Global Advertising

8/1, 2010
 Global Advertising

 Global advertising can be defined as

advertising more or less uniform across many
countries, often, but not necessarily, in media
vehicles with global reach
 Challenges
– Overcoming the language barrier
– Overcoming the cultural barrier
– The impacts of regulations
 The Multicountry Communications
Process

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 Advantages of Standardizing
Global Advertising
 Creative talent is scarce
 The economics of global campaign
 Global markets
 Global brand names and products
Uniformity of Copy and Visualization

 Identical Ads
– Usually with localization only in terms of language voice-over
change and simply translation
 Prototype Advertising
– Global prototypes in which the voice-over abd the visual may
be changed to avoid language and cultural problems; the ad
may be re-shot with local spokespeople but using the same
visualization
 Pattern Standardization
– The positioning theme is unified and some alternative creative
concepts supporting the positioning are spelled out but the
actual execution of the ads differs between markets
 Global Ads: Same everywhere?

PROTOTYPE ADVERTISING PATTERN STANDARDIZATION

• Brand Name same • Brand Name same
• Theme same • Theme same
• Visual same • Visual same
• Positioning same • Positioning same
• Actors same • Actors not same
• Words same • Words not same
• Language (local) • Language (local)
• Media same • Media not same
• Materials same • Materials not all same
• Slogan same • Slogan same
 Global Ad Content: The “Extension”
versus “Adaptation” Debate
 The message may not get through to the intended
recipient
 The message may reach the target audience but may
not be understood or may even be misunderstood
 The message may reach the target audience and may be
understood but still may not induce the recipient to
take the action desired by the sender
 The effectiveness of the message can be impaired by
noise
 Examples of Slogan Translations

 “If you don’t get it, you don’t get it”

– Washington Post
 “If you are not asking for it, you are asking for it”
– A Brand of Motor Battery
 “If you don’t look good, we don’t look good”
– Vidal Sassoon

 Try to Translate The following Two Slogans:

 “Just Do It!” Nike
 “Citi Never Sleeps” Citicorp
 Cultural Considerations
 Knowledge of cultural diversity, especially the symbolism
associated with cultural traits, is essential for creating advertising
 Use of colors and man-woman relationships can often be
stumbling blocks
– Men kissing (married or unmarried) women’s hands?
– The ring on the left or right hand?
– The woman preceding the man?
 Emphasis on the subjective or functional product attributes
 The use of sexually explicit or provocative imagery
 Food is the product category most likely to exhibit cultural
sensitivity
 Cultural differences hardly have any effect on the attitudes,
motivators, and needs involved in purchasing technology
 Japanese Creative Strategy

 Indirect rather than direct forms of expression are preferred in the

messages
 There is often little relationship between ad content and the
advertised product
 Only brief dialogue or narration is used in television commercials,
with minimum explanatory content
 Humor is used to create a bond of mutual feelings
 Famous celebrities appear as close acquaintances or everyday
people
 Priority is placed on company trust rather than product quality
 The product name is impressed on the viewer with short, 15-second
commercials
 Global Marketing
Communications
In the U.K., all advertising is allowed if not specifically
forbidden.

 In Germany, everything is forbidden if not specifically

allowed.

In Italy, everything is allowed, even if forbidden, and

In Belgium, nobody knows what’s forbidden.

Other IMC Tools

8/1, 2010
 Public Relations and Publicity
 Any company that is increasingly its activities outside the home
country can utilize PR personnel as boundary spanners between
the company and employees, unions, stockholders, customers, the
media, financial analysts, governments, and suppliers
 Internationally, PR expenditures are growing an average of 20
percent annually
 In the United States, PR is increasingly viewed as a separate
management function; In Europe, PR professionals are viewed as
part of the marketing function
 The ultimate test of an organization’s understanding of the
power and importance of public relations occurs during a time of
environmental turbulence, especially a potential or actual crisis
 Global Sales Promotion
 In-store or point-of-purchase promotions
– Price packs; Premiums; “buy one, get one free”; Sweepstakes
 Trade promotions
 Couponing
 Sampling
– Take advantage of event marketing
 Cross-Marketing
 Simplified Channel and
Promotion Structure
Manufacturer 1 Manufacturer 2

Trade
Promotion

Consumer Consumer
Promotion Promotion
Channel A Channel B
(Retailer A) (Retailer B)
Retail
Promotion

Customers
Customers
 Customer Promotion
Objectives
Objective Typical Programming
 Long-run (relationship building)
– Awareness enhancement
– Image enhancement  Sweepstakes, contests, tie-ins
 Sponsorships
 Short-run (transactional)
– Current customers
 Buy more
 Be more loyal  Volume discount/special “value” packages
 Buy now  “In pak” coupons, premiums, frequent buyer programs
– Occasional customers (deal  Rebates, coupons
prone; brand switchers)
 Capture next purchase
– Noncustomers  Coupons, displays, rebates
 Trial
 Trial sizes, sampling
 Trade Promotion Objectives
Objective
 Transactional: increase stocking
levels
 Transactional: Increase sales
efforts
 Relationship building
Typical Programming
 Volume allowances
 Financing terms
 Discount/price cuts
 Slotting allowances
 Advertising allowances
 Display allowances
 Premiums
 Contests
 Sales forces incentives
 Free goods
 Promotion: A Local Activity
 Economic Development
Low levels of economic development free samples and demonstration > coupons or on-
pack premiums
 Market Maturity
Growing market  consumer sampling and coupons; Mature markets trade allowances
or loyalty programs
 Perceptions
Consumer and trade perceptions of promotional incentives are culturally inspired and can
vary from market to market
– Lego’s “Bunny Set” promotion succeeded in U.S. but failed in Japan
 The United States is by far the world leader in terms of the number of coupons
issues. In 1997, 276 billion coupons were distributed and consumer redeemed
about 1.7 percent with an average value of 64 cents. Couponing accounts for 70
percent of consumer promotion spending. Elsewhere, the percentage is much
lower
 In Europe, couponing is widely used in the UK and Belgium; Couponing is not as
widely used in Asia where saving face is important
 Japanese consumers are reluctant to use coupons at the checkout counter; a
particular premium can be seen as a waste of money
 Influence and Roles in International
Sales Promotion

Minimum Maximum
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 Personal Selling

 Global selling (multicountry sales force)

– Purchasing behavior
– Buying criteria
– Language
– Business etiquette
– Negotiation strategies
 Local selling (single-country sales force)
– Role of local sales force and control
– Local sales job
– Foreign sales practices
– Recruiting
– Compensation
 Culture and Salesmanship

LOW CONTEXT CULTURES HIGH CONTEXT CULTURES

 PREPARATION  PREPARATION
 GREAT PRODUCT  GREAT PRODUCT
 APPEARANCE  THE “PERSON”
 ENTHUSIASM  CULTURAL AWARENESS
 SELF-CONFIDENCE  RELATIONSHIP ORIENTED
 GREAT CLOSER OF
TRANSACTION
 Special Forms
 Direct Mail
 Catalogs
 Infomercial and Teleshopping
 Sponsorship
 Product Placement
 New media and E-Commerce
 IMC examples
•Intel in China – distribution of bicycle reflectors
• Citibank in Thailand – credit card agents at malls
• Yonex in Indonesia – badminton team sponsorship
 Seven Keys to Effective Sponsorship

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