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  • Refer to header: International advertising and culture Advertising to come extent a cultural phenomenon. When advertising appeals are not in sync with the local culture, the campaign will falter. In the worst-case scenario, the advertisement might even stymie the advertised product’s sales. Effective advertisement campaigns also do a great job in leveraging local culture phenomena.
  • Refer to header: International advertising and culture As you have seen in previous chapters, language is one of the most formidable barriers that international advertisers need to surmount. Many marketing communication efforts have misfired because of language-related mishaps. Apart from translation another challenge is the proper interpretation of ideas.
  • Refer to header: International advertising and culture Many of the trickiest marketing communication issues occur in the domain of religion. In Saudi Arabia, for example, because of Islamic practices for feminine modesty, face veils are used. Hence, only veiled women can be shown from the front in television advertisements. As you can imagine, such restrictions lead to horrendous problems for hair care advertisers.
  • Refer to header: International advertising and culture Political sensitivities are also crucial. Just as with language barriers, advertisers can escape falling into cultural traps by getting input from local staff, distributors or advertising agency people. One framework that helps with studying the influence of culture on international advertising is the Hofstede cultural grid discussed in Chapter 4. Although such cultural schemes can be useful, it is important to bear in mind that value systems change over time. Otherwise, marketers risk falling into the trap of cultural stereotyping.
  • Refer to header: International advertising and culture This figure shows how, for instance, the Hofstede grid can be handled to assess the suitability of comparative advertising campaigns where one brand is contrasted with a competing brand. The upper left-hand quadrant is the combination of collectivism/feminine values. In group orientated culture, comparison with the competition is not acceptable because the other party risk losing face. For feminine cultures, comparative advertising is too aggressive. Moving to the right there is mixture of collectivism and masculinity. Overt comparative advertising that focuses on competing brands is again limited because of the ‘losing face’ issue.
  • Refer to header: Setting the international advertising budget One of the delicate decision that marketers face when planning their communication strategy centres around the ‘money’ issue. In 2008, global media spending was US$459 billion, of which $162 was spent on media in the United States, $115 billion in western Europe and $116 billion in Asia-Pacific markets.
  • Refer to header: Setting the international advertising budget The rule based on percentage of sales is the most widely used method as it simply sets the overall advertising budget as a percentage of sales. The base is either past or expected sales revenues. The principle of the competitive parity rule is extremely simple: use the competitors advertising spending as a benchmark. Share of Voice – brand advertising as a share of total advertising
  • Refer to header: Setting the international advertising budget The most widely used budgeting method is the so-called objective-and-task method. Conceptually, this is also the most appealing budgeting rule: marketing communication efforts are treated here as a means to achieve the advertiser’s stated objectives. The budgeting process also involves the allocation of resources across the different countries. At one extreme are organisations such as Microsoft and FedEx, where each country subsidiary independently determines how much should be spent within its market and then request the desired resources from headquarters. This is known as bottom-up budgeting. Top-down budgeting is the opposite approach, whereby head-quarters sets the overall budget and then splits up the pie among its different affiliates.
  • Refer to header: Creative strategy One of the thorniest issues that marketers face when developing a communication strategy is the choice of a proper advertising theme. The major elements of a campaign are the message (strategy, selling proposition, platform) and the execution.
  • Refer to header: Creative strategy This table highlights some advantages and disadvantages of global advertising. Organisations that sell the same product in multiple markets need to establish how much their advertising campaign should be standardised. Standardisation means the one or more elements of the communication campaign are kept the same.
  • Refer to header: Creative strategy What makes the case for standardisation so compelling in the eyes of many marketers? A variety of reason have been offered to defend global, if not pan regional advertising campaigns. The major ones are: Economies of scale Consistent image Global consumer segments Cross fertilisation
  • Refer to header: Creative strategy Given the list of arguments for standardisation, advocates of adaptation can easily compile an equally compelling list for adaptation. The four major barriers to standardisation relate to cultural differences, advertising regulations, differences in the degree of market development and the ‘not invented here’ (NIH) syndrome.
