Pacific Rim

1
Pacific Rim

• IA

2
Housekeeping

• Next classes
• M Europe, Feedback and Looking toward home
• W,F Group meetings, study time, work on your new
  activity.
• Read Tharp Chap 1-3 (Book)
• Read Steele article.

3
Comments Phase 1

• Quotes
• Articles
• Audits
• Introduction
• Not a recommendation
• Colloquial language
• My comments
• Underline
• ?

4
Advertising Worldwide Pacific Rim

• Key differences about advertising in East Asia
• System of Networking
• Different attitude toward brands
• Young generation that doesnt fit with the
  Generation X moniker
• Existence of Asia-wide psychographic segments

5
Asian Networks

• Role of overseas Chinese population
• Control more than half the economy in many
  countries despite being ethnic minority
• Importance of personal relationships (guanxi) for
  business
• Ongoing and reciprocal
• Built among individuals not organizations
• Status matters
• Interconnection of culture and identity

6
Brand Attitude

• Asians are the ultimate conspicuous consumer
• Less inhibited, demanding and quality oriented
• Consumer disdain of mass-market brands
• Brand-consciousness
• Reverence of status and power
• Acceptance of hierarchical status of society
• Upward mobility

7
Asian Youth Culture

• Young people like advertising as it assists in
  maintaining good social image
• More independent, but also more conservative and
  community oriented than is recognized
• Myth 1 Materialism hard work, humility
• Myth 2 Social Unrest grateful to society
• Myth 3 Asian differences homogeneity

8
Psychographic Segments in Asia

• Aspirationals
• Future-oriented
• Spiritual and active in community
• Pro-Establishment
• Contended Homebodies
• Family-oriented and practical
• Contemporary Seekers
• Energetic and socially aware
• Trendy and consumption-oriented

9
Psychographic Segments in Asia

• Cyber-Individualist
• Efficient and technology-oriented
• Hard workers with few hobbies
• Network Belongers
• Guided by group norms and peer approval
• Sociable and entertainment seekers
• Suppressed Strivers
• Frustrated and stressed
• Conflict between different beliefs and adherence
  to norms

10
Case Study Japan

• Rising yen in 90s forced export business to
  squeeze profits
• Japanese firms moved increasingly overseas
  (hollowing-out effect at home)
• Capable bureaucracy enjoys trust of private
  sector
• Ministry of International Trade and Industry
  (MITI) is key player for business in Japan

11
Japans Advertising Industry

• Growth of mass media was driving force for
  development of ad industry
• Introduction of marketing techniques modernized
  the industry
• Unlike manufacturers the ad industry expanded
  mainly to neighbors in Asia-Pacific region
• More Japanese products available
• Less cultural barriers

12
Japanese Cultural Context

• Homogeneous society in terms of race, language
  and culture
• No single religion dominates, adaptive and
  situational religious behavior
• Group interest before personal interest
• Avoidance of friction due to attempt to be
  different
• Elaborate gift-giving and entertainment customs

13
Effects on Advertising

• Constraints from various habits and unwritten
  rules based on cultural values
• Indirect speech
• Emphasis of words with positive connotation
• No discriminatory statements
• Avoidance of straightforward statements
• Preference for soft-sell approach
• Attention to association with nature
• Uneasiness of comparative advertising

14
Europe

• IA

15
Marketing in Europe

• Variety of trade barriers
• Customs
• Varying technical standards
• Differing rates of
• value-added tax (VAT)
• European Union Treaty
• Elimination of physical barriers
• Suspension of excise taxes
• Removal of regulations
• Standardization of technical requirements

16
Profile of the Euro Market

• 360 Mio. consumers (44 larger than US)
• Slow population growth
• Age groups more evenly distributed
• Stable market
• High population density
• Sufficient disposable consumer income
• Attractive for intl goods and services

17
Benefits of a Common Market

• Increase in gross domestic product (GDP)
• Creation of new jobs
• Wider choice of brands
• Reduction in consumer prices
• Ability for international competitiveness
• Easier accessibility for foreign firms to do
  business one headquarters

18
Regulatory Situation

• Progress toward European unification since 1989
  (Berlin Wall).
• Opening up of new markets in East Europe
• New wave of regulatory activities.
• Commission of EC seeks uniformity
• Regulation goes toward maximum,
• not minimum.
• Alcoholic beverages and tobacco are impacted most.

19
Media Developments

• In 1989, 63 of total advertising was spent in
  print (25 on TV).
• In 2000, more than 150 TV channels made TV most
  important medium.
• Media moguls, such as Bertelsmann, Berlusconi,
  and Maxwell own majority of media outlets.
• Pan-European advertising became more important.
• Separate media buying shops compete with
  full-service agencies.

20
Opportunities for a Single Market

• Consolidation and mergers of business
• Pan-European media to target Euro-consumers
  (multi-country appeal)
• Satellite and cable TV for homes across Europe
• Need for individuals with international experience

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Factors in favor of Pan-European Advertising

• Consumers travel abroad within Europe
• Life-styles are becoming similar
• Esp. among upper-class and younger
• Considerable spending power across the continent
• Convergence in demographics
• Technical considerations
• Cross-cultural influences

22
Factors against Pan-European Advertising

• Consumers chafe at homogenized style
• Backlash of nationalist tendencies
• Pan-European ads are bland/uninspiring
• Language differences (28 2nd language)
• Different life styles and consumption patterns
• Potential for Euro-consumer clusters

23
The Forgotten Regions

• Africa
• Nigerian advertising
• One of the first studies of advertising in Africa
• Important values depicted in advertisements
• Thriftiness
• Sanctity of authority
• Safety
• Family
• However, more than a third of the ads promote
  unaffordable products

24
The Forgotten Regions

• Middle east
• Ethnic groups
• Deal making
• Collectivistic cultures
• Arab youth major groups
• Traditional Muslim fundamentalists (25),
• Modernists (25),
• Progressive (35)
• Individualistic, Western types (15).
• Values
• Israelis security.
• Muslims Respect and self-respect.

25

• Because of their trading tradition, Arabs are
  more cynical and skeptical, and there is more of
  a bias to be overcome. The perception is that no
  one will tell you their goods are bad. You need
  to address the emotion of Arabs rather than the
  rational part of them. Addressing the heart, you
  overcome the traditional skepticism inherent in
  the Arab mind. Arabs want empathy.
• (Roy Haddad CEO of J. Walter Thompson operation
  in the Middle East and North Africa)

26
(No Transcript)
27
Exam activity

• Orwhat I did while the professor was away in fat
  camp.

28

• 15 out of 40 questions of your exam will be
  replaced by this activity
• THIS IS NOT EXTRA CREDIT
• If you dont do this activity you will have to
  rely solely on your ability to answer 25
  questions in the exam.

29

• You have to write a 2-3 pages (double spaced, 12
  pt font) essay to answer the following question
• Is multiculturalism a market-forced idea or is it
  a real phenomenon happening in the US?

30

• In order to answer the question you have to
• Read Tharps Chap 1 and 2
• Read Shelby Steeles article (Harpers, p 33 to
  42, November 2002)
• http//firstsearch.oclc.org/FSIP?sici0017-789X28
  200211293053C333ATAOWG3EdbnameWilsonSelectPl
  us_FT
• (Copy and paste this address)
• This reading (as well as Tharps) will be
  included in the exam
• Visit Turlington Plaza and observe social
  interactions
• social groups, associations.
• Use your own personal experience
• Due date April 9, 03