Ibahrine Chapter 1 The Paradoxes In Global Marketing Communication


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  • A global company that has the ability to successfully transform a domestic campaign into a worldwide one, or to create a new global campaign from the ground up, possesses a critical advantage. The first company to find a global market for any product is frequently at an advantage relative to competitors that make the same discovery later. The search for a global advertising campaign should bring together everyone involved with the product to share information and leverage their experiences. Global campaigns with unified themes can help to build long-term product and brand identities and offer significant savings by reducing cost associated with producing ads. Global advertising also offers companies economies of scale in advertising as well as improved access to distribution channels. Where shelf space is at a premium, as with food products, a company has to convince retailers to carry its products rather than those of competitors. A global brand supported by global advertising may be very attractive because, from the retailer’s standpoint, a global brand is less likely to languish on the shelves.
  • The design is basically the same but the name is frequently transliterated into local languages. The Arabic label is read right to left; the Chinese label translates “delicious/happiness.”
  • Ibahrine Chapter 1 The Paradoxes In Global Marketing Communication

    1. 1. Chapter 1 The Paradoxes in Global Marketing and Advertising American University of Sharjah College of Arts and Sciences Department of Mass Communication Dr. Ibahrine
    2. 2. Chapter 1 Objectives Define and understand the value of the Paradoxes Explain the dilemma in global marketing Explore the impact of global advertising on Arab society. Explain the convergence and divergence of consumer behavior Discuss the standardization-adaptation decision
    3. 3. What Is Paradox? statement that seems contradictory but is actually true Economic globalization is accompanied by increased focus on local identity Local segmentation versus global Standardization in marketing Convergence of technology goes with divergence of usage of technology Global media versus local music preferences
    4. 4. Global Advertising <ul><li>Advertising is any sponsored, paid message that is communicated in a nonpersonal way </li></ul><ul><ul><li>Single country </li></ul></ul><ul><ul><li>Regional </li></ul></ul><ul><ul><li>Global </li></ul></ul><ul><li>Global advertising is the use of the same advertising appeals, messages, art, copy, photographs, stories, and video segments in multiple country markets </li></ul>13-
    5. 5. The Magnitude of Advertising 7– United States: $294 billion ($1,000 per person) Global: $360 billion
    6. 6. Factors Driving Globalization <ul><li>Development of international media </li></ul><ul><li>Spread of market-based economies in countries and regions like China, South America, India, and Eastern Europe </li></ul><ul><li>Expansion of English as an global language (Global English) </li></ul><ul><li>Web-enabled ability for even small companies to market globally </li></ul>18-
    7. 7. Globalization & the myths in international marketing <ul><li>Globalization of markets’ Levitt (1983) : </li></ul><ul><li>The world’s needs and desires have homogenize d </li></ul><ul><li>(Internet) technology brings a world culture </li></ul><ul><li>Global business and global media have brought global communities </li></ul><ul><ul><li>youth, business people more similar to each other across countries than to other people within countries </li></ul></ul><ul><ul><li>similarities in media exposure bring consumer together </li></ul></ul><ul><li>Increased wealth makes people travel </li></ul><ul><li>Increased travel brings universal values </li></ul>
    8. 8. Marketing Communications in a Global Context <ul><li>It terms of demand, it predicates a convergence of tastes and preferences </li></ul><ul><li>In terms of supply, product and services are seen as becoming more standardized </li></ul><ul><li>Competition takes place on a global scale as multinational corporations seek to protect and grow business </li></ul>
    9. 9. Paradoxes <ul><li>Paradox: statement that seems contradictory but is actually true </li></ul><ul><li>Belonging important where individual achievement is a core value </li></ul><ul><li>Economic globalization is accompanied by increased focus on local identity </li></ul><ul><li>Global media versus local music preferences </li></ul><ul><li>Local segmentation versus global standardization in marketing </li></ul><ul><li>Convergence of technology goes with divergence of usage of technology </li></ul>
    10. 10. The Technology Paradox <ul><li>People use new technology to do the things they used to do better, nicer, more efficient </li></ul><ul><li>They are extensions of human beings (McLuhan) </li></ul><ul><li>People’s behavior is very stable, is based in history </li></ul><ul><li>New technology is used to reinforce existing behavior </li></ul>
    11. 11. Convergence-divergence <ul><li>IA slides </li></ul><ul><li>No evidence of convergence. </li></ul><ul><li>Persistent variation of consumption </li></ul><ul><li>Consumer behavior across countries. </li></ul>
    12. 12. Increased wealth divergence <ul><li>Wealth brings choice </li></ul><ul><li>The wealthier countries become the more manifest values and value differences </li></ul><ul><li>European Union good example: economic convergence but stable value differences expressed in consumption, motives and communications </li></ul>
