Global MarketingChapter 13 Global Marketing Communications Decisions I: Advertising and Public

Relations

1) The environment in which marketing communications programs and strategies are implemented remains the same among countries.Answer: FALSEPage Ref: 397

2) McDonald's "I'm lovin' it" theme is a good example of global advertising.Answer: TRUEPage Ref: 397

3) The globalization of coffee culture has created market opportunities for companies such as Starbucks.Answer: TRUEPage Ref: 398

4) "Globalness" of consumer products companies such as P&G, Unilever, and Nestlé can be inferred from the proportion of advertising expenditures outside the home-country markets.Answer: TRUEPage Ref: 398

5) According to data published by Advertising Age in 2007, Proctor & Gamble ranks # 1 in worldwide advertisement spending.Answer: TRUEPage Ref: 399

6) The "extension versus adaptation" debate is essentially a debate over "standardized versus localized" advertising.Answer: TRUEPage Ref: 399-400

7) Recently, global companies have embraced a technique known as "pattern advertising."Answer: TRUEPage Ref: 401

8) As a practical matter, marketing managers may choose to run both global and local ads rather than adopt an "either/or" stance.Answer: TRUEPage Ref: 401

9) The "localized" versus "standardized" debate pertaining to global advertising has finally been resolved in favor of standardization.Answer: FALSEPage Ref: 400-401

10) Standardized print campaigns can be used for industrial products or for technology- oriented consumer products such as Apple iPhone.Answer: TRUE Page Ref: 401

11) Despite an unmistakable trend toward using global advertising agencies to support global marketing efforts, companies with geocentric orientations will adapt to the global market requirements and select the best agency or agencies accordingly.Answer: TRUE Page Ref: 405

12) A German agency devised McDonald's "I'm lovin' it" tagline.Answer: TRUEPage Ref: 405

13) In 1994, the Chinese government banned tobacco advertising from television, radio, newspaper, magazine, and cinema ads.Answer: TRUEPage Ref: 406

14) The Omnicom Group is the world's largest advertising organization.Answer: TRUEPage Ref: 404-406

15) If the product needs a strong local identification, it would be best to select an international agency.Answer: FALSEPage Ref: 405

16) Western advertising agencies still find markets such as China and Japan to be very complex, as Asian agencies find it just as difficult to establish local agency presence in Western markets.Answer: TRUEPage Ref: 406

17) In the advertising industry, "creative strategy" is a statement of what a particular message or campaign will say.Answer: TRUEPage Ref: 406

18) The advertising agencies can be thought of as "idea factories."Answer: TRUE Page Ref: 406

19) Some of the world's most memorable advertising campaigns originate from "big" ideas with unlimited number of new executions. Such a campaign is said to have "legs."Answer: TRUE Page Ref: 407

20) When creating global advertising, it is important to remember that the "advertising appeal" should be based on the agency's understanding of the target audience's buying motives.Answer: TRUEPage Ref: 407

21) The way a product's appeal or proposition is presented is called the "creative execution."Answer: TRUEPage Ref: 407

22) Revlon has used a French producer to develop television commercials in English and Spanish for use in international markets.Answer: TRUEPage Ref: 408

23) Copywriters are specialists who check advertisements to see that they meet copyright regulations in different countries.Answer: FALSEPage Ref: 409

24) In spring 2004, Adidas launched a $50 million global print and TV campaign keyed to the tagline "Nothing is impossible."Answer: TRUE Page Ref: 409

25) In China, McDonald's is careful not to advertise prices with multiple occurrences of the number four since, in Cantonese, the pronunciation of the word four sounds similar to that of the word death.Answer: TRUEPage Ref: 410

26) In China, a humorous TV ad showing a student humiliating a teacher in the classroom would be an effective execution for a soft drink brand.Answer: FALSEPage Ref: 410-411

27) In Japan, intimate scenes between men and women are in bad taste and in Saudi Arabia such ads are outlawed.Answer: TRUEPage Ref: 410

28) Ads that strike viewers in some countries as humorous or irritating may not necessarily be perceived that way by viewers in other countries.Answer: TRUEPage Ref: 410

29) Partial nudity and same-sex couples are frequently seen in ads in Latin America and Europe.Answer: TRUEPage Ref: 411

30) In Germany, expenditures for newspaper advertising are greater than those for television advertising.Answer: TRUEPage Ref: 414

