COMMUNICATING WITH THE WORLD CONSUMER Chapter Fourteen

1. COMMUNICATING WITH THE WORLD CONSUMERChapter Fourteen John Wiley & Sons, Inc c 1998

2. Communicating with the World Consumer • Overview • 1. Constraints on Global Communications Strategies • 2. Setting the Global Advertising Budget • 3. Message Strategy • 5. Global Media Decisions • 6. Choosing an Advertising Agency • 7. Other Forms of Communication John Wiley & Sons, Inc c 1998

3. 1. Overview • 1. Select target audience and positioning theme • 2. Set specific campaign objectives (strategic and operational) • 3. Determine the promotional budget • 4. Develop the message strategy • 5. Decide on the media strategy • 6. Monitor and assess campaign effectiveness • Exhibit 14-1 United Parcel Service (UPS),s Pan-European Campaign John Wiley & Sons, Inc c 1998

4. 1. Constraints on Global Communication Strategies • Language Barriers • Exhibit 14-2 Five Different Ways for Saying “tires” in Spanish • Cultural Barriers • Local Attitudes toward Advertising • Exhibit 14-3 Global Attitudes toward Advertising • Exhibit 14-4 Ranked Responses for Why Customers Choose a Brand Leader John Wiley & Sons, Inc c 1998

5. 1. Constraints on Global Communication Strategies (cont) • Media Infrastructure • Advertising Regulations • Advertising of “Vice Products” and Pharmaceuticals • Comparative Advertising • Content of Advertising Messages • Advertising toward Children John Wiley & Sons, Inc c 1998

6. 1. Constraints on Global Communication Strategies (cont) actions to cope with advertising regulations • 1. Keep track of regulations and pending legislation • 2. Lobbying activities • 3. Challenge regulations in court • 4. Adapt marketing mix strategy John Wiley & Sons, Inc c 1998

7. 2. Setting the Global Advertising Budget • Exhibit 14-5 European Computer Advertising; Ad Spending in US$ by Top 9 Marketers for January-December 1992 • Percentage of Sales • Competitive Parity • Objective-and-Task • Exhibit 14-6 Survey on International Ad Budget Allocation Practices John Wiley & Sons, Inc c 1998

8. 3. Message Strategy • The “Standardization” versus “Adaptation” Debate • Merits of Standardization • Scale Economies • Consistent Image • Global Customer Segments • Creative Talent John Wiley & Sons, Inc c 1998

9. 3. Message Strategy (cont) • Cross-Fertilization • Exhibit 14-7 Agency Survey: Mean Importance of Reasons for Standardizing Multinational Advertising John Wiley & Sons, Inc c 1998

10. 3. Message Strategy (cont) • Barriers to Standardization • Cultural Differences • Exhibit 14-8 Adaptation of Siemens Print Ad • Advertising Regulations • Market Maturity • “Not-Invented-Here” Syndrome John Wiley & Sons, Inc c 1998

11. 3. Message Strategy (cont) • Approaches to Creative Advertising Copy • Export Advertising • Exhibit 14-9 Examples of Universal Appeals • Prototype (Pattern) Advertising • Concept Cooperation Advertising John Wiley & Sons, Inc c 1998

12. 4. Global Media Decisions • Media Infrastructure • Exhibit 14-10 Ad Spending by Medium • Media Limitations • Exhibit 14-11 Media Vehicles used by Pepisco in Vietnam • Exhibit 14-12 Media Advertising Costs John Wiley & Sons, Inc c 1998

13. 4. Global Media Decisions (cont) • Recent Developments in the International Media Landscape • Growing commercialization and deregulation of mass media • Shift from radio and print to TV advertising • Rise of global media • Growing importance of multimedia advertising tools John Wiley & Sons, Inc c 1998

14. 4. Global Media Decisions (cont) • Improved monitoring • Improved TV-viewership measurement • Exhibit 14-13 How Switching to People Meters Affected TV Ratings Worldwide John Wiley & Sons, Inc c 1998

15. 5. Choosing an Advertising Agency options • 1. Work with the agency that handles the advertising in the firm’s home market • 2. Pick a purely local agency in the foreign market • 3. Choose a local office of a large international agency • 4. Select an international network of ad agencies that spans the globe John Wiley & Sons, Inc c 1998

16. 5. Choosing an Advertising Agency (cont) criteria • Market coverage • Quality of coverage • Expertise in developing a central international campaign • Scope and quality of support services • Desirable image (“global” versus “local”) • Size of agency • Conflicting accounts John Wiley & Sons, Inc c 1998

17. 6. Coordinating International Advertising • Monetary Incentives (Cooperative Advertising) • Advertising Manuals • Feedback via the Internet • Lead-Country Concept • Global or Pan-Regional Meetings John Wiley & Sons, Inc c 1998

18. 6. Coordinating International Advertising (cont) guidelines • 1. Top management must be dedicated to going global. • 2. A third party (e.g., the ad agency) can help sell key managers the benefits of going global. • 3. A global brief based on cross-border consume research can help persuade managers to think in terms of global customers. John Wiley & Sons, Inc c 1998

19. 6. Coordinating International Advertising (cont) guidelines (cont) • 4. Find product champions and give them charter for the success of the global marketing program. • 5. Convince local staff that they have an opportunity in developing a global campaign. • 6. Get local managers on the global marketing team: have them do the job themselves. John Wiley & Sons, Inc c 1998

20. 7. Other Forms of Communication • Sales Promotions • Economic development • Market maturity • Cultural perceptions • Trade structure • Government regulations • Event Sponsorships • Trade Shows John Wiley & Sons, Inc c 1998