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International 
Advertising and 
Promotion 
2 
0 
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Reasons for International Importance 
SSttaaggnnaattiioonn ooff ddoommeessttiicc mmaarrkkeettss 
Company survival, particularly those with small 
Company survival, particularly those with small 
domestic markets 
domestic markets 
GGrroowwtthh aanndd pprrooffiitt ooppppoorrttuunniittiieess 
EEccoonnoommiicc nneecceessssiittyy
Focusing on China for Growth
Tourism Australia Uses Global Campaign
International Advertising & Promotion 
Rank Advertiser Outside U.S. Inside U.S. 
1 Proctor & Gamble $4,995 $3,527 
2 Unilever 3,689 848 
3 General Motors 1,145 2,208 
4 L’Oreal 2,336 753 
5 Toyota Motor Corp. 1,895 1,203 
6 Ford Motor Co. 1,168 1,701 
7 Time Warner 298 1,838 
8 Nestlé 1,509 605 
9 Johnson & Johnson 674 1,351 
10 Daimler/Chrysler 578 1,425 
Ad spending in millions of U.S. dollars
The International Environment 
Economic 
Environment 
Demographic 
Environment 
Cultural 
Environment 
International 
Marketing 
& 
& 
Promotional 
Decisions 
Political/Legal 
Environment
International Economic Environment 
Economic environment 
• Stage of economic development 
• Economic infrastructure 
• Standard of living 
• Per capita income 
• Distribution of wealth 
• Currency stability 
• Exchange rates 
Economic environment 
• Stage of economic development 
• Economic infrastructure 
• Standard of living 
• Per capita income 
• Distribution of wealth 
• Currency stability 
• Exchange rates 
International Marketing 
And Promotional Decisions
ICI Dulux Targets Young Households in China 
*Click outside of the video screen to advance to the next slide
International Demographic Environment 
International Marketing 
And Promotional Decisions 
Demographic environment 
• Size of population 
• Number of households 
• Household size 
• Age distribution 
• Occupation distribution 
• Education levels 
• Employment rate 
• Income levels 
Demographic environment 
• Size of population 
• Number of households 
• Household size 
• Age distribution 
• Occupation distribution 
• Education levels 
• Employment rate 
• Income levels
International Cultural Environment 
Cultural environment 
• Language 
• Lifestyles 
• Values 
• Norms and customs 
• Ethics and moral standards 
• Taboos 
Cultural environment 
• Language 
• Lifestyles 
• Values 
• Norms and customs 
• Ethics and moral standards 
• Taboos 
International Marketing 
And Promotional Decisions
Heineken Translation Issues
Lay’s Targets China Youth Market 
*Click outside of the video screen to advance to the next slide
International Political/Legal Environment 
International Marketing 
And Promotional Decisions 
Political/legal environment 
• Government policies 
• Laws and regulations 
• Political stability 
• Nationalism 
• Attitudes toward multinational 
companies 
Political/legal environment 
• Government policies 
• Laws and regulations 
• Political stability 
• Nationalism 
• Attitudes toward multinational 
companies
Test Your Knowledge 
Since the European Union banned the use of food dyes 
in seafood, the salmon market has suffered. People 
mistakenly believe that salmon is naturally pink. 
Unfortunately, salmon is an unappetizing gray color. 
This is an example of how _____ factors can 
inadvertently hurt small businesses. 
A) economic 
B) demographic 
C) political/legal 
D) cultural 
E) infrastructure
Advertising Subject to Regulation 
Products that may be advertised 
Content or creative approach used 
Media advertisers are permitted to use 
The amount of advertising one may do 
Use of foreign languages in ads 
Use of materials from outside the country 
Use of local vs. international ad agencies 
Specific taxes levied on advertising
Global Marketer’s Dilemma 
Offer the 
same 
product, 
marketing, 
and 
advertising 
everywhere 
? 
Adapt the 
product, 
marketing, 
and 
advertising 
to each 
society?
Global Marketing & Advertising Advantages 
Economies of scale in production, distribution 
Lower costs with less in planning and control 
Lower advertising production costs 
Ability to exploit good ideas worldwide 
Ability to introduce products quickly, worldwide 
Consistent international brand, company image 
Simplification of coordination and control
Gillette Launches Mach3 Globally
Problems With Global Advertising 
Differences in culture, market and economic 
Differences in culture, market and economic 
development make it difficult to use global advertising 
development make it difficult to use global advertising 
Consumer needs and usage 
Consumer needs and usage 
patterns often vary by country or region 
patterns often vary by country or region 
Media availability or usage may 
Media availability or usage may 
vary by country or region 
vary by country or region 
Legal restrictions may make it 
Legal restrictions may make it 
difficult to develop an effective universal appeal 
difficult to develop an effective universal appeal
When is globalization appropriate? 
