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COMMUNICATING WITH THE WORLD CONSUMER 465 Fall 2000/Sec 001 Class 11B/Nov.15

Learn how to effectively communicate with the global consumer through target audience selection, message strategy, media strategy, and more. Explore the debate between standardization and adaptation, the importance of global branding, and the role of values in advertising.

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COMMUNICATING WITH THE WORLD CONSUMER 465 Fall 2000/Sec 001 Class 11B/Nov.15

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  1. COMMUNICATING WITH THE WORLD CONSUMER 465 Fall 2000/Sec 001 Class 11B/Nov.15 John Wiley & Sons, Inc c 1998

  2. Overview • 1. Select target audience and positioning theme • 2. Set specific campaign objectives (strategic and operational) • 3. Determine the promotional budget • 4. Develop the message strategy • 5. Decide on the media strategy • 6. Monitor and assess campaign effectiveness • United Parcel Service (UPS),s Pan-European Campaign John Wiley & Sons, Inc c 1998

  3. Message Strategy • The “Standardization” versus “Adaptation” Debate • Merits of Standardization • Scale Economies • Consistent Image • Global Customer Segments • Creative Talent • Cross-fertilization John Wiley & Sons, Inc c 1998

  4. Message Strategy (cont) • Barriers to Standardization • Cultural Differences • Advertising Regulations • Market Maturity • “Not-Invented-Here” Syndrome John Wiley & Sons, Inc c 1998

  5. Global Branding • A brand is more than a product with a name,a trademark,or a promise • It is a network of associations in the mind of the consumer • Concept crucial to understanding role of advertising in developing global brands • Advertising attaches meanings to brands that fit target consumers’ values,motives John Wiley & Sons, Inc c 1998

  6. Elements of a Brand Association-Network Attributes /benefits Products Brand name and signals Visual images Values Places occasions moments moods Users John Wiley & Sons, Inc c 1998

  7. Illustrations of Association Networks of Two Brands • Coca-Cola • Corona Extra John Wiley & Sons, Inc c 1998

  8. Characteristics of Effective Advertising To be effective,advertising… • must be instantaneously recognized/ brand awareness • must create meaningful associations • must reflect the role the product or brand plays in people’s lives • must reflect people’s feelings and emotions • must be linked with people’s values • Are these stable /portable across cultures? John Wiley & Sons, Inc c 1998

  9. The Value Concept A value is an enduring belief that one mode of conduct or end-state of existence is preferable to an opposing mode of conduct or end-state of existence. A value system is a learned organization of principles and rules to help one choose between alternatives, resolve conflicts and make decisions (Rokeach) John Wiley & Sons, Inc c 1998

  10. Terminal values refer to desirable end-state of existence. Instrumental values are motivators to reach end-states of existence John Wiley & Sons, Inc c 1998

  11. Comparision of Values • Rokeach’s Terminal vs. Instrumental values • USA/Brazil John Wiley & Sons, Inc c 1998

  12. The Value Concept in Advertising • A strong brand Target market values match the values of the brand • Branding => adding values to products • Advertising is an important instrument for achieving this John Wiley & Sons, Inc c 1998

  13. Differentiation of a brand at the attribute/benefit level may not be enough to make strong brands … subject to imitation • Have to add strong, meaningful, distinctive values • Match between cultural values in the advertising message and values of the target group • Are these values meaningful for all global markets? John Wiley & Sons, Inc c 1998

  14. Consumers’ Value Systems • Central values: the core values of the individual’s value system • Domain-specific values: values acquired in specific situations or domains of activities • Product-specific values: evaluations of product attributes John Wiley & Sons, Inc c 1998

  15. Value Structure Maps (VSM) How does a target group of consumers perceive or think about a specific product/brand? • A Value Structure Map links the product’s attributes (concrete & abstract) and benefits (functional &psychosocial) to values (core & instrumental) • VSM provide a structure of people’s associations with a brand at the three levels: Attributes, Benefits, Values John Wiley & Sons, Inc c 1998

  16. Illustration: Value Structure Map for BMW Product attributes may be the same, but may be link to different end-state values in different cultures Route 1: Strong motor -> Fast acceleration -> Imaginative, daring -> Personal enjoyment ->Independence -> Exciting life Route 2: Strong motor -> Safe -> Protects family -> Responsible -> Love/care -> Family security……Which route is better? John Wiley & Sons, Inc c 1998

  17. Conditions Favorable to GlobalAdvertising (Standardization) 1. The product features desired are the same across countries 2. The most important product benefits (functional/psychosocial) sought are the same across countries 3. The usage conditions are similar across markets 4. Values (core/instrumental) pertinent to the product consumption are the same across countries John Wiley & Sons, Inc c 1998

  18. Conditions favoring standardization 5. The symbols used carry the same meaning/evoke similar response across countries (association network) 6. The image communicated is identical across countries John Wiley & Sons, Inc c 1998

  19. Hofstede’s Cultural Dimensions & Ad Appeals • Individualism: Independence: distinctive, freedom, independence Collectivism: Conformity: popular, succor, family, community, affiliation,harmony • Power distance high: Power: ornamental, expensive/upscale, status,authority, age,endorsements Power distance low: Submission: inexpensive/value, humility, wisdom, moral, nurturance John Wiley & Sons, Inc c 1998

  20. Cultural dimensions(contd.) • Uncertainty avoidance high: Risk aversion: safety, tamed, neat,gurantees/wrranties Uncertainty avoidance low: Risk-prone: casual, adventure, untamed, magic, youth • Masculine: Achievement: success, assertive, winning, performance Feminine: Quality of life: caring,relax, enjoy, underdog, natural, modest John Wiley & Sons, Inc c 1998

  21. Multinational Ad Message Strategies • Approaches to Creative Advertising Copy • Export Advertising …Centralized,standardized copy with minimal variations across countries • Prototype (Pattern) Advertising…Some/limited local latitude within strict guidelines for ad execution regarding format, visual treatment,print style for headlines,etc. • Concept Cooperation Advertising…Wide local latitude regarding ad execution within the guidelines specified for the brand positioning theme John Wiley & Sons, Inc c 1998

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