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Chapter 23 International Advertising

Chapter 23 International Advertising. Objectives_1. Understand The evolving nature of the global market The role of advertising and advertising agencies in international marketing Changes in U.S. advertising and marketing practices as a result of global competition. Objectives_2.

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Chapter 23 International Advertising

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  1. Chapter 23 International Advertising

  2. Objectives_1 Understand • The evolving nature of the global market • The role of advertising and advertising agencies in international marketing • Changes in U.S. advertising and marketing practices as a result of global competition

  3. Objectives_2 Understand • Cultural and political considerations in international marketing • Organizing advertising management to compete in the global marketplace • Effects of a diverse U.S. population on domestic advertising and media

  4. Procter & Gamble General Motors Unilever Ford L’Oreal Toyota Time Warner Johnson & Johnson Nestle Walt Disney Nissan Altria Group Honda Coca-Cola Sony Top Global Marketers

  5. Source of Anti-American Opinions Abroad Exploitation Corrupting influence Insensitivity and arrogance Hyper-consumerism

  6. Glocalization as an Advertising Influence • The creation or distribution of products or services intended for a global or transregional market but customized to suit local laws or customs • Using electronic communication technologies to provide local messages on a global or transregional basis

  7. Exhibit 23.2 Internet World Users by Language

  8. Internet Promotions Targeting International Audience Should • Provide opportunities to opt in or opt out of future communication • Give honest and credible information • Prohibit the use of randomly generated addresses • Set standards to prevent relaying email from computers with authorization

  9. Global Marketing Global marketing refers to the use of advertising and marketing strategies on an international basis.

  10. The EU: A Regional Free Trade Area

  11. McDonald’s Utilizes Global Themes

  12. Potential Problems in Global Advertising Execution Language differences Media research and usage Cultural considerations

  13. Exhibit 23.4 Continuum of Marketing/Advertising Strategy Company Oriented Consumer Oriented Global Marketing Marketing Concept One strategy Different strategy One execution Different execution

  14. Applications of the Continuum • Export both the product and the advertising to other countries • Adopt a product and a marketing plan exclusively for the international market or large geographical areas • Export product, but change name • Keep name and strategy, but adapt product to country needs

  15. WPP Illustrates the Growth in Major Advertising Centers Outside the US

  16. Omnicom WPP Interpublic Publicis Groupe Dentsu Havas Aegis Group Hakuhodo DY Holdings Asatsu-DK Carlson Marketing Group MDC Partners Incepta Group World’s Top Marketing Organizations

  17. Agency-Client Conflicts and Consolidation • Noncompete principle protects client • Agency approaches relationship as a partner in client success • Agency clients defined by product lines • “Fire walls” exist between agencies in holding companies

  18. Problems Agencies Face When Meeting Client Demands Need to accommodate client’s organizational structure Need to manage centrally, but communicate locally

  19. P&G Uses Global Themes for its Core Brands

  20. Evolution of Multinationals (MNCs) Moving into foreign markets Local emphasis in marketing strategy Research-supported localization and segmentation

  21. International Problems in Media Planning • Media availability and usage levels • Legal regulations • Comparative advertising • Advertising to children • Internet advertising • Standards of truth • Lack of reliable audience research

  22. Trends Affecting Marketing to Diverse Populations Majority- minority transition Difficulty Determining race World citizens

  23. Home Depot’s Global Communications

  24. Exhibit 23.11Diversity in Music Preferences

  25. Exhibit 23.12 Steady Growth Expected

  26. Top Hispanic Newspaper

  27. Top Hispanic Magazine

  28. Exhibit 23.15 Crest Recognizes the Changing Demographics of the American Market

  29. Factors Inhibiting Use of Ethnic Marketing • Little or no experience • Language barriers make research challenging • Lack of ethnic-oriented syndicated research studies

  30. Differences between Hispanic buyers and general population • More enjoyment of shopping • More influenced by advertising • More likely to pay with cash • More likely to download music • Preference for Spanish language

  31. For Discussion • How are cultural considerations relevant to the execution of an international advertising campaign? • What effect has cultural assimilation had on American marketing?

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