  • Refer to header: Creative strategy Marketers may adopt several approaches to create international advertisements. At one extreme, the entire process may be left to the local autonomous subsidiary or distributor, with only minimal guidance from headquarters. At the other extreme, global or regional headquarters makes all the decision, including all the nitty-gritty details surrounding the development of advertising campaigns. Universal advertising – most often, the creative strategy is produced by an advertising agency from its head office and then ‘universally’ adopted without, or with little, local office inputs. Prototype advertising – detailed advertising guidelines concerning the advertising’s execution are given to the local or regional affiliates.
  • Refer to header: Creative strategy With platform advertising, headquarters spells out guidelines on the positioning theme (platform) and the brand identity to be used in the advertisements.
  • Refer to header: International media decisions Another task that international marketers need to confront is the choice of the media in each of the countries where the organisation is doing business. In some countries, media decisions are much more critical than the creative aspects of the campaign.
  • Refer to header: International media decisions Availability of media is a major limitation in many markets. The lack of standard media options challenges marketers to use their imagination by coming up with ‘creative’ options. Pinpointing some major trends illustrates the rapid changes in the media landscape. Growing commercialisation and deregulation of mass media. Shift from radio and print to television advertising Rise of global and regional media Growing spread of interactive marketing Growing popularity of text messaging Improved monitoring Improved television viewership
  • Refer to header: Advertising regulation International advertising in unfamiliar environments can be a minefield for potential advertisers. A major roadblock that global marketers face is the bewildering set of advertising regulations they need to cope with in foreign markets.
  • Refer to header: Choosing an advertising agency Most multinational corporations rely heavily on the expertise of an advertising agency to develop large advertising campaigns in consultation with in-house marketing departments. In selecting an agency, the international marketer has several options: Work with the agency that handles the advertising in the organisation’s home market Pick a purely local agency in the foreign market Choose the local office of a large international agency Select an international network of advertisement agencies that spans the globe
  • Refer to header: Coordinating international advertising International advertising approaches often require a great deal of coordination and communication among the various subsidiaries. Several mechanisms that can be used to make this easier are: Monetary incentives Advertising manuals International global meetings
  • Refer to header: Other elements of the marketing communication mix For most organisations, media advertising is only one part of the marketing communication package. Although advertising is the most visible form, other communication tools often play a vital role in an organisation's international marketing communication mix strategy.
  • Refer to header: Other elements of the marketing communication mix Sales promotions refer to a collection of short-term incentive tools that lead to quicker or larger sales of a particular product by consumers or the trade.
  • Refer to header: Other elements of the marketing communication mix For most organisation, the sales promotion policy is a local affair. Several rationales explain the local character of promotions: Economic development Market maturity Cultural perceptions Trade structure Government regulations
  • Refer to header: Other elements of the marketing communication mix Direct marketing presents various forms of interactive marketing where the organisation uses media that enable it to gain direct access to the end-consumer and to establish a one-to-one relationship.
  • Refer to header: Other elements of the marketing communication mix Direct marketing is growing rapidly internationally, and many organisations have been able to successfully transplant their direct marketing model to other markets.
  • Refer to header: Other elements of the marketing communication mix Sponsorship is one of the fastest-growing promotional tools. Major sponsors of the 2010 Long Olympic Games paid many millions for their sponsorship rights. Why? The Olympic Games is the biggest sporting spectacle in the world. Its worldwide partners include: Acer, Coca-Cola, General Electric, McDonalds, Omega, Panasonic, Samsung and Visa.
  • Refer to header: Other elements of the marketing communication mix Trade shows (also trade fairs or trade exhibitions) are a vital part of the communication package for many international business-to-business marketers. Trade shows tend to have a small direct sales effect – the sales coming from visitors of the trade show booth – and large indirect impacts on the exhibitions’ sales.
