International Marketing CHAPTER 7 and 8 - NOTES

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CHAPTER 7: GLOBAL ADVERTISNG AND PROMOTION I

Business example: brand pampers wanted to replicate and translate its successful commercial in USA to
Japan. The only modification was the languages. Success in JP was not good, mainly because of cultural
factors, in JAPAN it has the believe that babies came from the inside of peaches flooting at a river instead
of the coming of the bird.

Intro: global advertising includes planning, budgeting, resource allocation issues, mesasage strategy,
local regulation, coordination of multi-country communication effort s and regiona and global campaign.

1. CULTURAL BARRIES
Coupons in USA are well received besides in EUR is not well perceived.

Translation errors. Preferable to use local translators. Types of errors: simple carelessness. Ex. Logan
by fisher: “body by fisher”. Multiple meaning words, idioms (local slang)

The degree of implementation of tech in the country

 Religion: ex. The women public exhibition in Arabic countries and the distribution of hair
gadgets.

2. COMUNICATION AND CULTURAL VALUES

The effectiveness of a communication campaign depends on the extent to which the values evoked
by the campaign match the cultural values of the target audience. Example: slogan in Spanish for
Spanish audience is more effective than slogan in English. Exemples:

attitudes towards smoking messages:


 countries with low uncertainty avoidance message based on benefits
 countries with high uncertainty avoidance message based on threats
EX. countries with high masculinity and individualism = countries to launch campaigns based on
comparative advertising: “this is the best product”

Use of visual effet than information to avoid cultural issues

Linked to masculinity and individualism


*IMPLICIT ADVER. = used different concepts to target audience:

In terms of communication there is 2 types of strategy:

3. MEDIA INFRAESTRUCTURE AND LIMITATIONS


 Media availability
 Media accessibility
 Media cost
 Media habits

Major trends in global media environmment:

Global advertising industry stats and trend:


 Global advert spending in 2019 was over 563 billion.
 North America is the region that invest most in the sector. Followed by asia and western
Europe
 Social media ad budgets have doubled worldwide.
 84% of people expect brands to create content.
 Google, Instagram and Facebook hold the largest share of total U.S. digital ad spending.

USA(NY), PARIS, UK = TOP AD AGENCIES

LIMITATIONS:

 Media availability – intel inside in China


 Media cost by country
 Overall quality of local media

4. STANDARDIZATION VERSUS LOCALIZATION DEBATE


When to select standardization o r localization?

Standardization = a truly global campaign.

Example: VISA campaign under one world: know it globally.


STANDARIZATION
PROS:
 Economies of scale
 Building a single coherent lgobal image
CONS:
 Possible loss of advertising effectiveness
 Negative reaction

ADAPTATION
PROS:
 Respecting local specification
 Provide high local image.
CONS:
 higher cost
 Time consuming

CONVINING BOTH STRATEGIES: BUILD A GLOBAL ADVERTISING CAMPAING EFFECTIVE IN TERMS OF:

Antecedents factors affect the level of standardization lead to their consequences result

Consequences:
Environmental factors = we talk about hostede critirias

SIMILARITY OF ADVERTISINF INFRAESTRUCTURE:

Avality of multinaitional ad agencies

Expertise in copywrite

LEVEL OF COMPETITION : 5 FORCES OF PORTER

STRATEGIC FACTOR: GLOBAL STARTEGIC OTIENTATION AND CROSS-BORDER SEGMENTATION

CONCLUSION:
CHAPTER 8: GLOBAL ADVERTISING AND PROMOTION II

MARKETING COMMUNICATION MIX

Elements:

 Sales promotion
 Events and experiences
 PR = public relations
 Interactive marketing
 Advertising (chapter 7)

1. GLOBALLY INTEGRATED MAREKTING COMMUNICATIONS


Sender= company
Noise = influence factors that can interrupt communication

Brand image linked to brand equity.


This strategy is linked to the visual identity of the company
EXEMPLES: IKEA AND COCA COLA = same structure, logo, image, products around the world =
corporate visual identity the same around the world.

STARTEGY CLOUD COMPUTING = Allow to maintain a egal visual identity.

Thanks to the connectivity to the same environment: by using application or devices from a
same brand = Samsung Case. OR the ICloud exemple: Iphone, icloud, ipad, itv, Ihome etc.

2. SALES PROMOTIONS
Main purposes from promotion = communication (inform) and persuading (influence).

EXEMPLES = coupons, black Friday discount, QR code promotions.

SALES PROMOTIONS =
Country with low incomes levels = tends to be more familiar = so offering samples or free products as
promotion strategy.

According to the product live cycle should consider different promotions. Ex. If country is on early stage
of market evolution, should apply tools according to this approach. If product is in a mature stage =
considered brand loyalty.

Coupons have bad image in some countries (EX. USA prefer coupons than European = cultural
perception)

Main strategy = pull strategy: focus on main consumer, and pull strategy focus on trade.

Local government regulations as C&A for example: received of discount by paying in credit ard than
money (in Germany). Liberal and restricted countries: UK AND GERMAN WITH LOCAL REGULATION
(RESPECTIVELY)

3. DIRECT MARKETING

EXAMPLES: DIRECT MAIL, TELEMARKETING, DOOR TO DOOR SELLING, VENDING MACHINE,


CATALOGUE SELLING AND INTERNET.

4. GLOBAL PUBLIC RELATIONS


Build up good relationships with various stakeholders.

Mian variables to consider at it implementations (PR CAMPAING):

 CREATIVITY
 INSIGHT ABOUT TARGET AUDIENCE

This is applied for buildup image and awareness and recognition.

Examples are:

 Publicity
 Special publications
 Participation in community activities
 Fund-raising
 Event sponsorship (main players: Red BULL promoting different sport teams with the
slogan “wings to body and mind”
o Main risk = action have less impact by the quantity of sponsorship = reduce
relevancy. Also, possibility of controversial or scandals. Pay back of the event
could be evasive.

5. PRODUCT PLACEMENT
 Def. a form of promotion where the brand is placed in the context of movie, TV, video
games or entertainment vehicles.
 Advantage; less exposed to traditional media advertising.
 Disadvantage: none too subtle use of product placement receives a fair amount of
criticism
 Estimation companies spent around 3.6 billion of dollars.
 EXEMPLE: Movie “the fighting club”: product placement of IKEA.

6. VIRAL MARKETING
 Marketing tools try to achieve marketing obj, by boosting a self replicated viral process
throught social network.
 Also called = work of mouse
 Variables to achieve success:
o Identify a high networking influence.
o Have a compelling message to share.
 EXAMPLES:
o Community mark
o Grassroots mark
o Evangelist mark
o Product seeding
o Influencers
o Referral programs
o Brand Blogging
o Buzz marketing

EXEMPLE Strategies:

1. Strategy to use an emotional linker = to became viral.


2. Grassroots marketing = DHL video = made competitors carry out with packaging of DHL saying its
quality of delivery is faster.

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