The scope and challenge of international marketing 

A global economic boom unprecedented in modern economic history has been underway
as the drive for efficiency, productivity and open market sweeps the world. Powerful   
economic, technological, industrial, political and demographic forces are converging to build
the foundation of a new global economic order.
Of all the events and trends affecting global business today four stand out as the most
dynamic.
The rapid growth of world trade organisation and regional free trade areas.
The trend towards the accepting the free market system among developing countries
LATIN America, Asia and Eastern Europe
The impact of the internet and other global media
The mandate to properly manage the resources and global environment for the
generations to come.
It is not possible to avoid the influence of the globalisation of the world markets and the
growth of emerging markets. For a growing number of companies, being international is no
longer a luxury but a necessity for economic survival.

Domestic and International marketing.

Marketing concepts, principles and process are universally applicable and the marketers’
task is the same whether doing business in Africa or Japan. What then is the difference
between domestic and international marketing? The difference lies in the environment within
which the marketing plans have to be implemented. There are uncontrollable elements like
government controls; legal restraints are some factors that affect marketing plans. Each
country in which a company operates adds its own set of uncontrollable factors. The
adaptation of the marketing mix to these environmental factors determine the ultimate
outcome of the marketing enterprise. The uncontrollable elements are:

Political/legal forces
Competition
Level of technology 
Economic forces
Geography
Culture
Distribution

Aspects of domestic environment

A political decision involving domestic foreign policy can have a direct effect on a firm’s
international marketing success.
1. For example US government placed a total ban on trade to Libya to condemn Libyan
support for terrorist attack. It also placed a total ban on trade with S Africa to protest
apartheid.
2. Domestic economic climate is another important home based uncontrollable variable with
far reaching effects on a company’s position in foreign markets. A capacity to invest is to
a large extent a function of domestic economic vitality. If internal economic conditions
deteriorate restrictions against foreign investments may be imposed to strengthen
domestic economy.
Competition within the home country can also have a profound effect on the international
marketer’s task. Eastman Kodak, leader in the domestic market planned to go international.
However the competitive structure changed radically. Fuji Photo Film opened a 300 million
dollars plant and gained 12% share of the market. Kodak had to direct its resources and
energy back to the domestic market.
 Foreign environmental uncontrollables often involves substantial doses of culture,
political and economical shock. In China, which has moved from a communistic legal to a
transitional period, new laws are passed but there is a lot of confusion as to what rules are still
in force and what rules are not applicable.
The more significant elements of uncontrollable international environment. also include
distribution, geography, infrastructure,  cultural forces, level of technology, economic forces,
and legal/political forces.
Level of technology differ  between developed and under-developed countries. Technical
expertise may not be available. A marketer cannot assume technical concepts will be the same
in all countries.
Political and legal issues are often amplified be the ‘alien’ statuses where foreign
companies are viewed as outsiders and not to be trusted. The point is that foreign companies
are foreign and always subject to the local political whims of the local government than a
domestic firm.
The task of cultural adjustment is the most challenging and important one confronting
international marketers. A westerner must learn that white is a mourning colour in parts of
Asia; they are not prepared to understand the meaning of time to Latin Americans. Cross
cultural misunderstanding can also occur a simple hand gesture has a number of different
meanings in different parts of the world. When wanting to signify something is OK
Americans raise a hand    and make a circle with the thumb and forefinger. The same gesture
means zero or worthless to the French, it means money to the Japanese and a general sexual
insult in Greece. A US president sent an unintentional message to some Australian protesters
when he held up his first two fingers with the back of his hand. To the Australians it meant
putting up the middle finger.
Cultural conditioning is like an iceberg. We are not aware of nine-tenths of it. Foreigners
must constantly guard against measuring and assessing the markets against the fixed values
and assumptions of their own cultures.

Self reference criterion is the major obstacle to success in international marketing. It is

the notion that one’s own cultural values, experience and knowledge is the basis for decision
making. It is the notion culture is the best. When faced with a problem in another culture   the
tendency is to react instinctively and refer to one’s SRF. For eg in USA unrelated individuals
keep a certain physical distance between themselves and others talking or in groups. In some
cultures the acceptable distance is substantially less. A common mistake by westerners is to
refuse food or drink. In Asia and Middle East a host is offended if you refuse hospitality.
ESSO, the brand name in Japan phonetically means ‘stalled car’ the brand Pet in Pet Milk
means flatulence in France. Unilever reformulated its detergent in Brazil. It realised the most
Brazilian wash their clothes in rivers so the powder was wrapped in plastic and not paper and
also that most Brazilians were poor and buy in small quantities so the product was in small
low priced packages. In Germany ‘Vicks’ sounds like the crudest slang for intercourse, so it
was changed to Wicks.  
     To go global one has to have tolerance of cultural differences and have knowledge of
cultures, history, market potential and global economic, social and political trends.
  Historical Perspective in Global Business

History helps define a nation’s mission, how it perceives its neighbour, how it sees its
place in the world and how it sees itself. Insights into the history of the company are
important for understanding the attitude about the role of government and business, the
relationship between the managers and the managed, the sources of authority and attitudes
towards foreign corporations. Unless we have a sense of the many changes have taken place
in Japan’s history it will be difficult to understand why the Japanese have such strong loyalty
towards their companies; or understand the loyalty in their distribution system, or why
decisions are made by consensus. Loyalty to family, to country, to company, to social groups
and the strong drive to co-operate  to work together for a common cause, permeate many
facets of Japanese behaviour
 Why do Mexicans have a love-hate relationship with the USA? Latin Americans see the
Monroe Doctrine as an offensive expression of US influence in their country.
Manifest Destiny and the Monroe Doctrine was the USA foreign policy. Manifest destiny
meant in fact that USA was chosen by God to create a model society; it referred to territorial
expansion of the US from the Atlantic to Pacific
The idea of Manifest Destiny was used to justify the annexation of Texas, New Mexico
and California and later US involvement Cuba, Alaska, Hawaii and the Philippines. US
prohibit non American intervention in Latin American affairs but it would police the area and
guarantee that Latin America met their international obligations. The manner in which the
USA acquired the land for the Panama Canal Zone typifies their policy ‘what is good for
America is justifiable.

Geography and Global Markets

Geography is an element of uncontrollable environment that confronts every marketers. It
is important in the study of markets and their environment. Altitude, humidity and
temperature extremes are climatic features that affect uses and functions of products and
equipments. The construction of equipment used in the USA requires extensive modifications
to cope with the intense heat and dust of the Sahara Desert. A Taiwnese company sent a
shipment of glasses                   packed in wooden crates with hay to prevent breakage.due to
the warm climate and less humidity, the moisture content dropped and the hay shrivelled and
the glasses arrived in pieces. Climate differences in Europe caused Bosch-Siemens to alter
its washing machines. Germany and Switzerland needed a spin cycle of 1000rpm to 1600rpm.
In Italy and Spain a spin cycle of 500 was enough. South America represents a well defined
example of the importance of geography in marketing. 2/3 is like Africa in climate, 48% is
rd

forest and jungle and only 5% arable .the location, quality and availability of resources will
affect the pattern of world development and trade.

Context in cross-cultural communication

The amount of information given in a communication is called context. Context includes

both the vocal and non-vocal aspects of communication that surround a word or passage and
clarify its meaning. 
In verbal communications, information is transmitted through a code that makes
meanings both explicit and specific.  
In non verbal communication, the non verbal aspects become the major channel for
transmitting meaning.
The verbal factors include the rate at which one talks, the pitch or tone of one’s voice, the
intensity or loudness of the voice, adaptability of the voice          to the situation, the
variations of rate, pitch and the intensity, the fluency, expressional patterns, 
 

CROSS CULTURAL INFLUENCES ON ADVERTISING

Advertising and promotion are one of the most culture bound of the firm’s marketing
functions. Messages must be adapted according to local culture. Japanese advertisers
suggest rather than persuade, vague indirect messages are used. Comparative ads are
not considered good taste and testimonials are seen as pushy and phony. Cheer
detergent was advertised in Japan similar to those used in USA. These ads were found
to be the most hated in Japan. Commercials in some countries have to be 29 seconds
and not 30 seconds because 1 sec of silence at the beginning of the ad was necessary.
Adaption becomes operationally imperative
The way culture reacts to communication and messages differs. Advertisers that
understand these differences succeed. Koreans value the testimony of a friend, family
member or opinion leaders. The Chinese consumers tend to rely more on word-of –
mouth communication. The concept to the family is important in China and is thus
played up in ads.
Ads in countries high in collectivism contain more group-oriented situations than
found in individualistic societies. Cultures high on power dimension have ads with
characters of unequal status Asian cultures get more information from contextual
items than Europeans do. Ads which are popular in low context cultures frequently
seem cold and arrogant to those from high context culture. Similarly commercials
made for high context cultures confuse low context cultures because in spite of all the
ads contextual richness the people in low context cultures never seem to “get to the
point” American ads are more informative than Japan, China and Korea. Information
strategy is more likely to be used in individualistic, polychromic and in cultures with
low uncertainty avoidance.
Argument strategy is more likely to be used in monochromic cultures with low power
distance, high uncertainty avoidance.
Motivation with psychological appeals is used in collective cultures with high power
distance.
Symbolic association is more frequently used polychromic cultures with low power
distance.
With non-verbal or visual ads it should be noted that body motions are interpreted
differently among different cultures.  In Japan, pointing to one’s chest with a
forefinger indicates that the person wants a bath. In India kissing is considered
indecent in public places or on ads. Symbols are not universal, snakes symbolize
danger in Sweden while it symbolizes wisdom in Korea. In Saudi Arabia and other
Arab countries it is against the law to publicly advertise symbols that contain
Christian or Jewish connotations.
Cultural differences can create problems when potential customers translate the
message into their own knowledge. The ads for Camay soap did not work in Japan
because the ad featured men complimenting women on their appearance; the
directness was not well received. 
When dealing with different cultures, translation problems can be, if not fatal, at least
embarrassing. Estee Lauder decided not to export it’s Country Mist make-up to
Germany when it found that the word “mist” is slang for manure. The product was
marketed un the name Country Moist. Parker pens had to change its ad campaign;
bola means “ball” in some countries but revolution or lie in other Latin American
countries. In Arabic countries thirty differe4nt dialects exists and even the  printed
language is not uniform.
Companies that understand differences exist make accommodations in their ads.
Volvo emphasizes economy, durability and safety in America, status and leisure in
France, performance in Germany, safety in Switzerland, price in Mexico.
French ads use more emotional appeals than American ads but American ads contain
more information cues. The French use humour in their ads. American commercials
are more information laden than British commercials. In Japan self-assertive
communication style, the hard sell ad is often seen as arrogant, insensitive, egocentric,
disrespectful. Indirect is better. Japanese ads are designed to appeal to emotions,
produce good feelings and create a happy atmosphere. The ads are visually attractive
and eye-catching, featuring bright colours. They often use symbols and strong
gestures in their TV commercials. They do not contain much product information. It
is sometimes difficult see what the product is from viewing the ad.
Cross Culture Psychological Segmentation
 The system of segmenting consumers, clustering them on different
behavioural and psychological dimensions is psychological segmentation.
In the USA the popular classification is VALS 2 where the
respondents are classified on the basis of resources and the extent to
which they are action oriented. There are eight groups as follows:
 Fulfilleds
 Believers
Actualizers
Achievers
Strivers
Strugglers
Experiencers
Makers
In Japan a specially designed VALS is operative
In Europe other approaches to psychographic segmentation have been
used. One large study of 7,600 European from the continents five major
luxury markets were conducted to identify the relationship between
culture, trend following, income and the acquisition of luxury goods. 
Consumers worldwide traits, presenting opportunities for standardized
advertising. Among the global psycho-demographic segments that have
emerged are the following:
Global teenager Psychographically, teenagers are described as astute
consumers with precise desires for brand name clothing, products and
entertainment. They purchase Levi’s and Jeans, Nike shoes and Ralph
Lauren clothing. They listen to Madonna and World Beat music, go to
discos and see newly released movies. This segment has been
successfully targeted with messages local and international celebrity
endorsers. MTV and CNN and Star Tv are into homes across the globe;
global fast food franchise are appearing at street corners; it appears that
we are moving toward one homogenized global community. Teenagers
all over the world are more exposed than most cultural influences from
other countries through music, clothing food, personal appearance and
sports. Teenagers are less likely to be parochial and nationalistic and
more likely to identify with pan national organizations.
Global Elite. This group has the highest income of all consumers;
From a psychographic perspective, they travel the globe, often have
homes in more than one country and spend money on luxury brands, such
as Rolex and Mercedes. Targeting  this group focuses on status, exclusive
distribution, high price and status-oriented ad messages
While a common ad strategy might be possible for some countries, the
need is also to accommodate country specific difference.
 An interesting segment is a combination of the two, a youth driven
Euroculture where natural heritage has become less important for a
multilingual, educated, well traveled, cosmopolitan commonalities based
on continental values and lifestyles. This spectrum covers a wide
spectrum of male, female consumers
A study suggests that 95% of the population surveyed in 18 countries
can be put in one of the five global segments given below:
Strivers 26% , Achievers 22% , Pressured 13%, Adapters 18% and
Traditional
Young and Rubicum had its own theory based global segmentation
scheme called “Cross Cultural Consumer Characterisation in which
consumers in 20 countries have been placed in seven segments based on
their goals, motivations and values
In sum, there are many others with various groups of consumers
varying chiefly on the dimensions of income, desire for material success
and social acceptance and personal or social idealism 
Every country has its rich, middle class and poor, those that live their
lives keeping up with the Joneses those who are dreamers and rebels. 
Human nature and circumstances are essentially the same no matter
where you live. The challenge facing the global advertiser is not only
knowing the global segment to which the target consumer belongs but
also the local difference.
There is need to focus on both simultaneously..  

CROSS CULTURAL ISSUES IN SALES AND SALES MANAGEMENT

Sales

Products that are higher priced and complex require demonstrations or hands-on training
or must be customized for each individual customer.
A manufacturing of Data System, a producer of computer software, finds that a sale in the
US requires an average of two  calls per sale. In Europe frequent call backs are necessary,
each time with a higher level of management which means more time and cost. In Japan, a
sale requires even more time than in Europe. In Malaysia it requires an average of only five
demonstrations to make a sale bu 20 in the Philippines. Bargaining still dominates the
exchange process in Saudi Arabia and all sales personnel are men. In Chinese society an
aggressive salesman may frighten customers, who may be humiliated  and then lose face.
Chinese like to do their shopping without interference. They tend to chose someone who they
are familiar with.
In Taiwanese culture, sales personnel rank low in the hierarchy of occupational prestige.
 An American firm trained 40 young Brazilians in sales techniques for an entire week.
After that they were told to go door-to-door selling the product. They were appalled. It is
beneath the dignity of Brazilians to ring the doorbell and talk to women about a product.
In Japan cars are delivered on a lucky day. Everything is done on a auspicious day 
Regulations often influence the selling process. Customs and manners are also important.
In Brazil it is important to dress as the customer dresses, casual or formal.
The English do not , as a rule, make deals over the phone. A Frenchman neither likes
instant familiarity nor refers to strangers by their first names. Germans dislike overstatement
and ostentatiousness. . ,   
In China “no problem” frequently means there is a bit of problem.
Sales persons in Germany should address their customers by title eg Herr Doktor
Schmidt.in Italy allow plenty of time for appointments since customer is very likely to spend
several hours chatting with a salesperson. In  the Middle East one should not be too distant or
aloof as Arabs consider the sense of touch a means of communication
The Japanese selling process is human intensive rather than product intensive. Selling in
Japan is a lengthy process with numerous repeat visits. In Japan the sales people lack respect.
The route to the top goes through manufacturing not marketing and sales as in many
American firms.

Sales Management
Sales management includes recruiting, training, motivation, compensation, evaluation,
budgeting and supervision of a sales force. It is highly culture bound
Large differences in languages and dialects, social customs and government regulations
will sometimes dictate the local hiring practices, 
In Argentina there are severe regulations firing or discharging of personnel. In Brazilian
law indicate that each salesperson must be assigned an exclusive territory and if reassigned
the firm has to maintain the same salary for 12 months. In Venezuela dismissal laws are more
severe; if the sales person has worked for 3 months he gets one months pay plus 15 days pay
for every month of service exceeding 8 months plus 15 days pay for each year employed.   

SALES PROMOTION AND CULTURE

Sales Promotion consists of those promotional activities other than advertising,

personal selling and publicity. Common promotional tools include coupons,
sweepstakes, games, contests, price-offs, demonstrations, point-of-purchase offers,
price-off deals, event sponsorship and trading stamps
Differences in preferences for sales promotional tools are a direct expression of
cultural differences. Eg French consumers prefer coupons and twin-pack promotions
unlike British consumers who, for the same brand, respond better to a certain
percentage extra free. 
Price-offs tend to be ineffective in environments where prices are subjected to
bargaining and can be subject to trade misuse. Stamps tend to be ineffective where the
target market is not amenable to delayed gratification and their handling and
redemption both require stable and sophisticated channels. In USA sweepstakes and
contests are popular when targeted to lower income groups. 
Coupon usage in USA is correlated with socioeconomic standing; the higher one’s
level of education and income the greater is his or her use of coupons. 300 billion
coupons are distributed to American consumers with a redemption rate of 2.5 %. The
concept of coupons does not exist in many parts of Latin America. Coupon
distribution in Italy continues to grow while if Spain it is declining In Eastern Europe
the use of coupons is on the rise.
Fair trade regulations in Japan limit the value of premiums to a maximum of 10% of
retail price and no more than 100 yens. The small stores in Japan precludes the use of
some promotional tools that occupy store space (in store sampling) In Europe the
emphasis is on price-oriented trade deals and in-store consumer promotions. In high-
inflation economies, consumer promotions that offer immediate return work best.
Money back guarantees make the Spanish think that the product is not good. 
Mexico requires all special offers and price-off deals be approved by a government
agency  In France premiums are called “sales with a bonus” In Belgium it is called
“linked offers”
Corporate event sponsorship are big in Japan. 
The disparity in income throughout the world is and important obstacle to worldwide
product standardization

Personal selling is the largest portion of the promotional mix in business-to-business

marketing. However, in modern times, with the high growth of direct marketing,
personal selling has taken on new life.
The process varies greatly across cultural and political borders. A sale in US requires
on an average 2 calls per sale, in Europe frequent callbacks are necessary. In Japan it
requires more calls than in Europe. Electrolux required 5 demonstrations to make a
sale in Malaysia and 20 in Philppines. Since bargaining still persists in Saudi Arabia,
personal selling is used to conduct transitions. All sales personal are men
Cultural norms must be understood before personal selling is undertaken.. eg An
American salesperson visits a Saudi official for an introductory meeting for a new
product. The Saudi offers the American coffee which  is politely refused. He sits
down, crosses his legs, exposing the sole of his shoe. He passes the documents to the
Saudi with his left hand, inquires after his wife and assertively pursues the deal,
within the first ten minutes the American had unwittingly offended the Saudi five
times  
Arabs like to meet sellers.. They are not good when it comes to correspondence. One
must visit regularly and establish a direct personal relationship. In a 10 year contract
between a Canadian firm and an Arabb manufacturer, minimum annual quantity was
agreed upon. After the sixth year the order stopped coming. What happened was that
the Canadian contract signer had left the company.