31) U.S. ads contain more price information, and are more likely to include comparative appeals than Arabic ads.Answer: TRUEPage Ref: 415

32) Benetton's striking print and outdoor advantage campaigns keyed to the "United Colors of Benetton" generated both controversy and wide media attention.Answer: TRUE Page Ref: 417

33) Publicity is similar to advertising in that companies pay the media for placement of stories and news items.Answer: FALSEPage Ref: 416-417

34) Many companies utilize corporate advertising which, despite the name, is generally considered part of the PR function.Answer: FALSEPage Ref: 416-417

35) Advocacy advertising enhances the public's perception of a company, creates goodwill, or announces a major change.Answer: FALSE Page Ref: 417-418

36) Image advertising is used by global companies to present themselves as good corporate citizens in foreign countries.Answer: TRUEPage Ref: 417-418

37) "United Colors of Benetton" generated both controversy and wide media attention, which executives consider as an opportunity to generate publicity.Answer: TRUEPage Ref: 417

38) Consumer products companies typically use advocacy advertising to give the public reasons to buy their products.Answer: TRUEPage Ref: 417-418

39) Any company that is increasing its activities outside the home country can utilize PR personnel as boundary spanners between the company and employees, unions, stockholders, customers, the media, financial analysts, governments, or suppliers.Answer: TRUEPage Ref: 419

40) A company that is ethnocentric in its approach to PR will not extend home-country PR activities into host countries.Answer: FALSEPage Ref: 421

41) As companies recognize and embrace new concepts such as the globalization of coffee culture, the potential for effective global advertising:A) decreases.

B) increases.C) remains the same.D) becomes evident.E) is ignored.Answer: BPage Ref: 398

42) A ________ company is one that targets customers worldwide or sources products worldwide, standardizing some marketing mix elements and adapting others.A) domesticB) localC) globalD) internationalE) multinationalAnswer: CPage Ref: 398

43) Which of the following product category/company pairings best illustrates the concept of "product cultures?"A) earth-moving equipment/CaterpillarB) personal hygiene/Procter & GambleC) coffee bars/StarbucksD) batteries/DuracellE) automobiles/FordAnswer: CPage Ref: 398

44) A company that successfully creates standardized global advertising can reap which potential advantage?A) economies of scaleB) improved access to distribution channelsC) "first mover" status in uncovering global marketD) creative leverageE) all of the aboveAnswer: EPage Ref: 398

45) Which company ranks number one in terms of worldwide ad spending?A) General MotorsB) Philip MorrisC) UnileverD) Procter & GambleE) Coca-ColaAnswer: D Page Ref: 399

46) Which company ranks number one in terms of ad spending in Europe?A) General MotorsB) Philip MorrisC) UnileverD) Procter & GambleE) Coca-ColaAnswer: DPage Ref: 399

47) What do Unilever and Procter & Gamble have in common?A) Revenues at both companies have been hurt by regulations concerning tobacco advertising and promotion.B) Both companies utilize extension approaches to advertising.C) Both companies rank high in terms of non-U.S. ad spending.D) Both companies use a great deal of corporate advertising.E) Both companies use the same advertising agency.Answer: CPage Ref: 399

48) A company's efforts to effectively communicate with customers may be hindered if the message:A) does not reach the intended recipient.B) reaches the intended recipient but is misunderstood.C) reaches the intended recipient and is understood but the recipient may fail to take action.D) is distorted by noise.E) all of the aboveAnswer: EPage Ref: 399-400

49) ________ is the phrase global marketers use to describe ads with common design elements into which localized elements are inserted for individual country markets.A) "Pattern advertising"B) "Template advertising"C) "Cookie-cutter advertising"D) "Model advertising"E) "Stereotype advertising"Answer: APage Ref: 401-402

50) In the language of global marketing, ________ is the phrase used to describe advertising that represents a middle ground between 100% standardization and 100% localization:A) "stereotype advertising"B) "template advertising"C) "cookie-cutter advertising"D) "compromise advertising"E) "pattern advertising"Answer: EPage Ref: 401-402

51) When the subheads and body copy of an advertisement is localized, not simply translated, is an example of:A) local advertising.B) global advertising.C) pattern advertising.D) advocacy advertising.E) stereotype advertising.Answer: CPage Ref: 401-402

