INTERNATIONAL ADVERTISING TEST 1 Instructor Sindy Chapa Study Guide Outline Chapter 1 1 Why do companies go International to expand their sales acquire resources diversify their sources of sales and suppliers Increased trade and investment Lower barriers 2 Global Marketing Communication Tools Personal selling person to person communication in which a seller informs and educates prospective customers and attempts to influence their purchase choice public relations publicity is non personal comm To mass market that is not paid for sales promotion all marketing that attempts to stimulate a purchase Coupons free samples etc sponsorship marketing associate company with event or charity advertising paid by sponsor nonpersonal comm To mass market Billboards email post etc 3 The globalization of Markets Global Market The shift toward a more integrated and interdependent world economy Refers to the merging of historical distinct and separate national markets into one huge global marketplace 4 Market Oriented Vs Product Oriented Market Orientation Make what we can Sell market oriented firm s relationship with its customer is a reciprocal two way relationship Seek our customer needs and wants and then develop and provide products that satisfy previously identified or anticipated shortages and desires o Many global ads are not market oriented They seek one standard product Product Orientation If we build it they will come Good product will sell themselves o Business that adopt a product orientation are most successful when demand exceeds supply and competitive pressure are few o Many global advertising are product oriented 5 Identify the Marketing Communication paradoxes in particular the advertising paradoxes the value paradox found in the opposing values in value systems such as freedom beloging tradition innovation order chaos Within and between cultures i e think global act local Global local paradox ex is People worldwide drinking Coca Cola or wearing jeans may result in thinking they are becoming the same but there is evidence that to consumers the local is more meaningful than the global Technology paradox the argument that technological development makes us global and lead to similar needs for similar product not correct Lots of variety in tech innovation and usage Media paradox The growing number of satellite is suppose to create a global village in which anybody can receive any TV channel When really there is no viewers freedom Local programming is controlled Global advertising paradox The culture of the consumer or the culture of the company o It is the culture of the consumer that should be reflected in advertising o Analysis of advertising in international media such as Newsweek BusinessWeek and CNN shows that in reality international advertising target international INTERNATIONAL ADVERTISING TEST 1 Instructor Sindy Chapa Study Guide Outline audiences with their home country s values system Thus the full of cross border media is not used o much standardized international advertising has included appeals like happiness and love o It is paradoxical that global advertising prefer to develope what is universal instead of what should appeal to specific people in particular o Effective advertising needs a shared culture Receiver of the message must use the same conventions to evaluate the stimulus in order to be able to formulate the response Thus developing one single idea for the whole world or one global stimulus only happen if sender and receiver share one culture o There are cultural barriers source and country of origin effects noise levels competition o For cost efficiency reasons companies prefer to standardized products and advertising However products may be similar but usage and buying motives vary for most products Research paradox the phenomenon being observed is influenced by the presence of the researcher 6 Identify the paradoxes in marketing theory The concept of marketing and many theories of Consumer Behavior with respect to consumption buying and communication originated in the US and have been copied and used by teachers in many other countries o There is little evidence of meaningful adaptations of these theories to other countries As a results numerous students of marketing and advertising have learned marketing practices and theory that reflect American values and thinking patterns that may not always fit well in their own environment Global Markets The current consensus is that although the world is moving towards global markets the continuing persistence of cultural and economic differences among nations acts as a major brake on any trend toward global consumer tastes and preferences o Local markets are people global markets are products Market are people not products There may be global products but there are not global people There may be global brands but there are no global motivations for buying those brands o Many advertisers think that one standard message is sufficient This is a paradoxical behavior The universal and the particular Marketing and advertising textbooks generally draw from social science psychology sociology and economics Theories are generally presented as universal and do not differentiate for the particularities of other countries o In reality there very few truly global brands Most reflect the culture of the home country Focus on a unique individual theories of buying behavior decision making and comm Behavior generally describes individuals of western societies who are defined as unique personalities Consumer trends Many of what is presented as consumer trends to be exploited in marketing are based on paradoxes Hedonism as a trend with respect to food can never be a global trend It is related to what the individual should do versus actually does do with respect to food INTERNATIONAL ADVERTISING TEST 1 Instructor Sindy Chapa Study Guide Outline 7 Research Paradox see above CHAPTER 2 1 Brand definition benefits and factors Are the name representative symbols or design or any other feature that identifies one firm s product as distinct from another firm s 2 Global Brand a global brand must be a leader brand in all important markets in the world A global brand is one that is available in most countries in the world and share the same strategic principles positioning and marketing in every market through the world although the marketing mix can vary It has a substantial market share in all countries and comparable brand loyalty It