Channels of Distribution and Culture

A channel of distribution is the path the goods take from the manufacturer to the
ultimate user. A channel provides the services needed to make a product available
when it is demanded and in the quantities demanded by the customer.
For business to business goods, the4 path (or the channel length) is short, usually
directly between manufacturer and the customer via the direct sales force of the
manufacturer or often with an industrial distributor or agent. For consumer goods,
channels are usually longer and typically have one or two levels of wholesalers before
reaching the retailer and the final consumers/
The presence of intermediaries perform functions that the manufactures cannot or will
not do. Their presence usually adds efficiency and effectiveness to the marketing
process. The functions of the intermediaries include-shipping, advertising and
promotion, financing, buying, selling, negotiation, stocking, etc International channel
members may provide the export activities such as customs and tariff documentation,
insurance and shipping.;
International channel alternatives are many. Distributors, agents, commission houses,
import merchants, jobbers, brokers, trading companies cooperative exporters, state
trading companies, vertical marketing systems, such as franchises and cooperatives.

An example of culturally determined difference in distribution channels can be seen

amongst dealers in India and USA. The Indian environment is characterized by
greater unidirectional communication from suppliers to dealers, lower communication
frequency, greater fuse of formal communication modes and greater supplier use of
direct influence strategies. A typical dealer is small and this leads to asymmetrical
power relationship and thus the communication flows are mostly unidirectional from
suppliers to dealers.
Retailers in underdeveloped countries are small family owned business and carry few
lines of goods, serving few customers. In these cultures the weekly market continues
to be an important source of goods. As economies develop retailers tend to grow in
size, widen their assortments, offer less personal service and segment their markets
Distribution in Japan is typically complex, multilayered, inefficient and highly
unique. While USA needs two people to build a car and one to sell it, Japan requires
one man to build a car and two to sell it. In USA the average price of a car is 1.7 times
the factory invoice price; in Japan it is 3 times the factory price. Japan has more
wholesalers and retailers per capita than any other advanced industrial nation. The
ratio of wholesale to  retail sale if four to one, three times higher than that found in the
USA. Japanese wholesalers sell their goods to other wholesalers twice as frequently
as of western countries. Japan has 30 times the number of food wholesalers as does
the USA. A product ends up in a consumer’s ahnd only after it has passed through a
distribution chain consisting of at least two or sometimes five layers of wholesale
before landing on the retailer’s shelf. Prices escalate rapidly. Most retailers need
frequent deliveries Campbell Japan Inc.’s typical delivery of soup to a retailer in
Japan is six cans. In USA it is three to twenty-five cases, each case contains twenty-
four cans. So in Tokyo soup costs four to five times more than in USA
The Japanese emphasize freshness and quality of produce and thus has three
deliveries a day. Consumers buy less quantity and visit outlets more frequently
Italian distribution has fragmented retail and wholesale structure.
In Japan channel members are not altogether different form family members, with all
levels and members tightly interlocked by tradition as much as by emotion. It is
traumatic and sometimes tragic decision if channel members have to be dropped.
Such members may be unable to bear the social conseequence4 of losing face and
pride. Because of this small or inefficient channel members are often retained and
tolerated
In Netherlands buyers cooperative deal directly with manufacturers. In Germany mail
order is important but not so in Portugal. Consumer Cooperatives control almost a
quarter of food sales in Switzerland
In Kenya retail and wholesale business is controlled by Asians. In the Philippines,
Indonesia and Malaysia the Chinese dominate. In Finland retailers predominate; the
four wholesaling houses handle the major portions of all trade.

Channels differ by country and cultures since where consumers buy certain goods also
differ country by country. E.g. contact lens solutions in Germany are found only that
sell eye-glasses while in France it is found in drugstores as well Baby foods are
bought only in pharmacies in Italy while in Germany consumers can buy them at
grocery stores.
Motivation
Motivating subordinates to achieve company objectives is one of the most important
responsibilities of a manager. Although individuals from different countries value
different things, some generalizations can b e made. For example, in USA people are
more individualistic, and are motivated by monetary rewards. The extent to which a
country promotes individualism or collectivism is relevant when considering
motivational techniques. Japan is a highly collectivist society, and its people are
committed to group accomplishment. Individuals strive to receive recognition from
their work group rather than monetary rewards.
Uncertainty avoidance and masculinity-femininity also influence
motivational technique. Societies with weak uncertainty avoidance and highly
masculine characteristics tend to take more risks and are motivated by trying to fulfill
their need for achievement. In these societies a manager should provide challenging
tasks and relatively high-level goals
In contrast, societies with strong uncertainty avoidance and feminine
characteristics find an environment that is structured, well defined and secured to be
highly rewarding. A manager who reduces ambiguity and uncertainty in working
conditions may be highly regarded in this type of society. For example, worker self-
management will not work well in this type of cultural condition.

Leadership Styles

Leadership can be defined as the ability of a person to inspire others to do tasks-

related activities. However the responsibilities of a manager and a leader are not
always the same. Motivation is only one component of leadership. In addition to
being a motivator, the responsibilities of a leader also include providing direction and
inspiration for subordinates. 
Research on leadership indicates that there is no one ‘best way’ to lead. Many factors
come into play, including the values of the subordinates. Two of Hofstede’s
dimensions of culture, individualism-collectivism and power distance are relevant to
leadership. 
People in countries that measure high in terms of individualism like work that rewards
individual effort. This does not however mean that they do not want structure .
individuals from these countries prefer management programmes that establish
objectives and provide guidelines for reaching those objectives. 
On the other hand, individuals from collective societies prefer to be rewarded for
group performance. People in countries that score high in power distance, such as
China, prefer a more autocratic management style over one that is participatory.
Subordinates believe that a superior cannot do his or her job if the subordinates are
included in the decision-making process.   

Current Global Trends

Developing markets all over the world are experiencing rapid industrialization, creating
growing industrial and consumer markets, economic growth and new opportunities for
foreign investment.
In China, few days before the New Year, the foreign outlets are jammed with bargain
hunters pushing carts loaded  high with food, kitchen appliances and clothing; the shoppers
here are China’s noveau rich. Mega stores have opened in a number of Chinese stores.
 The China market may be difficult to tap and may not be profitable for short term
business firms as they are learning about the ways and tastes of the east which is so different
from the west.
Extended families are spending money on kids, a common form of conspicuous
consumption in the developing world. Even in China, the spending power of youth is not to
be discounted.
China and other emerging markets throughout the world will account for 75% of the
world’s total growth. The transition from socialists to market driven economies, the
liberalization of trade and investment policies in developing countries, the transfer of public
sector enterprises and the rapid development of regional market alliances are changing the4
way countries, will increase trade and prosperity. 

Decades ago larger parts of the developing world were hostile toward foreign investment
and imposed severe regulatory barriers to foreign trade.
Today it is different with the collapse of the Marxist-socialist economic setup and the
spectacular success of Taiwan, South Korea, Singapore and other Asian countries. It has
become apparent that the path to prosperity was open direct investment.
China, Taiwan, Hong Kong, South Korea, Poland, Argentina, Brazil, Mexico and India
are some of the countries undergoing impressive changes in their economies and emerging as
vast markets. In these countries, there is ever expanding and changing demand for goods and
services, markets are dynamic developing entities and are reflecting the changing life style of
a culture.

A pattern of economic growth and global trade is emerging. It consists of three

multinational market regions that comprise major trading blocks- Europe, America and Asia.
Indonesia, Malaysia, Thailand and the Philippines are beginning to follow. These are the
trading blocks of the future.
The wave of change that has been washing away restricted trade controlled economies,
closed markets and hostility to foreign investments in most developing countries has also
reached India.

India has now the look and feel of the next China, but it continues to have problems.
While it has overthrown the restrictions, it is not moving towards reforms and open markets
with the same degree and vigour found in other emerging markets. Resistance to change
comes from bureaucrats, farmers, union members as well as some industrialists who have
lived behind protective barriers that excluded competition. 

India is second in size only to China and both contain enormous low-cost labour. India
has a large industrial base and is developing as a center for computer software. These give
India’s reforms enormous potential. India’s weak infrastructure makes many aspects of doing
business difficult and costly but Indian government is addressing these problems.
Private sectors have entry to power generation, oil and gas exploration,
telecommunications, civil aviation, cellular phones etc

India still presents a difficult environment. Widespread corruption and a deeply ingrained
system of bribery make every transaction complicated and expensive. This corruption is
persuasive, systematic,
Structured –running from the bottom to top of the political order.
Trade is well over other developing countries and India has the capacity to be one of the
more prosperous nations of Asia.

The Impact of Global Competition in the field of Advertising              

The integration of western Europe and the opening up of the eastern European market and
the crumbling of political, economic and customs barriers made it easier for companies to
operate in a truly global manner. Consumers in the rapidly emerging markets of Asia and
elsewhere are showing a voracious appetite for branded goods.
 This has led to the increased attention to the need to create global brands that can take
advantage of such growing economies. N America, Europe and Japan realised the need to
look for other markets for their growth.
The growth of global media & satellite and cable-basedTV channels across the world has
also led to increase in global/international advertising campaigns.

There is no doubt that global marketing and advertising are becoming very important
today because major companies and brands have begun to see the need to grow in countries
outside their traditional domestic bases

Advertising agencies themselves have begun to form global networks and alliances. This
was because their global clients began to seek global servicing capabilities and also because
they wished to gain a larger share of the fast growth in advertising revenue

The advantage that global companies enjoy is operating economies of scale. This means
that having larger volumes of the same product and sold over a larger market area can
produce and market them at a lower cost per unit due to economies of scale.

The globalisation has thus resulted in the rush of companies to market their products on a
global scale. The competition of the various brands introduced by various firms along with
the competition of local or domestic brand had a impact on the advertising world.
Ad agencies began to form global networks and alliances. The increasing global clients
began to seek global servicing capabilities and also because these agencies wished to gain a
larger share of the fast growth in advertising  revenue

Advertisers realised that advertising campaigns that work in one market may not work in
another. Consumers in every country are still somewhat differe4nt from each other, with
different habits, tastes and preferences. Eg Americans like to drink orange juice for breakfast 
the French don’t. In the Middle East most prefer toothpaste that tastes spicy; this taste may
not work in other markets McDonald’s has to vary its menu in different countries.

Advertisers are aware of the disastrous mistakes made by agencies that failed to
understand local consumer differences. Pepsodent was trying to a teeth whitening appeal in
parts of Asia but failed because dark-stained teeth were considered prestigious A
multinational advertiser must understand the cultural nuances of a local market in order to be
successful because it may differ substantially from the culture of the home market. 
Advertisers have to know about the government regulations and the media availability
and distribution arrangements of the country where they have their campaign.. The
competitive environment may vary dramatically. Agencies may also face brands that follow
very different positioning strategies across many markets
 
Controversial advertising

Controversy is to do with the creation of differences in society and shows less tolerance
for societal values. Controversy in advertisements stems from hurting religious sentiments;
through offensiveness & distastefulness in advertisements; ads that are deceptive; ads that are
exaggerated; ads that hurt sentiments through discrepancies created in gender, races,
community; comparative and disparaging ads.

The controversy about many ads shows how our traditional conservative society is still
trying to decide how much sexuality to allow in advertising. India’s growing economy and
rapid internationalization are adding to the issue as they challenge India’s home-grown norms
in new ways. 
 The Ministry of Information and Broadcasting refers all complaints of ads that are
controversial to the ASCI, Advertising Standards Council of India, which is the industry’s
self-regulatory body. Once the ad-industry council has issued its opinion, the ministry has the
final say.  
The ASCI has taken action on ads that it thought went too far.

Dark Temptation ad showed a woman taking bites out of a man who is coated in
chocolate after using the chocolate flavoured deodorant. the Ministry of Information and
Broadcastion stopped the from being broadcast after receiving a complaint from a viewer who
found it offensive the shot of a woman biting the chocolate off a the man’s bottom.The ASCI
banned the ad and now the ad is shown without the woman biting off the chocolate
Wild Stone, a deodorant ad shows a woman tricking her way into her brother-in-law’s
arms because of the effect his deodorant has on her. The brands tag line says ‘barely legal’.
Another deo ad called Fuel for Men launched by Elder Health Care Ltd in alliance with
VLCC Healthcare Ltd, shows a woman so attracted to a man using the product that she starts
unbuttoning her blouse. 

The ASCI, after receiving a complaint contact the respective advertisers for their
explanation before taking a decision to pull these ads off-air.
These companies, however say they have not stepped out of line with the above
commercials. They feel that there are certain category truths that are known to sell products
like toothpaste results in clean teeth and shampoo in clean hair. Similarly, fragrances are
associated with attraction and the above ads are based on that premise. The ad agency that
created these ads also defended it. They argued that behavioural scientist have established that
males groom themselves for the female species and that is exactly what the ad is reflecting.
However, it may be that males groom themselves for the female species , the objection is the
reaction of the female in the ads that is offensive. It is demeaning to women

There are several ads on deodorants that have raised objections such as Fa Men’s Xtreme
and Zatak  are also airing ads with sexual overtones. These ads gained ground after the
campaign for the Axe deo ad. The Axe ad has been the only body spray to face scrutiny from
the government even though competitors have run racy ads of their own.
Most of the ads for deodorants, underwears etc show men as very attractive and macho.

The Amul Macho underwear ad was another very controversial ad which was found very
offensive. It showed a young woman comes to a river to wash her husband’s clothes. She
pulls pair of men’ bovver shorts from the laundry pile and begins to wash it, giving sultry
looks to the camera and throwing her head back in a suggestive manner. The ad ends with a
breathy female voice saying ‘Amul Macho’ crafted for fantasies’

Pepsi ad was banned after human rights groups said it promoted child labour. It depicted a
young Indian boy bringing drinks to the Indian national circket team. The ad was withdrawn.
India is a signatory to the Convention on the Rights of the Child and is committed to putting
an end to child labour in any form                                                  
A cancer vaccine commercial seen  on Indian television urge parents to get their young
girls inoculated the vaccine Gardasil to protect against cervical cancer, the second most major
cancer in women.  
What the ad hides is that it is mired in a controversy in the USA. It was launched in India
in October 2008 with television ads. Advertising prescription on television is unethical
enough, but using fear to sell them is worse. Gardasil is an efficient vaccine but the safety and
risk information about it has not been available to parents.

Anchor and Havells were involved in a ‘hair raising controversy. Anchor electricals
accused Havell of copying a concept for its hair raising television commercial and demanded
that Havells take the campaign off the air.
The Havell ad showed a boy whose everyday life is disrupted when his hair stands on end
because he used a faulty switch at home. Anchor claimed the concept was taken from a
previous television ad created for Anchor switches.
 Anchor wrote a letter to Havell to stop airing the ad. Havell said they had not received the
letter. 

Unilever’s Rin detergent made an ad that directly compared Rin to Procter & Gamble’s
Tide by clearly showing the competitor’s product ‘Tide’. P&G filed a suit against them in the
Kolkata High Court and Unilever was ordered to withdraw the particular campaign. It still
continues to mock Tide through Rin’s tagline ‘Chonko mat, Chamkiye’ since ‘Chonk gaye’ is
Tide’s tagline.

Fair& Lovely showed gender discrimination in their earlier advertisement which was later
banned by showing a girl with dusky complexion and her father always wishing ‘kaash mera
ek beta hota’.

Most of the fairness creams and deodorants use exaggerated appeals and makes tall
claims of six days to fairness and irresistible attraction from the opposite gender. 

Most deodorants stereotype women in the ads and flaunt them as sex objects. Even J.K.
Cement showed a bikini clad girl emerging from the sea to show the strength of the cement.

An insurance ad showing a father in a hospital carrying a new born baby girl saying ‘hai
to pyari magar boge hai bhari’. The authorities in Delhi had the ad scrapped.  
 . 
Horlicks created an advertisement that used the USP of Complan with respect to 23 vital
nutrients in the beverage and priced at Rs 128 against Rs 174, the price of Complan. The
makers of Complan moved the Mumbai High Court to stop Horlicks from airing their
Horlicks ad. The Mumbai High Court refused to grant any relief to the makers of Complan.
                                                                                                         
FDA pulled up all children’s beverage makers to refrain from exaggerating about their
products and ordered them to remake the ads in a more truthful manner.
 

THE GLOBAL ENVIRONMENT

One of the major developments in the business world during the decade of the 90s was
the globalization of markets. The emergence of a largely borderless world has created a new
reality for all types of companies. Today, world trade is driven by global competition among
global companies for global consumers. With the development of faster communication,
transportation, and financial transactions, time and distance are no longer barriers to global
marketing.
Products and services developed in one country quickly find their way to other countries
where they are finding enthusiastic acceptance.
Consumers around the world wear Nike shoes and Calvin Klein jeans, eat at McDonald’s,
shave with Gillette razors, use Apple and Dell computers, drink Coca-Cola and Pepsi Cola
soft drinks and Starbucks coffee, talk on cellular phones made by Nokia and Motorola, and
drive cars made by global automakers such as Ford, Honda, and Nissan.