  • Refer to header: Summary
  • Refer to header: Summary

    1. 1. Chapter 11 INTERNATIONAL MARKETING COMMUNICATION Prepared by Robin Roberts Griffith University
    2. 2. Learning objectives <ul><li>After studying this chapter you should be able to: </li></ul><ul><li>Explain the influence of culture on marketing communication </li></ul><ul><li>Describe the methods used to set an international advertising budget </li></ul><ul><li>Discuss the main drivers of creative strategy </li></ul><ul><li>Explain how international media decisions are made </li></ul>
    3. 3. Learning objectives <ul><li>Assess differences in marketing communication regulations around the globe </li></ul><ul><li>Explain core factors in choosing a suitable advertising agency </li></ul><ul><li>Understand that the benefits of diverse elements of the marketing communication mix differ around the globe </li></ul>
    4. 4. International advertising and culture <ul><li>Culture provides a big hurdle in international marketing communication </li></ul><ul><li>Language barriers </li></ul><ul><ul><li>things don’t always translate the way they should </li></ul></ul><ul><li>Other cultural barriers </li></ul><ul><ul><li>the culture itself can throw up challenges to a marketing communication strategy </li></ul></ul>
    5. 5. Language barriers <ul><li>The challenge of idioms </li></ul><ul><ul><li>How to translate the Australian saying ‘Wrap your laughing gear around this’ </li></ul></ul><ul><ul><ul><li>translates roughly to ‘eat this’ </li></ul></ul></ul><ul><li>Translations don’t always translate </li></ul><ul><ul><li>In the United States the Pepsi slogan, ‘Come alive with the Pepsi Generation’ </li></ul></ul><ul><ul><ul><li>in Taiwan it becomes, ‘Pepsi will bring your ancestors back from the dead’ </li></ul></ul></ul>
    6. 6. Other cultural barriers <ul><li>Involve local advertising agencies </li></ul><ul><ul><li>They have a greater sensitivity to the local language </li></ul></ul><ul><li>Don’t translate </li></ul><ul><ul><li>‘ Sheer Driving Pleasure’ for BMW worldwide </li></ul></ul><ul><ul><li>‘ Don’t crack under pressure’ for TAG Heuer </li></ul></ul>
    7. 7. Other cultural barriers <ul><li>Political sensitivities </li></ul><ul><ul><li>referring to Hong Kong and Taiwan as ‘countries’ when in China </li></ul></ul><ul><li>Poor taste </li></ul><ul><ul><li>what is poor taste in one country is not necessarily poor taste in another </li></ul></ul><ul><li>Value systems are different </li></ul><ul><ul><li>is it reasonable to use comparative advertising in all cultures? </li></ul></ul>
    8. 8. Other cultural barriers Figure 11.1 comparative advertising
    9. 9. Setting the international advertising budget <ul><li>Many of the approaches used in domestic communications are also used in international communications: </li></ul><ul><ul><li>Percentage of sales </li></ul></ul><ul><ul><li>Competitive parity </li></ul></ul><ul><ul><li>Objective and task </li></ul></ul><ul><ul><li>Resource allocation </li></ul></ul>
    10. 10. Setting the international advertising budget <ul><li>Percentage of sales </li></ul><ul><ul><li>using a percentage of past sales or future sales or a combination of both to determine the budget </li></ul></ul><ul><ul><li>still one of the most common methods </li></ul></ul><ul><li>Competitive parity </li></ul><ul><ul><li>determining budget based on activities of one or more competitors </li></ul></ul><ul><ul><li>allows the organisation to maintain its ‘share of voice’ </li></ul></ul>
    11. 11. Setting the international advertising budget <ul><li>Objective and task </li></ul><ul><ul><li>relating the advertising budget to the sales objectives </li></ul></ul><ul><ul><li>one of the most appealing methods amongst marketing communicators </li></ul></ul><ul><li>Resource allocation </li></ul><ul><ul><li>involves the allocation of resources across different countries </li></ul></ul><ul><ul><li>subsidiaries determining their own budgets </li></ul></ul><ul><ul><li>headquarters determines budgets </li></ul></ul>
