Managing Global Advertising

1. 15 Managing Global Advertising

2. Learning Objectives • List both the advantages and the special requirements of standardized campaigns. • Define the global theme approach to advertising, and explain how it differs from a totally standardized campaign. • Explain the market and cultural limitations on the advertising message or on its execution. • Identify key issues related to advertising that tend to be regulated by national governments. • Cite ways to avoid faulty translations and ways to minimize the need to translate. • Explain how media availability, media habits, and scheduling international advertising all affect the advertising campaign. • Differentiate among the three options of utilizing domestic advertising agencies, using local advertising agencies, and using international advertising networks. • List the external and internal factors that influence a firm’s decision to centralize or localize its advertising decisions.

3. Chapter Outline Global versus local advertising Developing global campaigns The global-local decision Overcoming language barriers Global media strategy Organizing the global advertising effort

4. Overcoming Language and Cultural Barriers Some markets or regions require multilingual advertising Proper linguistic translation is imperative and challenging Can be difficult to translate critical words Concepts also may not translate well culturally  adaptations may be necessary Benetton’s nursing black mother Fed Ex’s naked soccer players

5. The Regulatory Challenge Types of products that can be advertised Types of appeals that can be used Times that certain products can be promoted Use of foreign languages in advertisements Use of national symbols in advertisements Taxes levied against advertising expenditures

6. Global Advertising • 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

7. 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!

8. Selecting Ad Agencies Domestic Agencies When firm first goes international, typically turns to domestic agency for help But smaller agencies typically don’t have international experience Local Agencies Understands local environment, creates targeted advertising Can be difficult to coordinate across several markets International Advertising Networks Can be difficult to be global and local – instead many companies have formed alliances to serve clients globally with local experience and expertise

9. 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

10. Advertising Coordination(cont.) Internal factors Decentralization Is only possible if local skill levels and efficiency are acceptable May be preferred by companies priding themselves on giving considerable freedom to subsidiary managers