Companies are focusing on international markets for a number of reasons. Many

companies in the U.S. and Western Europe recognize that their domestic markets offer them
limited opportunities for expansion because of slow population growth, saturated markets,
intense competition, and/or an unfavorable marketing environment.

Many companies must focus on foreign markets to survive. Most European nations are
relatively small in size and without foreign markets would not have the economies of scale to
compete against larger U.S. and Japanese companies. For example, Swiss based Nestlé and
Netherlands-based Unilever are two of the world’s largest consumer product companies
because they have learned how to market their brands to consumers in countries around the
 world. Two of the world’s major marketers of cellular telephones are from Scandinavian
countries. Nokia is based in Finland and Ericsson is located in Sweden. Australia’s tourist
industry is a major part of its economy and relies heavily on visitors from other countries.

Companies are also pursuing international markets because of the opportunities they offer
for growth and profits. The dramatic economic, social, and political changes around the world
in recent years have opened markets in Eastern Europe and China. China’s joining of the
World Trade Organization in 2001 has provided foreign competitors with access to more than
1.2 billion potential Chinese consumers, and Western marketers are eager to sell them a
variety of products and services. The growing markets of the Far East, Latin America, and
other parts of the world present tremendous opportunities to marketers of consumer products
and services as well as business-to-business marketers.

International markets are important to small and mid-size companies as well as the large
multinational corporations. Many of these firms can compete more effectively in foreign
markets, where they may face less competition or appeal to specific market segments or
where products have not yet reached the maturity stage of their life cycle.
Advertising and promotion are important parts of the marketing program of firms
competing in the global marketplace. More and more companies recognize that an effective
promotional program is important for companies competing in foreign markets.

Many companies have run into difficulties developing and implementing advertising and
promotion programs for international markets. Companies that promote their products or
services abroad face an unfamiliar marketing environment and customers with different sets
of values, customs, consumption patterns, and habits, as well as differing purchase motives
and abilities. 
Languages vary from country to country and even within a country, such as India or
Switzerland. Media options are quite limited in many countries, owing to lack of availability
or limited effectiveness. These factors demand different creative and media strategies as well
as changes in other elements of the advertising and promotional program for foreign markets.

GLOBAL ENVIRONMENT: There are eight types of global environments. They are: 
 1) Demographic Environment
 2) Economic Environment
 3) Natural Environment
 4) Technological Environment
 5) Political Environment
 6) Legal Environment
 7) Social Environment
 8) Cultural Environment  
  The advertiser must also necessarily consider the differing media patterns in different countries
and also the manner in which the above mentioned environments impact media & advertising.

 Demographic Environment: 
Major demographic differences exist among countries as well as within them. Marketers
must consider income levels and distribution, age and occupation distributions of the
population, household size, education, and employment rates. In some countries, literacy rates
are also a factor; people who cannot read will not respond well to print ads. Demographic data
can provide insight into the living standards and lifestyles in a particular country to help
companies plan ad campaigns.
Demographic trends are highly reliable for the short & intermediate run. The main
demographic force that marketers monitor is population, because markets are made up from
people.
 Marketers are keenly interested in the size and growth rate of population in cities, regions,
and nations; age distribution and ethnic mix; educational levels; household patterns and
regional characteristics & movements.

Worldwide Population Growth: 

The world population is showing explosive growth. It totaled 6.1 billion in 2000 and will
exceed 7.9 billion by the year 2025. Population growth highest in countries & communities
that can least afford it.
 In developing countries while the death rate has been falling considerably due to modern
medicine, the birth rate has remained fairly stable. Feeding, clothing and educating
children, while also providing a rising standard of living, is nearly impossible in these
countries.

 A growing population does not signify a growing market unless these markets have
sufficient purchasing power. E.g. the Chinese Govt. in order to curb the population has
passed regulations limiting families to one child. Hence these children are fussed and
pampered and known as ‘ little emperors’ in China. 
 These children are being showered with everything from candies to computers as a result
of the “six pocket syndrome.” As many as six adults – great grandparents, grandparents,
parents, and aunts & uncles- may be indulging the whims of each child.
   
    This trend has encouraged toy companies like Japan’s Bandai Company, Denmark’s ‘lego’
group, and the US’s Mattel to aggressively enter the Chinese market.
 Population Age Mix: National populations vary in their age mix. At one extreme is
Mexico, a country with very young population & rapid population growth.
   At the other extreme is Japan, a country with one of the world’s oldest population.
   There is a global trend toward an aging population.

   
   A population can be subdivided into 6 age groups: preschool, school age children, teens, young
adults aged 25-40, middle-aged adults aged 40-65, and older adults aged between 65 and up. 
   For marketers, the most populous age groups (the most dominant age group in any population)
shape the marketing environment.  
    The American population is indicated by various terms such as ‘Baby Boomers’ (1946-1964),
Gen-X (1965-1976), Gen-Y (1977-1999), Gen-Z (2000 onwards). Gen-Y & Gen-Z are also
referred to as ‘Net-Gens’- because of their obsession, fluency & comfort with the Internet. 

 Sex Ratio/ Gender Issue: 

   Sex Ratio is ratio of men to women(No.of Men:No. of Women)
   Gender is a social construct & Sex is a biological construct.
   The sex ratio provides an indication regarding the need for goods & services that are sex
specific. Correspondingly, their marketing potential will increase or decrease.
   
   The term ‘Gender’ refers to the social perception regarding the roles played by men & women
in the society. In a gender neutral society, more goods & services that are women friendly can
be advertised and promoted.  

 Household Patterns: 
 Traditionally, we had joint families, then changed to Nuclear families. Now there are
many others like single-live-alones, adult-live-togethers’ of one or both sexes, single-
parent families, childless married couples, double income no kids(DINK).
   More people are divorcing or separating, choosing not to marry, marrying later or marrying
without the intention to have children.
   Each group has a distinctive set of needs & buying habits. For example, people in the SSWD
group ( single, separated, widowed, divorced) need smaller apartments, smaller appliances
etc. Marketers must consider the needs of non-traditional households.

   Each type of structure may require different kinds of products & services.
 Income Level: Income level of the population determines its ability to use certain goods
& services. This in turn determines the advertising potential.
 Educational Level: The population in any society falls into distinctive groups based on
their education. They could be illiterates, high school drop-outs, high school diplomas,
college degrees, professional degrees. In Japan, 99% of the population is literate. The
educational background will determine the kind of goods and services that can be offered
to the population & the types of advertisements that can be produced. 

 Demographic information can reveal the market potential of various foreign markets.
India’s population topped 1 billion in 2000. Only China, with over 1.2 billion people, has
a larger population.18 Latin America remains one of the world’s largest potential
markets, although the meager income of most consumers in the region is still a problem.
Brazil, the largest consumer market in South America, now has a population of 200
million and is a growing market for many products and services. More than 50 percent of
the Latin American market is younger than age 26, and 30 percent is under 15. Moreover,
children are the fastest-growing segment of that market. These numbers have caught the
attention of international advertisers such as Mattel, Hasbro, 
   Burger King, and others.19 Indonesia also has a very young population, with more people under
the age of 16 than the United States, and they are very receptive to Western ways and
products. For example, Tower Records, a California-based chain of music stores, opened
stores in Bangkok that are nearly identical to its U.S. outlets and are very popular with the
youth in Thailand.

 Economic Environment:
 Economic Structure- The market situation is referred as Economic Structure. A country’s
economic conditions indicate its present and future potential for consuming, since
products and services can be sold only to countries where there is enough income to buy
them.
 The economic level of a country is the single most important environmental element to
which the foreign marketer must adjust the marketing task.
   The stage of economic growth within a country affects the attitudes toward foreign business
activity, the demand for goods, distribution systems found within a country, and the entire
marketing process.
    
 Developed countries have the economic infrastructure in terms of the
communications, transportation, financial, and distribution networks needed to conduct
business in these markets effectively. By contrast, many developing countries lack
purchasing power and have limited communications networks available to firms that want
to promote their products or services to these markets.
 For most companies, industrialized nations represent the greatest marketing and
advertising opportunities. But most of these countries have stable population bases, and
their markets for many products and services are already saturated. Many marketers are
turning their attention to parts of the world whose economies and consumer markets are
growing.

 In the early to mid-1990s many marketers began turning their attention to the “four
Tigers” of Asia—South Korea, Singapore, Hong Kong, and Taiwan—which were among
the fastest-growing markets in the world. However, in 1997 the Asian economic crisis hit,
and these countries, as well as other parts of Asia, experienced a severe recession which
 resulted in major declines in consumer spending. Latin America also experienced a severe
economic crisis in the past several years. The economy had been particularly bad in
Argentina as a result of government instability and fiscal policies that have resulted in the
peso losing its value against the dollar and euro. Advertising spending in Argentina
declined from more than $3 billion in 1999 to barely half a billion in 2002. Brazil, which
is another major market in Latin America, has also experienced economic problems
recently.

 The global economic slowdown that began in 2001 and the ongoing slowdown has
created problems for most multinational companies and has led to reductions in
advertising spending in most countries. The economies in many countries are stagnant
making it difficult for companies to meet their growth objectives. However, a number of
multinational companies are focusing on markets experiencing stronger economic growth,
such as those in China. Many are also turning their attention to third-world countries
where consumer markets are slowly emerging.
   In static economies, consumption patterns become rigid, and marketing is typically nothing more
than a supply effort. In dynamic economies, consumption patterns change rapidly. Marketing
is constantly faced with the challenge of detecting & providing for new levels of
consumption, and marketing efforts must be matched with ever-changing market needs and
wants
 Economic development presents a two-sided challenge.
   1) A study of the general aspects of economic development is necessary to gain empathy for the
economic climate within developing countries.
   2) The state of economic development must be studied with respect to market potential,
including the present economic level and the economy’s growth potential.
  The current level of economic development dictates the kind and degree of market potential that
exists, while knowledge of the dynamism of the economy allows the marketer to prepare for
the economic shifts and emerging markets.

 Economic development is generally understood to mean an increase in national

production that results in an increase in the average per capita gross domestic
product(GDP). 
 GDP & GNP are two measures of a country’s economic activity. GDP is a
measure of the market value of all goods & services produced within the
boundaries of a nation, regardless of asset ownership. Unlike GNP, GDP
excludes receipts from that nation’s business operations in foreign countries, as
well as the share of reinvested earnings in foreign affiliates of domestic
corporations.

 Economic development, as commonly defined today, tends to mean rapid economic

growth- improvements achieved in “decades rather than centuries”- & increases in
consumer demand.
 The United Nations uses a system to classify a country’s stage of economic
development based on its level of industrialization. It groups countries into 3 categories:
MDCs (more developed countries)- industrialized countries with high per capita income
such as Canada, England, France, Germany, USA, Japan; LDCs(less-developed
countries)- industrially developing countries just entering world trade, many of which are
in Asia & Latin America, with relatively low per capita incomes; and LLDCs(least-
developed countries)- industrially under-developed, agrarian, subsistence societies with
rural populations, extremely low per capita income levels and little world trade
development. They are found in Central Africa & parts of Asia.

 The UN system has been criticized because it no longer seems relevant in the rapidly
industrializing world today. In addition, many countries that are classified as LDCs are
 industrializing at a very rapid rate while others are advancing at more traditional rates of
economic development.
 Countries that are experiencing rapid economic expansion & industrialization and do not
exactly fit as LDC or MDCs are more typically referred to as newly industrialized
countries(NICs).These countries have shown rapid industrialization of targeted
industries & have per capita incomes that exceed other developing countries. They have
instituted significant free-market reforms & therefore attract both trade and foreign direct
investment. Chile, Brazil, Mexico, South Korea, Singapore & Taiwan are some of the
countries that fit this description- exporters of steel, automobiles, machine tools, clothing,
electronics as well as markets for imported goods     

 Brazil, large exporter- exports alcohol, carbon, steel, orange juice, soy-beans,&
weapons(world’s 6 largest weapon exporter). Ships cars, trucks & buses to Third World
th

Countries- Volkswagen has produce more than 3 million VW Beetles in Brazil. 

 Markets require purchasing power as well as people. The available purchasing power in
an economy depends on current income, prices, savings, debt and credit availability.
 Marketers must pay careful attention to trends affecting purchasing power because they
can have a strong impact on business, especially, if the products are targeted to high-
income groups and price-sensitive consumers.

 There are four types of industrial structures-

  1) Subsistence economies(few opportunities for marketers)- African countries.
  2) Raw- material- exporting economies like Zaire(copper) and Saudi Arabia(Oil), with good
markets for equipment, tools, supplies and luxury goods for the rich.
  3) Industrializing economies, like India, Egypt and the Philippines, where a new rich class and a
growing middle class demand new types of goods.
  4) Industrial economies, which are rich markets for all kinds of goods.

 Income & Wealth Distribution in the Economy-

    In global economy, marketers need to pay attention to the shifting income distribution in
countries around the world, particularly where the affluence levels are increasing.
   Marketers distinguish countries with 5 different income- distribution patterns- 
  1) very low incomes 2) mostly low incomes   3) very low, very high incomes 4) low, medium,
high incomes and 5) mostly medium incomes.
 Currency Stability- Foreign Exchange Rate- The foreign exchange rate is the rate at
which the currency of a country is exchanged against the currency of another. It is the
price of one currency against another currency. The exchange between rupee & dollar
refers to the number of rupees exchanged or are required to be given to obtain one dollar. 
Exchange rate is determined by the monetary authorities in a fully controlled system.
Monetary authorities decide the rate based on demand and supply forces. In a free market,
exchange rate is determined purely by market forces i.e. demand for and supply of foreign
exchange.

 Monetary Mechanism & Control: (Central Bank) Mechanism & Control refers to the
policies that are made by the Central Bank. It shows how effective the bank’s policy
could be.
   Inflation: Too much money chasing too few goods.
 Fiscal Measures: Taxation policies.

 Natural Environment:
    It comprises of I) Forests ii) Rivers iii) Climate 
    iv) Mineral wealth v) Disaster 
   The deterioration of the natural environment is today a matter of global concern. Air & water
pollution have reached dangerous levels in many cities of the world.
 ‘Greenhouse gases’- due to the burning of fossil fuels
  Depletion of the ozone layer due to certain chemicals
  Increasing shortages of water- All of these and more is of growing concern today.
  In Western Europe- ‘green parties’ have pressed for public action to reduce industrial pollution.
  The recent problems concerning ‘Natural Environment’ may be indicated as:
  a) Scarcity of resources due to unscrupulous usage.
  b) Increase in pollution & the creation of ‘Asian Brown Haze’- the pollution ring above the Asian
scene is turning black from light brown. It has created a dent in the Ozone layer that leads to
global warming in an overall manner. This leads to floods and other disasters. 
   New regulations have hit certain industries badly.
   Steel companies & public utilities have had to invest in  pollution control equipment & more
environmentally friendly fuels.
   The auto industry introduced expensive emission controls in cars. Companies, hopefully will
adopt practices that will protect the natural environment.
   Anti-Pollution measures- Industrial activity does damage the Natural Environment-chemical
pollutants, littering of environment with plastic, bottles and other packaging materials.
   A large market has been created for pollution-control solutions such as recycling centers.
   Governments in many countries promote a clean environment- though the efforts vary- poorer
nations lack the funds or political will to do so.
     

 Technological Environment:
   Technology is today changing people’s lives. Technology has released big wonders that have
been beneficial to mankind but also has seen some horrors too.
   The economy’s growth rate is affected by how many major  new technologies are discovered.
   Backward countries nave poor infrastructure, lack of know-how, lack of finance.
   Developing countries have a steady economic growth, scientific advancement.
   Highly developed countries- Media convergence, media boom- Virtual Reality- enabling an
individual to experience a 3D effect in the internet. Fuzzy logic technology- provides the 6 th

sense to consumer durables like washing machines & refrigerators. 

Political Environment:
   Political environment is a comprehensive term, includes political parties, government agencies,
pressure groups that influence and control individuals & organizations in society.
   These factors may vary considerably between nations. A country may have- Democracy, where
there is maximum freedom; Military Regime; Communist Regime or Monarchy.
   However, irrespective of the type of political set up, trade and industry will flourish depending
on the stability of the government in the country.
 Regulations differ owing to economic and national sovereignty considerations,
nationalistic and cultural factors, and the goal of protecting consumers not only from false
or misleading advertising but, in some cases, from advertising in general.
 Economic systems provide another base for classification of governments. They can be-
Capitalist Economy, Socialist Economy, Mixed Economy.
 In a capitalist / free market economy, an entrepreneur is free to invest and produce goods
of his choice. The government exercises minimum control in planning and regulating the
working of market.
 In a socialist economy, the govt. has absolute control over various factors of production
and its allocation among various units. The govt. decides what to produce and what
should be consumed. This concept is now wearing out- the downfall of Soviet Union has
brought an end to communist philosophy excepting in Cuba.
  In mixed economy, a combination of capitalist and communist economic system. Allows
investments by private and public sectors.
 A number of political risks also govern the political environment such as social unrest in
the country, unfriendly foreign policies of the government. 
 It is difficult to generalize about advertising regulation at the international level, since
some countries are increasing government control of advertising while others are
decreasing it. Government regulations and restrictions can affect various aspects of a
company’s advertising program, including:
    • The types of products that may be advertised.
    • The content or creative approach that may be  used.

• The media that all advertisers (or different     classes of advertisers) are permitted to employ.
 • The amount of advertising a single advertiser may use in total or in a specific medium.
 • The use of foreign languages in ads.
 • The use of advertising material prepared outside the country.
 • The use of local versus international advertising agencies.
 • The specific taxes that may be levied against advertising.

 Legal Environment: 
 Provides laws, rules, regulations and procedural formalities laid down by the govt. there
may be laws related to every element of the marketing mix such as Product Quality,
Pricing, Packaging, Cancellation of agreements etc.
 Constitutional Provisions
 Consumer protection Laws (Consumer protection act of 1986, RTI, MRTP- Monopolies
& Restrictive Trade Practices of 1969- yoga, haldi, neem- US & other nations trying for a
patent right over them).
 Legal machinery , through which grievances are settled.
 Parliamentary Act, generates from constitutional practices.
 Public Awareness/ Public Activism.