52) In selecting an advertising agency, all but one of the following issues should be taken into consideration.A) company organizationB) national responsivenessC) area coverageD) buyer perceptionE) franchise or company owned statusAnswer: EPage Ref: 403-405

53) According to data published by Advertising Age (2009), which of the following is the largest global advertising organization?A) WPP GroupB) Interpublic GroupC) Omnicom GroupD) Dentsu Inc.E) HavasAnswer: APage Ref: 403

54) When it is time to choose one or more advertising agencies, a company with a decentralized structure and a polycentric organization will:A) make the decisions at headquarters.B) leave the decision to local country managers.C) automatically go with a home-country agency.D) be most concerned with economies of scale.E) make the decisions on a regional basis.Answer: BPage Ref: 405-406

55) Tobacco companies in Central Europe face the prospect of tougher marketing and advertisement regulations due to the:A) growing concern about health hazards associated with smoking.B) a dislike of global brands crowding out local brands.C) a desire to return to communist-era policies.D) a desire to comply with EU regulations.E) pressure from neighboring countries.Answer: DPage Ref: 406

56) The advertising promise that captures the reason that people buy products is known as:A) creative strategy.B) the advertising appeal.C) the selling proposition.D) the creative execution.E) the big idea.Answer: CPage Ref: 407

57) In many parts of the world, McDonald's utilizes TV advertising that shows parents interacting with their happy children. Such advertising utilizes:A) rational appeals.B) emotional appeals.C) SRC appeals.D) melodramatic appeals.E) localized appeal.Answer: BPage Ref: 407

58) The choice between demonstration, slice-of-life, straight sell, and other advertising forms is a matter of:A) creative strategy.B) the advertising appeal.C) the selling proposition.D) the creative execution.E) the big idea.Answer: DPage Ref: 407

59) In advertising, a(n) ________ is an agency "creative" who chooses graphics, pictures, type styles, and other visual elements and has general responsibility for the overall look of an advertisement.A) art directorB) copywriterC) IMC managerD) PR practitionerE) stylistAnswer: APage Ref: 407-408

60) According to recent research on advertising appeals in global marketing, which of the following countries rank high in both "think" and "feel" dimensions?A) Austria, Canada, Germany, United States, KoreaB) Belgium, the Netherlands, IndiaC) Argentina, Brazil, ItalyD) Denmark, France, Hong Kong, JapanE) Spain, Sweden, TaiwanAnswer: A Page Ref: 412-413

61) According to a research study, a TV advertisement that presents a rational appeal by means of an argument-type execution would be well suited to:A) monochronic cultures with low power distance, high uncertainty avoidance, and a good supply of marketing professionals.B) collectivist cultures with high power distance and high uncertainty avoidance.C) collectivist cultures with high power distance, high advertising expenditures, and strict government control.D) high power distance, high advertising expenditures, and a limited supply of advertising professionals.E) none of the aboveAnswer: A Page Ref: 413

62) According to a research study, a TV advertisement that presents an emotional appeal by means of a psychological-type execution would be well suited to:A) monochronic cultures with low power distance, high uncertainty avoidance, and a good supply of marketing professionals.B) collectivist cultures with high power distance and high uncertainty avoidance.C) collectivist cultures with high power distance, high advertising expenditures, and strict government control.D) high power distance, high advertising expenditures, and a limited supply of advertising professionals.E) none of the aboveAnswer: C Page Ref: 413

63) Which of the following is true about advertising expenditures in Germany and Brazil?A) Television is the leading medium in both Germany and Brazil.B) Newspapers are the leading medium in both Germany and Brazil.C) Television is the leading medium in Brazil; newspapers are the leading medium in Germany.D) Television is the leading medium in Germany; newspapers are the leading medium in Brazil.E) Magazines are the leading medium in Brazil and Germany.Answer: CPage Ref: 412-413

64) The United States and ________ are the two top-ranked countries in terms of ad spending across all measured media.A) UKB) France

C) CanadaD) JapanE) GermanyAnswer: D Page Ref: 413-414

65) In which country are global marketers likely to encounter the most restrictions on advertising?A) United StatesB) JapanC) Saudi ArabiaD) RussiaE) GermanyAnswer: CPage Ref: 415

66) In which country would a global marketer most likely encounter the need to use print advertisements?A) United StatesB) JapanC) ChinaD) IndiaE) GermanyAnswer: CPage Ref: 415

