Chapter 15

1. Chapter 15 Managing Global Advertising

2. International Marketing Dilemma versus. Advertising Standardization Advertising Adaptation

3. Not All Advertising is on TV • Outdoor • Radio • Print Media • Cinema • Van & Loudspeaker • Direct Mail, Flyers • Packaging Telephone booth ad in Cordoba, Spain Particularly important for developing country markets

4. Overcoming Language and Cultural Barriers • Some markets or regions require multilingual advertising (Switzerland, US) • “English is not always English.” • Proper linguistic translation is imperative and challenging • Can be difficult to translate critical words and copy constructions

5. The Center of the World • Change in lifestyles and attitudes among Chinese women • 1990-2000 females in workforce rose from 2.9% to 22.8% • “I am the center of the world; I am the focal point.” • International Marketers Respond • P&G’s advertising for Rejoice shampoo • Airline hostess  airline mechanical engineer  girl playing beach volleyball

6. The Regulatory Challenge Types of products that can be advertised EU: Tobacco advertising banned outdoors and in print. Types of appeals that can be used China: superlatives (puffery) often banned Use of sex appeals Illegal in Arab countries and Malaysia Mandatory Inclusions Candy ads require toothbrush symbol in EU Times that certain products can be promoted China: no “sensitive” products advertised during meal times.

7. Ad Regulation on the Rise • China crackdown on P&G for not citing source of product claims made in ads • Australia considering regulations regarding food ads targeted to children • Mexico strengthening its privacy laws • Russia imposing restrictions on alcohol advertising • Villages in Africa are developing advertising regulation standards, making national campaigns extremely difficult

8. The Creative Challenge Effective international messages must transcend cultural and ethnic boundaries

9. Global Advertising • Global advertising – Standardizing advertising across all markets • Philip Morris’s Marlboro campaign – “Come to where the flavor is” • Production cost savings • Able to spend more time, attention, and $ on campaign itself and media space • Prevents confusion of media spillover • Prevents confusion for travelers

10. Global Advertising Strategies • 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

11. Global Advertising (cont’d) • Requirements • A standardized global brand name or trademark, pronounced identically across markets. • Similar lifecycle stages across markets • Similar consumer brand attitudes and segments across markets

12. Japan - Land of the “Soft Sell” • Japan = world’s 2nd largest ad market • Soft selling • Consumers more moved by emotion rather than logic • Kawasarern– process of being convinced to buy product contrary to one’s rational judgment • Rarely mention price, shies away from competitive advertising, may even omit key characteristics or features of a product

13. Japan - Land of the “Soft Sell” (cont’d) • Japanese advertisements use foreign themes and words, especially those in English language • Highest % of English words of any language • U.S. themes popular • Firms are less concerned with conflicts of interest among ad agencies

14. Impact of Recent Change on Advertising in Eastern Europe “The last hundred years of western advertising [experience] have been compressed into just four years for us.” • Significant opportunity to build brand awareness in short period of time • Underdeveloped advertising infrastructure • Cultural differences • Happy family gathered around dinner table – family dinner concept unfamiliar to Romanians

15. Credibility of Advertising • Countries view the value of advertising in different ways • U.S. = eager to criticize advertising (especially that aimed at children) • Asia= advertisements provide good product information, respects consumers’ intelligence • Former Soviet Union = most skeptical

16. 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! • TV big in Latin America, growing in India

17. Media Habits • Ownership and usage of television and radio and the readership of print media vary considerably country to country • Income effect: Higher income, more TV • China commuters are just now adopting radio

18. Scheduling International Advertising • Scheduling international advertising is complicated by country differences in • Sales peaks • Climatic conditions • Customs • National vacations • Religious holidays (i.e. Ramadan) • Time needed to think about a purchase

19. Advertising Coordination • External factors • Market diversity • Homogeneous customer needs and interests = morestandardized, 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

20. McDonalds: I’m Lovin’ ItGlobal Advertising Campaign • September 2003 – McDonalds First Ever Global Market Campaign • “I’m Lovin’ It” campaign • Move away from localized branding, advertising, and promotion. • Successful campaign • 86% advertising awareness overall among top 10 country markets