    12. 12. Creative strategy <ul><li>To standardise or adapt </li></ul><ul><ul><li>similar argument to that of product adaptation/standardisation </li></ul></ul><ul><ul><li>can still be considered standardised if a global campaign is used and only minor changes to comply with local regulations are undertaken </li></ul></ul><ul><ul><ul><li>substantial changes would be considered an ‘adapted creative strategy’ </li></ul></ul></ul>
    13. 13. Creative strategy Table 11.1 Advantages and disadvantages of global advertising
    14. 14. Merits of standardisation <ul><li>Economies of scale </li></ul><ul><li>Consistent image </li></ul><ul><ul><li>Nike ‘swoosh’ </li></ul></ul><ul><li>Global consumer segments </li></ul><ul><ul><li>‘ business-class traveler’ </li></ul></ul><ul><li>Cross fertilisation </li></ul>
    15. 15. Barriers to standardisation <ul><li>Cultural differences </li></ul><ul><ul><li>advertising makeup in the middle east </li></ul></ul><ul><li>Advertising regulations </li></ul><ul><ul><li>direct comparative advertising is not permitted in Singapore </li></ul></ul><ul><li>Degree of market development </li></ul><ul><ul><li>Body Shop is not the dominant ‘eco-friendly’ provider in some mature markets </li></ul></ul><ul><li>Not invented here (NIH) syndrome </li></ul>
    16. 16. Approaches to creating advertising copy <ul><li>Universal </li></ul><ul><ul><li>uniform globally with minor changes locally </li></ul></ul><ul><ul><ul><li>changes such as voice over in local language </li></ul></ul></ul><ul><ul><ul><ul><ul><li>Patek Philippe – ‘Begin your own tradition’ </li></ul></ul></ul></ul></ul><ul><li>Prototype </li></ul><ul><ul><li>using same basic advertising message globally </li></ul></ul><ul><ul><ul><li>head office allows for (approved) variations locally </li></ul></ul></ul><ul><ul><ul><ul><ul><li>Dove adapts campaign to allow for local ‘look’ </li></ul></ul></ul></ul></ul>
    17. 17. Approaches to creating advertising copy <ul><li>Platform </li></ul><ul><ul><li>a central theme or position is created centrally </li></ul></ul><ul><ul><ul><li>local creative execution is allowed </li></ul></ul></ul><ul><ul><ul><li>greater flexibility locally </li></ul></ul></ul><ul><ul><ul><ul><li>‘ Pure thrill’ </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Smirnoff’s campaigns exemplify this approach </li></ul></ul></ul></ul>
    18. 18. International media decisions <ul><li>Media buying is a critical element </li></ul><ul><ul><li>variations exist across different countries </li></ul></ul><ul><ul><ul><li>published readership levels of magazines are accurate in Australia but less so in China </li></ul></ul></ul><ul><li>Media infrastructure </li></ul><ul><ul><li>issues of access and affordability </li></ul></ul><ul><ul><ul><li>television media in the Philippines is relatively cheap </li></ul></ul></ul><ul><ul><ul><li>internet bandwidth is large in China </li></ul></ul></ul><ul><ul><ul><ul><li>fibre optic point-to-point across China </li></ul></ul></ul></ul>
    19. 19. International media decisions <ul><li>Media limitations </li></ul><ul><ul><li>cost </li></ul></ul><ul><ul><li>availability of certain types in some markets/sub-markets </li></ul></ul><ul><ul><li>overall quality of media in some countries </li></ul></ul><ul><li>Developments </li></ul><ul><ul><li>increasing global deregulation </li></ul></ul><ul><ul><li>shift from free to air television to pay-tv and web streaming/download </li></ul></ul><ul><ul><li>rise of global and regional media companies </li></ul></ul>
    20. 20. Advertising regulation <ul><li>Advertising of some products comes under greater scrutiny </li></ul><ul><ul><li>for example, alcohol and pharmaceuticals </li></ul></ul><ul><li>Advertising clutter </li></ul><ul><ul><li>lobby groups and government regulate to reduce clutter </li></ul></ul><ul><li>Targeting children </li></ul><ul><ul><li>some advertisements are excluded from children’s viewing </li></ul></ul>
    21. 21. Choosing an advertising agency <ul><li>What is their market coverage? </li></ul><ul><li>Can they develop/be part of a global campaign? </li></ul><ul><li>Creative reputation </li></ul><ul><li>Scope and quality of services </li></ul><ul><li>Local know-how </li></ul><ul><li>Size of agency </li></ul><ul><ul><li>big isn’t always best </li></ul></ul><ul><ul><li>small agencies could be more creative/innovative </li></ul></ul>