    13. 13. The Global vs. Local Debate <ul><li>Should companies act as if there is one global market, motivated by the same wants and desires? </li></ul><ul><li>Or should they account for cultural differences when developing products and marketing for the cultures they serve? </li></ul><ul><li>Must the specific advertising message and media strategy be changed from region to region or country to country? </li></ul>18-
    14. 14. The standardization – Adaptation debate <ul><li>Discussion ongoing since 1960s </li></ul><ul><li>Mostly academic </li></ul><ul><li>Three schools of thought </li></ul><ul><ul><li>Standardization </li></ul></ul><ul><ul><li>Adaptation </li></ul></ul><ul><ul><li>Combination </li></ul></ul><ul><li>Type of studies </li></ul><ul><ul><li>Conceptual papers </li></ul></ul><ul><ul><li>Surveys among managers </li></ul></ul><ul><ul><li>Complex studies including performance measures </li></ul></ul><ul><ul><li>Content analysis of advertising </li></ul></ul>
    15. 15. The standardization – Adaptation <ul><li>Three schools of thought </li></ul><ul><ul><li>1. Standardization </li></ul></ul><ul><ul><li>2. Adaptation </li></ul></ul><ul><ul><li>3. C ombination </li></ul></ul>
    16. 16. The Global vs. Local Debate <ul><li>Three schools of thought on international advertising: </li></ul><ul><ul><li>Standardization— differences are a matter of degree, so focus on customer similarities and brand development. </li></ul></ul><ul><ul><li>Localization— consider differences in culture, economy, media, legal environment, etc. </li></ul></ul><ul><ul><li>Combination— use a standardized strategy but adapt advertising execution to the local culture. </li></ul></ul>18-
    17. 17. Standarization versus Adaptation <ul><li>Globalization (standardization) </li></ul><ul><ul><li>Developing standardized products marketed worldwide with a standardized marketing mix </li></ul></ul><ul><ul><li>Essence of mass marketing </li></ul></ul><ul><li>Global localization (adaptation) </li></ul><ul><ul><li>Mixing standardization and customization in a way that minimizes costs while maximizing satisfaction </li></ul></ul><ul><ul><li>Essence of segmentation </li></ul></ul><ul><ul><li>Think globally, act locally </li></ul></ul>1-
    18. 18. The Global-Local Dilemma <ul><li>Standardize or modify </li></ul><ul><li>Arguments standardization </li></ul><ul><ul><li>Global communities with similar habits and values </li></ul></ul><ul><ul><li>Global youth, business persons </li></ul></ul><ul><li>There is not one global, Asian or European teenage culture </li></ul><ul><li>Jeans don’t make a Chinese youth into an American youth. </li></ul>
    19. 19. The Standardization-adaptation <ul><li>Company, organizational culture </li></ul><ul><ul><li>Universalism of western companies causes preference for standardization </li></ul></ul><ul><ul><li>Degree of export dependence: standardize when little export </li></ul></ul><ul><li>Business environment </li></ul><ul><ul><li>Infrastructure, laws, media </li></ul></ul><ul><li>Consumer </li></ul><ul><ul><li>Income </li></ul></ul><ul><ul><li>Culture </li></ul></ul>
    20. 20. Central Control vs. Local Adaptation <ul><li>Some advertisers develop tightly controlled global campaigns while others develop local campaigns in every major market; most combine standardization and localization. </li></ul><ul><li>Global campaigns have two starting points: </li></ul><ul><ul><li>Success in one country </li></ul></ul><ul><ul><li>A centrally conceived strategy </li></ul></ul>18-
    21. 21. Central Control vs. Local Adaptation <ul><li>Global marketers strive for a consistent brand strategy that allows them to honor cultural differences when those differences are relevant to the brand’s marketing strategy </li></ul>18-
    22. 22. Standardization versus Adaptation <ul><li>Eighteen-year olds in Paris have more in common with 18-year-olds in New York than with their own parents. They buy the same products, go to the same movies, listen to the same music, sip the same colas. Global advertising merely works on that premise. </li></ul><ul><li>— William Roedy, Director, MTV Europe </li></ul>13-
    23. 23. Effect on performance <ul><li>Increasingly studies find effect on performance </li></ul><ul><li>Adaptation leads to better results </li></ul><ul><li>Adapt brands to a position that is relevant to minds of consumers </li></ul><ul><li>Understand factors that lead to superior performance: </li></ul><ul><ul><li>Handling product adaptation, marketing planning </li></ul></ul><ul><ul><li>Control marketing activities </li></ul></ul><ul><ul><li>Insight in how to differentiate products </li></ul></ul><ul><ul><li>Effective pricing, advertising and distribution </li></ul></ul>
    24. 24. Standarization versus Adaptation 1- Arabic read right to left Chinese “ delicious/happiness” The faces of Coca-Cola around the world
    25. 25. For discussion (1) <ul><li>Because English is the world language of business is it necessary for UK managers to learn a foreign language? </li></ul>7-
    26. 26. For discussion (2) <ul><li>Identify some constraints in marketing to a traditional Muslim society. Use examples from your own experience </li></ul>7-
    27. 27. For discussion (3) <ul><li>The focus of this article has been the influence of culture on marketing. What is the influence of marketing on culture? </li></ul><ul><li>How do the roles of women in different cultures affect women’s behaviour as consumers? </li></ul>7-
    28. 28. For discussion (4) <ul><li>“ Proponents of the Levitt theory spoke of developing powerful advertising that crosses international boundaries, cutting across all lines of culture, nationality, race, mores, values and customs” (de Mooij, 2009: 11) </li></ul>7-
    29. 29. How would you expect to come into contact with global marketing activities? How is global marketing as a field related to your future career?