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Communication
with the world
consumer
by Anubhav Singh
Overview
1. Constraints on Global Communications Strategies
2. Setting the Global Advertising Budget
3. Message Strategy
5. Global Media Decisions
6. Choosing an Advertising Agency
7. Other Forms of Communication
1. Constraints on Global Communication Strategies
ā€¢ Language Barriers
ā€¢ Cultural Barriers
ā€¢ Local Attitudes toward Advertising
ā€¢ Media Infrastructure
ā€¢ Advertising Regulations
ļƒ¼ Advertising of ā€œVice Productsā€ and Pharmaceuticals
ļƒ¼ Comparative Advertising
ļƒ¼ Content of Advertising Messages
ļƒ¼ Advertising toward Children
Actions to cope with advertising regulations
1. Keep track of regulations and pending legislation
2. Lobbying activities
3. Challenge regulations in court
4. Adapt marketing mix strategy
2. Setting the Global Advertising Budget
ā€¢ Percentage of Sales
ā€¢ Competitive Parity
ā€¢ Objective-and-Task
3. Message Strategy
The ā€œStandardizationā€ versus ā€œAdaptationā€ Debate
Merits of Standardization
Scale Economies
Consistent Image
Global Customer Segments
Creative Talent
Barriers to Standardization
Cultural Differences
Advertising Regulations
Market Maturity
ā€œNot-Invented-Hereā€ Syndrome
4. Global Media Decisions
Media Infrastructure
Media Limitations
Recent Developments in the International Media Landscape
ā€¢ Growing commercialization and deregulation of mass media
ā€¢ Shift from radio and print to TV advertising
ā€¢ Rise of global and regional media
ā€¢ Growing importance of multimedia advertising tools
Improved monitoring
Improved TV-viewership measurement
5. Choosing an Advertising Agency
Options
1. Work with the agency that handles the advertising in the firmā€™s home market
2. Pick a purely local agency in the foreign market
3. Choose a local office of a large international agency
4. Select an international network of ad agencies that spans the globe
Criteria
ā€¢ Market coverage
ā€¢ Quality of coverage
ā€¢ Expertise in developing a central international campaign
ā€¢ Scope and quality of support services
ā€¢ Desirable image (ā€œglobalā€ versus ā€œlocalā€)
ā€¢ Size of agency
ā€¢ Conflicting accounts
6. Coordinating International Advertising
ā€¢ Monetary Incentives (Cooperative Advertising)
ā€¢ Advertising Manuals
ā€¢ Feedback via the Internet
ā€¢ Lead-Country Concept
ā€¢ Global or Pan-Regional Meetings
Guidelines
1. Top management must be dedicated to going global.
2. A third party (e.g., the ad agency) can help sell key managers the benefits of
going global.
3. A global brief based on cross-border consume research can help persuade
managers to think in terms of global customers.
4. Find product champions and give them charter for the success of the global
marketing program.
5. Convince local staff that they have an opportunity in developing a global
campaign.
6. Get local managers on the global marketing team: have them do the job
themselves.
7. Other Forms of Communication
Sales Promotions
ā€¢ Economic development
ā€¢ Market maturity
ā€¢ Cultural perceptions
ā€¢ Trade structure
ā€¢ Government regulations
Event Sponsorships
Trade Shows
Walmart bakes an ISIS mark on cake
McDonald's runs ads invoking 9/11 and Boston bombings
Seeking to insert some gravitas to its ads,
McDonald's (MCD, -0.47%) in January launched
a campaign that featured messages on
McDonald's billboards across the U.S. over the
decades. The messages varied from birth
announcements to "We Remember 9/11" to
"Boston Strong," all with the burger chain's
trademark golden arches above them. Many
objected to the campaign, accusing McDonald's
of trying to capitalize on tragedy. The company
said it was trying to have "deeper" conversations
with customers.
Pampers Confuses Japanese Parents
When Proctor & Gamble started selling Pampers diapers in Japan, they were confused
why sales were so dire. After some careful research, they realized that the problem was
the packaging, which featured an image of a stork delivering a baby. The reference was
completely lost on Japanese parents, since the story isnā€™t part of Japanese folklore ā€“
instead their story goes that giant floating peaches deliver babies.
American Motors Launches ā€˜The Killerā€™
When American Motors launched a car named ā€˜Matadorā€™, they were confident of sales
success, with research suggesting that the word meant virility and excitement to
consumers. However, when they introduced the model to Puerto Rico they ran into
trouble. It turned out that matador was the Spanish word for ā€˜killerā€™ ā€“ hardly a good
advertisement.
Pepsi ā€˜Brings Your Ancestors Back from the Graveā€™
When Pepsi entered the Chinese market it launched with the slogan ā€˜Pepsi Brings You
Back to Lifeā€™. Unfortunately, the company failed to realize that the phrase had been
translated as ā€˜Pepsi Brings Your Ancestors Back from the Graveā€™. Not an ideal blunder in
a country where reverence for ancestors is an important part of the culture.
Pepsodent ā€˜Youā€™ll Wonder Where the Yellow Wentā€™
When Pepsodent tried to sell toothpaste in South East Asia by promising white teeth,
the brand overlooked a key cultural factor. In this part of the world, people chew betel
nuts to try and blacken their teeth ā€“ a habit which is viewed as a status symbol.
Consequently, the brandā€™s promise wasnā€™t what their audience wanted to hear.
Critics show Dove the door
Hitler Ice Cream (yes, you read that right)