    22. 22. Coordinating international advertising <ul><li>Monetary incentives to local distributors </li></ul><ul><ul><li>‘ co-operative advertising’ </li></ul></ul><ul><ul><ul><li>providing incentives at a local level to reward those who are consistent in their delivery of the global message </li></ul></ul></ul><ul><li>Advertising manuals </li></ul><ul><ul><li>books, DVD, CD, etc to provide some structure </li></ul></ul><ul><li>International or global meetings </li></ul>
    23. 23. Other elements of the marketing communication mix <ul><li>Advertising is a critical element of the marketing mix but not the only element </li></ul><ul><li>An integrated approach is needed </li></ul><ul><ul><li>Integrated Marketing Communication (IMC) </li></ul></ul><ul><ul><li>there are also a number of other elements which need to be considered </li></ul></ul><ul><ul><ul><li>sales promotion </li></ul></ul></ul><ul><ul><ul><li>direct marketing </li></ul></ul></ul><ul><ul><ul><li>event sponsorship </li></ul></ul></ul><ul><ul><ul><li>trade shows </li></ul></ul></ul>
    24. 24. Sales promotion <ul><li>Usually a local effort </li></ul><ul><li>Many of the same promotions as domestic SP </li></ul><ul><ul><li>point of sale </li></ul></ul><ul><ul><li>coupons </li></ul></ul><ul><ul><li>discounts </li></ul></ul><ul><ul><li>allowances </li></ul></ul>
    25. 25. Sales promotion <ul><li>Why so local? </li></ul><ul><ul><li>level of economic development </li></ul></ul><ul><ul><ul><li>developing countries like sampling </li></ul></ul></ul><ul><li>Market maturity </li></ul><ul><ul><li>products in an early stage of their introduction may warrant promotions that allow the consumer to trial the product </li></ul></ul><ul><li>Government regulations </li></ul><ul><ul><li>coupons are used heavily in the US and less so in Australia </li></ul></ul>
    26. 26. Direct marketing <ul><li>Telemarketing </li></ul><ul><ul><li>Japanese telemarketing firms based in Shanghai now </li></ul></ul><ul><li>Direct Mail </li></ul><ul><ul><li>demonstrations </li></ul></ul><ul><ul><li>Mary Kay cosmetics throughout Asia </li></ul></ul><ul><li>Developing home grown data bases </li></ul><ul><ul><li>internal customer data used to build an effective Customer Relationship Management system (CRM) </li></ul></ul>
    27. 27. Direct marketing <ul><li>Interactive/web based </li></ul><ul><li>Dell utilises both phone and internet to market its product directly in Thailand </li></ul><ul><li>Hangzhou (China) based Alibaba is a centre for buyers and sellers worldwide </li></ul><ul><ul><li>on the internet </li></ul></ul>
    28. 28. Event sponsorship <ul><li>Globally one of the fastest growing promotional tools </li></ul><ul><ul><li>$40 billion in 1990 </li></ul></ul><ul><ul><li>$200 billion in 2000 </li></ul></ul><ul><li>Heavily skewed towards sports </li></ul><ul><ul><li>other events gaining ground </li></ul></ul><ul><ul><ul><li>concerts </li></ul></ul></ul><ul><li>There is the risk of ‘ambush marketing’ </li></ul><ul><ul><li>non-sponsors giving the impression to consumers they are in fact sponsors </li></ul></ul>
    29. 29. Trade shows <ul><li>Over 15,000 trade shows a year now </li></ul><ul><li>Good opportunity for business-to-business </li></ul><ul><li>Can provide immediate access to customers in foreign markets </li></ul>
    30. 30. Summary <ul><li>You should now have an understanding of: </li></ul><ul><li>The influence of culture on marketing communication </li></ul><ul><li>The methods used to set an international advertising budget </li></ul><ul><li>The main drivers of creative strategy </li></ul><ul><li>How international media decisions are made </li></ul>
    31. 31. Summary <ul><li>Differences in marketing communication regulations around the globe </li></ul><ul><li>Core factors when choosing a suitable advertising agency </li></ul><ul><li>The benefits of diverse elements of the marketing communication mix differ around the globe </li></ul>