity Consistent international brand, company identity
Legal restrictions may make it difficult to develop an effective universal appeal
Legal restrictions may make it difficult to develop an effective universal appeal
Media availability or usage may vary by country or region
Media availability or usage may vary by country or region
Consumers needs and usage patterns often vary by country or region
Consumers needs and usage patterns often vary by country or region
Differences in culture, market and economic conditions make it difficult to use global advertising
Differences in culture, market and economic conditions make it difficult to use global advertising
Media availability or usage may vary by country or region
Media availability or usage may vary by country or region
Consumers’ needs and usage patterns often vary by country or region
Consumers’ needs and usage patterns often vary by country or region
Differences in culture, market and economic conditions make it difficult to use global advertising
Differences in culture, market and economic conditions make it difficult to use global advertising
Problems With Global Advertising
Brands can be adopted for visual appeal, avoiding problems of translating words into many languages
Brands can be adopted for visual appeal, avoiding problems of translating words into many languages
Brands promoted with image campaigns playing to universal appeals such as sex or wealth
Brands promoted with image campaigns playing to universal appeals such as sex or wealth
High-tech products, new to the world, not steeped in the cultural heritage of the country of origin
High-tech products, new to the world, not steeped in the cultural heritage of the country of origin
Products with with a nationalistic flavor if the country has a favorable reputation in the field
Products with with a nationalistic flavor if the country has a favorable reputation in the field
Products appealing to a market segment with universally similar tastes, interests, needs, and values
Products appealing to a market segment with universally similar tastes, interests, needs, and values
Brands can be adopted for visual appeal, avoiding problems of translating words into many languages
Brands can be adopted for visual appeal, avoiding problems of translating words into many languages
Brands promoted with image campaigns playing to universal appeals such as sex or wealth
Brands promoted with image campaigns playing to universal appeals such as sex or wealth
High-tech products, new to the world, not steeped in the cultural heritage of the country of origin
High-tech products, new to the world, not steeped in the cultural heritage of the country of origin
Products with with a nationalistic flavor if the country has a favorable reputation in the field
Products with with a nationalistic flavor if the country has a favorable reputation in the field
When is Globalization Appropriate
©
Globalization Often Works
Best For:
Globalization Often Works
Best For:
Gillette Uses Global Advertising for the Sensor
TAG Heuer’s Global Campaign
Standardizing Products
Standardizing Products
“Think Globally, Act Locally”
“Think Globally, Act Locally”
Localizing Ad Messages
Localizing Ad Messages
Differences in Language
Differences in Language
Differences in Language
Differences in Language
Differences in Market Conditions
Differences in Market Conditions
Differences in Cultural
Differences in Cultural
Differences in Market Conditions
Differences in Market Conditions
Differences in Cultural
Differences in Cultural
“Think Globally, Act Locally”
“Think Globally, Act Locally”
