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Ch13 kotabe

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  • 1. Global Marketing Management, 5e1 Chapter 13 Communicating with the World Consumer Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13
  • 2. Chapter Overview2 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. Introduction3  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 Culture4  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 Spanish5 Copyright (c) 2007 John Wiley & Sons, Inc. Chapter 14
  • 6. 1. Global Advertising and Culture6  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 Budget7  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 Only8 (2007) Copyright (c) 2007 John Wiley & Sons, Inc. Chapter 14
  • 9. Exhibit 13-3: Measured Advertising Spending by Region (2007)9 Copyright (c) 2007 John Wiley & Sons, Inc. Chapter 14
  • 10. Exhibit 13-4: Measured Ad Spending Comparison: P&G versus Unilever (2007)10 Copyright (c) 2007 John Wiley & Sons, Inc. Chapter 14
  • 11. Exhibit 13-5: 2007 Ad Spending Allocation by 3 Biggest Advertisers in Key Markets11 Copyright (c) 2007 John Wiley & Sons, Inc. Chapter 14
  • 12. 3. Creative Strategy12  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 Strategy13 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 Strategy14  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 Appeals15 Copyright (c) 2007 John Wiley & Sons, Inc. Chapter 14
  • 16. 3. Creative Strategy16  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 Decisions17  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 Decisions19  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 Regulations20  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 Regulations21  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 Agency22  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)23 Copyright (c) 2007 John Wiley & Sons, Inc. Chapter 14
  • 24. 6. Choosing an Advertising Agency24  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 Communication25 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 Europe26 Copyright (c) 2009 John Wiley & Sons, Inc. Chapter 13
  • 27. 7. Other Means of Communication27  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 Campaigns28 Copyright (c) 2007 John Wiley & Sons, Inc. Chapter 14
  • 29. 7. Other Means of Communication29 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 Communication30 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)31  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)32  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

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