UNIT 5: READING

A university Business School student has written a short summary of a seminar

discussion. The discussion was about the four main approaches which multinational
companies can take to advertising when launching a product worldwide. Read the text
and complete the activities below.
THE ERA OF GLOBAL ADVERTISING
One of the ways in which multinational
enterprises (MNEs) promote their goods and
services is by advertising. The method that they
choose to promote their products worldwide will
usually be defined by the nature of the product
itself.
In this age of global companies, there are four
general ways in which an MNE might promote a
product across the globe.
The first method is ‘identical product and identical
message’. This is when an MNE believes that its
product can sell worldwide without it being
changed. Therefore, the product remains the
same in every country and so does the way it is
promoted.
The second method is ‘identical product but
different message’. This approach is used when
the MNE feels that the product does not need to
be changed in order for it to be sold in other
countries. However, the message conveyed to
the consumers in the advertising and promotion
may differ from country to country.
The third approach is ‘modified product but same
message’. With this method, a different version of
the product is produced for different country
markets. Despite the requirements of different
markets, the needs of the consumer may be the
same. Therefore the advertising message is not
changed.
Finally, the fourth approach is ‘modified product
and modified message’. This is adopted when the
way that the product is used in other countries is
different and the buying habits of those
consumers are different. The product will need to
be altered and so will the manner in which it is
promoted.
In terms of advertising, MNEs will often prefer to
use the same advertising campaigns worldwide
as marketing costs are reduced significantly.
However, there are times when campaigns must
be adjusted to suit the local market.
To summarise, there are two principal reasons
that underpin this need for change. Firstly, if the
way the product is used is different from its use in
the home country. Secondly, if the advertising
message doesn’t make sense to the audience
when directly translated.

1 Answer the questions relating to the vocabulary in the text.

1 Find three different words in the text with the same meaning which can be used to fill
the gap.
‘I don’t think we have any choice. There’s no way we can use the same product in
other countries across Europe. It will have to be .’
2 Find two different words in the text with the same meaning which can be used to fill
the gap.
‘I think the product itself will be absolutely fine in the eight countries that we are
targeting. However, the we adopt – in terms of the promotional
campaign – is going to be crucial.’
3 Find two different words in the text with the same meaning which can be used to fill
the gap.
‘Our view is that we should not limit the promotional campaign to Europe or even to
Europe and the USA. This time, we aim big and make it a campaign.’
2 Below are some extracts from marketing meetings in multinational companies.
Read the comments and decide which of the approaches the person is suggesting.
Approach 1: identical product and identical message
Approach 2: identical product but different message
Approach 3: modified product but same message
Approach 4: modified product and modified message

1 ‘Look, consumers in those countries only buy white fridges. There’s no way we can
sell the silver and black models. But all we have to do with the campaign is make
sure that the promotional materials all show the white ones and we won’t have to
waste money recreating all our advertising.’ Approach 3
2 ‘I think the fact that we are promoting pure water from the Scottish hills is absolutely
global. The images of the cold, ice, mountains and nature that are dominant in our
advertising campaign have a global appeal. It’s crisp, clear, natural water. Why alter
anything? I think we’ve got a winner.’
3 ‘OK. If we’re trying to sell the cars there, we’re going to have to adapt our approach a
little. I think all we have to do is create a separate advertising campaign that stresses
the safety aspect of the car. In this country, it’s definitely the look and speed of the
car that are going to sell it. But, for them, safety always comes first. And, let’s face it,
our cars have both.’
4 ‘They’re going to love the drink, and the packaging is fine, but what about the
advertising campaign? The humour in it is so culturally based. Let’s face it, only
people in this country are going to find this funny. So over the next couple of weeks, I
want you all to go away and generate some ideas about how we can approach the
promotion differently.’
5 ‘In my view, these hats are really fashionable now in this country but they may well
not work so well elsewhere. The waterproof material, however, is the strength of the
product. I think if we redesign the hats to make them more generally appealing and
alter the advertising to focus more on the waterproof aspects of the product, we can
still make it work.’