Localizing Ad Messages
Localizing Ad Messages
Standardizing Products
Standardizing Products
Global Products, Local Messages
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
An In-between ApproachAn In-between Approach
Adapt Messages to Respond ToAdapt Messages to Respond To
Use of Pattern Advertising
Use of Pattern Advertising
OrganizationOrganization
Creative DecisionsCreative Decisions
Agency SelectionAgency
Selection
Advertising and Market
Research
Advertising and Market
Research
Coordination of Other
IMC Tools
Coordination of Other
IMC Tools
Media SelectionMedia SelectionMedia SelectionMedia Selection
Creative DecisionsCreative Decisions
Advertising and Market
Research
Advertising and Market
Research
Agency SelectionAgency
Selection
OrganizationOrganization
Decision Areas in International Advertising
Decision AreasDecision Areas
BudgetingBudgeting
ResearchResearch
AgencySelectionAgency
Selection
CreativeStrategyCreativeStrategy
MediaStrategyMedia
Strategy
CampaignDevelopment
CampaignDevelopment
CampaignDevelopment
CampaignDevelopment
ResearchResearch
CreativeStrategyCreativeStrategy
AgencySelectionAgency
Selection
BudgetingBudgeting
Centralization of International Advertising
Central AuthorityCentral
Authority
Decentralization of International Advertising
CentralAuthorityCentral
Authority
Budgets
Media
Campaigns
Creative
Research
Budgets
Media
Campaigns
Creative
Research
Budgets
Media
Campaigns
Creative
Research
RegionOne
RegionOne
RegionTwo
RegionTwo
RegionThree
RegionThree
Budgets
Media
Campaigns
Creative
Research
RegionOne
RegionOne
Budgets
Media
Campaigns
Creative
Research
RegionTwo
RegionTwo
Criteria for Selecting an Agency to Handle International Advertising
1. Ability of agency to cover relevant markets.
2. Quality of agency work.
3. Market research, public relations, and other services offered by the agency.
4. Relative roles of company advertising department and strategy.
5. Level of communication and control desired by company.
Criteria for Selecting an Agency to Handle International Advertising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
6. Ability of agency to coordinate international campaign.
7. Size of company’s international business.
8. Company’s desire for local versus international image.
9. Company organizational structure for international business and marketing (centralized versus decentralized).
10. Company’s level of involvement with international operations.
Information on demographic characteristics of marketsInformation on demographic characteristics of markets
Information on cultural differences such as norms, lifestyles, and valuesInformation on cultural differences such as norms, lifestyles, and valuesInformation on cultural differences such as norms, lifestyles, and valuesInformation on cultural differences such as norms, lifestyles, and values
Advertising Research
Information on demographic characteristics of marketsInformation on demographic characteristics of markets
Information on consumers’ product usage, brand attitudes and media preferenceInformation on consumers’ product usage, brand attitudes and media preferenceInformation on consumers’ product usage, brand attitudes and media preferenceInformation on consumers’ product usage, brand attitudes and media preference
Information on media usage and audience sizeInformation on media usage and audience sizeInformation on media usage and audience sizeInformation on media usage and audience size
Copy testing to determine reactions to different types of advertising appeals and executionsCopy testing to determine reactions to different types of advertising appeals and executionsCopy testing to determine reactions to different types of advertising appeals and executionsCopy testing to determine reactions to different types of advertising appeals and executions
Research on the effectiveness of advertising and promotional programs in foreign marketsResearch on the effectiveness of advertising and promotional programs in foreign markets
Appeals may have to be adapted for local market conditions
Appeals may have to be adapted for local market conditions
Specific appeals and execution styles must be selected
Specific appeals and execution styles must be selected
Copy platforms must be developed that include major selling ideas
Copy platforms must be developed that include major selling ideas
Creative decisions should be based on advertising and communication objectives
Creative decisions should be based on advertising and communication objectives
Specific appeals and execution styles must be selected
Specific appeals and execution styles must be selected
Copy platforms must be developed that include major selling ideas
Copy platforms must be developed that include major selling ideas
Creative decisions should be based on advertising and communication objectives
Creative decisions should be based on advertising and communication objectives
Creative Decisions
Coca-Cola Now Adapts its Advertisingfor Local Markets
Local Media Reach Specialized Target Audiences
International Media Selection Issues
Widely Differing Characteristics
Widely Differing Characteristics
CostCost
CoverageCoverage
RestrictionsRestrictions
AvailabilityAvailability
QualityQuality
Media Information Problems
Media Information Problems
CostCost
ReliabilityReliability
CirculationCirculation
AudienceAudience
AvailabilityAvailabilityCostCost
CoverageCoverage
RestrictionsRestrictions
AvailabilityAvailability
QualityQuality
International Media Provide Broad Coverage
Market MaturityMarket Maturity
Trade StructureTrade Structure
Economic DevelopmentEconomic Development
Consumer PerceptionsConsumer Perceptions
RegulationsRegulations
Trade StructureTrade Structure
Consumer PerceptionsConsumer Perceptions
Market MaturityMarket Maturity
Economic DevelopmentEconomic Development
Foreign Market Sales Promotion Programs
Major Creation ConsiderationsMajor Creation Considerations
WD-40 Used Samples to Introduce Its Product to Russia
Deal with specific issues and problems the company may face in foreign markets
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
Serve as part of the IMC program and help market the product or service
Present the company as a good corporate citizenPresent the company as a good corporate citizen
Deal with local governments, media, trade associations and the general public
Deal with local governments, media, trade associations and the general public
Serve as part of the IMC program and help market the product or service
Serve as part of the IMC program and help market the product or service
Present the company as a good corporate citizenPresent the company as a good corporate citizen
Deal with local governments, media, trade associations and the general public
Deal with local governments, media, trade associations and the general public
Role of Public Relations in Global Marketing
Web Sites Are Adapted to Various Countries