 A number of countries ban or restrict the advertising of various products. Cigarette

advertising is banned in some or all media in numerous countries besides the United
States, including Argentina, Canada, France, Italy, Norway, Sweden, and Switzerland.
 The Australian government limits tobacco advertising to point of purchase. The ban also
excludes tobacco companies from sponsoring sporting events. In Malaysia, a government
ban on cigarette-related advertising and sponsorship was initiated in 2003 in an effort to
curb the rising number of smokers in the country. In China, tobacco and liquor
advertising are banned except in hotels for foreigners. 

 Recently the tobacco industry has been reducing its advertising efforts in markets around
the world, including Asia and Eastern Europe, where they have enjoyed much more
regulatory freedom. Three of the largest tobacco companies are leading an effort to
implement self-imposed restrictions and requirements for their advertising. For example,
the tobacco industry agreed to stop all television advertising in Mexico at the end of 2002
as part of a raft of new self-regulatory measures. Many of these restrictions are already
being forced on the companies in North America, Western Europe, and North Asia, where
governments take a tough stance on tobacco advertising. However, regulations in
    many other countries, such as Indonesia and the Philippines, are minimal. The industry’s self-
regulatory efforts are seen as a move to head off a campaign by the World Health
Organization for a worldwide ban on all tobacco advertising.
 In Europe there has been a longstanding ban on advertising for prescription-drug
products, which is designed to keep government-subsidized health care costs under
control. The European Union has argued that advertising increases the marketing budgets
of drug companies and results in higher prices. The ban prevents prescription-drug
 companies from mentioning their products even on their websites or in brochures,
although some relaxation of these restrictions is being considered by the European
Commission for drugs used to treat AIDS, diabetes, and respiratory ailments.
 While international marketers are accustomed to restrictions on the advertising of
cigarettes, liquor, and pharmaceuticals, they are often surprised by restrictions on other
products or services. For example, margarine cannot be advertised in France, nor can
restaurant chains. For many years, the French government restricted travel advertising
because it encourages the French to spend their francs outside the country.
 Many countries restrict the media advertisers can use. In 1999 the European Commission
threw out an appeal against Greece’s national ban on toy advertising on daytime
television. Thus advertisers can advertise toys on TV only during the evening hours.
Some of the most stringent advertising regulations in the world are found in Scandinavian
countries. Commercial TV advertising did not begin in Sweden until 1992, and both
Sweden and Denmark limit the amount of time available for commercials. Advertising
aimed at young children has not been legal in Sweden since commercial television was
introduced in the country a decade ago. The Swedish government feels that young people
are not able to differentiate
     between advertising and programming and are not capable of understanding the selling intent of
commercials. Saudi Arabia opened its national TV system to commercial advertising in 1986,
but advertising is not permitted on the state-run radio system. Advertising in magazines and
newspapers in the country is subject to government and religious restrictions.
 Many governments have rules and regulations that affect the advertising message. For
example, comparative advertising is legal and widely used in the United States and
Canada but is illegal in some countries such as Korea and Belgium. In Europe, the
European Commission has developed a directive to standardize the basic form and
content of comparative
advertising and develop a uniform policy. Currently, comparative advertising is legal in
many European countries, illegal in some, and legal and rarely used in others such as
Great Britain. Many Asian and South American countries have also begun to accept
comparative ads. However, Brazil’s self-regulatory advertising codes are so strict that few
advertisers have been able to create a comparative message that has been approved. Many
countries restrict the types of claims advertisers can make, the words they can use, and
the way products can be represented in ads. In Greece, specific claims for a product, such
as “20 percent fewer calories,” are not permitted in an advertising message.

   Copyright and other legal restrictions make it difficult to maintain the same name from market to
market. For example, Diet Coke is known as Coca-Cola Light in Germany, France, and many
other countries because of legal restrictions prohibiting the word diet.
 Government restrictions can influence the use of foreign languages in advertising as well
as the production of the ad. Most countries permit the use of foreign languages in print
ads and direct mail. However, some do not allow foreign language commercials on TV or
radio or in cinema ads, and some restrict foreign-language ads to media targeted to
foreigners in their country. Some countries also restrict the use of
foreign-produced ads and foreign talent. For example, with few exceptions, such as
travel advertising, all commercials aired on Malaysian television must be made in
Malaysia. However, the Asian country is considering changing its rules to allow foreign
commercials to air on the new legalized satellite signals into the country.
These restrictions are motivated primarily by economic considerations. Many countries
require local production of at least a portion of commercials to build local film industries and
create more jobs for local producers of print and audiovisual materials.
 Nationalistic and cultural factors also contribute to these restrictions, along with a desire
to prevent large foreign ad agencies from dominating the advertising business in a
country and thus hampering its development. Restrictions affecting the advertising
industry took a new twist recently in China when the government began strictly enforcing
regulations governing licenses it requires of magazine publishers. Since the new
 enforcement took effect on January 1, 2000, Western publishers have been required to use
a direct translation of the often-obscure name that appears on their license or use no
English name at all. Thus, magazines such as Cosmopolitan, Esquire, and Woman’s Day
are not able to use their popular names.

 In some countries, steps are being taken to ease some of the legal restrictions and other
barriers facing international advertisers. For example, the Maastricht Treaty was designed
to create a single European market and remove many of the barriers to trade among the 12
member nations of the European Community. One of the goals of this plan was a single
advertising law throughout the EC, but when the treaty was ratified in November 1993,
many of the advertising directives were not agreed upon—so many advertising
regulations are still decided by each country. A directive was passed by the European
Commission banning all tobacco advertising, which most of the 15 European
   Union countries are now implementing. The European Commission may also take steps to
restrict alcohol advertising and marketing. Sweden has been leading a Pan-European effort to
ban TV advertising targeted at children under the age of 12 that has been gaining support
from other members of the European Union. However, marketers, ad agencies, media, and
trade associations in several European countries including the United Kingdom and France
have begun pushing for self-regulation that would include efforts to help children understand
and interpret advertising effectively rather than banning efforts to reach them.

   Socio- Cultural Environment:

   Purchasing power is directed towards certain goods and services and away from other according
to people’s tastes and preferences. Society shapes the beliefs, values and norms that largely
define these tastes and preferences.
 High persistence of cultural values 
 The people living in a particular society hold many core belief and values that tend to
persist. Core beliefs and values are passed on from parents to children and are reinforced
by major social institutions – schools, temples, business and governments. Secondary
beliefs and values are more open to change. Thus marketers shall have some chance of
changing secondary values but a little chance of changing core values.  
 Cultural variables marketers must consider include language, customs, exhibits cultural
traits that influence not just the needs and wants of consumers but how they go about
satisfying them. Marketers must be sensitive not only in determining what products and
services they can sell foreign cultures but also in communicating with them. Advertising
is often the most effective way to communicate with potential buyers and create markets
in other countries. But it can also be one of the most difficult aspects of the international
marketing program because of problems in developing messages that will be understood
in various countries.
 International advertisers often have problems with language. The advertiser must know
not only the native tongue of the country but also its nuances, idioms, and subtleties.
International marketers must be aware of the connotations of words and symbols used in
their messages and understand how advertising copy and slogans are translated.
Marketers often encounter problems in translating their advertising messages and brand
names into various languages.
 Advertisers can encounter problems with the connotative meaning of signs and symbols
used in their messages. For example, Pepsodent toothpaste was unsuccessful in Southeast
Asia because it promised white teeth to a culture where black and yellow teeth are
symbols of prestige. An American ad campaign using various shades of green was a
disaster in Malaysia, where the color symbolizes death and disease.
 Problems arising from language diversity and differences in signs and symbols can
usually be best solved with the help of local expertise. Marketers should consult local
employees or use an ad agency knowledgeable in the local language that can help verify
 that the advertiser is saying what it wants to say. Many companies turn to agencies that
specialize in translating advertising slogans and copy into foreign languages.

 Tastes, traditions, and customs are also an important part of cultural considerations. The
customs of a society affect what products and services it will buy and how they must be
marketed. In France, cosmetics are used heavily by men as well as women, and
advertising to the male market is common. There are also cultural differences in
grooming and hygiene habits of consumers in various countries. For example, though
many U.S. consumers use products like deodorant and shampoo daily, consumers in
many other Western countries are not as fanatical about personal hygiene, so
consumption of products such as deodorants and mouthwash is much lower than in the
United States.

 Another aspect of culture that is very important for international marketers to understand
is values. Cultural values are beliefs and goals shared by members of a society regarding
ideal end states of life and modes of conduct. Society shapes consumers’ basic values,
which affect their behavior and determine how they respond to various situations. For
example, cultural values in the United States place a major emphasis on individual
activity and initiative, while many Asian societies stress cooperation and conformity to
the group. Values and beliefs of a society can also affect its members’ attitudes and
receptivity toward foreign products and services. Values such as ethnocentrism, which
refers to the tendency for individuals to view
   their own group or society as the center of the universe, or nationalism often affect the way
consumers in various countries respond to foreign brands or even advertising messages. For
many years, consumers in many European countries were reluctant to buy American brands
and there was even a backlash against American imagery. In fact, many U.S. companies
doing business in Europe were careful not to flaunt their American roots.
 One European country, in particular, where American-made products were not well
received for many years is France. The French have always been very protective of their
culture; for example, they have quotas for
     French-language shows on TV and music on the radio. As historian Richard Pells notes:
“France, like the U.S., has traditionally seen itself as a country with a mission and a country
whose culture and civilization is worthy of being exported around the world.”However, in
recent years many American brands have become popular in France, particularly among
younger consumers.
    In recent years, U.S. brands have become popular in many other European countries as well as
in Asia. Marketers attribute the rising popularity of many U.S.-made products to the
worldwide distribution of American music, films, and TV shows; the growth of the Internet;
and the increase in travel to the United States. These
   factors have made consumers in foreign countries more familiar with American culture, values,
and lifestyle. Japan is one of the more difficult markets for many American advertisers to
understand because of its unique values and customs. For example, the Japanese have a very
strong commitment to the group; social interdependence and collectivism are as important to
them as individualism is to most Americans. Ads stressing individuality and nonconformity
have traditionally not done well in Japan, but westernized values have become more prevalent
in Japanese advertising in recent years. However, the Japanese dislike ads that confront or
disparage the competition and tend to prefer soft rather than hard sells. A recent study found
that Japanese and American magazine ads tend to portray teenage girls in different ways and
that the differences correspond to each country’s central concepts of self and society. In many
American ads teens are associated with images of independence, rebelliousness,
determination, and even defiance that are consistent with the American value of individuality.
In contrast, Japanese ads tend to portray a happy, playful, childlike, girlish image that is
consistent with the Japanese culture’s sense of self, which is more dependent on others.
  Another recent study examined gender-role portrayals in Japanese magazine advertising
and found that some of the previously used
   hard-line stereotyping of both men and women has softened considerably since the 1980s. Men
are not associated as much with stereotypical male traits, while women are shown in more
positive ways. The researchers suggest that this may reflect the westernization of the
depictions of men and women in Japan.
 As advertisers turn their attention to China, more consideration is also being given to
understanding the cultural system and values of the world’s most populous country.
Chinese values are centered around Confucianism, which stresses loyalty and
interpersonal relationships. Chinese culture also emphasizes passive acceptance of fate by
and seeking
 harmony with nature; inner experiences of meaning and feeling; stability harmony; close
family ties; and tradition. A recent study of advertising appeals used in China found that
advertising reflects these traditional Chinese cultural values. Chinese advertisers tend to
base their advertising strategies on creating liking for a product through image and
emotional appeals rather than information-laden ads. However, the study also found
subtle changes in appeals to cultural values used by advertisers, particularly for ads
targeting younger consumers. Youth and modernity appeals were found to be prevalent,
reflecting the westernization, as well as the modernization trend in China. Marketing is
just beginning to emerge in China, and advertising is a relatively new social phenomenon,
so it will be important for marketers to develop a better understanding of Chinese cultural
values and their implication for communications strategy.
 Religion is another aspect of culture that affects norms, values, and behaviors. For
example, in many Arab countries, advertisers must be aware of various taboos resulting
from conservative applications of the Islamic religion. Alcohol and pork cannot be
advertised. Human nudity is forbidden, as are pictures of anything sacred, such as images
of a cross or photographs of Mecca. The faces of women may not be shown in photos, so
cosmetics use drawings of women’s faces in ads. In conservative Islamic countries, many
religious authorities are opposed to advertising on the grounds that it promotes Western
icons and culture and the associated non-Islamic consumerism.
 Procter & Gamble recently took on tradition in Egypt by underwriting a new
groundbreaking TV talk show on feminine hygiene called “Frankly Speaking” that
tackles some of the most sensitive issues facing women in an Islamic country. The
program has the support of the Egyptian government, which has launched its own health
education drive. P&G does not promote its products during the show, but the program
does contain numerous commercials for its Always brand, which has 85 percent of the
disposable sanitary pad market in the country.

    Existence of subcultures  
 Each society contains subcultures, groups whit shared values emerging from their special
life experience or circumstances. Members of subcultures share common beliefs,
preferences and behaviors. To the extent that sub cultural groups exhibit different wants
and consumption behavior, marketers can choose particular subculture as target markets.
 Marketers sometimes reap unexpected rewards in targeting subcultures. They have
always loved teenagers because they are society's trendsetters in fashion, music,
entertainment etc. Marketers also know that if they attract someone as a teen there is
always a good chance they will keep the person as a customer later in life. E.g. Pepsi,
Lays etc.                

   Shifts of secondary cultural values through time  

 Although core values are fairly persistent, cultural swings do take place. In the 1960’s
hippies, the Beatles, Elvis Presley and other cultural phenomena had a major impact on
young people’s hairstyles, clothing and life goals. Today’s young people are influenced
by newer heroes and activities.     
 The Scope and Challenges of International Advertising

Scope 

Never before have business, large and small, been so deeply involved in and affected by
international business. A global economic boom, unprecedented in modern history, has
underway as the drive for efficiency, productivity and open  unregulated market sweeps the
world. Powerful economic, technological, industrial political and demographic are converging
to build the foundation of a new global economic order on which the structure of a one-world
will be built.
The world is mesmerised by information technology boom.
International advertising is affected by all these things. Now more than ever one cannot
escape the effects of the ever-increasing number of firms exporting, importing, and
manufacturing abroad.
Of all the events and trends affecting international business and therefore affecting
international advertising there are four which stand out as dynamic
 the rapid growth of World Trade Organisation and regional free trade areas like
NAFTA and EU
 the trend towards thre acceptance of the free market system among developing
countries in Latin America, Asia and Eastern Europe
 burgeoning impact of the Internet and other global media on the dissolution of
national borders,
 the mandate to properly manage the resources and global environment for the
generation to come.
Today most business activities are global in scope. Technology, capital investment,
production ands marketing, distribution and communications all have global dimension.
Every business, including advertising must be prepaid to compete in an increasingly
interdependent global economic and physical environment. The globalisation of the world’s
market and the growth of emerging markets cannot be ignored. Being international is no
longer a luxury but a necessity.

Challenges of International Advertising

Cultural Diversity 

Culture is pervasive in all marketing and advertising activites,

International advertisers need to operate at the highest creative level. For successful
advertising one has to have a deep understanding of the local culture. It is a challenge to
understand cultural similarities and differences and create a strategy to fit the particular needs
one has to develop a sensitivity to cultural dynamics.   
It is imperative for international advertisers to appreciate the intricacies of cultures
different from their own if they are to be effective in a foreign market.
Eg in  India, Domino Pizza stresses its fast delivery to differentiate itself from its
competitors. In Britain, customers don’t like the idea of home delivery. In Japan, houses are
not numbered sequentially, so finding an address becomes difficult. In Iceland many don’t
have phones.
Pillsbury marketed canned sweet corn because it felt that sweet corn would not require 
any flavour changes across international markets. But to its surprise, adjustments had to
be made, not in its flavour but how it had to be positioned. The French add it to salad and eat
it cold; In UK, it is a sandwich filler and pasta topping. In Japan, children have it as an after
school snack. In Korea, it is sprinkled on ice cream.
Advertising in the European Common Market is not easy as one would think. Children’s
clothes are not popular in France where children are dressed as small adults. In Southern
Europe, form-fitting clothes sell well but not in Netherlands where they loose clothing/

Cultural factors largely determine the way various phenomena are perceived. If the
perceptual framework is different, perception of the message itself differs  Existing
perceptions based on tradition and heritages are often hard to overcome.
In additions to concerns with differences among nations, advertisers find subcultures
within a country require attention as well. In HongKong there are ten different patterns of
breakfast eating. Besides these differences, there is the problem of changing traditions. In all
countries, people of all ages, urban or rural, cling to their heritage to a certain degree but are
willing to change some areas of behaviour. All differences have to be taken into account
when advertising internationally.
The point is that culture matters. Advertisers must appreciate the influence of political
economy on social institutions and cultural values and ways of thinking.
The position of men and women in society, the family, social class, group behaviour, how
societies define decency and civility are interpreted differently within every culture.
Advertisers must have an understanding of the influence of religion otherwise  ads can offend
consumers deeply. 

Legal considerations. Different countries have different advertising laws that need to be
accepted and followed. Therefore while creating advertisements it is very important to know
the laws that are imposed in that country. Laws that control comparative advertising vary
from country to country in Europe. In Germany, it is illegal to use any comparative
terminology .Belgium and Luxembourg explicitly ban comparative advertising, where as in
UK , Ireland, Spain and Portugal it is allowed. 
Advertising on television is strictly controlled in many. In Kuwait the government-
controlled Tv network allowed only 30 minutes of advertising per day, in the evening. Now it
is a little more than 30 minutes. Some countries have special taxes that apply on advertising.
It is very important for the advertisers to identify this and act accordingly.