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Ā 

Communication with the world consumer

  • 2. Overview 1. Constraints on Global Communications Strategies 2. Setting the Global Advertising Budget 3. Message Strategy 5. Global Media Decisions 6. Choosing an Advertising Agency 7. Other Forms of Communication
  • 3. 1. Constraints on Global Communication Strategies ā€¢ Language Barriers ā€¢ Cultural Barriers ā€¢ Local Attitudes toward Advertising ā€¢ Media Infrastructure ā€¢ Advertising Regulations ļƒ¼ Advertising of ā€œVice Productsā€ and Pharmaceuticals ļƒ¼ Comparative Advertising ļƒ¼ Content of Advertising Messages ļƒ¼ Advertising toward Children
  • 4. Actions to cope with advertising regulations 1. Keep track of regulations and pending legislation 2. Lobbying activities 3. Challenge regulations in court 4. Adapt marketing mix strategy
  • 5. 2. Setting the Global Advertising Budget ā€¢ Percentage of Sales ā€¢ Competitive Parity ā€¢ Objective-and-Task
  • 6. 3. Message Strategy The ā€œStandardizationā€ versus ā€œAdaptationā€ Debate Merits of Standardization Scale Economies Consistent Image Global Customer Segments Creative Talent Barriers to Standardization Cultural Differences Advertising Regulations Market Maturity ā€œNot-Invented-Hereā€ Syndrome
  • 7. 4. Global Media Decisions Media Infrastructure Media Limitations Recent Developments in the International Media Landscape ā€¢ Growing commercialization and deregulation of mass media ā€¢ Shift from radio and print to TV advertising ā€¢ Rise of global and regional media ā€¢ Growing importance of multimedia advertising tools Improved monitoring Improved TV-viewership measurement
  • 8. 5. Choosing an Advertising Agency Options 1. Work with the agency that handles the advertising in the firmā€™s home market 2. Pick a purely local agency in the foreign market 3. Choose a local office of a large international agency 4. Select an international network of ad agencies that spans the globe Criteria ā€¢ Market coverage ā€¢ Quality of coverage ā€¢ Expertise in developing a central international campaign ā€¢ Scope and quality of support services ā€¢ Desirable image (ā€œglobalā€ versus ā€œlocalā€) ā€¢ Size of agency ā€¢ Conflicting accounts
  • 9. 6. Coordinating International Advertising ā€¢ Monetary Incentives (Cooperative Advertising) ā€¢ Advertising Manuals ā€¢ Feedback via the Internet ā€¢ Lead-Country Concept ā€¢ Global or Pan-Regional Meetings Guidelines 1. Top management must be dedicated to going global. 2. A third party (e.g., the ad agency) can help sell key managers the benefits of going global. 3. A global brief based on cross-border consume research can help persuade managers to think in terms of global customers. 4. Find product champions and give them charter for the success of the global marketing program. 5. Convince local staff that they have an opportunity in developing a global campaign. 6. Get local managers on the global marketing team: have them do the job themselves.
  • 10. 7. Other Forms of Communication Sales Promotions ā€¢ Economic development ā€¢ Market maturity ā€¢ Cultural perceptions ā€¢ Trade structure ā€¢ Government regulations Event Sponsorships Trade Shows
  • 11. Walmart bakes an ISIS mark on cake
  • 12. McDonald's runs ads invoking 9/11 and Boston bombings Seeking to insert some gravitas to its ads, McDonald's (MCD, -0.47%) in January launched a campaign that featured messages on McDonald's billboards across the U.S. over the decades. The messages varied from birth announcements to "We Remember 9/11" to "Boston Strong," all with the burger chain's trademark golden arches above them. Many objected to the campaign, accusing McDonald's of trying to capitalize on tragedy. The company said it was trying to have "deeper" conversations with customers.
  • 13. Pampers Confuses Japanese Parents When Proctor & Gamble started selling Pampers diapers in Japan, they were confused why sales were so dire. After some careful research, they realized that the problem was the packaging, which featured an image of a stork delivering a baby. The reference was completely lost on Japanese parents, since the story isnā€™t part of Japanese folklore ā€“ instead their story goes that giant floating peaches deliver babies. American Motors Launches ā€˜The Killerā€™ When American Motors launched a car named ā€˜Matadorā€™, they were confident of sales success, with research suggesting that the word meant virility and excitement to consumers. However, when they introduced the model to Puerto Rico they ran into trouble. It turned out that matador was the Spanish word for ā€˜killerā€™ ā€“ hardly a good advertisement. Pepsi ā€˜Brings Your Ancestors Back from the Graveā€™ When Pepsi entered the Chinese market it launched with the slogan ā€˜Pepsi Brings You Back to Lifeā€™. Unfortunately, the company failed to realize that the phrase had been translated as ā€˜Pepsi Brings Your Ancestors Back from the Graveā€™. Not an ideal blunder in a country where reverence for ancestors is an important part of the culture.
  • 14. Pepsodent ā€˜Youā€™ll Wonder Where the Yellow Wentā€™ When Pepsodent tried to sell toothpaste in South East Asia by promising white teeth, the brand overlooked a key cultural factor. In this part of the world, people chew betel nuts to try and blacken their teeth ā€“ a habit which is viewed as a status symbol. Consequently, the brandā€™s promise wasnā€™t what their audience wanted to hear.
  • 15. Critics show Dove the door
  • 16. Hitler Ice Cream (yes, you read that right)