Transcript Chapter Overview (contd.)

Communicating with the
World Customer
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
1
Chapter Overview
1. Global Advertising and Culture
2. Setting the Global Advertising Budget
3. Creative Strategy
4. Global Media Decisions
5. Advertising Regulations
6. Choosing an Advertising Agency
7. Coordinating International Advertising
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
2
Chapter Overview (contd.)
8. Other Forms of Communication
9. Globally Integrated Marketing
Communications (GIMC)
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
3
Introduction


There are many cultural challenges that advertisers
face in global marketing.
Global advertising encompasses areas such as
advertising planning, budgeting, resource
allocation issues, message strategy, and media
decisions. Other areas include: local regulations,
advertising agency selection, coordination of
multi-country communication efforts and regional
and global campaigns.
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
4
1. Global Advertising and Culture


Language Barriers
– Language is one of the most formidable barriers
in global marketing.
– Three types of translation errors can occur in
international marketing:
» Simple carelessness
» Multiple-meaning words
» Idioms
Other Cultural Barriers
– Religion
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
5
1. Global Advertising and Culture
(contd.)
– Cultural traps/cultural dimensions
» Geert Hofstede’s cultural grid can be used to
assess the appropriateness of comparative
advertising campaigns (see Exhibit 14-2).
The five cultural dimensions include:
 Power distance
 Uncertainty avoidance
 Individualism
 Masculinity
 Long-termism
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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2. Setting the Global Advertising Budget

Companies rely on different kind of advertising
budgeting methods which include: See Exhibit 143
– Percentage of Sales
– Competitive Parity
– Objective-and-Task Method
– Resource Allocation
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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3. Creative Strategy



The “Standardization” versus “Adaptation
Debate”
Merits of Standardization:
– Scale Economies
– Consistent Image
– Global Consumer Segments
– Creative Talent
– Cross-Fertilization
Barriers to Standardization:
– Cultural Differences
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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3. Creative Strategy (contd.)

– Advertising Regulations
– Market Maturity
– “Not-Invented-Here” (NIH) Syndrome
Approaches to Creating Advertising Copy:
– “Laissez Faire”
– Export Advertising
– Global Prototype Advertising
– Prototype Standardization
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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3. Creative Strategy (contd.)
– Regional Approach
– Pattern Standardization
» Modular Approach
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
11
4. Global Media Decisions



Media Infrastructure
– Media infrastructure differs from country to
country
Media Limitations
– The major limitation in many markets is
media availability.
Recent Developments in the Global Media
Landscape:
– Growing commercialization and deregulation
of mass media
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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4. Global Media Decisions (contd.)
–
–
–
–
–
–
Shift from radio and print to TV advertising
Rise of global and regional media
Growing spread of interactive marketing
Growing popularity of text messaging
Improved monitoring
Improved TV-viewership measurement
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
13
5. Advertising Regulations

The major types of advertising regulations
include:
– 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.
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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5.Advertising Regulations (contd.)

Strategies to deal with advertising regulations:
– Keep track of regulations and pending
legislation
– Screen the campaign early on
– Lobbying activities
– Challenge regulations in court
– Adapt marketing mix strategy
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
16
6. Choosing an Advertising Agency

In selecting an ad agency, the international
marketer has several options:
1. Work with the agency that handles the
advertising in the firm’s home market.
2. Pick a purely local agency in the foreign
market.
3. Choose the local office of a large international
agency.
4. Select an international network of ad agencies
that spans the globe.
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
17
6. Choosing an Advertising Agency
(contd.)

When screening ad agencies, the following set of
criteria can be used:
– Market coverage
– Quality of coverage
– Expertise with developing a central
international campaign
– Creative reputation
– Scope and quality of support services
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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6. Choosing an Advertising Agency
(contd.)
– Desirable image (“global” versus “local”)
– Size of the agency
– Conflicting accounts
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Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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7. Coordinating International
Advertising

Global or pan-regional advertising approaches
require a great deal of coordination. The following
mechanisms can help:
– Monetary Incentives (cooperative advertising)
– Advertising Manuals (brand book)
– Lead-Country Concept
– Global or Pan-Regional Meetings: Six
guidelines to implement a global or panregional advertising approach include:
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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7. Coordinating International
Advertising (contd.)
» (1). Top management must be dedicated to
going global.
» (2). Use a third party (e.g., the ad agency) to
help sell key managers the benefits of a
global advertising approach.
» (3). A global brief based on cross-border
consumer research can help persuade
managers to think in terms of global
consumers.
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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7. Coordinating International
Advertising (contd.)
» (4). Find product champions and give them a
charter for the success of the global
marketing program.
» (5). Convince local staff that they have an
opportunity in developing a global
campaign.
» (6). Get local managers on the global
marketing team -- have them do the job
themselves.
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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8. Other Forms of Communication

Sales Promotions: Sales promotion refers to a
collection of short-term incentive tools that lead to
quicker and/or larger sales of a particular product
by consumers or the trade.
– Rationales explaining the local character of
promotions:
» Economic development
» Market maturity
» Cultural perceptions
» Trade structure (pull vs. push promotions)
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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8. Other Forms of Communication
(contd.)



» Government regulations
Direct Marketing
Event Sponsorships
Trade Shows: When attending an international
trade show, the following guidelines might prove
useful:
– Decide on what trade shows to attend at least a
year in advance.
– Prepare translation of product materials, price
lists, selling aids.
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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8. Other Forms of Communication
(contd.)
– Bring plenty of literature. Bring someone who
knows the language or have a translator.
– Send out, ahead of time, direct-mail pieces to
potential attendees.
– Find out the best possible space, for instance, in
terms of traffic.
– Plan the best way to display your products and
to tell your story.
– Do your homework on potential buyers from
other countries.
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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8. Other Forms of Communication
(contd.)
– Assess the impact of trade show participation
on the company’s bottom line. Performance
benchmarks may need to be adjusted when
evaluating trade show effectiveness in different
countries since attendees might behave
differently.
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
26
9. Globally Integrated Marketing
Communications (GIMC)


Integrated Marketing Communications (IMC):
– IMC coordinates different communication
vehicles – mass advertising, sponsorships, sales
promotion, packaging, point-of-purchase
displays, so forth.
Globally Integrated Marketing Communications
(GIMC):
– GIMC is a system of active promotional
management that strategically coordinates
global communications in all of its component
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
27
9. Globally Integrated Marketing
Communications (GIMC)
parts.
– Both horizontally (country-level) and vertically
(promotion tools) are used in GIMC.
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
28
Copyright © John Wiley & Sons, Inc., 2004
Chapter 14
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
29