67) Generally speaking, a company has little control over media. To compensate for this lack of control many companies utilize:A) image advertising.B) advocacy advertising.C) corporate advertising.D) TV advertising.E) radio advertising.Answer: CPage Ref: 416-417

68) Which promotional mix element is most closely associated with activities designed to foster goodwill and understanding with various constituents both inside and outside the company?A) personal sellingB) advertisingC) public relationsD) sales promotionE) publicityAnswer: CPage Ref: 416-417

69) One task of the ________ department is to generate nonpaid forms of communication to foster goodwill among customers and others.A) sales promotionB) global marketingC) headquartersD) public relationsE) advertisingAnswer: DPage Ref: 416

70) What do Ford Motor Company, Coca-Cola, Nike, and McDonald's all have in common?A) They are all consumer packaged-goods companies.B) They all have foreign CEOs.C) They have all received a great deal of negative publicity in recent years.D) They all rely exclusively on TV advertising.E) They spend more in advertising in foreign markets than home markets.Answer: CPage Ref: 417

71) Which of the following marketing mix elements was at the heart of the problems Ford Motor Company and Bridgestone/Firestone faced in 2000?A) pricing problemsB) distribution problemsC) sales promotion problemsD) public relations problemsE) advertising problemsAnswer: DPage Ref: 417

72) In the summer of 1999, Coca-Cola faced a major marketing problem in Europe. Which of the following was at the heart of the problem?A) pricing problemsB) advertising problemsC) sales promotion problemsD) public relations problemsE) distribution problemsAnswer: DPage Ref: 417

73) Japan's Fuji Photo Film asked its advertising agency to develop an advocacy campaign for the United States targeted to appeal both to Wal-Mart and to its customers. This is an example of ________ advertising.A) local advertisingB) pattern advertisingC) global advertisingD) advocacy advertisingE) image advertisingAnswer: DPage Ref: 418-419

74) Recently, some of the biggest advertising holding companies have acquired leading public relations agencies. The best explanation for this trend is:A) a growing realization of the importance of IMC (Integrated Marketing Communications).B) increasing client demands for localized PR campaigns.C) stepped-up efforts by large companies to combat anti-globalization activists.D) declining demand for global public relations means agencies have to agree to be acquired or risk going out of business.E) increasing demand by global public for transparency.Answer: APage Ref: 418-419

75) Which of the following most accurately describes the state of global public relations (PR) today?A) Expenditures on PR are dropping.B) Expenditures on PR are increasing.C) PR practices are standardized worldwide.D) PR is not important in emerging markets like India.E) Foreign investments are increasing.Answer: BPage Ref: 420-421

76) A company adopting a(n) ________ approach to worldwide PR activities gives the host-country practitioner maximum leeway to incorporate local customs and practices into the PR effort.A) ethnocentricB) regiocentricC) localD) polycentricE) publicityAnswer: DPage Ref: 420-421

77) Even in the face of such tough and growing competition, Adidas still enjoys high brand loyalty among older Europeans. The company recruits young people and pays them to wear Adidas shoes in public. This is an example of:A) local advertising.B) pattern advertising.C) global advertising.D) advocacy advertising.E) image advertising.Answer: EPage Ref: 418-419

78) China's ongoing trade-related friction with the United States highlights the need for:A) a better distribution system.B) a better PR effort.C) sales promotion.D) a better transportation system.E) pattern advertising.Answer: BPage Ref: 420-421

79) PepsiCo undertook an ambitious global program to revamp the packaging of its flagship cola. To raise awareness of its new blue can, Pepsi spent $500 million on advertising and PR; Pepsi leased a Concorde jet and painted it in the new blue color. This is a good use of:A) product packaging that will help a product "sell itself."B) Concorde jet for advertising and promotion.C) IMC ( Integrated Marketing Communications).D) packaging that can be transported in various ways.E) advertising budget.Answer: CPage Ref: 419

80) In developing countries, such as Ghana, the best way to communicate with market segments may be through:A) mass media.B) written word.C) magazine ads.D) TV ads.E) dance, songs, and storytelling.Answer: EPage Ref: 420-421

