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Global Marketing Communications. Top 10 Companies by Ad Spending Outside the U.S. Slide 20-1 Figure 20-1. Irwin/McGraw-Hill. The McGraw-Hill Companies, Inc., 1998. SmartBeep. Hyundai - Sweden. Global Attitudes Towards Advertising. Advantages of Global Marketing and Advertising.
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Global Marketing Communications
Top 10 Companies by Ad Spending Outside the U.S. Slide 20-1 Figure 20-1 Irwin/McGraw-Hill • The McGraw-Hill Companies, Inc., 1998
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
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 Irwin/McGraw-Hill • The McGraw-Hill Companies, Inc., 1998 Slide 20-3
When is Globalization Appropriate? • Brands that can be adapted for a visual appeal Irwin/McGraw-Hill • The McGraw-Hill Companies, Inc., 1998 Slide 20-4
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 Irwin/McGraw-Hill • The McGraw-Hill Companies, Inc., 1998 Slide 20-4
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 Irwin/McGraw-Hill • The McGraw-Hill Companies, Inc., 1998 Slide 20-4
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 Irwin/McGraw-Hill • The McGraw-Hill Companies, Inc., 1998 Slide 20-4
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 Irwin/McGraw-Hill • The McGraw-Hill Companies, Inc., 1998 Slide 20-4
Act Locally Standardizing Advertising: It’s All about degree Think Globally
Standardized Advertising: It’s all about DEGREE The Chameleon • An advertising strategy with different meanings in different cultures, but with positive associations for the target audience in all of them. • When this happens, it can be a truly global campaign.
Saudi Arabia France Marlboro Man
Turkey Singapore Marlboro Man
Germany Sweden Marlboro Man
US (circa 1988): no logo needed Latin America Marlboro Man
Coca Cola Light/Diet Coke • Coca Cola Light campaign "Just for the Taste of It" was used in many different countries, the execution of that strategy was tailored to cultural differences.
Coca Cola Light/Diet Coke France: cooling off France: hugging
Coca Cola Light/Diet Coke France: cooling off Korea: behind the back
Coca Cola Light/Diet Coke Thailand: red & white
Standardizing advertising strategy across countries while the execution is modified to fit in with local cultural mores. Drakkar Noir USA – “Feel the Power”
French Version Spanish Version Saudi Arabia Drakkar Noir
Communicating withWorld Consumers Challenges Legal and Tax Considerations Language Limitations Cultural Diversity Media Limitations Production and Cost Limitations
Creative Challenges of Global Advertising Legal and Tax Considerations • Legal • Comparative Advertising • No - Germany • Indirect - U.K., Spain, Ireland, Portugal • Heavily regulated in Asia • Amount of advertising • Kuwait - 32 minutes per day • Taxation on advertising • Britain, France and Australia • Austria - Huge taxes on print and t.v. • - Cinema advertising 11% of ad revenue • per year
Language Limitations • lPhonetic Problems with Brand Names • Bardok in Russia • Big John In French -speaking Canada - Gros Jos • lTranslations • Intent Translation- Stepping Stone - Stumbling Block- Car Wash - Car Enema- Highly Rated - Over Rated • Symbols- Owl - Bad Luck in India • - Airline Log in Australia - EMU
Cultural Diversity • Function of Advertising: • Interpret or translate the need/want satisfying qualities of product and services in terms of consumer needs, wants, desires, and aspirations. • Emotional appeals, symbols, persuasive approaches etc.must coincide with cultural norms to be effective.
Cultural Diversity • General Mills Cake Mixes • US and UK • Homemaker’s guilt • Japan • Don’t eat cakes • Concerned about failing • Easy as rice • Subcultures
Localization Sweden France
Japan United Kingdom
Latin America Japan
Advertising as a MirrorIndividualism vs. Collectivism Germany: man diving South Africa: cigarette party
Latin America: footprint in the sand Taiwan: Samsonite suitcase ad