Slide 1Global Perspective Barbie Versus MulanInternational IMCSales Promotions in International MarketsInternational Public RelationsInternational AdvertisingTop 20 Global Advertisers ($ millions)Top 100 Global Advertisers ($ millions)Top 10 Russian Advertisers ($ millions)Top 10 Chinese Advertisers ($ millions)Advertising Strategy and GoalsSlide 13Product Attributes and Benefit SegmentationRegional SegmentationGlobal Advertising and the Communications ProcessThe International Communications ProcessRed WorksWhat’s in a Word…California?Legal ConstraintsLinguistic LimitationsCultural DiversityMedia Limitations and Production and Cost LimitationsMedia Planning and Analysis – Tactical ConsiderationsSlide 25Slide 26Media Planning and Analysis – Tactical Considerations (continued)Campaign Execution and Advertising AgenciesSlide 29International Control of Advertising: Broader IssuesSlide 31Integrated Marketing Communications and International Advertising16 - 3Global PerspectiveBarbie Versus Mulan•Integrated marketing communications (IMC)-Advertising-Sales promotions-Trade shows-Personal selling-Direct selling-Public relations•Objective: the successful sale of a product or service16 - 4International IMCQuicksilver Skateboards using Alternative Touch Points throughout Asia16 - 5Sales Promotions in International Markets•Sales promotions-Marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation-Short-term efforts directed to the consumer or retailer to achieve specific objectives•In markets with media limitations the percentage of the promotional budget allocated to sales promotions may have to be increased•Product sampling16 - 6International Public Relations•Bridgestone/Firestone Tires safety recall•Global workplace standards•Building an international profile•Corporate sponsorshipsThe role of public relations (PR) is creating good relationships with the popular press and other media to help companies communicate messages to customers, the general public, and governmental regulators.16 - 7International Advertising1. Perform marketing research.2. Specify the goals of the communication.3. Develop the most effective message(s) for the market segments selected.4. Select effective media.5. Compose and secure a budget.6. Execute the campaign.7. Evaluate the campaign relative to the goals specified.16 - 8Top 20 Global Advertisers ($ millions)•Insert Exhibit 16.1Advertising Age 200516 - 9Top 100 Global Advertisers ($ millions)Total Global Spending 2003 vs 2002Advertising Age 200516 - 10Top 10 Russian Advertisers ($ millions)Growth of Advertising in RussiaAdvertising Age 200516 - 11Top 10 Chinese Advertisers ($ millions)Growth of Advertising in ChinaAdvertising Age 200516 - 12Advertising Strategy and Goals•Marketing problems require careful marketing research and thoughtful and creative advertising campaigns in country, regional, and global markets, respectively.•Increased need for more sophisticated advertising strategies.•Balance between standardization of advertising themes and customization.•Consumer cultures16 - 13Advertising Strategy and GoalsVehicular Ads in London Are Visible Even in Fog16 - 14Product Attributes and Benefit Segmentation•Different cultures usually agree on the benefit of the primary function of a product•Other features and psychological attributes of the item can have significant differences-Cameras-Yogurt-Almonds•Blue Diamond – assumes that no two markets will react the same, that each has its own set of differences, and that each will require a different marketing approach and strategy16 - 15Regional Segmentation•Pan-European communications media highlighting need for more standardized promotional efforts•Costs savings with a common theme in uniform promotional packaging and design•Legal restrictions slowly being eliminated16 - 16Global Advertising and the Communications Process•If not properly considered, the different cultural contexts can increase the probability of misunderstandings•Effective communication demands the existence of a “psychological overlap” between the sender and the receiver•It can never be assumed that “if it sells well in one country, it will sell in another”16 - 17The International Communications Process•Insert Exhibit 16.416 - 18Red Works16 - 19What’s in a Word…California?Southern California Lifestyle Meets 11th Century Islam(Out of Home Advertising in Singapore)16 - 20Legal Constraints•Laws that control comparative advertising vary from country to country in Europe.•Comparative advertising•Advertising of specific products•Control of advertising on television•Accessibility to broadcast media•Limitations on length and number of commercials•Internet services•Special taxes that apply to advertising16 - 21Linguistic Limitations•Language is one of the major barriers to effective communication through advertising•Translation challenges•Low literacy in many countries•Multiple languages within a country16 - 22Cultural Diversity•Knowledge of cultural diversity must encompass the total advertising project•Existing perceptions based on tradition and heritages are often hard to overcome•Subcultures•Changing traditions16 - 23Media Limitations and Production and Cost Limitations•Media limitations may diminish the role of advertising in the promotional program•Examples of production limitations:-Poor-quality printing-Lack of high-grade paper•Low-cost reproduction in small markets poses a problem in many countries16 - 24Media Planning and Analysis – Tactical Considerations•Availability•Cost•Coverage•Lack of market data•Newspapers•Magazines16 - 25Media Planning and Analysis – Tactical ConsiderationsMedia Penetration in Selected CountriesPer 1000 PersonsEuromonitor, World Bank, 200516 - 26Media Planning and Analysis – Tactical ConsiderationsLocal Restrictions or Lack of Availability Spawn Other Media Vehicles16 - 27Media Planning and Analysis – Tactical Considerations (continued)•Radio and television•Satellite and cable TV•Direct mail•The Internet•Other media16 - 28Campaign Execution and Advertising Agencies•Managed by advertising agencies-Local domestic agency-Company-owned agency-Multinational agency with local branches•Compensation-Commonly 15 percent throughout the world-Some companies moving to reward-by-results16 - 29Campaign Execution and Advertising