Advertising in LA

1
Advertising in LA
Mafalda by Quino
Woman Do you have cooking oil? Manolito Of
course Woman Is it good? Manolito How is it
possible that everybody has to ask that
damn question?!
2
Meet South America

• Merco Sur
• Argentina
• Brazil
• Paraguay
• Uruguay

3
Advertising in South America

• Selling is essentially not different
• BUT
• External environments are different
• E.g.
• Erratic infrastructure
• Mail and phone service below par
• Uneven income distribution
• Lower average literacy rate

4
South American Market Characteristics

• 13 countries with approx. 400 Million Population
• Age spread tilted toward youth
• Males make most buying decisions
• Income spread between wealthy and poor
• Consumer emphasis of durable manufactured goods
• Lower literacy rates
• Credit cards are less common in use

5
South American Market Characteristics

• Mail order shopping is less popular
• Customer service is in infant stage
• Local competition for many categories
• Price-sensitive consumers
• Underground economy poses threat
• Import licensing used for some categories
• Impact of inflation

6
Common Cultural Traits

• Family Values
• Strong emphasis of family
• Children need adult protection
• Parents judgment is accepted
• Laid-back Attitude
• Life moves slower
• Outsider needs to go with the flow
• Influence on business negotiations

7
Common Cultural Traits

• Respect for Age
• Elderly are considered wise and experienced
• Seniors are listened to
• Age refers as well to company/ brand
• Made-in-the-USA
• Labels has positive connotation
• US-products are seen as quality
• !! Does NOT apply to all goods
• !! Does NOT issue ticket to reduce service, etc.

8
Common Cultural Traits

• Individual Empowerment
• Employees expect leadership
• Rewards associated with loyalty, not showing
  initiative
• Community Involvement
• Community is mainstay in life
• Companies expected to take active role
• Live-and-let-live Attitude
• No paranoia over social issues (crime, AIDS)
• Social issues are considered personal matters
• No worry about what other people do

9
Effects on Advertising Media

• Minimal results of newspaper ads when literacy
  rate is low
• Small reach of TV spots due to scarcity of TV
  sets (Bolivia 1 set per 16 people)
• Radio is common medium
• Billboards and bus displays can reach large
  audiences
• Telemarketing not cost-efficient (phone
  penetration)

10
Effects on Advertising Message

• Avoid culturally sensitive jargon
• Idioms and slang words could convey different
  meaning when translated
• Choice of color may convey wrong impression
• Brazil Purple is color of death

11
Advertising Strategies

• Focus advertising on building product acceptance
• Use PR to establish brand recognition and
  company reputation
• Use inexpensive means (trade shows) to build
  public image
• Design advertising program to target specific
  marketing goals
• Define target audience
• Create favorable identity through community
  involvement

12
Argentina

• Concentration of business and media around Buenos
  Aires
• Print media is good vehicle for dispersed markets
• Most efficient and far-reaching TV coverage in
  South America
• Trade shows are becoming favorite means of
  promotion, esp. industrial

13
Brazil

• Female oriented culture
• Intensely diversified markets spread over a large
  area
• Direct mail captures high percentage, most
  effective in ten metro areas
• Magazine advertising is second in popularity
• Choice of domestic companies differs
• Preference for TV and radio advertising
• Market size makes it necessary to work with
  specialist agency for particular region or city