Brands can be adopted for visual 
appeal, avoiding translation problems 
Brands promoted with image 
campaigns playing to universal needs, 
values, emotions 
High-tech products, new to the world, 
not steeped in the cultural heritage of 
the country of origin 
Products with a nationalistic flavor, 
if the country has a favorable 
reputation in the field 
Products appealing to a market 
segment with universally similar 
tastes, interests, needs, values 
Globalization 
Often Works 
Best For:
TAG Heuer’s Global Campaign
British Airways Uses Global Advertising 
*Click outside of the video screen to advance to the next slide
Global Products, Local Messages 
An In-between Approach 
Standardizing 
Products 
“Think Globally, 
Act Locally” 
Localizing Ad 
Messages 
Adapt Messages to Respond To 
Differences in 
Language 
Differences in 
Market Conditions 
Differences in 
Cultural 
Use of Pattern 
Advertising
TaylorMade Used Pattern Advertising
Decision Areas in International Advertising 
Organization 
Organization 
Style 
Style 
Creative 
Strategy & 
Execution 
Creative 
Strategy & 
Execution 
Agency 
Selection 
Agency 
Selection 
Advertising 
Research 
Advertising 
Research 
Coordination of 
Coordination of 
Other 
IMC Tools 
Other 
IMC Tools 
Media Strategy 
and Selection 
Media Strategy 
and Selection 
DDeecciissiioonn AArreeaass
Centralization of International Advertising 
BBuuddggeettiinngg 
Central 
Authority 
RReesseeaarrcchh 
Agency 
Selection 
Agency 
Selection 
Creative 
Strategy 
Creative 
Strategy 
Media 
Strategy 
Media 
Strategy 
Campaign 
Development 
Campaign 
Development 
Central 
Authority
Decentralized International Advertising 
Central 
Authority 
Central 
Authority 
Campaigns 
Creative 
Media 
Research 
Budgets 
Campaigns 
Creative 
Media 
Research 
Budgets 
Campaigns 
Creative 
Media 
Research 
Budgets 
Region 
One 
Region 
One 
Region 
Two 
Region 
Two 
Region 
Three 
Region 
Three
Criteria for Selecting an Agency 
1. Ability of agency to cover relevant 
markets. 
2. Quality of agency work. 
3. Market research, public relations, and 
other services offered by the agency. 
4. Relative roles of company advertising 
department and strategy. 
5. Level of communication and control 
desired by company.
Criteria for Selecting an Agency 
6. Ability of agency to coordinate 
international campaign. 
7. Size of company’s international business. 
8. Company’s desire for local versus 
international image. 
9. Company organizational structure for 
international business and marketing 
(centralized versus decentralized). 
10. Company’s level of involvement with 
international operations.
Advertising Research 
Information on demographic characteristics of 
markets 
Information on demographic characteristics of 
markets 
Information on cultural differences such as norms, 
lifestyles, and values 
Information on cultural differences such as norms, 
lifestyles, and values 
Information on consumers’ product usage, brand 
attitudes and media preferences 
Information on consumers’ product usage, brand 
attitudes and media preferences 
Information on media Information on media uussaaggee aanndd aauuddiieennccee ssiizzee 
Copy testing to determine reactions to different 
types of advertising appeals and executions 
Copy testing to determine reactions to different 
types of advertising appeals and executions 
Research on the effectiveness of advertising and 
promotional programs in foreign markets 
Research on the effectiveness of advertising and 
promotional programs in foreign markets
Creative Decisions 
Creative decisions should be based on advertising 
Creative decisions should be based on advertising 
and communication objectives 
and communication objectives 
Copy platforms must be 
Copy platforms must be 
developed that include major selling ideas 
developed that include major selling ideas 
Specific appeals and 
Specific appeals and 
execution styles must be selected 
execution styles must be selected 
Appeals may have to be 
Appeals may have to be 
adapted for local market conditions 
adapted for local market conditions
Coca-Cola Adapts to Local Markets
International Media Selection Issues 
Widely Differing 
Characteristics 
Widely Differing 
QQuuaalliittyy 
CCoovveerraaggee 
RReessttrriiccttiioonnss 
AAvvaaiillaabbiilliittyy 
CCoosstt 
Media 
Media 
Information 
Problems 
AAvvaaiillaabbiilliittyy 
RReelliiaabbiilliittyy 
CCiirrccuullaattiioonn 
AAuuddiieennccee 
CCoosstt
Specialized Target Audiences
Broad Coverage of International Media 
© 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
International Sale Promotion 
EEccoonnoommiicc DDeevveellooppmmeenntt 
MMaarrkkeett MMaattuurriittyy 
CCoonnssuummeerr PPeerrcceeppttiioonnss 
TTrraaddee SSttrruuccttuurree 
RReegguullaattiioonnss 
Major Creation 
Considerations 
Major Creation 
Considerations
WD-40 Used Product Samples in Russia
Central vs. Local Roles
Public Relations in Global Marketing 
Deal with local governments, media, trade 
Deal with local governments, media, trade 
associations, and the general public 
associations, and the general public 
Present the company Present the company aass aa ggoooodd ccoorrppoorraattee cciittiizzeenn 
Serve as part of the IMC program and help 
Serve as part of the IMC program and help 
market the product or service 
market the product or service 
Deal with specific issues and problems the 
company may face in foreign markets 
Deal with specific issues and problems the 
company may face in foreign markets
Worldwide Growth of the Internet

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Chapter20

  • 1. International Advertising and Promotion 2 0 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
  • 2. Reasons for International Importance SSttaaggnnaattiioonn ooff ddoommeessttiicc mmaarrkkeettss Company survival, particularly those with small Company survival, particularly those with small domestic markets domestic markets GGrroowwtthh aanndd pprrooffiitt ooppppoorrttuunniittiieess EEccoonnoommiicc nneecceessssiittyy
  • 3. Focusing on China for Growth
  • 4. Tourism Australia Uses Global Campaign
  • 5. International Advertising & Promotion Rank Advertiser Outside U.S. Inside U.S. 1 Proctor & Gamble $4,995 $3,527 2 Unilever 3,689 848 3 General Motors 1,145 2,208 4 L’Oreal 2,336 753 5 Toyota Motor Corp. 1,895 1,203 6 Ford Motor Co. 1,168 1,701 7 Time Warner 298 1,838 8 Nestlé 1,509 605 9 Johnson & Johnson 674 1,351 10 Daimler/Chrysler 578 1,425 Ad spending in millions of U.S. dollars