Media Limitations

In international advertising, an advertiser must consider the availability, cost , coverage

and the appropriateness of the media. There are also media effectiveness varies across
cultures. Imagine the ingenuity required of advertisers confronted with a situation, where eg
in Brazil tv commercial s are sandwiched together in a string of 10 to 50 commercials within
one break.
in Japan there are only 5 national daily newspapers and conditions are necessary to buy
advertising space. Asahi, Japan’s largest newspaper, is known to turn down a million dollars
worth of advertising a month of ad revenues

Language limitations

Language is one of the major barriers to effective communication . The problem involves
different languages of different countries, or different languages or dialects within one
country and the subtler problem of linguistic nuance and vernacular. Incautious handling of
language has created problems in nearly every country. In Spanish-speaking countries one has
to be careful of words that have different meanings in different countries. The word ‘ball’
translates in Spanish as bola. Bola means ball in one country, revolution in another, a lie or
fabrication in another and in yet another country it is an obscenity. 
                                                                                     
Language translation encounters innumerable barriers that impede effective, idiomatic
translation and this comes in the way of communication
Everyday words have different meanings in different countries. Even pronounciations
cause problems. Wrigley had trouble selling its spearmint gum in Germany until it changed
the spelling to Speermint. Low literacy in many countries impedes communication and calls
for greater creativity and use of verbal media. Even a tiny country like Switzerland had four
languages,
Advertising copywriters should be concerned less with obvious differences between
languages and more with the idiomatic meanings expressed. It is not just sufficient to
translate; it is necessary to interpret. Without a culturally correct interpretation of a country’s
aesthetic values, a lot of advertising problems can arise. 

Interpretive knowledge requires a degree of insight that may be described as feeling. It is

a kind of knowledge that depends on past experience for interpretation and is prone to
misinterpretation if one’s home country frame of reference is used.

The Japanese, for example revere the crane as being very lucky because it is said to be
lucky, however the number 4 should be avoided completely because 4 stands for death.
Teacups are sold in fives and not fours,

In understanding different cultures metaphors is a key doorway to success

It is a mistake to discount myths, beliefs, superstitions or any other cultural beliefs
Cultural elements must be evaluated in the light of how they might how they might affect
a proposed advertising campaign

Successful international advertising begins with cultural sensitivity

Key issues in global marketing: 

Typically, marketing includes the following activities: - 

 Market research. 
 Concept & idea generation. 
 Product design. 
 Prototype development & test marketing 
 Selection of packaging material, size and labelling 
 Positioning 
 Choice of brand name 
 Choice of advertising agency 
 Development of advertisement copy 
 Execution of advertisements 
 Recruitment and posting of sales force 
 Pricing 
 Sales Promotion 
 Selection and management of distribution channels. 

Some of these activities are amenable to a uniform global approach.  Others

involve a great degree of customisation. Again, within a broadly defined activity,
some sub activities can be more easily globalised while others cannot. For instance,
product development may be customised to suit the needs of different markets  but
basic research may be conducted on a global basis. 
A global marketing strategy typically evolves over a period of time.  In the initial
phase, the main concern for a global company is to decide which  market(s) to enter.
Then comes choosing the mode of entry. A related decision is whether to expand
across several markets, simultaneously or one at a time.  With growing overseas
presence, global companies have to resolve issues such as customisation of the
marketing mix for local markets and in some cases, development of completely new
products. In the final phase, global companies examine their product portfolio across
countries, strive for higher levels of coordination and integration and attempt to strike
the right balance between scale efficiencies and local customization. 

Phillips, Doole and Lowe have suggested a model to help companies identify the
information to be collected while entering an overseas market.  The 12 Cs of this model
are:

 Country: General information, environmental factors

 Choices:       Competition, strengths and weaknesses of competitors
 Concentration:  Structure of market segments, geographical spread.
 Culture:      Major characteristics, consumer behaviour, decision making
style.
 Consumption:   Existing and future demand, growth potential. 
 Capacity to pay:   Pricing, prevailing payment terms.
 Currency:    Presence of exchange controls, degree of convertibility.
 Channels: General behaviour, distribution costs and existing
distribution infrastructure.
 Commitment:                Market access, tariff and non-tariff barriers.
 Communication: Existing media infrastructure, commonly used
promotional techniques.
 Contractual obligations: Business practices, insurance, legal obligations
 Caveats: Special precautions to be taken 

Dealing with cultural issues

Before entering a new market, companies must carefully understand the cultural
environment, and avoid common pitfalls. Cultural anthropologist, J A Lee has used
the term, Self Reference Criterion to describe the tendency of people to be biased by
their own cultural experience and value systems while interpreting a business
situation in an overseas environment. Managers must look at the business problem
both in terms of the home country and host country cultures to minimize the cultural
bias. They must avoid ethnocentricism, the tendency to view the home culture as
being superior to the host culture. At the same time, cultural differences should not be
overestimated. Sometimes it is the “foreign” element which appeals to local
customers. 

Two commonly used examples in the literature on global marketing illustrate

these points.   Procter & Gamble (P&G) introduced the Ace detergent in Mexico
without modifying the chemical composition. P&G did not take into account that
people used washing machines in the US while Mexicans washed clothes in rivers.
Consequently the product failed to click. Later, P&G not only modified the chemical
composition but also packed it in smaller sizes using plastic bags instead of cardboard
to keep the detergent dry. In contrast, the leading toy maker, Mattel decided to
customize its Barbie doll for the Japanese market. For eight years, sales did not pick
up momentum. Only when Mattel reintroduced Barbie with more western looks, did
sales take off. 
 Culture has an important influence on the marketing mix. Culture also determines
buying motivation. For example, in highly feminine and low uncertainty avoidance
cultures, people look for safety and value. Culture also influences pricing. Pricing is
dependent on how willing customers are to pay for products. While in some cultures,
high price may signal premium quality, in others, it can be interpreted as taking
customers for a ride. Culture can also affect the distribution strategy. For example, in
some cultures, direct selling is looked down upon. Avon, for example, had to reorient
its direct selling approach in countries like China and Taiwan. Last but not the least;
culture has a major influence on the communication strategy. Advertising campaigns
that are highly effective in one culture may be counter- productive in another. 

At the same time, global companies should always watch out for commonalities
across cultures. An universal is a mode of behavior which spans cultures. For
example, music as an art form is applicable across cultures. So the musical song type
commercial can be used across cultures. However, the type of music used may have to
be varied across cultures.  Because of greater travel and better means of
communication such as satellite television and the Internet, trends in categories such
as clothing and beverages are converging. Global marketers must look for universals
so that they can standardize some elements of the marketing mix to cut costs and keep
the price affordable to customers. 

Understanding new markets 

While choosing new markets, global companies must consider various macro and
micro factors. Macro level issues include the political/regulatory environment,
financial/economic environment, socio cultural issues and technological
infrastructure. At a micro level, competitive considerations, availability of manpower,
local infrastructure such as transportation & logistics network and sophistication of
mass media for advertising are important. It usually makes sense to do a preliminary
screening on the basis of different criteria and then do an in-depth analysis of the
selected countries. The factors which need to be examined carefully, include legal and
religious restrictions, political stability, economic stability, income distribution,
literacy rate,  education, age distribution, life expectancy and penetration of television
sets in homes. Political risks, especially the attitude of the local government and
political parties need to be evaluated carefully

Product packaging for international markets

The packaging component includes style, features, labelling, trademarks, brand name,
quality, price and all aspects of a products package.
Packaging components frequently require both discretionary and mandatory changes.
Some countries require labels to be printed in more than one language while others forbid the
use of any foreign language. Elements in the packaging component may incorporate symbols,
which convey an unintended meaning and thus must be changed
One company’s red circle trademark was popular in some countries but was rejected in
parts of Asia where it brought up images of the Japanese flag. Yellow flowers used in another
company trademark were rejected in Mexico where a yellow flower symbolized death or
disrespect.  

Package size and price have an important relationship in poor countries. Companies find
they have to put the product in small packs to bring the price within the spending norms.
Unilever makes its Sunsilk brand shampoo affordable in India by packaging in sachet packs

Care must be taken to ensure that corporate trademarks and other parts of packaging
component do not have unacceptable symbolic meaning. Particular attention must be given to
translations of brand names and colours used in the packaging. When Ford tried to sell its
Pinto automobile in Brazil, it quickly found that the cars name translated to ‘tiny male
genitals’. White is the colour of purity in western countries but in the eastern world it is the
colour of mourning. In China P&G packaged diapers in a pink wrapper. The Chinese shunned
the pink package. The Chinese do want anyone to thinkhey have a girl; they prefer the male
child.

There are countless reasons why a company may have to adapt its packaging. In some
countries law stipulates specific packaging and measuring units. Words like ‘jumbo pack’,
‘giant pack’ may be illegal. High humidity and the need for long shelf life (because of long
extended distribution system) may need extra heavy packaging for some products. The
Japanese attitude about quality includes the packaging of a product. A poor packaged product
conveys an impression of poor quality to a Japanese
Again in Japan, Lever sells Lux soap in stylish boxes because in Japan more than half of
all soap cakes are purchased during the two gift giving seasons. Soft drinks are sold in smaller
size to accommodate the smaller Japanese hand.

Labelling laws vary from country to country. In Saudi Arabia product names must be
specific. ‘Hot Chilli’ will not do; it must be ‘spiced hot chilli’. Coca Cola had problems in
Brazil with its Diet Coke. Brazillian law interprets ‘diet’ to have medicinal qualities and
under the law producers must give daily recommended consumption on the label of all
medicine. Coke had to get special approval to get around this restriction. The expensive
labelling to meet Chinese market entry cost prohibitive.

Marketing managers must examine each element of the packaging component be certain
that the packaging of the product convey the appropriate meaning and value to a new market.
Otherwise they may find themselves the USA soft drink company which had six-pointed stars
as decoration in its package labels. Weak sales revealed that Arabs interpreted the stars as
pro-Israel sentiments
Special packaging and marketing requirements must be considered for shipment destined
to be transported over water. Packaging for domestic markets often falls short for goods
subject to extreme climates or unprotected outdoor storage. Protection against rough handling,
moisture and pilferage may require heavy crating which increases total  packaging costs as
well as freight rates.                                                                                                       
All countries regulate the marking of goods and containers on on imports and non-
compliance can result in severe penalties
From the consumer side it is seen that consumers see far more than a container of label.
They are buying a personality, an attitude perhaps even a set of beliefs. A majority of
consumers transferred the sensation from the container to its content. The look of the
packaging has an enormous impact on how product quality will be.
Colour is one of the most potent tool in packaging. Studies of eye movement have shown
that colours trigger the fastest response of any element of a package. lt is felt that yellow is
the most noticeable hue but for some products yellow had negative connotation.
Feminine forms, circles and ovals suggest completeness, receptiveness and enclosure and
provides the underlying theme for many packages because these have the most positive
associations. But to work well it must be inflicted with some other symbol.
 The success or failure of packaging abroad depends on an awareness of the fundamental
differences in cultures. Understanding of cultural values of colour, shapes, symbols of the
various countries is necessary. 
Thus 
 packaging is a silent seller
 it attracts consumers
 it should ensure good sealing
 should maintain quality for long time shelf life
 keep transportation in mind
 should be cost effective
 should be environmentally friendly and biodegradable
 colours should be carefully chosen
 information on packaging should be as prescribed by the legal authorities
 should be tamperproof
 should be of international standards.

Meanings and significance of colours across various countries.

                                   

West Japan China Brazil Nigeria Korea Middle
East
R dan dang joy ange dang danger danger
e ger er r er evil
d
ang ange festi hate evil anger
er r vity
y cow happ hon mon suns wealth happines
e ardice iness our ey hine s
ll
o
w
caut   roya weal brig prosperit
ion nobility lty th htness y
g       futur yout hop weal nature fertility
r sex e h e th
e
e
n
gree gro weal peace strength
d energy wth th
 safe freshness
ty youth
w   deat mou purit purit innocenc purity
h purity h rning y y e
i
t
e
virt mou hum peac purity mournin
ue rning ility e g
b    villa stren hap calm cool protectio
l machis iny gth piness n
u mo
e
mas   pow peac freshness
culinity cold er e
b   evil evil deat     evil evil
l death h evil
a
c
k
darkness   
mystery

                                                                                                               
                                                                                                                                          

Promotion in International Markets

,Sales promotion consists of those promotional activities other than advertising, personal selling and
publicity. As such, any promotional activities that do not fall under advertising, personal
selling and publicity of the promotional mix are considered sales promotion    

In markets where the consumer is hard to reach because of media limitations, the
percentage of the promotional budget are increased. In some less developed countries sales
promotions constitute the major portion of the promotional effort in rural and less accessible
parts of the market.
In parts of Latin America, a part of the advertising-sales budget for both Pepsi and Coco-
cola is spent on carnival trucks, which make frequent trips to outlying villages to promote the
brand. When the carnival van makes a stop in a village, it may show a movie or provide some
other fkind of entertainment, the price of admission is an unopened bottle of the brand
purchased from the local retailer. The unopened bottle is to be exchanged for a cold bottle
plus a coupon for another bottles. This promotional effort tends to stimulate sales and
encourages local retailers, who are given prior notice of the carnival truck’s arrival, to stock
the product. 

An effective promotional tool when the product concept is new or has a small market
share is product sampling. Nestle Baby Foods faced such a problem in France in its attempt to
gain share from Gerber, the brand leader. The company combined sampling with a novel sales
promotion programme to gain brand recognition and to build goodwill. Most French take off
for long vacation in summer, with the whole family piled up in the car and staying at well-
maintained campgrounds, nestle provided rest-0stops structures along the highway where
parents would feed and change their babies. Sixty four hostesses at these rest stops welcome
1.20,000 babies visits and dispense 6,00,000 samples of baby food each year. There are free
diapers , a changing table and high chairs for the babies to sit in while dining.
When Kellogs expanded its business abroad, it had to enlighten consumers in South and
Central America, Middle East and Asia about dry cereal and cold breakfast. To instil this new
eating habit, Kellogs used samples and demonstrations in conjunction with a heavy
advertising campaign

A success of a promotion may depend on local adaptation. Responses to promotions can

vary across promotional types and cultures. Major constraints are imposed by local laws,
which may not permit premiums or free gifts to be given. Some countries’ laws control the
amount of discount given at retail outlets and others require permits for all sales promotions.
In one country no competitor is permitted to spend more on sales promotion than any other
company selling the product.

Sales promotion is not restricted to the stimulation of demand at the consumer level. It
may be used to gain middlemen’s support as well. It is also not limited to consumer products.
Pfizer attracts drug wholesalers by sponsoring trips and other events. Gifts are given to
doctors and their wives are taken on shopping sprees

Sales promotion is effective when a product is first introduced to a market. A Japanese

firm created a great deal of excitement in Thailand by including game cards in its detergent
boxes and consumers could not stop buying more and more in search of the winning cards.

Premiums and Gifts

European countries have a larger number of restrictions than USA  for sales promotion.
The legal requirements are so diverse that standardization of promotion regulations in Europe
may be difficult. Belgium requires a government tax on window signs. 
Most countries in Europe have a limit on the value of the premium given. Colgate was
sued by a local blade manufacturer in Greece for giving away razor blades with shaving
cream,.
Austria considered premiums to be a form of discriminatory treatment towards buyers. 
In France, it is illegal to offer premiums that are conditional on the purchase of another
product.
In Finland, premiums are allowed as long as the word free is not used with them. 
When Radio Shack duplicated its US strategy by giving away flashlights the firm found
itself in violation of Germany’s sales law regarding premiums and gifts.
Germany and Scandinavia have strict laws concerning promotions to protect their
consumers from being distracted from the true value of the brand. Argentina, Austria, Norway
and Venezuela virtually ban the use of merchandise premiums  

Price Reductions, Discounts and Sales

Austria prohibits cash reductions that give preferential treatment to different groups of
customers
Scandinavia – discounts are prohibited
In Germany authorities have to be notifies in advance when a sale is planned. It is
allowed when a firm is going out of business or is giving up its product line; or end of winter
or end of summer and a twenty-fifth anniversary

Samples

In Russia tobacco firms freely distribute samples.

In USA alcoholic beer cannot be offered as a free sample
Germany restricts door-to-door free samples that limit population coverage as well as the
size of the sample pack
 Sweepstakes, Games and Comtests

In France the entry form must be separate from the order form, for a sweepstake to be
valid.
Germany permits sweepstakes as long as they do not create psychological pressure on
customers; it should not be misleading and should not offer a prize of substantial value.
Lotteries are illegal in many countries eg France, England, USA. A sweepstakes, game or
a contest to be valid must have only two of the following elements, chance, consideration or
price. 
                                                                                                               
   
Internet Marketing
The Internet has become a powerful marketing tool for present day marketers to make
their presence on the global marketing scenario.
The rapidly changing technological environment that has led to the creation of the
internet and the worldwide web (www) is now used to pursue international markets
aggressively.
Almost 80% companies/businesses use the Internet to grow their business and keep in
touch with their customers.
The Internet medium’s potential as both a communication and transaction vehicle has
been realized by all the companies or businesses that operate globally and internationally.
The use of the internet for telephone communications and facsimile transmissions is
growing at an alarming rate that large telecommunication companies are providing services
for internet telephony.
Almost all companies have set up their commercial web sites and have set their place
firmly in cyber space.
The Internet is a worldwide means of exchanging information and communicating
through a series of interconnected computers. It was started as a U.S. Defence Department
project, but is now accessible to anyone with a computer and a modem. The most popular
component of the Internet is the World Wide Web (www).The Web has developed as a
communication & sales tool.
Website- A site developer or a web master creates any one of the following (3 types of
websites:
1) Information website- this is product oriented. 
2) Recognition & association website- this is promotion oriented.
3) Experimental website- this connects with the user through sensory audio visual effects.

Role played by World Wide Web:

 It facilitates the marketer to concentrate on the target audience.
 It enables the marketer to tailor the message in the most appropriate manner to connect
with the audience.
 World Wide Web enjoys maximum speed in communication & it overcomes the
geographical barriers. Compared to other
  media, it enjoys tremendous cost advantage since it achieves global reach with minimum
expenditure.
4. The World Wide Web provides the marketer scientific mechanism to measure the viewership
of the marketer’s advertisements.
5. Updating & upgrading the campaign are very easy in www.
6. Interactive techniques can be best employed in the web.
7. Modern youth indulge in multi-tasting & the www facilitates such operations.
8. WWW creates virtual markets as well as real markets for the marketer.
 9. The latest mechanism of m-commerce (mobile  commerce) is based on e-commerce
techniques.
10. Customer service operations like helplines can be easily managed through the www.
11. The web can be used to crystallize the brand image in the minds of the viewers.
12. It is a very effective mechanism to obtain feedback.
Problems of www:
1. These advertisements are exposed to the risk of computer viruses which are
deliberately planted by hackers.
2.  Web snarls may occur. This is when very often the users of the web may  have
to spend much time in uploading & downloading.
3. Web clutter- This is due to too many advertisements appearing on the screen. Thus the impact
is lost.
4. Deception- Cyber crimes are very common and this spoils the brand equity of the
product/service.
5.Wasteful expenditure- Since the viewers can block such advertisements it could be a wasteful
expenditure for the marketers if advertisements are blocked by the viewers.
6. Inadequate infrastructure- The less developed countries lack adequate infrastructure & thus
connectivity using this mechanism cannot be adopted to these countries.

