International

Advertising and
Promotion

Reasons for International Importance

Stagnation
Stagnation of
of domestic
domestic markets
markets

Company
Company survival,
survival, particularly
particularly those
those with
with small
small
domestic
domestic markets
markets

Growth
Growth and
and profit
profit opportunities
opportunities

Economic
Economic necessity
necessity

Focusing on China for Growth

Tourism Australia Uses Global Campaign

The International Environment

Economic
Economic
Environment
Environment

Cultural
Cultural
Environment
Environment
International
International
Marketing
Marketing
&&

Promotional
Promotional
Decisions
Decisions
Demographic
Demographic
Environment
Environment

Political/Legal
Political/Legal
Environment
Environment

International Economic Environment

Economic
Economic environment
environment
Stage
Stage of
of economic
economic development
development
Economic
Economic infrastructure
infrastructure
Standard
Standard of
of living
living
Per
Per capita
capita income
income
Distribution
Distribution of
of wealth
wealth
Currency
Currency stability
stability
Exchange
Exchange rates
rates

International
International Marketing
Marketing
And
And Promotional
Promotional Decisions
Decisions

International Demographic Environment

International
International Marketing
Marketing
And
And Promotional
Promotional Decisions
Decisions
Demographic
Demographic environment
environment
Size
Size of
of population
population
Number
Number of
of households
households
Household
Household size
size
Age
Age distribution
distribution
Occupation
Occupation distribution
distribution
Education
Education levels
levels
Employment
Employment rate
rate
Income
Income levels
levels

International Cultural Environment

Cultural
Cultural environment
environment
Language
Language
Lifestyles
Lifestyles
Values
Values
Norms
Norms and
and customs
customs
Ethics
Ethics and
and moral
moral standards
standards
Taboos
Taboos

International
International Marketing
Marketing
And
And Promotional
Promotional Decisions
Decisions

Heineken Translation Issues

International Political/Legal Environment

International
International Marketing
Marketing
And
And Promotional
Promotional Decisions
Decisions

Political/legal
Political/legal environment
environment

Government
Government policies
policies
Laws
Laws and
and regulations
regulations
Political
Political stability
stability
Nationalism
Nationalism
Attitudes
Attitudes toward
toward multinational
multinational
companies
companies

Test Your Knowledge

Since the European Union banned the use of food dyes
in seafood, the salmon market has suffered. People
mistakenly believe that salmon is naturally pink.
Unfortunately, salmon is an unappetizing gray color.
This is an example of how _____ factors can
inadvertently hurt small businesses.
A)

economic

B)

demographic

C)

political/legal

D)

cultural

E)

infrastructure

Advertising Subject to Regulation

Products that may be advertised
Content or creative approach used
Media advertisers are permitted to use
The amount of advertising one may do
Use of foreign languages in ads
Use of materials from outside the country
Use of local vs. international ad agencies
Specific taxes levied on advertising

Global Marketers Dilemma

Offer the same
product, marketing,
and advertising
everywhere?

Adapt the
product,
marketing,
and
advertising
to each
society?

Global Marketing & Advertising Advantages

Economies of scale in production, distribution
Lower costs with less in planning and control
Lower advertising production costs
Ability to exploit good ideas worldwide
Ability to introduce products quickly, worldwide
Consistent international brand, company image
Simplification of coordination and control

Gillette Launches Mach3 Globally

Problems With Global Advertising

Differences
Differences in
in culture,
culture, market
market and
and economic
economic
development
development make
make itit difficult
difficult to
to use
use global
global advertising
advertising
Consumer
Consumer needs
needs and
and usage
usage
patterns
patterns often
often vary
vary by
by country
country or
or region
region
Media
Media availability
availability or
or usage
usage may
may
vary
vary by
by country
country or
or region
region
Legal
Legal restrictions
restrictions may
may make
make itit
difficult
difficult to
to develop
develop an
an effective
effective universal
universal appeal
appeal

When is globalization appropriate?

