Global Marketing Communications

Top 10 Companies by Ad Spending Outside the U.S.

6000.00

5000.00

4000.00

3000.00

2000.00

1000.00

0.00

P & G Unilever Nestle SA Toyota Nissan PSA Philip Morris

Irwin/McGraw-Hill

GM

©

The McGraw-Hill Companies, Inc., 1998

Volkwagen Mars Inc.

Outside U.S.

U.S. Worldwide

Slide 20-1 Figure 20-1

SmartBeep

Hyundai - Sweden

Global Attitudes Towards Advertising

Advantages of Global Marketing and Advertising

 Economies of scale in production and distribution  Lower marketing and advertising costs  Ability to exploit good ideas on a worldwide basis  Consistent brand and/or company image in all markets  Simplification of coordination and control of marketing and promotional programs

Problems with Global Advertising

 Differences in market and economic development, consumer needs, media availability and legal restrictions  Cultural differences make advertising standardization difficult  Usage patterns and perceptions of a product may vary from one country to another

Irwin/McGraw-Hill

©

The McGraw-Hill Companies, Inc., 1998

Slide 20-3

When is Globalization Appropriate?

 Brands that can be adapted for a visual appeal

Irwin/McGraw-Hill

©

The McGraw-Hill Companies, Inc., 1998

Slide 20-4

BA – Visual Appeal

BA Casablanca

When is Globalization Appropriate?

 Brands that can be adapted for a visual appeal  Brands that are promoted with image campaigns that play to universal appeals

Irwin/McGraw-Hill

©

The McGraw-Hill Companies, Inc., 1998

Slide 20-4

Latin America

Continental – Universal Appeal

Wedding - France

When is Globalization Appropriate?

 Brands that can be adapted for a visual appeal  Brands that are promoted with image campaigns that play to universal appeals  High-tech products and new products coming to the world for the first time

Irwin/McGraw-Hill

©

The McGraw-Hill Companies, Inc., 1998

Slide 20-4

IBM

Gillette – Standardized Advertising

When is Globalization Appropriate?

 Brands that can be adapted for a visual appeal  Brands that are promoted with image campaigns that play to universal appeals  High-tech products and new products coming to the world for the first time  Products with nationalistic flavor

Irwin/McGraw-Hill

©

The McGraw-Hill Companies, Inc., 1998

Slide 20-4

Latin American

BA Football

BA Manhattan

When is Globalization Appropriate?

 Brands that can be adapted for a visual appeal  Brands that are promoted with image campaigns that play to universal appeals  High-tech products and new products coming to the world for the first time  Products with nationalistic flavor  Products that appeal to a market segment with universally similar tastes, interests, needs and values

Irwin/McGraw-Hill

©

The McGraw-Hill Companies, Inc., 1998

Slide 20-4

Levis - Elevator

Levis – Tainted Love

Levis - Clayman

Standardizing Advertising: It’s All about degree

Think Globally

Standardized Advertising: It’s all about DEGREE

The Chameleon

 An advertising strategy with different meanings in different cultures, but with positive associations for the target audience in all of them.  When this happens, it can be a truly global campaign.

Marlboro Man

Saudi Arabia France

Turkey

Marlboro Man

Singapore

Marlboro Man

Germany Sweden

Marlboro Man

Latin America US (circa 1988): no logo needed

Coca Cola Light/Diet Coke

 Coca Cola Light campaign "Just for the Taste of It" was used in many different countries, the execution of that strategy was tailored to cultural differences.

Coca Cola Light/Diet Coke France: cooling off France: hugging

Coca Cola Light/Diet Coke France: cooling off Korea: behind the back

Coca Cola Light/Diet Coke Thailand: red & white

Standardizing advertising strategy across countries while the execution is modified to fit in with local cultural mores.

Drakkar Noir

USA – “Feel the Power”

French Version

Drakkar Noir

Spanish Version Saudi Arabia

Communicating with World Consumers

Challenges Legal and Tax Considerations Language Limitations Cultural Diversity Media Limitations Production and Cost Limitations

Creative Challenges of Global Advertising

Legal and Tax Considerations

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Legal

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Comparative Advertising

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No - Germany

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Indirect - U.K., Spain, Ireland, Portugal

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Heavily regulated in Asia

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Amount of advertising

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Kuwait - 32 minutes per day

•

Taxation on advertising

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Britain, France and Australia

•

Austria - Huge taxes on print and t.v.

- Cinema advertising 11% of ad revenue per year

Language Limitations l l Phonetic Problems with Brand Names

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Bardok in Russia

•

Big John In French -speaking Canada - Gros Jos Translations Intent - Stepping Stone - Car Wash - Highly Rated Translation - Stumbling Block - Car Enema - Over Rated Symbols Owl - Bad Luck in India - Airline Log in Australia - EMU

Cultural Diversity

 Function of Advertising: – Interpret or translate the need/want satisfying qualities of product and services in terms of consumer needs, wants, desires, and aspirations.

– Emotional appeals, symbols, persuasive approaches etc.must coincide with cultural norms to be effective.

Cultural Diversity

 General Mills Cake Mixes – US and UK  Homemaker’s guilt – Japan  Don’t eat cakes  Concerned about failing  Easy as rice  Subcultures

France

Localization

Sweden

Japan United Kingdom

Latin America Japan

Advertising as a Mirror

Individualism vs. Collectivism Germany: man diving South Africa: cigarette party

Latin America: footprint in the sand Taiwan: Samsonite suitcase ad

Korean: nutritional supplement and the family France: birds of a flock

Brazil: soccer players United Kingdom: shark Pakistan: "Rhythm Wythm" Gender Roles

Media Limitations

 Availability – Political position – Literacy rates - selective  Cost – Media costs subject to negotiation – Agent discounts split with client  Coverage – National vs. regional – Fragmented

Media Selection 

Newspapers

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Magazines

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Radio & Television

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Satellite and Cable Television

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Direct Mail

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Other Media

Household Penetration of Cable, Satellite, and Internet Top 10 Media Markets 1997

Country Cable Satellite Internet

United States Japan Germany UK France Brazil So. Korea China Italy Mexico 66.9 22.9 59.9 7.0 7.0 4.3 14.0 25.8 N/A 7.5 4.1 22.9 20.7 15.0 8.0 5.2 N/A 25.8 3.4 1.5 21.3 9.9 11.6 5.0 1.7 0.003 1.8 N/A 1.9 0.06

SOURCE: Abstracted from: “Top Global Advertising Market” Ad Age International 1997. p. 17.

May

Media Planning & Analysis 

Tactical Considerations

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Availability

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Cost

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Coverage

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Lack of Market Data

Other Forms of Communication  Sales Promotions  Event Sponsorships  Trade Shows  Direct Marketing  Public Relations