global marketing 13
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Global Marketing
Decisions I:Advertising and
Global MarketingChapter 13
1
Chapter topics:
Establish promotional budget
Pus ing vs. pu ing
Standardization vs. adaptation
Global ad agencies & key roles of personnel
Global media decisions
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o e o an u c ty
Integrated MarketingCommunications
Marketing communications tell customers about the benefitsand values that a company, product, or service offers
more popular because of the challenges of communicatingacross national borders
We have an integrated marketing model that involves allelements of the marketin mix from di ital to s ortsmarketing, from event marketing to advertising toentertainment, all sitting at the table driving ideas.
Trevor Edwards, VP for global brandand category management at Nike
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Affordable
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ompet t ve Par ty
Objective-and-Task
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.
Pushing strategy: promotional effort by a seller
stimulate personal selling of the good or service,
ulling strategy: promotional effort by a seller to
stimulate demand among final users, who will
then exert pressure on the distribution channel tocarry the good or service, pulling it through the
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.
Marketing Marketing
Producer diaries End users
Demand
Marketing activities
ProducerDemand Interme-
diariesDemand
End users
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Advertising is any sponsored, paid message that is
communicated in a non-personal way
Single country
Global
Global advertising is the use of the same advertisingappeals, messages, art, copy, photographs, stories,and video segments for worldwide suitability
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Globalization and ProductCultures
Products such asco ee an eerhave emerged astrue g o a pro ucts
Starbucks and theco ee cu ure
Irish pubs in the U.S. erman-sty e eer
halls in Japan
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Standardization vs.Adaptation
Primary Issue
Must the specific advertising message
region to region or country to country?
Think of cultural and legal issues
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Standardization vs.Adaptation
Four difficulties that compromise an orgns
The message may not get through to the intendedrecipient
The message may reach the target audience but maynot be understood or may even be misunderstood
he message may reach the target audience and maybe understood, but still may not induce the recipient
The effectiveness of the message can be impaired bynoise
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A middle round between 100%standardization and 100% adaptation
as c pan-reg ona or g o acommunication concept for which copy,artwork, or other elements can be
ada ted as re uired for individualcountries
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Similar:Dominant visuals on leftBrand signature and slogan
PhotosBody copy is localized,
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Advertising Agencies:Organizations and Brands
Understanding the term organizationis key
Umbrella corporations/holding companies haveone or more core advertising agencies
ac organ za on as un s spec a z ng n recmarketing, marketing services, public relations, orresearch
Individual agencies are considered brands
services such as market research, media buying,and direct marketing
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Company organization
leave the choice to the local subsidiary
National res onsiveness Is the global agency familiar with local culture and
buying habits of a particular country?
Area coverage
Does the agency cover all relevant markets? Buyer perception
What kind of brand awareness does the company
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wan o pro ec
Creative strategy a statement or
concept of what a particular message orcampaign wi say
B g ea T e as o insig t t at synthesizes the purpose of the strategy,
desire in a fresh, involving way, brings the
subject to life, and makes the reader orau ence s op, oo , an s en.
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o n oo e, egen ary a man
Rational approach
speaks to the consumersintellect; based on theconsumers need forinformation
mo ona approac Tugs at the heartstrings
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or uses umor
Selling proposition
he promise or claim that captures the reason for buying
the product or the benefit that ownership confers Since products are at differing stages of the product life
cyc e n eren na ona mar e s an ecause ocultural, social and economic differences, the mosteffective a eal or sellin ro osition ma var .
Creative execution
sell, scientific evidence, demonstration, comparison, sliceof life, animation, fantas , dramatization
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Absolut vodka ads
& personality of magazine/city where it appears
Capture spiritof 3 Asian cities:
Ban kok Bei in & K oto
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Art Directors andArt Direction
Art Directors
who has the generalresponsibility for theoverall look of an ad
Will choose graphics,, ,
other visual elements that
appear in an ad Art Direction
The visional presentation
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of an advertisement
spoken communication
Copywriters are
who develop headlines,,
copy
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In Asia, Pepsis Come Alive was interpreted
as as ng o r ng ances ors ac rom edead
In China, Citicorps Citi Never Sleeps wastaken to mean that Citi had a sleepingdisorder, like insomnia
McDonalds does not use multi le 4s in
advertising prices in China; four sounds likethe word death
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Rolls-Royce Motor CarsAdvertising
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Rolls-Royce Motor CarsAdvertising
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Images of male/female intimacy are in bad taste inJa an ille al in Saudi Arabia
Wedding rings are worn on the right hand in Spain,Denmark, Holland, and Germany
uropean men ss e an s o marr e womenonly, not single women
In German France and Ja an a man enters a doorbefore a woman; no ladies first
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Japanese and AmericanCultural Differences
n rec ra er an rec orms o express on arepreferred in the messages
the advertised product
Only brief dialogue or narration is used in televisioncommercials, with minimal explanatory content
Humor is used to create a bond of mutual feelings
Famous ce e rities appear as c ose acquaintances oreveryday people
quality
he roduct name is im ressed on the viewer with short,
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Think and FeelCountry Clusters
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Effective Advertising AppealAlternatives
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Which medium or media to use?
magazines with regional, national, or internationalaudiences
Electronic media like broadcast TV, cable TV,radio, and the internet
Other such as outdoor, transit, and direct mail
Must know countr -s ecific re ulations
Ex. France bans TV ads by retailers
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Global Ad Expendituresand Media Vehicles
More money spent in U.S. than anywhere else in theworld; $151 billion in 2010
Japan is #2 at $43 billion 1/3 of current growth in ad spending in BRIC
Russia has a $7.8 billion ad market with 30%growth annually; U.S. and European growth is
4-5%
Worldwide, TV is the #1 medium with estimated
spending of $176 billion in 2008; TV spendingincreased 78% between 1990 and 2000 in the EU
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n ermany newspapers are a ver s ng ve c e
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The availability of TV, newspapers and other media
In developed countries, newspapers are declining as
In India, newly redesigned papers are growing
,to Internet service
30,000 cars, there are 3 million, creating massivetraffic jams and captive audiences
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Media Decisions:Arab Countries
People are depicted less often than in the US Women may only appear in those commercials
that relate the advertised product
Women must wear long dresses
Brevity is a virtue in ads
Use of comparative advertising claims very
limited US ads have more price information
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Media Decisions:Scandinavia
Limited TV ads in
, ,and Denmark
children under 12 in
Spending on print
higher than TV
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Fosters goodwill and understanding
Generates favorable publicity
oo s News releases
e a s
Press conferences
Articles in trade and prof journals
Special events
Social media
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Corporate web sites
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Negative PublicityAffecting Global Marketers
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Corporate advertising Compensates for lack of control over publicity
Calls attention to the companys othercommun cat on e orts
Image advertising
Enhances the publics perception, creates goodwill
Advocacy advertising Presents the companys point of view on a
particular issue
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The Growing Role of PRin Global Marketing
PRs role is growing in the post global recession
Build consensus and understanding
Create harmony and trustArticulate and influence public opinion
Anticipate conflicts and resolve disputes
mar p ones , roa anInternet, social media,
to stay in touch with mediaanywhere, anytime
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PR PracticesAround the World
Public relations practices can be
affected by: Cultural traditions
Social and political contexts
Public relations professionals must
the message appropriately
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