  • 6. The International Environment Economic Environment Demographic Environment Cultural Environment International Marketing & & Promotional Decisions Political/Legal Environment
  • 7. International Economic Environment Economic environment • Stage of economic development • Economic infrastructure • Standard of living • Per capita income • Distribution of wealth • Currency stability • Exchange rates Economic environment • Stage of economic development • Economic infrastructure • Standard of living • Per capita income • Distribution of wealth • Currency stability • Exchange rates International Marketing And Promotional Decisions
  • 8. ICI Dulux Targets Young Households in China *Click outside of the video screen to advance to the next slide
  • 9. International Demographic Environment International Marketing And Promotional Decisions Demographic environment • Size of population • Number of households • Household size • Age distribution • Occupation distribution • Education levels • Employment rate • Income levels Demographic environment • Size of population • Number of households • Household size • Age distribution • Occupation distribution • Education levels • Employment rate • Income levels
  • 10. International Cultural Environment Cultural environment • Language • Lifestyles • Values • Norms and customs • Ethics and moral standards • Taboos Cultural environment • Language • Lifestyles • Values • Norms and customs • Ethics and moral standards • Taboos International Marketing And Promotional Decisions
  • 12. Lay’s Targets China Youth Market *Click outside of the video screen to advance to the next slide
  • 13. International Political/Legal Environment International Marketing And Promotional Decisions Political/legal environment • Government policies • Laws and regulations • Political stability • Nationalism • Attitudes toward multinational companies Political/legal environment • Government policies • Laws and regulations • Political stability • Nationalism • Attitudes toward multinational companies
  • 14. Test Your Knowledge Since the European Union banned the use of food dyes in seafood, the salmon market has suffered. People mistakenly believe that salmon is naturally pink. Unfortunately, salmon is an unappetizing gray color. This is an example of how _____ factors can inadvertently hurt small businesses. A) economic B) demographic C) political/legal D) cultural E) infrastructure
  • 15. Advertising Subject to Regulation Products that may be advertised Content or creative approach used Media advertisers are permitted to use The amount of advertising one may do Use of foreign languages in ads Use of materials from outside the country Use of local vs. international ad agencies Specific taxes levied on advertising
  • 16. Global Marketer’s Dilemma Offer the same product, marketing, and advertising everywhere ? Adapt the product, marketing, and advertising to each society?
  • 17. Global Marketing & Advertising Advantages Economies of scale in production, distribution Lower costs with less in planning and control Lower advertising production costs Ability to exploit good ideas worldwide Ability to introduce products quickly, worldwide Consistent international brand, company image Simplification of coordination and control
  • 19. Problems With Global Advertising Differences in culture, market and economic Differences in culture, market and economic development make it difficult to use global advertising development make it difficult to use global advertising Consumer needs and usage Consumer needs and usage patterns often vary by country or region patterns often vary by country or region Media availability or usage may Media availability or usage may vary by country or region vary by country or region Legal restrictions may make it Legal restrictions may make it difficult to develop an effective universal appeal difficult to develop an effective universal appeal
  • 20. When is globalization appropriate? Brands can be adopted for visual appeal, avoiding translation problems Brands promoted with image campaigns playing to universal needs, values, emotions High-tech products, new to the world, not steeped in the cultural heritage of the country of origin Products with a nationalistic flavor, if the country has a favorable reputation in the field Products appealing to a market segment with universally similar tastes, interests, needs, values Globalization Often Works Best For:
  • 22. British Airways Uses Global Advertising *Click outside of the video screen to advance to the next slide
  • 23. Global Products, Local Messages An In-between Approach Standardizing Products “Think Globally, Act Locally” Localizing Ad Messages Adapt Messages to Respond To Differences in Language Differences in Market Conditions Differences in Cultural Use of Pattern Advertising
  • 24. TaylorMade Used Pattern Advertising
  • 25. Decision Areas in International Advertising Organization Organization Style Style Creative Strategy & Execution Creative Strategy & Execution Agency Selection Agency Selection Advertising Research Advertising Research Coordination of Coordination of Other IMC Tools Other IMC Tools Media Strategy and Selection Media Strategy and Selection DDeecciissiioonn AArreeaass
  • 26. Centralization of International Advertising BBuuddggeettiinngg Central Authority RReesseeaarrcchh Agency Selection Agency Selection Creative Strategy Creative Strategy Media Strategy Media Strategy Campaign Development Campaign Development Central Authority
  • 27. Decentralized International Advertising Central Authority Central Authority Campaigns Creative Media Research Budgets Campaigns Creative Media Research Budgets Campaigns Creative Media Research Budgets Region One Region One Region Two Region Two Region Three Region Three
  • 28. Criteria for Selecting an Agency 1. Ability of agency to cover relevant markets. 2. Quality of agency work. 3. Market research, public relations, and other services offered by the agency. 4. Relative roles of company advertising department and strategy. 5. Level of communication and control desired by company.
