15Managing Global Advertising
Learning Objectives
• List both the advantages and the special requirements of standardized campaigns.
• Define the global theme approach to advertising, and explain how it differs from a totally standardized campaign.
• Explain the market and cultural limitations on the advertising message or on its execution.
• Identify key issues related to advertising that tend to be regulated by national governments.
• Cite ways to avoid faulty translations and ways to minimize the need to translate.
• Explain how media availability, media habits, and scheduling international advertising all affect the advertising campaign.
• Differentiate among the three options of utilizing domestic advertising agencies, using local advertising agencies, and using international advertising networks.
• List the external and internal factors that influence a firm’s decision to centralize or localize its advertising decisions.
Chapter Outline
• Global versus local advertising
• Developing global campaigns
• The global-local decision
• Overcoming language barriers
• Global media strategy
• Organizing the global advertising effort
Overcoming Language and Cultural Barriers
• Some markets or regions require multilingual advertising
• Proper linguistic translation is imperative and challenging– Can be difficult to translate critical words
• Concepts also may not translate well culturally adaptations may be necessary– Benetton’s nursing black mother
– Fed Ex’s naked soccer players
The Regulatory Challenge
• Types of products that can be advertised
• Types of appeals that can be used
• Times that certain products can be promoted
• Use of foreign languages in advertisements
• Use of national symbols in advertisements
• Taxes levied against advertising expenditures
Global Advertising
• 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
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!
Selecting Ad Agencies
• Domestic Agencies– When firm first goes international, typically turns to domestic
agency for help– But smaller agencies typically don’t have international
experience
• Local Agencies– Understands local environment, creates targeted advertising– Can be difficult to coordinate across several markets
• International Advertising Networks– Can be difficult to be global and local – instead many
companies have formed alliances to serve clients globally with local experience and expertise
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
Advertising Coordination (cont.)
• Internal factors– Decentralization
• Is only possible if local skill levels and efficiency are acceptable
• May be preferred by companies priding themselves on giving considerable freedom to subsidiary managers