Steps in internet advertising

 Creation of home page
 Home page identifies a company, a brand, a business to a customer. It can be used to
interact on a B2B basis or a B2C basis.
 It can be product oriented or lifestyle oriented.
 It can act as the base link with many sub links.    
 Selection of internet tools.
 Banner advertisements – The most common form of advertising on the Web is
banner ads. Banner ads may be used for creating awareness or recognition or for
direct-marketing objectives. Banner ads may take on a variety of forms, as well as
a number of names such as side panels, skyscrapers, or verticals. Initially banner
ads constituted the vast majority of advertising on the Net, but studies indicating
their questionable effectiveness have led to a decline in usage. Reports on click-
through rates vary, but most studies indicate a less than 1 percent response rate. A
few studies have shown an increase in response rates in recent years. These
findings may lead to increased use of this method of advertising in the future.
 Sponsorships - Another common form of advertising is sponsorships. There are two
types of sponsorships. Regular sponsorships occur when a company pays to sponsor a
section of a site, for example, BMW’s sponsorship of a page on AutoWorld.com and
TATA equity fund sponsorship of a page on FT.com’s financial section. A more
involved agreement is the content sponsorship, in which the sponsor not only provides
money in return for name association but participates in providing the content itself. In
some cases, the site is responsible for providing content and having it approved by the
sponsor; in other instances, the sponsor may contribute all or part of the content. Due in
part to the lack of effectiveness of banner ads, sponsorships have been increasing in
popularity. 
 Pop-Ups - When you access the Internet, have you ever seen small windows appear
such as Cursor Mania, Bharat matrimonial etc? Such windows are known as pop-ups,
and they often appear when you access a certain site. Pop-ups are usually larger than a
banner ad but smaller than a full screen. 
 Pop-unders are ads that appear underneath the web page and become visible only when
the user leaves the site. While some companies believe that pop-ups and pop-unders are
effective forms of advertising, others disagree. Consumer complaints have led
Google.com, to no longer accept these advertising forms. (According to iVillage, its
research indicates that as many as 90 percent of its users dislike such ads.)
 Nevertheless, indications are that despite the annoying qualities of pop-ups and pop-
unders, more and more websites are offering this type of advertising.
 Interstitials - Interstitials are ads that appear on your screen while you are waiting for
a site’s content to download. Although some advertisers believe that interstitials are
irritating and more of a nuisance than a benefit, a study conducted by Grey Advertising
found that only 15 percent of those surveyed felt that the ads were irritating (versus 9
percent for banner ads) and that 47 percent liked the ads (versus 38 percent for
banners). Perhaps more importantly, while ad recall of banner ads was approximately
51 percent, recall of interstitials was much higher, at 76 percent. For example
Zapak.com’s website features such type of ad; when the game is being loaded on to
your browser. 

 Push Technologies - Push technologies, or webcasting technologies, allow companies

to “push” a message to consumers rather than waiting for them to find it. Push
technologies dispatch web pages and news updates and may have sound and video
geared to specific audiences and even individuals. Companies provide screen savers
that automatically “hook” the viewer to their sites for sports, news, weather reports,
and/or other information that the viewer has specified. Users can use personalization—
that is, they can personalize their sites to request the kinds of specific information they
are most interested in viewing. For example, if you are into college sports, you can have
updates sent to you through sites providing college sports information. The service is
paid for by advertisers who flash their messages on the screen.

 Links - While considered by some as not a type of advertising, links serve many of the
same purposes as are served by the types discussed above. For example, a visitor to one
site may click on a link that provides additional information and/or related materials at
another site. At the bottom of the homepage at women.com are a number of links to
magazines, including Cosmopolitan and Good Housekeeping among others. Clicking
on one of these takes you to the magazine’s site and usually a pop-up for a subscription
to the magazine appears. Other forms of advertising, such as ads placed in chat rooms,
are also available. Given the limited use of many of these alternatives, we suggest the
reader consult additional resources for more information.

 Button - An advertisement smaller than a traditional banner ad. Buttons are usually
square in shape and located down the left or right side of the site; sometimes referred to
as “tiles.”
 Rich mail/media - Advanced technology used in Internet ads, such as streaming
video, which allows interaction and special effects such as music, animation graphics,
audio etc to be included in the e-mail message. When you open up a rich e-mail, your e-
mail client automatically calls up your Internet connection & launches an html page in
your browser. E-mail clients that are offline will invite you to click on the link when
you have your Internet connection open again.  

 Adver game videos – these are used to project advertisements through games. They
enable the users to play games with celebrities in the virtual world. E.g. Thums up,
Rebook Hexride games.
 Contests   - online contest are announced as an advertising tool. E.g. Roadies Battle
ground.
 Search Engine Marketing – Used in search engines such as Yahoo!, a meta ad is an
advertisement displayed on the results page of a search, specific to the searched term.
Meta ads are also referred to as keyword advertising. This method enables an advertiser
 to target a specific audience. Advertisers pay search engines to display their banners
only when relevant keywords are searched for by a user.
 Classified Ads- These are similar to the classified ads in newspaper. There are several
classified ad websites and many offer free classified advertising opportunities since
they are supported by ad banners of other websites. You can search for homes, cars,
jobs, furniture, business opportunities etc and the search can be narrowed to your city or
expanded nationwide.
  E-mail Advertising:
  This is one of the fastest growing forms of Internet advertising. Marketers have also known
that direct mail advertising is the most effective medium for generating inquiries & leads
and for closing a sale. It is also one of the most expensive medium on a cost-per-exposure
basis. Now, thanks to the Internet, the power of direct mail has increased even more, and
the cost has reduced dramatically.

  It is however very important to differentiate responsible e-mail advertising from spam which
is really just electronic junk mail.

 Spam generally refers to unsolicited, mass e-mail advertising for a product or service
that is sent by an unknown entity to a purchased mailing list or newsgroup. Spammers
face the wrath of frustrated customers, tired of having their inboxes filled with
unwanted e-mails.
 In contrast, responsible e-mail advertising is personalized, targeted, graphically
sophisticated, and sent from established companies/brands with the recipient’s
permission. Many marketers focus the bulk of their e-mail efforts on customer
retention and relationship management (CRM) rather than on prospecting. 
 One of the most popular trends on the Internet today is actually an application of e-
mail- Viral Marketing ( successful examples are Amazon.com, eBay, Napster,
Hotmail).

VIRAL MARKETING: 
Viral marketing is the Internet version of word-of-mouth advertising via e-mail. The term was
coined in 1977 by Steven Jurvetson and his partners at the venture capital firm Draper
Fisher Jurvetson. They were describing free e-mail provider Hotmail’s incredible growth to
12 million users in just 18 months through the use of a little message at the bottom of 
 every e-mail. The message invited recipients to sign up for their own free Hotmail account.
  
  Since that time, many other marketers have come up with ways to induce their satisfied
customers to recommend their product or service to friends & family members. One of the
keys to the success of viral marketing is to present an offer with real perceived value- one
that people will want to share with one another; this may happen by using a referral
program and in this manner members are rewarded each time when someone they refer to
the site signs up and becomes a member.
 Monitoring the advertisement 
   The projection of the ads must be constantly monitored to identify any snag in its
projection
 Measuring the impact
   The number of clicks (hits) experienced by a specific web page indicates the number of
times an ad might have been viewed.
 Upgrading and updating the content
   The marketer should ensure the constant updating of information and upgrading the
quality of the advertisements.  
                                                                                         

Social Marketing
The perception of society is thus related to a system that provides a healthy environment to all
the living beings to survive and thrive.
We find that there are a number of emerging social issues in the society such as:
 We are on the brink of environmental disaster
 We find establishment of small affluent islands resulting into a big socio-economic
gap.
 The majority of the populations face the problem of safe drinking water.
 Lack of adequate sanitation facilities
 Deforestation is gaining rapid momentum.
 An invasion on our ethical values.
 The majority of our population do not get even the minimum medicare facilities.
 An imbalance in the development of quality human resources. The perception of
society is thus related to a system that provides a healthy environment to all the living
beings to survive and thrive.
 We find that there are a number of emerging social issues in the society such as:
Goods & service manufacturing industries and service generating organizations are
instrumental in endangering social interests. 

Due to the above mentioned consequences, it becomes imperative that policy makers,
economists, environmentalists, social scientists, professionals, statesmen & others must
think over the problem and attempt to protect the society.

Kotler says that the ‘Societal Marketing’ concept holds that the organization’s task is to
determine the needs and wants and interests of target markets and to deliver the desired
satisfaction more effectively and efficiently than competitors in a way that preserves or
enhances the consumer’s & society’s well-being. 

Social Marketing is thus related to the determination of social needs & wants vis-à-vis
subserving their interests which is possible when marketers make possible a fair blending
of social & commercial considerations in tune with the holistic concept of management.

The concept of social marketing calls upon marketers to balance three considerations in
formulating the marketing of policies, namely, company profits, customer satisfaction and
public interests.

The perception of social marketing thus focuses on application of marketing principles

keeping in view the public/social interests.
Social marketing seeks to influence social behavior, not to benefit the marketer but to benefit
the general public/target audience.
Advertising contributes substantially to social marketing. It acts as a tool to help masses to be
more conscious.
We cannot deny the fact that advertising has a persuasive and powerful influence on society.
The campaigns related to anti-smoking, anti-drugs, AIDS awareness, anti-pollution,
nutritional awareness, birth control, ethnic & social discrimination are all part of social
advertising. 
Of late, we find use of this tool to promote public interests. The main theme in the social
advertising is to promote social issues in such a way that mass awareness is created and
communicated in a positive manner that is acceptable to society.
A change in social attitude plays a decisive role in making things sensitive or insensitive. We
need to get to the bottom of the problem; in order to make the slogans, the messages and
the appeals to be effective.
In a dynamic society, which has changing values & beliefs how does one advocate social
messages, with respect to AIDS, when most of our ads promote modern lifestyles, adopt
costumes that are provocative & our movies have sex generating scenes?

Social marketing is the design, implementation and control of programmes seeking to

increase the acceptability of a social idea, cause or practice in a target group.
Social marketing is one of the promising new developments expected to increase the
effectiveness of social change.
Social marketing is a set of programmes calculated to influence 
 acceptability of social ideas
 to play its role as an educator
 the changes in public attitudes
 the changes in the quality of life
 the standard of living
 the building of efficient economic and social institutions
Social marketing seeks to influence social behaviour, not to benefit the marketer but to
benefit the general public/target audience. 
Social marketing has been used in international health programmes especially in areas
like heart diseases, organ donations, prevention of alcohol and drug abuse.
Social marketing is a tool to improve society. Advertising exerts a powerful influence on
society. It has the ability to shape social trends and mould personal attitudes. In addition to
the economic benefits of improved competition, lower price and more product choices,
advertising promotes freedom of speech, supports the media and promotes information of
social issues. It helps in the awareness of social problems. 

Social responsibility is closely related to advertising ethics, Social responsibility issues

are complex. The advertising industry has an important say in how the public view social
issues eg the aids scare has caused advertisers to tone down the use of sexual images in their
ads. Environmental concern s are inducing advertisers around the world to be more socially
responsible. Chevron advertised how the company delayed a gas pipeline project to avoid
upsetting the mating season of the local grouse. Wall Mart advertised a green campaign
highlighting merchandise that is environmentally friendly

 Before launching any social marketing concept, some conditions are deemed essential
to make it successful.
    A strong positive intention on the part of individuals.
 There should be no environmental constraints for the desired behavior.
 Possession of skills to perform the behavior.
 The belief in the people that a specific change will give them advantages & the
capacity to adopt the change under different circumstances.

 Steps in Social Marketing: In order to be effective, the social marketing program

must be based on extensive research. The research must consider:
 I. (a) The problem to be solved.
        (b) The population which suffers the problem.
        (c) The message.
        (d) The channels which may be used for this.
         This will aid in providing a thorough background for social marketing.
      II. Determination of a specific goal. The focus should be a single goal    
            which is taken up for public campaign.
      III. The creation of awareness- the main step in social marketing.
     IV. Reaching out to the target audience.
 
Components/Marketing Mix for Social Marketing:
 Social marketing makes use of commercial marketing theories, tools & techniques to
social issues. It applies a customer-oriented approach.
 The planning process takes ‘consumer focus’ into account by addressing the
elements of the marketing mix. This refers to decisions about:
  The conception of a Product 
 Price
 Place or the distribution mix
 Promotion
 These are called the 4 Ps. In Social marketing, there are a few additional Ps namely,
  Policy
 Partnership
 Politics
 Purse-strings
 Publics

   

                                                                                                   
 Product: The social marketing ‘Product’ is not necessarily a physical offering. A
continuum of products exists, that range from the tangible/ physical products (e.g.
condoms) to services (medical examinations), practices (e.g. breast –feeding, ORT,
eating a nutritious/healthy diet) and finally more intangible ideas (e.g. environmental
protection).
        In order to have a product that is viable, it is essential that people must     
        first perceive that they have a genuine or serious problem and that the 
        product offering is a good/correct solution for Social marketing aims at 
        providing mental guidelines for future behaviour. The role of research 
        here is to discover the consumer’s perception of the problem and the 
        product & to determine how important they deem fit to take the
        necessary action against the problem.

 Price: This refers to what the consumer must do in order to obtain the social
marketing product. The cost maybe monetary, or may require the consumer to give up
intangibles, such as time, or effort, or to risk embarrassment & disapproval. If the
cost outweigh the benefits for an individual, the perceived value of the offering will
be low is unlikely to be accepted. However, if the benefits are perceived as greater
than their costs, then the chances of trial and adoption of the product is much greater.
E.g. a smoker who is being persuaded to give it up must be convinced that he is
giving up smoking for his own well-being. Must be able to appeal to an existing set of
values already in society.
     In setting the price, particularly for a physical product, such as    contraceptives, many
issues must be considered. If the product is priced too low, or provided free of charge, the
consumer may perceive it as low quality. And, if the price is too high, some will not be
able to afford it. It is important to balance these considerations.
  Place: Place describes the way that the product will reach the consumer/target
audience. For a tangible product, ‘place’ refers to the distribution system- warehouse,
trucks, sales-force, retail-outlets or places where it is given out free. For an intangible
product, place refers to decisions about channels through which consumers are
reached with information or training. This may include doctor’s clinics, hospitals,
shopping malls, mass-media vehicles, schools, clubs, institutions etc. Another
element in ‘place’ is deciding how to employ the accessibility of the offering &
quality of service delivery.

 Promotion: this consists of the integrated use of advertising, Public Relations,

Personal selling, Media advertising and entertainment vehicles. The focus is on
creating and sustaining demand for the product. Public Service Announcements
(PSAs) or paid ads are one way but there are other methods such as coupons,
editorials, media events, in-store displays, demos etc.
 Policy: Social marketing aims at providing mental guidelines for future behavior. It
must motivate individual behavior change. It involves the determination of specific
policies as a part of the goals to be achieved. The policy should not violate ethical,
cultural or religious norms that exist in a given society.
 Politics: Since social marketing is associated with the community in general,
political and governmental patronage is required to make it a success. It makes
marketing easier and effective.
 Publics: Social marketers often have many different audiences that their programs
have to address in order to be successful. Publics refer to both the external and
internal groups involved in the program. External publics include the target audience,
the secondary audiences, policy makers & gatekeepers; while the internal publics are
those who are involved in some way with either approval or implementation of the
program.
 Purse Strings: Most organizations that develop social marketing programs operate
through funds provided by services such as foundations, governmental grants or
donations. It is important to consider from where money will be generated for the
execution of the program.
 Partnership: This refers to people who will partner with you in your endeavor. They
maybe other organizations who will support your cause and partner with you. They
could be media partners too who will help in publicizing your cause And sometimes,
your purse strings and partnership may come from the same source.

Benefits of Social Marketing

 is needed to promote the desired pattern of behaviour in a society
 to promote health and hygiene among the public ( polio drops etc)
 to promote awareness among the illiterate section
 to promote sustainable development
 to promote ecological consciousness 
 to promote social emancipation like women empowerment, ban on female
infanticide, dowry, sati, 
Social marketing is the need of the hour.
  
Stages of change:

 Create awareness and interest

 Change attitudes and conditions
 Motivate people to want to change their behcviour 
 Empower people to act
 Prevent backsliding
Steps in Social Marketing Campaign
-Identify the behavior that has to be change
 -identify the audience
-identify and reduce barriers
-pretest the ideas
-publicize actions and benefits
It may be necessary to segment the market and different messages may be needed to
reach different segments of the target populations 

   Web pages

Our world is ever changing. In today’s day and age, one of the most important ways of
communication and one of the most important elements of the mass media are Web pages. It
is a new and innovative way to get in touch with the world outside. It is a step forward in the
direction of complete globalization. It basically is a symbol of increased global unity. The
web brings every continent closer together. Regarding the increased global unity, it is true
that many different kinds of information are now available on the web and for those who wish
to know other societies, their cultures and people, it becomes easier. When one travels to a
foreign country or a remote town, some information about the place can be found.
The web is available to individuals outside mass media. In order to ‘publish’ a web page,
one does not have to go through a publisher or other media institution and potential readers
could be found in all corners of the globe. 
The WWW can be a great place to accomplish research on many topics. But putting
documents or pages on the web is easy, cheap or free, unregulated and unmonitored. The
great wealth that the net has brought to so much of society is the ability for people to express
themselves, find one another, exchange ideas, discover possible peers worldwide they never
would have otherwise met and through hypertext links in web pages, suggest so many other
people’s ideas and personalities to anyone who comes and clicks.
Most pages found in general search engines for the web are self-published or published
by business small and large with motives to get you to buy something or believe in a point of
view. The web is about making information available. Making web pages accessible is
actually pretty easy once one is aware of the common elements that affect how they are
displayed.
A webpage is a ‘page’ of the www is a hypertext system that operates over the Internet.   