  • 29. Criteria for Selecting an Agency 6. Ability of agency to coordinate international campaign. 7. Size of company’s international business. 8. Company’s desire for local versus international image. 9. Company organizational structure for international business and marketing (centralized versus decentralized). 10. Company’s level of involvement with international operations.
  • 30. Advertising Research Information on demographic characteristics of markets Information on demographic characteristics of markets Information on cultural differences such as norms, lifestyles, and values Information on cultural differences such as norms, lifestyles, and values Information on consumers’ product usage, brand attitudes and media preferences Information on consumers’ product usage, brand attitudes and media preferences Information on media Information on media uussaaggee aanndd aauuddiieennccee ssiizzee Copy testing to determine reactions to different types of advertising appeals and executions Copy testing to determine reactions to different types of advertising appeals and executions Research on the effectiveness of advertising and promotional programs in foreign markets Research on the effectiveness of advertising and promotional programs in foreign markets
  • 31. Creative Decisions Creative decisions should be based on advertising Creative decisions should be based on advertising and communication objectives and communication objectives Copy platforms must be Copy platforms must be developed that include major selling ideas developed that include major selling ideas Specific appeals and Specific appeals and execution styles must be selected execution styles must be selected Appeals may have to be Appeals may have to be adapted for local market conditions adapted for local market conditions
  • 32. Coca-Cola Adapts to Local Markets
  • 33. International Media Selection Issues Widely Differing Characteristics Widely Differing QQuuaalliittyy CCoovveerraaggee RReessttrriiccttiioonnss AAvvaaiillaabbiilliittyy CCoosstt Media Media Information Problems AAvvaaiillaabbiilliittyy RReelliiaabbiilliittyy CCiirrccuullaattiioonn AAuuddiieennccee CCoosstt
  • 35. Broad Coverage of International Media © 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 36. International Sale Promotion EEccoonnoommiicc DDeevveellooppmmeenntt MMaarrkkeett MMaattuurriittyy CCoonnssuummeerr PPeerrcceeppttiioonnss TTrraaddee SSttrruuccttuurree RReegguullaattiioonnss Major Creation Considerations Major Creation Considerations
  • 37. WD-40 Used Product Samples in Russia
  • 39. Public Relations in Global Marketing Deal with local governments, media, trade Deal with local governments, media, trade associations, and the general public associations, and the general public Present the company Present the company aass aa ggoooodd ccoorrppoorraattee cciittiizzeenn Serve as part of the IMC program and help Serve as part of the IMC program and help market the product or service market the product or service Deal with specific issues and problems the company may face in foreign markets Deal with specific issues and problems the company may face in foreign markets
  • 40. Worldwide Growth of the Internet

Editor's Notes

  1. Relation to text This material relates to material on pp. 653-655 of the text. Summary Overview This slide shows the reasons why international markets are becoming increasingly important. These include: Domestic markets for many products and services are stagnant Many companies rely on foreign markets to survive, particularly those with small domestic markets International markets offer growth and profit opportunities for many companies Economic necessity; competition has become global and marketers must be able to compete globally With the development of faster communication, transportation, and financial transactions, time and distance are no longer barriers to global marketing. Today world trade is being driven by global competition among global companies for global consumers. Use of this slide This slide can be used to discuss the importance of international markets.
  2. Relation to text This slide relates to the opening vignette on pp. 651-652, which discusses the emergence of China as a major consumer market. Summary Overview This slide shows an ad used by 7-Up in China. The market for soft-drinks is growing rapidly in China and brands like 7-Up are being promoted heavily there. As in the U.S., 7-Up is marketed to young people and promotes the brands sponsorship of cycling. The copy at the bottom of the ad promotes 7-Up’s sponsorship of the Asian XGames. The Chinese characters at the top left of the ad show the 7-Up brand name (in the circle) and the copy translates to “Capable to compete” and “Enjoy all the way to the end.” Use of this slide This slide can be used to show how multinational companies are marketing their brands in China.
