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Chapter 18

Chapter 18. Global Advertising. Introduction. The top world wide markets began spending more than 50% of their advertising dollars outside the U.S. in the early 1990s. Non-U.S. gross income of the top 500 agencies reached $9 million as the twentieth century drew to a close.

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Chapter 18

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  1. Chapter 18 Global Advertising

  2. Introduction • The top world wide markets began spending more than 50% of their advertising dollars outside the U.S. in the early 1990s. • Non-U.S. gross income of the top 500 agencies reached $9 million as the twentieth century drew to a close. • Of the top 25 agencies, more than half are headquartered in the U.S. with the remainder in Great Britain or Japan.

  3. Top 10 Companies by Ad Spending Outside the U.S.

  4. EXH 2-24

  5. Global Brands A Global Brand is one that has the same name, design, and creative strategy everywhere in the world and is marketed in most of the major regional market blocs. i.e. McDonald’s, Rolex, Gillette

  6. The Global Debate and Advertising Theodore Levitt: Companies Should Operate as If There Were Only One Global Market Since People Are Motivated by Same Desires and Wants. Phillip Kotler: Success is Based on Variation, Not Offering the Same Product Everywhere. Two Views on How to Achieve Global Coverage

  7. Global Marketing & Advertising • Arguments for globalization • Economies of scale • Consistent image • Arguments for localization • Different consumers • Decision making process • Involvement with product category • Product usage pattern and perception • Attitude toward advertising • Preferences, tastes and life styles

  8. EXH 3-26

  9. Global Mktg & Advertising (cont’d) • Arguments for localization (cont’d) • Different economies and marketing environments: 4Ps • Different media landscapes: availability & cost • Different government regulations • Different cultures • Different perception of advertising • --> More general and standardized the advertising strategy and execution, more bland and less compelling its impact on target audience ---> A balancing act

  10. Perceptions of Advertising, Europe and United States

  11. The Global Debate and Advertising The Outgrowth of This Debate Is Three Schools of Thought on Advertising: Globalization (Standardization) Localization (Adaptation) Contingency (Moderate) May be Best Strategy

  12. Global Mktg & Advertising (cont’d) • Globalization ------------------Localization • More globalization possible with: • TV than print • B-to-b and high tech categories (“Cross-cultural cohorts”) • Emotion or image oriented product categories • More localization possible with: • more resources for local operations • Proctor & Gamble’s simplification strategy

  13. The Adaptability Continuum

  14. Advantages of Global Marketing and Advertising • Economies of scale in production and distribution • Lower marketing and advertising costs • Ability to exploit good ideas on a worldwide basis • Consistent brand and/or company image in all markets • Simplification of coordination and control of marketing and promotional programs

  15. Problems with Global Advertising • Differences in market and economic development, consumer needs, media availability and legal restrictions • Cultural differences make advertising standardization difficult • Usage patterns and perceptions of a product may vary from one country to another

  16. When is Globalization Appropriate? • Brands that can be adapted for a visual appeal • Brands that are promoted with image campaigns that play to universal appeals • High-tech products and new products coming to the world for the first time • Products with nationalistic flavor • Products that appeal to a market segment with universally similar tastes, interests, needs and values

  17. Station Break • Go to the following Web sites: a) FedEx at www.fedex.com, b) UPS at www.ups.com, and c) DHL at www.dhl.com. • Which of these parcel delivery services seems to present itself as an internationally-oriented carrier? • Which do you perceive to be a global brand? • After examining the mission statement of each one, would you change your answers to the above two questions? • What international image is projected (if any) by each of the carriers? Discuss findings.

  18. Lingua Franca • Language affects the creation of the advertising. • Verbal techniques don’t cross borders well so international campaigns are not usually translated; they are rewritten. • Some languages do not have English equivalent expressions. • Best solution to translation problems is to use bilingual copywriters.

  19. Special International Considerations Time Everything Takes Longer In Other Countries Inertia, Resistance, Rejection, and Politics Usually Mean “Not Invited Here” Customs and Culture Customs Can be Stronger Than Laws Laws and Regulations Fear of Not Knowing Local Laws

  20. The Global Advertising Plan • The Strategic Advertising Plan Outlines the • Marketing Strategy. Market-Analysis Model Based on Data & Observations From Several Countries. Culture-Oriented Model Emphasizes Cultural Differences Among People and Nations.

  21. Station Break • Go to the following international advertising agency Web sites: a) J. Walter Thompson at www.jwt.com, b) Young and Rubicam at www.youngandrubicam.com, and c) Saatchi & Saatchi at www.saatchi.com. • Which agency seems to be more international in its direction? • You might determine this by examining mission statements, a list of clients, or recent advertisements. • Evaluate at least one commercial from each site. Critique what you found and discuss in class.

  22. National Success Story Modified for use in other countries. Impulse, body spray. Centrally Conceived Campaigns Team from around the world agree on basic strategy for campaign. Allow some local autonomy. Centrally Controlled Campaigns

  23. Positioning the Global Product Setting the Budget Factors Affecting the International Budget Determine Problems & Opportunities in Each Market International Exchange Rate Budgetary Tradition Position Based on Local Market Standardized Positioning Strategy Positioning the Product and Setting the Budget

  24. Selecting Media Executing the Campaign Execution of an International Campaign is More Complex Global Media Currently Don’t Exist But May Involve Greater Latitude Must Be Allowed Place of Purchase is a Factor Satellite Transmission The Web Media Choices Vary Selecting Media and Executing the Campaign

  25. Determine the Copy Content The Global Creative Effect Execute the Content Through a Central Idea Address Advertising Objectives & Reflect Product’s Positioning Produce the Advertising

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