Transcript Chapter 14 - MBA Program Resources

Global Marketing
Management
A European Perspective
GLOBAL MARKETING
COMMUNICATION
Warren J. Keegan
Bodo B. Schlegelmilch
Overview
Global Advertising and Branding
The Extensions versus Adaptation Debate
Impact of Information Technology on Advertising
Selecting an Advertising Agency
Advertising Appeals and Product Characteristics
Creating Advertising
Public Relations, Sales Promotion and Personal
Selling
Summary
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Global Marketing Management: A European Perspective
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Learning Objectives
Know the elements and objectives of global marketing
communication
Know two contrasting positions regarding localisation
or globalisation of advertising content
Recognise the characteristics of different advertising
media and know how information technology influences
global advertising
Know points to consider when selecting an advertising
agency and creating a campaign
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Global Advertising and Branding I
The global marketer
has to pay attention to the interaction of the
elements of the communication mix
has to ascertain that the right message is
communicated and received by prospective
consumers (i.e. cultural diversity, media
limitations, legal problems)
Needs to take care of cultural diversity, media
limitations, legal differences, etc.
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Global Advertising and Branding II
Global campaigns
help to build long-term product identities
offer significant savings in production costs
Global advertising
offers companies economies of scale in
advertising
improves access to distribution channels
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Global Advertising and Branding III
Source: Cateora, P.C. International Marketing. Homewood: Irwin, 1993, p.
522.
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Advertising
May be defined as any sponsored, paid
message placed in a mass medium
Global advertising refers to the use of the
same advertising appeals, messages, art,
copy, photographs, stories, and video
segments in multiple-country markets
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The Extension versus Adaptation
Debate I
Four major difficulties
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
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by noise
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Global Marketing Management: A European Perspective
The Extension versus Adaptation
Debate II
Key question for global marketers
Does the specific advertising message and media
strategy need be changed because of
environmental requirements?
Two positions
”one world, one voice” approach
localised approach
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Impact of Information Technology
on Advertising I
Direct marketing is growing rapidly:
increased use of computer databases, credit
cards, and toll-free numbers, as well as changing
lifestyles
system of marketing that integrates ordinarily
separate marketing mix elements to sell directly to
both consumers and other businesses, bypassing
retail stores and personal sales calls
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Impact of Information Technology
on Advertising II
Possible to target advertising messages in
magazines and newspapers more selectively
less cost intensive and easier printing techniques
”Electronic newspaper" allows consumers to
create their own personal newspaper
many articles from contemporary newspapers and
magazines are already available in the Internet
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The Internet I
Offers new products and services
simultaneously to consumers around the
world
influences the ways many goods are purchased,
promoted, and developed
sequential new-product introduction by
geographic area is not an option when marketing
via the Internet
The Internet allows small companies to
compete more easily and allows direct
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accessGlobal
to consumers
in Aemerging
markets
Marketing Management:
European Perspective
The Internet II
Reduction of the cost of reaching consumers
around the world
it provides two-way communication directly with
consumers, no matter what country they reside in
is helpful in
international new-product development
developing brand names
launching products in new geographic markets
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Selecting an Advertising Agency I
Options:
create ads in house
use an outside agency
combine both strategies
One or more outside agencies
can serve product accounts on a multicountry or
global basis
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Selecting an Advertising Agency II
World’s Top
Millions)
Rank
1998 1997
1
1
2
2
3
3
4
4
5
5
7
6
6
7
8
8
9
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10 12
Advertising
Advertising Organization
Omnicom Group
Interpublic Group of Cos.
WPP Group
Dentsu
Young & Rubicam
Havas Advertising
True North Communications
Grey Advertising
Leo Burnett Co.
Publicis
Organisations
Headquarters
New York
New York
London
Tokyo
New York
Paris
Chicago
New York
Chicago
New York
(€
World Gross
Income
4,082.02
3,651.51
3,526.21
1,515.06
1,408.09
1,101.01
1,053.84
1,052.23
805.72
788.92
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Selecting an Advertising Agency III
In selecting an advertising agency, the
following issues should be considered
Company organisation
National responsiveness
Area coverage
Buyer perception
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Advertising Appeals and Product
Characteristics
The most effective appeal may vary
products might be at different stages in their life
cycle in various national markets
basic cultural, social, and economic differences
Global marketers should identify opportunities
where:
economies of scale exist
barriers to standardisation such as cultural
differences are not significant
products satisfy similar functional and emotional
needsKeegan/Schlegelmilch
across different cultures
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Global Marketing Management: A European Perspective
Creating Advertising
Art Direction
Copy
Cultural considerations
values and motives
advertising form
execution of the advertising
Global media considerations
media decisions
media vehicles and expenditures
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Public Relations I
A non-paid form of communication
PR’s job is to make sure that
the company responds promptly to unflattering
media reports or controversies
gets its side of the story told
The basic tools of PR include
news releases, newsletters, press conferences,
tours of plants and other company facilities,
articles in trade or professional journals, company
publications and brochures, TV and radio talk
show
appearances by company personnel, special
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Global
Marketing
Management:
A
European
Perspective
events, and the Internet
Public Relations II
Sponsoring
the target group is familiarised with a product,
brand or company name
sponsors aim to establish and consolidate the
impression customers have of the enterprise and
of brands
sponsoring intends to transfer a distinct image
and to build awareness
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Sales Promotion
Refers to any consumer or trade program of
limited duration that adds tangible value to a
product or brand
The purpose of a sales promotion
to stimulate customers to sample a product
to increase consumer demand
to increase product availability in distribution
channels
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Personal Selling
Two-way: personal communication between a
company representative and a potential
customer
Additional challenges
buyer and seller come from different national or
cultural backgrounds
Selling process is divided into several stages
prospecting, pre-approach, approaching, presenting,
problem solving, handling objections, closing the
sale, and following up
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Summary
Marketing communications includes advertising,
public relations, sales promotion, and personal
selling
Either local adaptation or distinct local
campaigns may be required
Sales promotions must conform with regulations
in each country market
Recent additions to the communication mix are
direct marketing, database marketing, and the
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