  3. Relation to text This slide relates to the material on pp. 653-654 and Exhibit 20-1. Summary Overview This slide shows a print ad from the “Australian Invitation” global campaign developed by Tourism Australia to attract visitors to the country. The campaign is designed to attract a market segment known as Experience Seekers who are experienced travelers and view travel as an important aspect of their lifestyle. The print ads in the “Australian Invitation” campaign use beautiful images showcasing the diversity of experiences across Australia in a range of geographical and environmental settings. Australia’s tourist industry is the major sector of its economy and relies heavily on visitors from around the world. As discussed in the text, many companies and industry must focus on foreign markets to survive as their domestic markets are very small. Use of this slide This slide can be used to show how Tourism Australia markets the country as a tourist destination.
  4. Relation to text This slide relates to material on pp. 655-656 and Figure 20-1 of the text. Summary Overview This slide shows the a comparison of the top 10 companies in order of their advertising spending outside the United States in 2006. An estimated $290 billion was spend on advertising in the United States in 2007, with much of this money being spent by multinational companies headquartered outside this country. Use of this slide This slide can be used to discuss the role that international advertising and promotion plays in an overall marketing plan.
  5. Relation to text This slide relates to material on pp. 656-664 of the text. Summary Overview This slide shows the major environmental factors of the international markets, which are: Economic Environment Demographic Environment Cultural Environment Political/Legal Environment Use of this slide This slide can be used to introduce the major environmental factors that need to be considered when competing in international markets. A more detailed discussion of each factor will follow.
  6. Relation to text This material relates to material on pp. 656-657 and Figure 20-2 of the text. Summary Overview This slide shows the factors that make up the international economic environment. These factors are: Stage of economic development Economic infrastructure Standard of living Per capita income Distribution of wealth Currency stability Exchange rates A country’s economic conditions indicate its present and future potential for consuming, since products and services can be sold only to countries where there is enough income to buy them. Industrialized countries like the United States, Canada, Japan, and countries in Western Europe represent the largest marketing and advertising opportunities. However, countries like China and India are experiencing strong economic growth and are becoming major markets as well. Use of this slide This slide can be used to discuss the international economic environment.
  7. Relation to text This slide relates to the material on pp. 657-659 of the text. Summary Overview This slide contains a Chinese commercial developed for ICI Dulux paints called “My World.” The commercial features a little girl running through a field with her dog and then helping her parents paint the inside of their home with Dulux paint. The agency’s creative brief for this spot states that ICI Dulux sells more than paint. What the brand offers are dream homes, which fits the need of its targeted consumers, young families with new homes. The spot is aspirational, but is also charming as, through the eyes of a little girl, it invites viewers into a dream home and a beautiful world. Use of this slide This commercial can be used as an example of how advertisers are targeting consumers in international markets. China has one of the world’s largest and fastest growing consumer markets, and companies like ICI Dulux are now selling their products to Chinese consumers.
  8. Relation to text This slide relates to material on pp. 657-659 and Figure 20-2 of the text. Summary Overview This slide shows the factors that make up the international demographic environment. These factors are: Size of population Number of households Household size Age distribution Occupation distribution Education levels Employment rate Income levels Major demographic differences exist among countries, as well as within them. Demographic information can reveal the potential of various foreign markets and provide insight into the living standards and lifestyles in a particular country. This information can marketers plan IMC campaigns in these markets. Use of this slide This slide can be used to discuss the international demographic environment.
  9. Relation to text This slide relates to material on pp. 659-663 and Figure 20-2 of the text. Summary Overview This slide shows the factors that make up the international cultural environment. These factors include: Language Lifestyles Values Norms and customs Ethics and moral standards Taboos The culture of each country influences, not only the needs and wants of consumers, but how they go about satisfying them. Advertising is often the most effective way to communicate with potential buyers and create markets in other countries. But, it can also be one the most difficult aspects in the international marketing program because of problems in developing messages that will be understood in various countries. Use of this slide This slide can be used to discuss the international cultural environment.
  10. Relation to textThis slide relates to page 659-663 and Exhibit 20-4. Summary OverviewThis slide shows an ad for Heineken beer. The taglines are “Brewers don’t have to be good talkers” and “When you make great beer, you don’t have to make a great fuss.” Although this ad worked well in the United States and other English-speaking countries, the line “you don’t have to make a great fuss” could not be translated in a meaningful way into many other languages. Use of this slideUse this slide to show how a marketer may have to adapt its advertising to local markets.
  11. Relation to text This slide relates to the material on p. 661 of the text. Summary Overview This slide contains a commercial for a new product the Frito-Lay company recently introduced in China and targets to the country’s large youth market. Lay’s Boundless comes in a canister package, and is advertised as providing unlimited great taste. This spot is called “Rock Band.” Young people are an important global market segment that companies like Frito-Lay want to reach. Use of this slide This slide can be used to show how U.S. companies like Frito-Lay are advertising their products in China.