81) A global company that has the ability to successfully transform a domestic campaign into a worldwide one or to create a new global campaign from the ground up, possesses a critical marketing advantage. Explain this statement in light of the global advertising.Answer: Advertising can be any sponsored, paid message that is communicated in a non personal way. Global advertising can be defined as messages whose art, copy, headlines, photographs, tag lines, and other elements have been developed expressly for their worldwide suitability. Many companies have used local, international, and global themes from time to time for domestic or worldwide use. A global company may use single-country advertising in addition to campaigns that are regional and global in scope. The search for a global advertising campaign should bring together everyone involved with the product to share information. Regional market areas such as Europe are experiencing an influx of standardized global brands as companies align themselves. This phenomenon is accelerating the growth of global advertising. The potential for effective global advertising also increases as companies recognize and embrace new concepts such as "product cultures." An example of such cultures can be coffee culture which has created market opportunities for Starbucks Company. Companies also realize that some market segments can be defined on the basis of global demography such as youth culture. MTV, for example, is just one of the media vehicles that enable people virtually anywhere to see how the rest of the world lives and to learn about products that are popular in other cultures. Global advertising also offers companies economies of scale in advertising as well as improved access to distribution channels. A global brand supported by global advertising may be very attractive from the retailer's standpoint; a global brand is less likely to languish on the shelves. Although standardization is recommended for some products it is not always required or necessary. For example, Nestlé's Nescafe coffee is marketed as a global brand, even though advertising messages and product formulation vary to suit cultural differences.Page Ref: 397-399

82) There is an ongoing debate between "Standardization" versus "Adaptation" pertaining to global advertising. Explain how different sides of the arguments fit into the global context.Answer: Communication experts generally agree that the overall requirements of effective communication and persuasion are fixed and do not vary from country to country. The same is true for the components of communication process whereby the marketer is the source of the message; the message must be encoded, conveyed via the appropriate media, and decoded by a member of the target audience. Also, that the message is fully communicated when there is desired feedback. Four major difficulties can compromise an organization's attempt to communicate with customers in any location: (a) the message may not get through to the intended audience. This may be due to advertiser's lack of knowledge or experience about appropriate media to reach certain types of audiences; (b) the message may reach the target audience but may not be understood or may even be misunderstood. This may be due to inadequate understanding of the target audiences; (c) the message may reach the target audience and may be understood but still may not compel the recipient to take action. This could be due to the lack of cultural knowledge about a target audience; and the effectiveness of the message can be impaired by noise, which in this case is external influences such as competitive advertising, other prejudices and related factors. All these factors compel a marketer to think and decide whether to use adaptations in advertising from country to country and region to region. Proponents of the "one world; one voice" approach to global advertising believe that the era of the global village has arrived and that tastes and preferences are converging worldwide. According to the standardization arguments, people everywhere want the same products for the same reasons. Advertisers who prefer the localized approach are skeptical of the global village argument. They assert that consumers still differ from country to country and must be reached by advertising tailored to their respective countries. Proponents of localization point out that very costly blunders have occurred since advertisers have failed to understand or adapt to different cultures. Currently the argument remains unresolved and companies are using both standardized advertising as well as adapting where necessary.Page Ref: 399-401

83) What issues must be considered in selecting an advertising agency for global advertising?Answer: Care should be taken in selecting advertising agencies particularly when entering a new market in a foreign country. The following issues should be considered: (a) company organization — companies that are decentralized may want to leave the choice to the local subsidiary; (b) national responsiveness — the global agency should be familiar with the local culture and buying habits in a particular country. If not, a local agency might be more suitable; (c) area coverage — does the agency cover the areas, regions, or countries targeted; and (d) buyer perception — what kind of brand awareness does the company want to project? For example, if a product needs a strong local identification, it would be best to select a national agency. Despite the trend toward using global agencies to support global marketing efforts, companies with geocentric orientations will adapt to the global market requirements and select the best agency or agencies accordingly.Page Ref: 403-404