Brands can be adopted for visual
appeal, avoiding translation problems
Brands promoted with image
campaigns playing to universal needs,
values, emotions
Globalization
Often Works
Best For:

High-tech products, new to the world,

not steeped in the cultural heritage of
the country of origin
Products with a nationalistic flavor,
if the country has a favorable
reputation in the field
Products appealing to a market
segment with universally similar
tastes, interests, needs, values

TAG Heuers Global Campaign

Global Products, Local Messages

An In-between Approach
Standardizing
Products

Localizing Ad
Messages

Think Globally,
Act Locally

Adapt Messages to Respond To

Differences in
Language

Differences in
Cultural
Use of Pattern
Advertising

Differences in
Market Conditions

Decision Areas in International Advertising

Organization
Organization
Style
Style
Coordination
Coordination of
of
Other
Other
IMC
IMC Tools
Tools

Agency
Agency
Selection
Selection

Decision
Decision Areas
Areas
Media
Media Strategy
Strategy
and
and Selection
Selection

Advertising
Advertising
Research
Research
Creative
Creative
Strategy
Strategy &
&
Execution
Execution

Centralization of International Advertising

Budgeting
Budgeting
Media
Media
Strategy
Strategy

Agency
Agency
Selection
Selection
Central
Central
Authority
Authority

Campaign
Campaign
Development
Development

Creative
Creative
Strategy
Strategy
Research
Research

Decentralized International Advertising

Campaigns

Region
Region
One
One

Creative
Media
Research
Budgets
Campaigns

Central
Central
Authority
Authority

Region
Region
Two
Two

Creative
Media
Research
Budgets
Campaigns

Region
Region
Three
Three

Creative
Media
Research
Budgets

Criteria for Selecting an Agency

1. Ability of agency to cover relevant

markets.
2. Quality of agency work.
3. Market research, public relations, and
other services offered by the agency.
4. Relative roles of company advertising
department and strategy.
5. Level of communication and control
desired by company.

Criteria for Selecting an Agency

6. Ability of agency to coordinate

international campaign.
7. Size of companys international business.
8. Companys desire for local versus
international image.
9. Company organizational structure for
international business and marketing
(centralized versus decentralized).
10. Companys level of involvement with
international operations.

Advertising Research
Information
Information on
on demographic
demographic characteristics
characteristics of
of
markets
markets
Information
Information on
on cultural
cultural differences
differences such
such as
as norms,
norms,
lifestyles,
lifestyles, and
and values
values
Information
Information on
on consumers
consumers product
product usage,
usage, brand
brand
attitudes
attitudes and
and media
media preferences
preferences
Information
Information on
on media
media usage
usage and
and audience
audience size
size
Copy
Copy testing
testing to
to determine
determine reactions
reactions to
to different
different
types
types of
of advertising
advertising appeals
appeals and
and executions
executions
Research
Research on
on the
the effectiveness
effectiveness of
of advertising
advertising and
and
promotional
promotional programs
programs in
in foreign
foreign markets
markets

Creative Decisions

Creative
Creative decisions
decisions should
should be
be based
based on
on advertising
advertising
and
and communication
communication objectives
objectives
Copy
Copy platforms
platforms must
must be
be
developed
developed that
that include
include major
major selling
selling ideas
ideas
Specific
Specific appeals
appeals and
and
execution
execution styles
styles must
must be
be selected
selected
Appeals
Appeals may
may have
have to
to be
be
adapted
adapted for
for local
local market
market conditions
conditions

Coca-Cola Adapts to Local Markets

International Media Selection Issues

Quality
Quality
Coverage
Coverage
Widely
Widely Differing
Differing
Characteristics
Characteristics

Restrictions
Restrictions
Availability
Availability

Availability
Availability
Reliability
Reliability
Circulation
Circulation
Audience
Audience
Cost
Cost

Cost
Cost

Media
Media
Information
Information
Problems
Problems

Specialized Target Audiences

Broad Coverage of International Media

International Sale Promotion

Major
Major Creation
Creation
Considerations
Considerations

Economic
Economic Development
Development
Market
Market Maturity
Maturity
Consumer
Consumer Perceptions
Perceptions
Trade
Trade Structure
Structure
Regulations
Regulations

WD-40 Used Product Samples in Russia

Central vs. Local Roles

Public Relations in Global Marketing

Deal
Deal with
with local
local governments,
governments, media,
media, trade
trade
associations,
associations, and
and the
the general
general public
public
Present
Present the
the company
company as
as aa good
good corporate
corporate citizen
citizen
Serve
Serve as
as part
part of
of the
the IMC
IMC program
program and
and help
help market
market
the
the product
product or
or service
service
Deal
Deal with
with specific
specific issues
issues and
and problems
problems the
the
company
company may
may face
face in
in foreign
foreign markets
markets