  12. Relation to text This slide relates to material on pp. 663-664 and Figure 20-2 of the text. Summary Overview This slide shows the factors that make up the international political/legal environment. These factors are: Government policies Laws and regulations Political stability Nationalism Attitudes toward multinational companies Many countries have regulations and restrictions on the advertising of various products, such as cigarettes, liquor, and pharmaceuticals, that can affect various aspects of a company’s advertising program, as shown on the next slide. Use of this slide This slide can be used to discuss the international political/legal environment which is one of the most important factors influencing the advertising and promotional programs.
  13. Answer: C
  14. Relation to text This slide relates to material on pp. 663-664 of the text. Summary Overview This slide summarizes the aspects of advertising that could be subject to government restrictions and regulations. These include: Type of products that may be advertised The content or creative approach used The media advertisers are permitted to use The amount of advertising one may do The use of foreign languages in ads Use of ad materials from outside the country Use of local versus international ad agencies The specific taxes levied on advertising Although some of these restrictions are socially motivated, others are economically motivated. Use of this slide This slide can be used to discuss the various types of government regulations and restrictions that may be placed on the advertising program.
  15. Relation to text This slide relates to material on pp. 664-665 of the text. Summary Overview This slide shows the dilemma company’s face in their decisions about global marketing and advertising programs. Marketers have two options from which to choose relative to international advertising: Standardize marketing and advertising programs – based on the belief that the worldwide marketplace has become homogenous and consumers’ basic needs, wants, and expectations transcend geographic, national, and cultural boundaries Localized marketing and advertising programs – products and advertising messages must be designed or at least adapted to meet the differing needs and types of consumers in different countries. Use of this slide This slide can be used to introduce the debate regarding standardized versus localized marketing and advertising programs. More detailed discussion on these decisions facing marketers will follow.
  16. Relation to text This slide relates to material on p. 665 of the text. Summary Overview This slide shows the advantages of using a global marketing and advertising strategy which are: Economies of scale in production, distribution Lower costs with less in planning and control Lower advertising production costs Ability to exploit good ideas worldwide Ability to introduce products quickly, worldwide Consistent international brand, company image Simplification of coordination and control Advocates of global marketing and advertising contend that standardized products and advertising messages can be used since people everywhere basically want the same products and services and live the same way. Use of this slide This slide can be used to discuss the advantages of using a global marketing strategy and advertising program.
  17. Relation to textThis slide relates to page 665 and Exhibit 20-7 of the text. Summary OverviewThis slide shows an ad that Gillette used globally to promote its Fusion razor. Gillette has also used global ads to promote other razors and shaving products because the company feels that the needs and motives of customers are similar when they are purchasing shaving products, regardless of the country in which they reside. Use of this slideThis commercial can be used as an example of a company that uses global advertising for its products.
  18. Relation to text This slide relates to material on pp. 665-667 of the text. Summary Overview This slide shows some of the problems and difficulties with using global advertising, which include: Differences in culture, market and economic development make it difficult to use global advertising Consumer needs and usage patterns often vary by country or region Media availability or usage may vary by country or region Legal restrictions may make it difficult to develop an effective universal appeal Moreover, some experts argue that cultures around the world are becoming more diverse, not less. Use of this slide This slide can be used to discuss the difficulties of using global marketing and advertising programs.
  19. Relation to text This slide relates to material on pp. 648-650 of the text. Summary Overview This slide shows what types of products and services are best suited to global appeals. These products and services include: Brands that can be adopted for visual appeal, avoiding problems of translating words into many languages (airlines) Brands promoted with image campaigns playing to universal needs, values, emotions (cosmetics) High-tech products, new to the world, not steeped in the cultural heritage of the country of origin (computers) Products with a nationalistic flavor if the country has a favorable reputation in the field (Swiss watches, German cars) Products appealing to a market segment with universally similar tastes, interests, needs, and values (teenagers, wealthy) Use of this slide This slide can be used to discuss the types of products that are best suited to worldwide appeals.
  20. Relation to text This slide relates to the material on pp.667-670 and Exhibit 20-12 of the text. Summary Overview This slide shows an ad from Swiss watchmaker TAG Heuer. The company feels that it is important to have a consistent advertising message and image in each country, therefore they use different celebrity ambassadors for various countries. The ad on the left was used in Japan and features race car driver Kimi Raiknonen who is very famous in the country. The ad on the right was used in India and features Sushmita Sen, one of the most popular actresses in the country. Tag Heur uses a global campaign, so the ads use the same layout, logo, product images, slogan, and tagline. The only element of the ad that changes from country to country is the celebrity ambassador who appears in the ad. Use of this slide This ad can be used to show an example of a global campaign could be used effectively.
  21. Relation to text This ad relates to the material on pp. 667-670 of the text. Summary Overview The slide contains a commercial for British Airways that was part of a global campaign promoting the carrier as “The World’s Favorite Airline.” The spot is called “Smiles,” and is an image-oriented spot featuring happy, smiling people and visual scenes of North America and Europe being joined. The theme of this spot is the way people feel when they fly British Airways. The commercial ends by noting that “it’s the way we make you feel that makes people fly British Airways.” British Airways has often used global ads like this one to reach consumers around the world. Image-oriented global ads can be used by international airlines because consumers in various countries do not differ much in terms of what they are looking for in an airline. Use of this slide This commercial can be used to discuss situations where global advertising is appropriate.