84) Considering the fact that the "message" is at the heart of advertising, discuss how creative strategy and different types of appeals can be created in global advertising.Answer: The particular message and the way it is presented will depend primarily on the advertiser's objectives; whether the ad is meant for informing, entertaining, reminding, or persuading. Moreover, in a world characterized by information technology, ads must break through the clutter, grab the audience's attention, and linger in their minds for a desired period of time. All this requires developing an original and effective creative strategy. Advertising agencies can be thought of as "idea factories" since they have to create ideas from scratch, sometimes referred to as the "big idea." Some of the world's most memorable advertising campaigns have achieved success because they originate from an idea that is big enough to offer opportunities that will last for a long period of time. Companies seek for such big ideas since they bring a lot of profitability and exposure to the products and their companies. The advertising appeal is the communications approach that relates to the motives of the target audience. For example, ads based on a rational appeal depend on logic and speak to the audience's intellect. Rational appeals are based on consumers' needs for information. Ads using an emotional appeal may be directed to evoke a feeling response that will direct purchase behavior. The message elements in a particular ad will depend, in part, on which appeal is being employed. The selling proposition is the promise or claim that captures the reason for buying the product or the benefit that ownership confers. Because products are frequently at different stages in their life cycle in various markets, and because of cultural, social, and economic differences that exist in those markets, the most effective appeal or selling proposition for a product may vary from market to market.Page Ref: 406-407

85) Food is a product category most likely to exhibit cultural sensitivity. Using Heinz ketchup as an example, discuss how the company has used its advertising taking into account cultural sensitivities in different parts of the world.Answer: Marketers of food and food products have to consider cultural sensitivities in different parts of the world since food preferences vary from country to country. Localization of the advertising is highly preferable in the case of food and food product advertising. A good example is the effort by H.J. Heinz Company to advertise its ketchup products in different markets. Heinz's strategy involved adapting both the product and advertising to target country tastes. For example, in Greece, ads show ketchup pouring over pasta, eggs, and cuts of meat. In Japan, they instruct Japanese homemakers on using ketchup as an ingredient in Western-style food such as omelettes, sausages, and pasta. Americans like a sweet ketchup, whereas Europeans prefer a spicier, more piquant variety. Apparently, Heinz's foreign marketing efforts are most successful when the company quickly adapts to local cultural preferences. In Sweden, the made-in-America theme is so muted in Heinz's ads that Swedes do not realize that Heinz is American and consider it to be German because of its name. In contrast, American themes still work well in Germany.Page Ref: 411-412

86) Much academic research has been devoted to the impact of culture on advertising. Researcher Tamotsu Kishii identified seven characteristics that distinguish between Japanese and American creative strategy. Briefly describe those characteristics.Answer: The seven characteristics outlined by researcher Tamotsu Kishii show how Japanese ads differ from the American ads which can be summarized as follows: (1) indirect forms of expression are used in Japan where many television ads do not mention what is desirable and let the audience judge for themselves; (2) there is often little relationship between advantages content and the advertised product; (3) in the Japanese culture, the more one talks, the less others will perceive him or her as trustworthy, so only a brief dialogue or narration is preferred; (4) humor is used to create a bond of mutual feelings and not to dramatize others in a humorous way; (5) famous celebrities appear as close acquaintances or everyday people; (6) priority is placed on company trust rather than product quality. Japanese tend to believe that if a company is large and has a good image, the quality of its products should also be outstanding; and (7) the product name is impressed on the viewer with short and brief commercials. Page Ref: 411-412

87) One of the issues facing advertisers is which medium or media to use when communicating with global target market. Discuss how these media differ from country to country, giving examples.Answer: Media availability varies from country to country. Some companies like Coca-Cola utilize every media that is available in a country. The available alternatives can be broadly classified as print media, electronic media, and other. Print media includes newspapers to magazines and business publications with national, regional, or international audiences. Electronic media includes broadcast television, cable television, radio, and the Internet. Other media may include outdoor, transit, and direct mail advertising. Globally, media decisions must take into account country-specific regulations such as in France retailers are banned from advertising on television. Worldwide, television is the number one advertising medium; however, there are some exceptions. In the United States and Japan, television is the number one medium, whereas in Germany newspapers are the leading medium. Therefore, more companies use newspaper as a medium for advertising. Television is also important in Latin American countries. In Mexico, an advertiser that can pay for a full-page advertising may get the front page, while in India, paper shortages may require booking an ad six months in advance. In some countries, especially those where the electronic media are government owned, television and radio stations can broadcast only a restricted number of advertising messages. In Saudi Arabia, no commercial television advertising was allowed prior to 1986 and currently ad content and visual presentation are restricted. Also, radio can be an effective advertising media in many countries. The latest trend, however, is to use the electronic media, and, therefore, internet advertising is gaining popularity at the expense of television and print advertising. Outdoor advertising may also be a major medium of choice in countries such as Russia and India. Cultural considerations are important when selecting the advertising message as well as the media. Page Ref: 413-415

