1. Global Marketing Management,
5e
1
Chapter 13
Communicating with the
World Consumer
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

2. Chapter Overview
2
1. Global Advertising and Culture
2. Setting the Global Advertising Budget
3. Creative Strategy
4. Global Media Decisions
5. Advertising Regulations
6. Choosing an Advertising Agency
7. Other Means of Communication
8. Globally Integrated Marketing Communications
(GIMC)
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

3. Introduction
3
 There are many cultural challenges that
advertisers face in global marketing.
 Global advertising encompasses areas such as
advertising planning, budgeting, resource
allocation issues, message strategy, and media
decisions. Other areas include: local
regulations, advertising agency selection,
coordination of multi-country communication
efforts and regional and global campaigns.
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

4. 1. Global Advertising and Culture
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 Language Barriers
 Language is one of the most formidable barriers
in global marketing.
 Three types of translation errors can occur in
international marketing:
 Simple carelessness
 Multiple-meaning words
 Idioms
(See Exhibit 13-1.)
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

5. Exhibit 13-1: Five Different Ways of
Saying Tires in Spanish
5
Copyright (c) 2007 John Wiley & Sons, Inc. Chapter 14

6. 1. Global Advertising and Culture
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 Other Cultural Barriers
 Religion
 Cultural traps/cultural dimensions
 Geert Hofstede’s cultural grid can be used to
assess the appropriateness of comparative
advertising campaigns. The five cultural
dimensions include:
 Power distance
 Uncertainty avoidance
 Individualism
 Masculinity
 Long-termism
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

7. 2. Global Advertising Budget
7
 Companies rely on different kind of
advertising budgeting methods:
 Percentage of Sales
 Competitive Parity
 Objective-and-Task Method
 Resource Allocation
 The U.S. has the largest ad
expenditures, followed by Europe
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

8. Exhibit 13-2: Top 15 Global
Advertisers–Measured Media Only
8 (2007)
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9. Exhibit 13-3: Measured Advertising
Spending by Region (2007)
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10. Exhibit 13-4: Measured Ad Spending
Comparison: P&G versus Unilever (2007)
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11. Exhibit 13-5: 2007 Ad Spending Allocation
by 3 Biggest Advertisers in Key Markets
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Copyright (c) 2007 John Wiley & Sons, Inc. Chapter 14

12. 3. Creative Strategy
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 The “Standardization” versus “Adaptation”
Debate
 Merits of Standardization:
 Scale Economies
 Consistent Image
 Global Consumer Segments
 Creative Talent
 Cross-Fertilization
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

13. 3. Creative Strategy
13
Successful universal appeals include:
1) superior quality
2) new product/service
3) country of origin
4) heroes and celebrities
5) lifestyle
6) global presence
7) market leadership
8) corporate image
Copyright (c) 2007 John Wiley & Sons, Inc. Chapter 14

14. 3. Creative Strategy
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 Barriers to Standardization:
 CulturalDifferences
 Advertising Regulations
 Market Maturity
 “Not-Invented-Here” (NIH) Syndrome
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

15. Exhibit 13-6: Examples of Universal
Appeals
15
Copyright (c) 2007 John Wiley & Sons, Inc. Chapter 14

16. 3. Creative Strategy
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 Approaches to Creating Advertising Copy:
 “LaissezFaire”
 Export Advertising
 Global Prototype Advertising
 Prototype Standardization
 Regional Approach
 Concept Cooperation
 Modular Approach
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

17. 4. Global Media Decisions
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 Media Infrastructure
 Media infrastructure differs from country to
country
 Media Limitations
 The major limitation in many markets is media
availability.
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

18. Exhibit 13-7: Average Cost of a Prime-
Time 30 Second TV Spot (2007)
18
Copyright (c) 2007 John Wiley & Sons, Inc. Chapter 14

19. 4. Global Media Decisions
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 Recent Developments in Global Media
 Growing commercialization and deregulation of
mass media
 Shift from radio and print to TV advertising
 Rise of global and regional media
 Growing spread of interactive marketing
 Growing popularity of text messaging
 Improved monitoring
 Improved TV-viewership measurement
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

20. 5. Advertising Regulations
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 Major advertising regulations:
 Advertising of “Vice Products” & Pharmaceuticals
 Comparative Advertising
 Content of Advertising Messages
 Advertising Targeting Children
 Issues of local languages
 Tax issues
 Advertising rates
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

21. 5. Advertising Regulations
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 Strategies to deal with advertising
regulations:
 Keep track of regulations and pending legislation
 Screen the campaign early on
 Lobbying activities
 Challenge regulations in court
 Adapt marketing mix strategy
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

22. 6. Choosing an Advertising Agency
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 Options for choosing an ad agency:
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 the local office of a large international
agency.
4. Select an international network of ad agencies
that spans the globe.
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

23. Exhibit 13-9: World’s Top 10 Ad
Agencies (2007)
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Copyright (c) 2007 John Wiley & Sons, Inc. Chapter 14

24. 6. Choosing an Advertising Agency
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 When screening ad agencies, consider:
 Market coverage
 Quality of coverage
 Expertise with developing a central international
campaign
 Creative reputation
 Scope and quality of support services
 Desirable image (“global” versus “local”)
 Size of the agency
 Conflicting accounts
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

25. 7. Other Means of Communication
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Sales Promotions
Sales promotion refers to a collection of short-term
incentive tools that lead to quicker and/or larger
sales of a particular product by consumers or the
trade.
 Rationales explaining the local character of
promotions:
 Economic development
 Market maturity
 Cultural perceptions
 Trade structure (pull vs. push promotions)
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13
 Government regulations (See Exhibit 13-10.)

26. Exhibit 13-10: Which Techniques Are
Allowed in Europe
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Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

27. 7. Other Means of Communication
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 Direct Marketing
 Event Sponsorships
 Mobile Marketing
 Product Placement
 Viral Marketing
 Global Public Relations & Publicity
 Trade Shows
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

28. Exhibit 13-11: Examples of
International PR Campaigns
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Copyright (c) 2007 John Wiley & Sons, Inc. Chapter 14

29. 7. Other Means of Communication
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Trade Shows
 Decide on what trade shows to attend at least a year in
advance.
 Prepare translation of product materials, price
lists, selling aids.
 Bring plenty of literature.
 Bring someone who knows the language or have a
translator.
 Send out, ahead of time, direct-mail pieces to potential
attendees.
 Find out the best possible space, for instance, in terms
of traffic.
 Plan the best way to display your products and to tell
your story.
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

30. 7. Other Means of Communication
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Trade Shows
 Do your homework on potential buyers from other
countries.
 Assess the impact of trade show participation on the
company’s bottom line. Performance benchmarks may
need to be adjusted when evaluating trade show
effectiveness in different countries since attendees
might behave differently.
 On-line information on trade show events is plentiful
(e.g., www.tsnn.com). A recent phenomenon is the
emergence of “virtual trade shows” (e.g.,
www.unisfair.com/Showcase.asp)
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

31. 8. Globally Integrated Marketing
Communications (GIMC)
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 Integrated Marketing Communications (IMC):
 IMC coordinates different communication vehicles
– mass advertising, sponsorships, sales
promotion, packaging, point-of-purchase displays,
so forth.
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13

32. 8. Globally Integrated Marketing
Communications (GIMC)
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 Globally Integrated Marketing
Communications (GIMC):
 GIMC is a system of active promotional
management that strategically coordinates global
communications in all of its component parts.
 Both horizontal (country-level) and vertical
(promotion tools) approaches are used in GIMC.
Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13