  22. Relation to text This slide relates to material on pp. 670-672 of the text. Summary Overview This slide shows the in-between approach to global advertising. This approach standardizes the product and basic marketing strategy, but localizes the advertising messages. Some agencies call this approach “Think globally, act locally.” Most messages are adapted to respond to: Differences in language Differences in cultural Differences in market conditions Pattern advertising is also used whereby ads follow the basic approach, but themes, copy, and visual elements are adapted to differences in local markets. This approach recognizes similar desires, goals, needs, and uses for products and services but tailors advertising to the local cultures and conditions of each market. Pattern advertising is commonly used to adapt messages to local markets. Use of this slide This slide can be used to discuss the in-between approach to global marketing and advertising.
  23. Relation to text This slide relate to the material on p. 670-672 and Exhibit 20-13 of the text. Summary Overview This slide shows an example of the use of pattern advertising from a campaign run by TaylorMade when the British Open Golf Tournament was held at St. Andrews in Scotland. Print and TV ads in various countries usually follow the same basic approach but themes, copy and sometimes even visual elements may be adapted to differences in local markets. Many marketers make some modifications in their ads to respond to differences in language, market conditions and other factors while retaining the same basic theme and approach. Use of this slide This slide can be used to present an example of the use of pattern advertising.
  24. Relation to text This slide relates to material on pp. 672-681 of the text. Summary Overview This slide shows the various organizational and functional decisions that need to be made by companies that are developing advertising and promotional programs for international markets. These decisions are: Organization style Agency selection Advertising research Creative strategy and execution Media strategy and execution Coordination of other IMC tools Use of this slide This slide can be used to introduce the various organizational and functional decisions that need to be made by companies when developing international advertising and promotional programs.
  25. Relation to text This slide relates to material on pp. 672 of the text. Summary Overview There are various organizational options available to a company that is developing international advertising and promotional programs. This slide represents the centralization authority option, which involves centralizing the international advertising and promotion function. Under this scenario, all decisions related to international advertising and promotion functions, including agency selection, creative strategy, research, campaign development, media strategy, and budgeting, are made at the firm’s home office or headquarters. Centralization is an appropriate option when market and media conditions are similar from one country to another, the company has only one or a few international agencies handling all its advertising, the company can use standardized advertising, or when the company desires a consistent image worldwide. Centralization can also save money and reduce the number of staff needed. Use of this slide This slide can be used to discuss the centralization option for organizing the advertising and promotions functions.
  26. Relation to text This slide relates to material on pp. 672-673 of the text. Summary Overview This slide shows how a decentralized international organization might look and the various activities of each region. Under a decentralized organizational structure, marketing and advertising managers in each region have the authority to make their own advertising and promotional decisions. Local managers would be responsible for: Selecting ad agencies Selecting campaign themes Approving creative work Selecting advertising media Conducting research Developing budgets This approach is often used when companies believe local managers know the marketing situations in their countries the best. Decentralization also works well in small or unique markets where headquarters’ involvement is not worthwhile or advertising must be tailored to the local market. Use of this slide This slide can be used to demonstrate how a decentralized organization would look and the various decisions/responsibilities of each region.
  27. Relation to text This slide relates to material on pp. 673-675 and Figure 20-3 of the text. Summary Overview This slide presents the first five of ten key criteria for selecting an agency to handle international advertising. One of the most important decisions for a firm engaged in international marketing is the choice of an advertising agency. Three basic alternatives include: 1) A major agency with both domestic and overseas offices, 2) An agency that, rather than having its own foreign offices or branches, is affiliated with agencies in other countries or belongs to a network of foreign agencies, and 3) A local agency for each national market in which it sells its products or services. Use of this slide This slide can be used to discuss the what goes into selecting an agency.
  28. Relation to text This slide relates to material on pp. 673-675 and Figure 20-3 of the text. Summary Overview This slide presents five additional key criteria for selecting an agency to handle international advertising.
  29. Relation to text This slide relates to material on pp. 675-677 of the text. Summary Overview This slide lists a number of areas where research on foreign markets can help firms make better advertising decisions. Use of this slide This slide can be used to discuss the important role research plays in the development of international advertising and promotion programs, helping managers make better, more informed decisions.
  30. Relation to text This slide relates to material on pp. 677-678 of the text. Summary Overview Creative strategy development for international markets is basically similar in process and procedure to that for domestic advertising. The slide shows the creative decisions that must be made for each market and some of the considerations in making them, including: Creative decisions should be based on advertising and communication objectives Copy platforms must be developed that include major selling ideas Specific appeals and execution styles must be selected Appeals may have to be adapted for local market conditions Use of this slide This slide can be used to discuss the creative decisions that need to be made for each market.