88) Because of its size and presence in more than 200 countries, the Coca-Cola Company is often the target of antiglobalization protests. Giving examples, show how negative publicity affects global marketers?Answer: A large group of Indian protestors protested against the use of water by Coke in India, where getting water for drinking was a problem. With negative publicity due to vast coverage in news media, the company has to take some reactionary measures. A rapid reaction is necessary to do any damage control. Hyundai and Samsung in South Korea had to face negative publicity when their executives were portrayed for embezzlement or bribery. Coca-Cola and Pepsi had to face negative publicity in India when both companies were alleged to have pesticide residues in their soft drinks. The sales dropped as soon as the news hit the media. Halliburton in the United States also suffered when it was revealed that the company overcharged the U.S. government for supplies and services rendered in Iraq. Ford Motor Company and Bridgestone/Firestone had a tough time defending their relationship when a rash of tire failures occurred in Ford manufactured autos. Ultimately, Ford severed its decades-old relationship with Firestone. Firestone is still recovering from the loss of public confidence. Nike has been continuously responding to the criticism that its subcontractors operate factories in which sweatshop conditions prevail. McDonald's is faced with public concerns due to mad cow disease in Europe; legal battles originating from beef contamination in french fries; links of food to obesity; and some problems with subcontractors. Thus, there are several large companies that have faced problems due to negative publicity. The best thing is to take all precautions and try to prevent any situations which might lead to negative publicity. In case it happens, then they should have a plan to react in a swift and effective manner.Page Ref: 417

89) Companies use corporate advertising; image advertising, and advocacy advertising from time to time. How are these advertising methods used and what are are the circumstances under which they are used?Answer: Companies do not have free access to the media and cannot control what they write. In order to have control, many companies utilize "corporate advertising" which is generally considered part of the PR function. A company or organization pays for the corporate advertising. In the context of IMC, corporate advertising is often used to call attention to the company's other communications efforts, rather than enticing the customers. On the other hand, "image advertising" enhances the public's perception of a company, creates goodwill, or announces a major change, such as a merger or acquisition. Global companies frequently use image advertising in an effort to present themselves as good corporate citizens in foreign countries. In "advocacy advertising," a company presents its point of view on a particular issue. Examples of such advertising methods include the following: Nokia purchased full-page newspaper ads to congratulate the University of Florida Gators for winning the 1997 Sugar Bowl. Also, Japan's Fuji Photo Film did an advertising campaign in the United States while they were competing with Kodak. They were able to secure a contract with Wal-Mart, which gave them access to many customers of a large discount store. Thus, companies use advertising for enhancing their image, advocating a cause, or putting their point across to consumers, regulatory agencies, suppliers, competitors, or government at home or in a foreign country.Page Ref: 416-418

90) The ultimate test of an organization's understanding of the power and importance of public relations occurs during a time of environmental turbulence. In light of this statement, explain the importance of public relations and show how it differs around the world.Answer: When disaster strikes, a company or industry often finds itself thrust into the spotlight. With modern technology, easily accessible communications and media have made it more important for companies to be prepared for any potential disasters or acute problems. A company's swift and effective handling of communications during such times can have significant implications. The best response is to be forthright and direct, reassuring the public, and provide the media with accurate information. Cultural traditions, social and political contexts, and economic environments in specific countries can affect PR practices. The mass media and the written word are important vehicles for information dissemination in many of the industrial countries. In developing countries these may not be as effective or the only source of communication. In Ghana, dance, songs, and storytelling are important communication channels. In India, where half of the population cannot read, written communication is of no importance,, mostly in the extensive rural areas. Even in industrialized nations PR practices vary to a great extent. In the United States, the hometown news release comprises much of the news in a small, local newspaper. In Europe, PR professionals are viewed as part of the marketing function rather than as distinct and separate specialists in a company. A company that is ethnocentric in its approach to PR will extend home-country PR activities into host countries. The rationale behind this approach is that people everywhere are motivated and persuaded in much the same manner; a company adopting a polycentric approach to PR gives the host-country practitioner more leeway to incorporate local customs and practices into the PR effort.Page Ref: 420-421