Types of web pages

1. informative pages
2. personal web pages
3. political/interest group web pages
4. marketing oriented web pages
5. entertainment pages
There are various types of web pages and all of these cater to the different needs of
different audiences and consumers. Web pages are need specific. They offer something for
everyone. 
Web pages which are marketing oriented or which are product specific are now a new
wave in the media business. These web pages are not just read. They are used
 web sites fuel the imagination
 people interact with the information
 visitors interact with the brand
 communication is two way- from brand to visitor and vice versa
 it is not a monologue. There is actual conversation with the visitor
 web pages help the user familiarize the visitor with the brand
 it is the only media where you can actually buy through advertising e.g. 
you can book tickets, purchase products, go into details. Also the increased opportunity to
individuals is certainly observable in the countless personal pages as well as other groups
such as families, small shops, which are not aiming those who publish materials. The
emergences of free web hosting services are perhaps an important factor in bringing this
possibility into reality. The alternative media expanded into the web as well.
                                                              
Web pages are used as a tool for democracy. But this is misused. The web has uncensored
material or content in it which could be viewed by children or adults and this leads to
corruption of the power  of freedom vested in the individuals using the net and giving out
information on the net
Web pages for premium brands are also extremely helpful.
 they make the consumers appreciate the uniqueness of the product
 they help the users be up to date
 this helps the product make their brand image and their prices clear

Most individuals visit a web site with some specific goal in mind;
 most requested information will be found
 recent updates will be available
 the web has dynamic elements that change with time
 there is some sort of structured navigation
 web pages have a sort of clarity and simplicity to them.

Hierarchy of the net.

 at first you have the net as a whole, as a medium of communication to mass audiences
 the net consists of search engines, eg google, alta vista etc
 these search engines help us find web sites
 these web sites are made up of web pages

Characteristics of web pages

-It is the only form of media wherein other media are also available. Local newspapers,
government publications and other materials are available on the net and therefore easier to
access and so a variety of information obtainable with the same effort.
-Web pages are a revolution in the thought process of the media. It is here that any type of
information can be published. Web pages are not checked for accuracy. Some sites and pages
may be used to express the personal opinion of certain individual on some issues which may
not necessarily be facts. We find both supporting and countering arguments to web pages. By
using search engines the users can locate specific web pages in accordance to their needs
-the net is a great tool for research, but finding quality web material and using it to your
advantage is a challenge.
-web pages are completely interactive sources of information in the media. It is a two way
communication. Information is not just given out but the user can question and give in his
own inputs as and when he pleases
-web pages have a hierarchical structure, it is very different from the structures that
newspapers or magazines may follow. The information in this case is divided into chapters,
sections and sub sections making it easier for the consumers to find exactly what they are
looking for.

Drawbacks of web pages

 the actual purpose of the internet may not be articulated clearly
 it may be difficult to separate advertising form the actual and accurate information
 some marketing sites may offer misleading information in order to sell their products
 it does not have a far and wide reach as tv because illiterates, the lower class or the
lower middle class may not have access to computers and even if they do they may
not know how to operate them
  old people may not be computer savy
 the credibility is compromised
 the site creator may not be easily identified
 research may be difficult due to various reasons as a website may contain mounds of
info but the user may not be able to tap into these sources
All in all the net and its components are an interactive medium for finding information
and asking questions. It is definitely a step towards global unity. The media is a new tool of
communication and has had a great impact on the lives of many individuals including
students and professionals

                                                    
Internet marketing

Internet is a worldwide system of computer network so that one person can access
information available within seconds from all over the world on his computer screen. The nit
also makes it possible for one computer to communicate with anyone in the world.
World Wide Web www as this is commonly referred to is almost synonymous with the
net. It is actually the most widely used part of the net and is an interlinked connection of
hypertext documents over the net, known as homepages.
Communication rings is a sort of network that helps one person communicate or chat with
another using two different PCs. This sends messages directly between individuals
Bundling this is a pricing tactic that is both common and powerful. It is the combination
of products into larger packages. It is simple in concept, it can have larger effects on
competition and consumers. Online suppliers are aggressive users of bundling.
Content trees are indirect, they use central gathering point, such as still respond to each
other, but flow of information happens at the central point.

The use of www as a marketing tool.

 multimedia approach. 
What makes the web such an effective marketing tool is the fact that the files need not be
simple text. The web offers a cost-effective opportunity to represent oneself using colour
pictures, film clips and sound.
       -      instant global coverage. 
               The internet puts all big and small companies on equal footing and thus gives
the smaller
               companies a considerable competitive advantage by moving to a global market
from a simply
               a local one.
      -         Public relations
               PR activities are possible over the net and this gives the company increased
exposure
 direct sales 
the web page should be built so that it can accept data entry to allow customers to order goods
and services directly form the website. Today credit card payments, cash on delivery is
also being allowed to increase sales
 marketing research
the web page allows for online customer surveys. While this may not allow statistically sound
random sampling methods, it does provide rapid feedback
 improved customer targeting
one of the main uses of the web is browsing and gathering purchase related information. The
web provides a highly targeted and self-selecting audience, unlike more traditional forms
of media
       -      personalisation
               Customers want a product or service that best matches their needs. The web can
serve as the
                matchmaker that discovers and delivers personal information and individualised
products.
              Personalization is a special form of product differentiation. It transforms a
standard product or
              Service into a specialize solution for an individual
 new product development
companies are able to achieve new ways of doing product development by relying on a few
essential ideas – flexibility modularity and feedback. Flexibility allows the new product
process to respond effectively to rapidly changing market conditions. Modularity allows
work to proceed in parallel . Finally improved communication and feedback from early
users can lead to higher quality in formation from customers much earlier than has been
possible in the past/  

    www as a marketing tool

1.  to establish a presence.

     There are more than 900 million people worldwide who have access to the web, They
cannot be ignored.
2. to network. To make connections with other people, with millions of potential clients
and partners telling them what the company does and how they can be reached, 24 hours
a day, inexpensively and simply on the www
3.   to make business information available
4.   to serve the customer
5.   to heighten public interest
6.   to release time sensitive material
7.   to sell things
8.   to make pictures, sound and film files available
9.   to reach a highly desirable demographic market
10. to answer frequently asked questions
11. to stay in contact with salesperson
12  to open international market
13  to create a 24 hours service
14  to make changing information available quickly
15  to allow feedback from customers 
16  to test market new services and products
17  to reach media
18  to reach the education and youth market
19  to reach the specialized market
20  to serve the local market

       
Online marketing strategy

Step one: create your overall theme to your online business

                 You cannot develop a business around a single product. Even if you are
promoting a single p
                Product upfront, it is not the product that people want. They want benefits they
receive out of      
                the product. When designing the site, think about an ‘ultimate benefit’ to build
your site
                Ultimate benefits are what your prospects are really seeking. So do not base
your busine just
                 on products but on benefits. This will be the theme that binds everything else to
the site and
                make people return to the site over and over again.
Step two:  develop a unique aspect, the USP, something that brings a uniqueness to the
brand. An
                 Unique selling proposition will make the brand stand out from the crowd
online. Everyone is
                 Selling books online but Amazon.com has become the most well known. They
developed
                 the  Usp ‘world’s largest bookstore’ which is what they are
Step three: build relationship with the prospects. Credibility online is a major issue
because there
                  are many fly by night, get rich operators on the net. Develop credibility by an
overall
                 strategy to include such tools as message boards, schats, conference calls,
dealer
                  programmes 

step four:   traffic generation is probably the most important aspect of running an online
business. No
                  matter how well designed the website is, how great and powerful the sales
letter is, people
                  cannot buy if they do not know of the existence of the site.
                  People can visit the site if they are made to click on the ads that are created on
the net. They
                 Can be made to come back to the site by the creation of more banners and
placing them on
                 Sites that are used most by the target audience
  
                                                                                           15

Global Advertising – international advertising

Consumers and business markets in N America, western Europe and Japan have begun to
show signs of slower growth and companies realized the need to look to other markets for the
growth.
Consumers in the rapidly developing markets in Asia and other emerging markets are
showing a voracious appetite for branded goods reflecting changing social aspirations.
This has led to the need to create global brands .
The growth of global media has led both to the increasing homogenization of consumer
tastes across the world and to the use of standardized or global advertising campaign which
can be seen simultaneously in many different countries. With the growth of satellite and cable
TV channels across the world, global brands such as Nike and Cannon have begun to
strengthen their global brands through the use of standardized global campaigns. 
The advantage enjoyed by companies that operate with a global strategy is that they can
enjoy operating economies of scale. This means having larger volumes of the same product
manufactured and sold over a larger market, this companies can market them at a lower cost
per unit

Counteracting the policy of global advertising is the reality that consumers in every
country are still different from each other , with different habits, tastes and preferences, so a
product that works in one country may not work in another. Americans like to drink orange
juice for breakfast , French consumers do not. Middle Easterners prefer toothpaste that tastes
spicy, this taste may not work in other markets. McDonalds has to vary its menu in different
countries serving beer in Germany, wine in France and milkshakes flavoured with local fruits
in Singapore

Stories of disastrous mistakes made by advertisers who failed to understand local

consumer differences can be found in numerous books on advertising such as  Pepsodent
trying to use a teeth-whitening appeals in parts of Asia where dark-stained teeth were
considered prestigious.

A multinational advertiser must understand the cultural nuances of a local market in order
to be successful because it may differ substantially from the culture of the home market.
Consumers have different expectations concerning colours used in packaging ( purple is a
death colour in Brazil, whereas white is the colour for funerals in HongKong) . Brands may
need different positioning strategies across many markets.
Cultures differ in the ways in which they construe and communicate meaning of the ad. A
strategy of localizing the ad message but is necessary. 
It is true that the world is moving toward greater cultural convergence and it is also true
that with political and customs barriers crumbling, with television channels like MTV and
CNN and STAR TV being bounced off satellites into homes across the globe, with more
people travelling and vacationing in other countries and with fast food franchises appearing at
street corners from Beijing to Buenos Aries it often appears that we are indeed all moving
toward one homogenized global community. Teenagers, the world over, are more exposed
than most to cultural influences from other countries through fashions, music, clothing, food,
personal appearance and sports. Teenagers are less likely to be parochial and nationalistic and
more likely to identify with  pan-national organisations.
Women the world over are seeking more actively to participate in workplace success and
identify less closely than before with the traditional female roles of mother/nurturer/wife and
homemaker.

It may seem paradoxical that as consumer preferences are supposedly becoming

homogenized, consumers are also supposedly becoming more differentiated in their wants
and needs 
Advertisers need to reconcile these divergent trends.

(give points from making messages culture specific to show how cultural differences
exists)
( give the example of how Nescafe dealt with the advertising of coffee internationally)
Advertising thus has to both standardise and to localise given the many differences that
exist across countries, cultures and markets. Ad campaigns for food and beverage products
are often the hardest to standardise and it is easier to standardise campaigns across western
markets than across western and eastern markets. It is easier to standardize on the core
positioning platform for the brand while allowing for local variations in other brand elements.
Thus Oil of Olay uses the same positioning- a moisturising cream for mature women-even
though the name, packaging, formulation can vary slightly across markets

The solution is to modify products joist enough in local markets to make them strong in
those local markets, but of maintain whatever uniformity is possible across multiple markets.
This is often called glocalization or “planning globally but acting locally”

There are many who see global advertising as impossible, given the many differences that
exist across countries, cultures and markets. The issue is not one of whether an ad campaign
can be completely globalized, but rather of the extent or degree to which a global brand’s
campaign can be standardized across the world.
                                                                               

Cross cultural psychological segmentation

Cross-cultural anthropologists talk about cross-cultural cohorts, groups of people who

belong to different cultures or nationalities but nevertheless share common sets of needs,
values and attitudes. No matter where they live, consumer groups such as new mothers,
computer users, international business travellers, audiophiles, high-end photographers and so
on represent groups with similar needs and wants, Because babies bottoms are the same
everywhere, diapers such as Pampers can use the same marketing and advertising strategies
worldwide.
Global segments can be identified using psychographic research. Studies in Germany, UK
and France reveal similarities and differences. All the three countries had four types, or
segments of women labelled “traditional homemaker” “contemporary homemaker”
“appearance-conscious” and “spontaneous” While the traditional homemaker accounted for
1/3 the proportion of the other two varied dramatically. While a common ad strategy may be
rd

possible for these countries, the dramatic variations across countries it would be advisable to
accommodate country-specific differences.
Agencies have attempted to find common “Euro-Consumer” segments and found four
lifestyle groups common across western Europe- “successful Idealists,” “affluent
materialists,” “comfortable belongers” and “ disaffected strivers”
Other researchers put 95% of the population into one of the five global segments.

1. Strivers 26% in US, France and Spain; young, success-seeking, leading time-pressured
lives. Materialistic, pleasure-oriented, seek instant gratification and convenience. 
2.  Achievers 22% in US and high in Spain. Slightly older, already successful, affluent.
Opinion-leaders, status conscious. Seek to buy quality.
3.  Pressured 13% US mostly women facing financial or familial pressure. Highly
stressed
4.  Adapters 18% US, higher in Germany. Older, with somewhat traditional values but
open-minded, 
     Living comfortably in their golden years
5.  Traditionals. 16% US, conservative, prefer to stick to the familiar and established in
their personal 
     Lives and their consumption patterns.
 There are many other very interesting differences and patterns both within and across
countries. 
In Japan, for instance, there appear to be major differences in value-orientation between
men and women, and between the older and the younger consumers. Men believe more in
traditional family roles than women and the younger are more materialistic and consumption-
oriented.
Many Japanese and American women work outside of the home (which enhances the
need for many convenience and time saving products) Japanese women have been slower to
embrace the liberated attitudes of their counter part in the US One has to treat Japanese and
American women differently.
We also have the VALS psychograhic segmentation where the population is grouped into
8 sections;  
Fulfilleds , Believers, Actualisers, Achievers, Strivers, Strugglers, experiencers
 and Makers. But humans are both deeply the same and obviously different. Underlying
the similarities that exist between people, the external influences  serve to differentiate them
into distinct market segments
Cultural differences are of great importance to advertisers. Values in people’s need to be
uncovered to understand the motivations that drive both attitudes and behaviour. 

Many of the global psychological segmentation schemes are between five to seven or
eight groupings of consumers, varying chiefly on the dimensions of income, desire for
material success and social acceptance and personal or social idealism. Each country has its
rich, middle-class and poor those who live their lives ‘keeping up withy the Joneses and those
who are dreamers and rebels.
Since human nature are essentially the same no matter where one lives. 

                                                                                   1
The challenge facing a global advertiser is in not only knowing the global psychological
segment to which the target consumer belongs but also the local differences that make that
same consumer different in one country than in another;
There is a need to focus on both simultaneously. An understanding of the similarities and
differences that exists between nations is critical the foreign advertisers, who have to devise
appropriate strategies to reach specific foreign markets. The greater the similarities between
nations, the more feasible it is to use relatively similar strategies in each nation.   
  
  
find an explicit communication style exaggerated.

Colours, Numbers and Images in Cross Cultural Advertising

Even the simplest and most taken for granted aspects of advertising need to be inspected
under a cross cultural microscope. Colours, numbers, symbols and images do not all translate
well across cultures.

In some cultures there are lucky colours, such as red in China and unlucky colours, such as
black in Japan. Some colours have certain significance; green is considered a special colour in
Islam and some colours have tribal associations in parts of Africa.

Many hotels in the USA or UK do not have a room 13 or a 13th floor. Similarly, Nippon
Airways in Japan do not have the seat numbers 4 or 9. If there are numbers with negative
connotations abroad, presenting or packaging products in those numbers when advertising
should be avoided.

Images are also culturally sensitive. Whereas it is common to see pictures of women in
bikinis on advertising posters on the streets of London, such images would cause outrage in
the Middle East.

Cultural Values in Cross Cultural Advertising

When advertising abroad, the cultural values underpinning the society must be analysed
carefully. Is there a religion that is practised by the majority of the people? Is the society
collectivist or individualist? Is it family orientated? Is it hierarchical? Is there a dominant
political or economic ideology? All of these will impact an advertising campaign if left
unexamined.

For example, advertising that focuses on individual success, independence and stressing the
word "I" would be received negatively in countries where teamwork is considered a positive
quality. Rebelliousness or lack of respect for authority should always be avoided in family
orientated or hierarchical societies.

By way of conclusion, we can see that the principles of advertising run through to cross
cultural advertising too. That is – know your market, what is attractive to them and what their
aspirations are. Cross cultural advertising is simply about using common sense and analysing
how the different elements of an advertising campaign are impacted by culture and modifying
them to best speak to the target audience. 

