Lesson 13 Communications Decisions: Advertising and Public Relations

1. Lesson 13 Communications Decisions: Advertising and Public Relations

2. Key definitions • MarCom (Marketing Communications): All communications instituted by marketing to tell consumers abut the benefits and values that a company, product, or service offers • IMC (Integrated Marketing Communications): Consistency and reinforcement of message across all media • Challenges of coordination and control across national borders

3. Key definitions • Advertising is any sponsored, paid message that is communicated in a non-personal way • At its extreme, global advertising uses the same positioning strategy AND creative execution world over • same advertising appeals, messages, art, copy, photographs, stories, and video segments in multiple country markets • E.g. IBM – “Solutions for a small planet” • E.g. De Beers – “A Diamond is Forever”

4. Key definitions • At the other extreme, localized advertising evolves positioning strategies and creative execution locally • advertising appeals, messages, art, copy, photographs, stories, and video segments differ from country to country for the same product • E.g. Pepsiman in Japan • Most Indian advertising for multinational products • In the middle…positioning strategy may be uniform but creative execution may vary • E.g. Pepsi & Coke advertising

5. Standardization vs. Adaptation • Primary Question • What should be the level of standardization / adaptation in the global communications strategy? • To decide we need to understand the advertising process first

6. The advertising process • The positioning strategy • Research inputs • Client brief • Understanding the consumer • Understanding the product • The big idea • The creative brief

7. The advertising process • The creative execution • The creative strategy • The creative units • The execution (copy, visuals, etc.) • Production

8. The advertising process • The media strategy • Media planning • Media buying • Media operations

9. Factors influencing standardization/adaptation • Extent of segment simultaneity (cultural differences vs. cultural similarities) • Type of product (Industrial / Consumer) • Control / profitability considerations • Nationalism • Change agent (proactive) or reactive

10. Four difficulties that compromise an organization’s communication efforts • The message may not get through to the intended recipient. (media problems indicated) • The message may reach the target audience but may not be understood or may even be misunderstood (creative strategy / execution problems indicated)

11. Four difficulties that compromise an organization’s communication efforts • The message may reach the target audience and may be understood but still may not induce the recipient to take the action desired by the sender (positioning strategy problems indicated) • The effectiveness of the message can be impaired by noise ( timing problems indicated)

12. Standardization vs. Adaptation “Eighteen-year olds in Paris have more in common with 18-year-olds in New York than with their own parents. They buy the same products, go to the same movies, listen to the same music, sip the same colas. Global advertising merely works on that premise.” - William Roedy, Director, MTV Europe

13. Advertising Agencies • Holding companies • Omnicom group NY – USD 7.54 bn. • Interpublic Group NY – USD 6.20 bn. • WPP Group London – USD 5.78 bn. • Individual Agencies • Dentsu, Japan – USD 1.442 bn • McAnn Erickson – USD 1.24 bn • BBDO Worldwide – USD 1.06 bn

14. Selecting an Advertising Agency • Company organization • Companies that are decentralized may want to leave the choice to the local subsidiary • National responsiveness • Is the global agency familiar with local culture and buying habits of a particular country? • Area coverage • Does the agency cover all relevant markets

15. Selecting an Advertising Agency • Track record • Experience with handling similar products • Awards, quality of past advertising and results • Conflict of interest issues • Competitor’s business • Culture matching • Do the two top guys get along? • One stop shop vs. boutiques

16. Cultural Considerations – Japanese and American Differences • Indirect rather than direct forms of expression are preferred in the messages • Avoidance of directness is a cultural prevalent • There is often little relationship between ad content and the advertised product • Consumers judge for themselves • Only brief dialogue or narration is used in television commercials, with minimal explanatory content • People who talk too much are seen to be untrustworthy

17. Cultural Considerations – Japanese and American Differences • Humor is used to create a bond of mutual feelings • Situational humor not slapstick • Famous celebrities appear as close acquaintances or everyday people • Celebrities are not privileged folk • Priority is placed on company trust rather than product quality • If the company is good its products must be of a high quality

18. Cultural Considerations - India • Musicals – essential element of popular culture • Hinglish – a mixture of English and Hindi • Color in ads extremely important • Languages – India has 32 languages and thousands of dialects • Celebrities from Bollywood and Cricket

19. Cultural Considerations - India • Censorship – kissing and nudity • References to national flag, national anthem, Gandhi, etc. • CPAs, Lawyers, Doctors, etc. not allowed to advertise • No alcohol, beer and firearms advertising on Indian TV channels. Tobacco advertising allowed (with statutory warning) • Surrogate advertising for alcohol

20. Cultural Considerations

21. Cultural Considerations – Islamic countries • Use of comparative advertising claims is prohibited • Non-censored films cannot be advertised • Women may only appear in those commercials that relate to family affairs, and their appearance must be in a decent manner that ensures feminine dignity • Women must wear a long suitable dress which fully covers her body except face and palms

22. Public Relations and Publicity • Fosters goodwill and understanding • Generates favorable publicity • Tools • News releases • Media kits • Press conferences • Tours • Articles in trade and professional journals • TV and radio talk show appearances • Special events

23. The Growing Role of Public Relations in Global Marketing • Public Relations expenditures are growing at an average of 20% per year • In India they are reported to be growing by 200% annually • Reasons for the growth • Credibility issues in advertising • Damage control during crises (e.g. Bhopal gas leak)