  31. Relation to text This slide relates to the material on pp. 677-678 of the text. Summary Overview This slide shows a print ad used in Thailand as part of the “Coca-Cola. Enjoy” global campaign. Coca-Cola announced a new strategy a few years ago, giving managers more freedom to adapt their marketing and advertising to local conditions. The new approach puts a stronger emphasis on creative executions that are tailored to regional and international markets. Most young Asians consume Coke to look trendy and affluent. Sales dropped dramatically when the Asian recession hit in the late ‘90s, and continued into the new millennium. Coca-Cola executives felt that, strategically, “enjoy” is more of an action word and takes the reason for drinking a Coke from a badge of success to physical pleasure. Coca-Cola advertising in the U.S. switched to the “Real” campaign for its Coke Classic brand in early 2003. However, the “Coca-Cola Enjoy” theme is still being used in some Asian countries. Use of this slide This slide can be used to show how global marketers like Coca-Cola often adapt their campaigns for local markets.
  32. Relation to text This slide relates to material on pp. 678-680 of the text. Summary Overview Because of the varying characteristics and information, the media strategy and selection can be one of the most challenging areas for international marketers. This slide shows the issues facing international advertisers in their media selection decisions. Some of these issues are: Widely differing characteristics Quality Coverage Restrictions Availability Cost Media information problems Availability Reliability Circulation Audience Cost Use of this slide This slide can be used to discuss the issues facing international advertisers in their media selection decisions.
  33. Relation to text This slide relates to the material on p. 680 and Exhibit 20-19 of the text. Summary Overview Many advertisers use local media to reach consumers as well as business people in specific countries. This slide shows an ad for President magazine which is a publication that reaches top executives in Japan. Companies that are interested in reaching Japanese executives find this publication an effective way to reach these decisions makers and leaders. Use of this slide This slide can be used to show an example of local media that are available to marketers who want to reach individuals in a specific country.
  34. Relation to text This slide relates to the material on pp. 680-681 of the text. Summary Overview This slide shows a trade ad for Cosmopolitan magazine promoting that fact that it is the largest selling young women’s magazine in the world. The ad shows covers of Cosmo from various countries while the copy notes that the magazine is published in 29 editions and reaches 30 million readers around the world. Cosmopolitan, along with many other magazines have international editions that can be used by advertisers to reach consumers in countries around the world. Use of this slide This slide can be used to show an example of international media.
  35. Relation to text This slide relates to material on pp. 681-684 of the text. Summary Overview This slide shows the important differences among countries that marketers must consider when developing a sales promotion program. These differences are: Economic development puts limitations on sales promotion in less-developed countries Market maturity will affect the type of sales promotion tool than can be used Consumer perceptions of the sales promotion tool Trade structure, such as the willingness of retailers to accommodate sales promotions Regulations, which can restrict many sales promotion tools, such as contest, coupons, and samples Sales promotion activity in international markets is growing due to the transfer of promotion concepts and techniques from country to country, and to the proliferation of media. Nonetheless, the vast differences among countries mean that sales promotion programs must be adapted to local markets. Use of this slide This slide can be used to discuss the differences among countries that marketers must consider when developing international sales promotion programs.
  36. Relation to text This slide relates to the material on p. 680 and Exhibit 20-21. Summary Overview Marketers are finding that sales promotion tools and techniques can work well in many different countries. This slide shows a sample used by the WD-40 company to promote trial of its lubricant product in Russia. The headline on the sample says “One Can. One Thousand Uses.” WD-40 is a global brand that positions itself as a multipurpose problem solver that cleans, protects, penetrates, lubricates, and displaces moisture. The company uses sampling programs in the U.S. as well as foreign markets to encourage trial and to let consumers experience the versatility of the product. The sample package shown here was translated into 20 different languages and used in countries around the globe. Use of this slide This slide can be used to show how companies are using sales promotion tools like sampling in various countries.
  37. Relation to text This slide relates to material on pp. 684 and Figure 20-5 of the text. Summary Overview This slide shows a framework developed by professors Kamran Kashani and John Quelch for analyzing the role of centralized versus local management in sales promotion decisions based on the various stages of globalization. Management of sales promotion programs is now being done locally, but this is changing as more companies develop global brands. Use of this Slide This slide can be used to show a model that has been developed to help guide companies in the management of sales promotion programs in foreign markets.
  38. Relation to text This slide relates to material on pp. 685-686 of the text. Summary Overview Many companies involved in international marketing are recognizing the importance of using public relations to support and enhance their marketing and advertising efforts. This slide shows the role of pubic relations in global marketing, which is to: Deal with local governments, media, trade associations, and the general public Present the company as a good corporate citizen Serve as part of the IMC program and help market the product or service Deal with specific issues and problems the company may face in foreign markets Public relations are becoming increasingly more important as companies generally need a favorable image to be successful in foreign markets. Use of this slide This slide can be used to discuss the role and the activities of public relations in global marketing programs.
  39. Relation to text This slide relates to the material on pp. 686-687 of the text. Summary Overview The role of the Internet in the IMC program of global marketers will increase as more consumers around the world get online access. This slide shows a page from the Japanese web site for TaylorMade Golf. Many global marketers are developing web sites for specific countries and or regions. Use of this slide This slide can be used to shown an example of how international marketers such as TaylorMade are making use of the Internet as part of their global IMC programs.