Many of us may have heard of these infamous errors made by multinational corporations
when translating brands or slogans abroad. Language, of course, is only one of many cultural
barriers you may have to bridge with your partner organization. We hope this list will
entertain you while giving important insight on the potential pitfalls of cross culture
communication and serving as a reminder of the importance of a good sense of humor!
American and Canadian groups may need to explain to their international partners some of
the finer meanings of certain words used below.
 When Kentucky Fried Chicken entered the Chinese market, to their horror they
discovered that their slogan "finger lickin' good" came out as "eat your fingers off"
 Chinese translation also proved difficult for Coke, which took two tries to get it right.
They first tried Ke-kou-ke-la because when pronounced it sounded roughly like Coca-Cola. It
wasn't until after thousands of signs had been printed that they discovered that the phrase
means "bite the wax tadpole" or "female horse stuffed with wax", depending on the dialect.
Second time around things worked out much better. After researching 40,000 Chinese
characters, Coke came up with "ko-kou-ko-le" which translates roughly to the much more
appropriate "happiness in the mouth". 
 Things weren't much easier for Coke's arch-rival Pepsi. When they entered the Chinese
market a few years ago, the translation of their slogan "Pepsi Brings you Back to Life" was a
little more literal than they intended. In Chinese, the slogan meant, "Pepsi Brings Your
Ancestors Back from the Grave". 
 But it's not just in Asian markets that soft drinks makers have problems. In Italy, a
campaign for "Schweppes Tonic Water" translated the name into the much less thirst
quenching "Schweppes Toilet Water". 
 The American slogan for Salem cigarettes, "Salem – Feeling Free," got translated in the
Japanese market into "When smoking Salem, you feel so refreshed that your mind seems to
be free and empty."
 General Motors had a perplexing problem when they introduced the Chevy Nova in
South America. Despite their best efforts, they weren't selling many cars. They finally
realized that in Spanish, "nova" means "it won't go". Sales improved dramatically after the car
was renamed the "Caribe."
 Things weren't any better for Ford when they introduced the Pinto in Brazil. After
watching sales go nowhere, the company learned that "Pinto" is Brazilian slang for "tiny male
genitals." Ford pried the nameplates off all of the cars and substituted them with "Corcel,"
which means horse.
 Sometimes it's one word of a slogan that changes the whole meaning. When Parker Pen
marketed a ballpoint pen in Mexico, its ads were supposed to say "It won't leak in your pocket
and embarrass you." However, the company mistakenly thought the Spanish word
"embarazar" meant embarrass. Instead the ads said "It won't leak in your pocket and make
you pregnant."
 Foreign companies have similar problems when they enter English speaking markets.
Japan's second-largest tourist agency was mystified when it expanded to English-speaking
countries and began receiving requests for unusual sex tours. Upon finding out why, the
owners of the Kinki Nippon Tourist Company changed its name. The company didn't change
the name of all its divisions though. Visitors to Japan still have the opportunity to take a ride
on the Kinki Nippon Railway.
 When Braniff translated a slogan touting its upholstery, "Fly in Leather," it came out in
Spanish as "Fly Naked." 
 Coors put its slogan, "Turn It Loose," into Spanish, where it was read as "Suffer From
Diarrhea."
 The Dairy Association's huge success with the campaign "Got Milk?" prompted them
to expand advertising to Mexico. It was soon brought to their attention the Spanish translation
read "Are you lactating?" 
 Scandinavian vacuum manufacturer Electrolux used the following in an American
campaign: "Nothing sucks like an Electrolux" 
 Clairol introduced the "Mist Stick," a curling iron, into Germany only to find out that
"mist" is slang for manure. 
 An American T-shirt maker in Miami printed shirts for the Spanish market which
promoted the Pope's visit Instead of "I Saw the Pope" (el Papa), the shirts read "I Saw the
Potato" (la papa) 
 And some more differences in cross-cultural communication styles to
consider… 
"Consider the story of an American executive who was designated to deliver a formal
presentation at a Japanese conference. During her presentation, the woman became acutely
aware of a man in the audience who proceeded to make strange faces at her. Following the
conclusion of her presentation, the woman voiced her disapproval to the Japanese hosts. And
while an apology was immediately provided, it was discovered that the man in the audience
had not intended to offend the American speaker. He simply became so fixated on her facial
gestures that he inadvertently began imitating her. Should this story be considered an isolated
incident of a simple misunderstanding or is this a prime example of everyday
miscommunication between cultures? Many experts would support the second conclusion.
"Most of the problems caused by cross-cultural clashes are usually the result of the failure
by some or all parties involved to recognize and account for differences in culturally-based
communication styles. They assume that all peoples communicate using the same set of
modes and rules (many of which, like body language styles, are unconsciously held). For
example, numerous professionals from the US make the mistake of assuming that all people
want to be spoken to informally, just as they assume that simple body gestures strike the same
chord in any
culture, or the notion that an openly frank style of negotiating is most appreciated. 
"We should first realize that there is no such thing as a universal form of communication.
Take the simple gesture of a smile. It is not unusual for Americans to exchange smiles with
complete strangers. We smile at people on the street, at the airport, in restaurants, shopping
malls and so on. We consider it a friendly gesture. However, in other cultures a smile can take
on a completely different meaning. A smile can be considered insulting or it can signal
embarrassment. Many Americans fail to realize that common gestures such as shrugging one's
shoulders or scratching one's forehead can be completely misinterpreted by someone from
another country. 
"Each culture has its own rules of communication. A French executive would probably be
offended if a new acquaintance were to address him by his first name. Giving the "thumbs up"
signal in Australia is impolite. And a display of frankness so common to Americans
perpetuates the Japanese impression that the American people exhibit a lack of discipline.
Even though such cultural collisions often elicit negative feedback, they rarely provoke
extreme hostility. Instead, committing a cultural taboo is usually regarded as improper,
discourteous, or disrespectful. The individual who has the misfortune of committing the taboo
is "rewarded" with expressions of anger or flat-out silence, which in turn can be
misinterpreted. Such mishaps in communication almost always serve to diminish one's
credibility. 
"Usually, cross-cultural gaffes stem from misjudging situations that involve mingling and
communicating with others. These include: the dress code for appointments, the manner in
which we introduce ourselves and greet others, expressing thanks to the hosts as well as
proper etiquette for the presentation of gifts. While the majority of Americans consider such
events to be very routine, the fact remains that the interpretation of these social commitments
varies from country to country. If we fail to educate ourselves in advance as to what is and
what isn't acceptable, then we prime ourselves for unintentional embarrassment, possibly at
the worst given moment.
"Miscalculating the pertinence of cross-cultural communications can be counter-
productive at best, or abysmal at worst. Cultural differences with regard to eye contact, when
it is acceptable to smile, and name protocol for addressing foreign counterparts are all
qualities that dramatically impact all angles of negotiation and interpersonal communication.
For example, the word "no" is a response that the Japanese tend to avoid altogether. As
strange as it may seem, if they are not optimistic about a given proposal, rather than tell you
in so many words, they may choose to make a counter inquiry, they may avoid eye contact
with you, or they may simply choose to walk away. Their answer is for all practical purposes
spelled out in their behavior. Obviously, this can be very frustrating to American negotiators
who are used to a straight forward "yes" or "no." Understanding and accepting cultural
differences is critical if one expects to be successful in an overseas assignment." 

Creating Cross Cultural Advertising

Cross cultural advertising means more than translation. The language, style,
colors, numbers and symbols of advertising are all important factors to be
considered. To outsource cross cultural marketing to a professional located in the
intended target market is an effective way to broaden your global business.
 
As international trade grows, getting your business to cross over and translate to global
markets means significant future growth for your company. Marketing your business and
focusing your efforts beyond traditional trade boundaries is a reality for most companies. In
fact, thanks to the advancement of digital technology it’s easier to conduct business abroad
 
Therefore, marketing strategies have evolved to take account of cross cultural differences
so that they may appeal to distinctly different target markets. The key is to remember that the
core of any marketing strategy, be it full color print media or TV commercials, is to
encourage, motivate and convince them to believe the benefits they can receive and therefore
buy your product
 
Nevertheless; trying to communicate your idea to those living abroad is not as easy as it
sounds. Some concepts may be acceptable, while others may be annoying if not appalling or
distasteful for most.
 
Cross cultural marketing therefore, means successfully incorporating characteristics to
complement the values, traditions, and perceptions of your target market, whether locally or
abroad. But how does someone achieve this? For some, they employ the services of an
experienced international marketing company but for others that simply do not have the
budget; they may consider online outsourcing to a professional located in the intended target
market. By employing a professional who already understands what works and what doesn’t
you may be able to avoid and easily negotiate some of the following pitfalls of unsuccessful
marketing campaigns.
 
Language
Different language, different words, and different accents all contribute to the success or
failure of your marketing campaigns. How can your target market appreciate your business
and products and services if they cannot understand what you’re trying to say in the first
place?
 
Most people fail to realize how language can affect a marketing campaign. This is
apparent in various tag lines and slogans in marketing material and other print ads. Therefore,
one must be conscious that otherwise regular and harmless words can easily be misinterpreted
from one culture to the next.
 
Style
Generally communication should be straight forward and to the point. But when
attempting to relate to different cultural markets each respond to a different style and
understanding the style that is appropriate is vital in creating an effective marketing campaign
for any business.
 
This difference can be seen when comparing US search engine homepages like msn.com
to those of China such as sohu.com. While one has a simplistic straightforward layout, the
other utilizes every inch of the webpage.
 
 Colors, Numbers and Symbols
These elements play significant roles for marketing. In several cultures for example, even
the most ordinary shade of red can translate a different message, red may mean luck in China,
but can mean death in another country. Likewise the numbers 13 and 4, for example mean
different things in the US and Japan. The number 13 is a very unlucky while the number 4
means death. Symbols just like images can also convey a variety of meanings and it is
advisable to do thorough research before using them.
 
The bottom line is that to create ads that appeal to different cultures, remember to be
aware of the principles and traditions observed in each culture. The best way to accomplish
this is   identify your target markets needs, wants and desires. Once you are able to do that,
cross cultural advertising will become a breeze. 
 

The Hazards of Cross-Cultural Advertising

It was reported that in the early 1950s, an American ink manufacturer attempted to sell
bottled ink in Mexico while its metal outdoor signs told customers that they could "avoid
embarrassment' (from leaks and stains) by using its brand of ink. The embarrassment, it seems
was all the ink company's. The Spanish word used to convey the meaning of "embarrassed'
was "embarazar,' which means "to become pregnant.' Many people thought the company was
selling contraceptive device.
A laundry detergent company found sales in Quebec slumping after introducing a new
point-of-purchase campaign announcing that the detergent worked particularly well on the
dirtiest parts of the wash--"les parties de sale.' The advertiser later learned that this phrase was
similar to another Quebecois expression for "private parts.'
An American airline in Brazil advertised the "rendez-vous lounges' in its jets, until they
found that in the Brazilian brand of Portuguese this meant a place to make love.
No advertising agency would hire someone to write an ad in the United States simply
because he spoke English fluently. Neither is an American's fluency in a foreign language
enough for him to re-create a foreign advertisement. A perfectly literal translation may urge
users of a product to apply their food, ignite their clothes, or weld false eyelashes to their
eyes. Millions of dollars have been wasted on promoting cigarettes with low "asphalt.'
Advertising copy, in any language, usually is designed to catch the public eye and ear
with appealing printed or spoken messages, sometimes together with attractive imagery. But
American advertisers sometimes lose sight of the fact that sales of a product will suffer if
advertising copy intended for use abroad is improperly translated. The sort of advertising
disasters just cited should make advertisers aware that the most effective translation for
advertising purposes will often not be the most literal one.
But many advertisers find this caveat a difficult one to heed, particularly those who prefer
to adapt material already prepared for domestic media in the preparation of American
advertising for foreign use. This practice may be acceptable provided that the adaptation is
not simply a straight translation-- especially a translation of verbal contents which are highly
idiomatic or narrowly American in meaning. Translation of advertising communications often
involves words with multiple meanings and definitions that lack direct equivalences in a
foreign language. An advertising heading which depends on a play on words peculiar to the
English language will not be rendered sensibly in other tongues; the entire message may be
destroyed.
Thus, it would appear that effective translation of advertisements should be a simple
matter of careful lexical research within and beyond the dictionary. This conclusion, although
quite incomplete, is derived from the belief that grammatical, syntactical, and idiomatic
equivalences are the overriding concern in translation. Of course, no linguistic counterparts
may exist for certain vocabulary items in another language. Additionally, dictionaries are of
limited usefulness because the language of the dictionary generally is not the language of the
people. For example, animals, household objects, terrain features, biological terms, etc. are
categories in which vocabularies may differ so radically between languages as to prohibit
attaining equivalence.
Translating cannot, except in the most mundane of technical texts, be reduced to a task of
mere word, phrase, or sentence replacement between languages. Frequently, conceptual, not
lexical, obstacles frustrate the search for equivalence between languages. Concepts may not
be equivalent in two languages because the languages are welded intimately to the culture in
which they are spoken. Moreover, a particular concept within one culture may not exist at all
in another culture--thus rendering the construction of translated materials much more complex
matter than initially imagined.
This means an inexperienced advertiser will have to rethink his entire idea of translation
and to discard preconceived notions about the technique of translating. To be effective, the
technique used to re-create advertising for foreign cultures must avoid the all-too-common
tendency toward translating verbal and pictorial message content without regard to the form it
takes. This suggests that advertisers need to explore in greater detail the symbolic forms and
the concepts embedded in their advertisements before re-creating-- because translations of
concepts, alone, without attention to their form, is risky.
There was an anecdote in the press several years ago which illustrates this point. It seems
a baby food company unsuccessfully tried to peddle its product (with a label showing a
cuddly infant) in an African nation whose people were unfamiliar with Western pictorial
conventions. It turned out many of the prospective customers there thought the jars contained
ground-up babies. In a similar occurrence, a firm tried selling refrigerators to the Islamic
Middle East with an advertisement picturing their appliance filled with food-- including a
giant ham.
While these examples represent extremes of conceptual mistranslation, such impropriety
is made possible because many of the underlying processes of advertising go unapprehended
by the advertisers themselves. The reason for this lack of vision is that in attempts to
communicate or to persuade or simply to interest audiences, advertisers are being motivated
by, and using cultural models among whose differences they may choose, but from whose
totality they cannot escape. These cultural models carry messages about the advertiser's
perception of the world. One seldom marks the innumerable messages received or sent out in
one's lifetime, and seldom is person able to decipher the greater patterns into which the
messages fall. But even if decoding were possible, a member of a particular society would
still be compelled to rely on these same models of value implicit within his culture in order to
obtain fundamental psychological, social, and ideological support and direction.
Thus, in a way, advertisements provide an indication of what constitutes acceptable or
desired features and behaviors within a society. For this reason, the single most important
element to be exploited in advertising is perhaps the association of ideas. Aster all,
advertising depends on the act of association in order to relate a product or service, either
directly or indirectly, to a symbolic situation; i.e., something that already has associated with
it certain feelings, attitudes, and values.
For example, a man who was reared in New York City wears a cowboy hat, which is
deeply rooted with the cowboy image in American culture. The cowboy is perceived as
powerful, self-reliant, and master of his environment. The New Yorker's behavior intimates
that he is responding to what may be called the myth of the cowboy.
Throughout history, myths have helped form cultures' communications behavior. On a
superficial level of analysis they may remain unapprehended or, in the case of cross-cultural
communication, be misunderstood. The possibilities for such misinterpretation multiply for
advertising via media such as television, radio, or print, since they continually draw upon and
perpetuate cultural values and meanings. An advertiser should not assume that members of
different cultural groups will respond to a particular advertisement in the same way.
Consequently, when two cultures differ widely in basic values, socialization, and ways of life,
achieving equivalence in a translation may be difficult --perhaps impossible--even if care has
been taken from the standpoint of language.
 For instance, a print advertisement for a men's cologne, picturing a man and his dog in an
American rural setting, failed to attract the male market in North Africa. The advertiser was
unaware that dogs, the American "man's best friend,' were alleged to have eaten one of
Mohammed's regiments centuries ago and therefore are considered either signs of bad luck or
uncleanliness in parts of Moslem North Africa and elsewhere
Similarly, a U.S. manufacturer introduced its mouthwash in Thailand with an advertising
campaign portraying a boy and a girl, overtly found of each other, one telling the other to use
the mouthwash to fight bad breath. Such an open display of boy-girl relationships was
considered improper by the Thai people. Sales increased only when two girls were selected to
appear in the same scene. 
In each of these examples, one can see that the advertisers in question were relying on
their own sets of cultural myths to make clear to their domestic audiences abstract ideas in
cases where long, drawn-out oral or written explanations might attenuate their effects.
However, the foreign target cultures did not attribute to these myths quite the same
significance as did the advertisers. One might conclude from those advertisers' experiences
that the reason successful advertising is successful is because it can elicit a culturally positive
concept by means of a printed or pictorial message which is significant to the target culture.
However, the concepts expressed in an advertisement do not always have to be visual. A
few years ago, a famous American designer began to advertise her new women's fragrance to
the Latin American market. The advertising campaign emphasized the perfume's fresh
camellia scent. The fragrance did not move from the shelves of stores in Latin America
because camellias are the flowers used for funerals in most of Latin America.
Such cross-cultural advertising horrors are the result of a failure to perceive that a specific
product, together with its advertising, can be viewed differently in different cultural settings.
The creative expert for the campaign was inattentive to the fact that when the same product is
presented to a foreign market, the product may be associated with certain different values in
the different culture.
Cross-cultural advertisers also have to evaluate the products they introduce into a culture
in the context of that culture's preexisting habits and practices in order to determine their
compatibility with cultural norms. For example, a toothpaste claiming to give users white
teeth was especially inappropriate in many areas of Southeast Asia where betel-nut chewing is
a habit among the well-to-do, and black teeth are viewed as a sign of higher social status.
Nevertheless, certain concepts are fairly universal in their application across cultures. One
can see that the avoidance of physical pain and the sanctity of the family seem to be concepts
that are equally acceptable in many cultures. However, like the connotations of white teeth,
concepts of civilized eating or drinking may take certain forms in one culture and be totally
unthinkable in others.
In the United Kingdom, for instance, hot milk-based beverages often are drunk just before
going to bed. These drinks are viewed as having sleep-inducing properties.
In Thailand, however, these same hot drinks are consumed outside the home and mostly
on the way to work and are viewed as possessing invigorating properties.
Yet, despite the importance of culture in explaining consumer behavior, this factor
appears to be misunderstood and undervalued by many advertisers as they enter the
international market. While market research is often desirable in home-market advertising, it
is likely that an advertiser will use only his own personal experience to guide him. This
method is not a valid tool for entry into cross-cultural markets. For instance, whether a
bicycle is viewed as a mode of transportation or as a leisure equipment item should have a
tremendous effect on how one would attempt to market and advertise bicycles. Indeed, in
different countries bicycles are used in completely different ways, and an advertiser must be
fully aware of those differences.
It is perhaps advisable that future cross-cultural advertising should take a different
direction from what has been tried so far. Appropriate cultural research prior to introducing a
new product abroad or launching an advertising campaign in a foreign language can help
advertisers avoid transmitting ambiguous or twisted messages to foreign cultures. An
advertiser must be mindful of the fact that each culture represents a different way of coming
to terms with life, thought, and of taking as given a multitude of assumptions about social
conventions and institutions, economics, politics, and the universe. These assumptions form
the basis of a culture's beliefs, norms and involvement with the symbolic word, which in turn
shape the behavior patterns of a people.