Chapter 23 International Advertising

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Chapter 23 International Advertising
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Objectives_1

• Understand
• The evolving nature of the global market
• The role of advertising and advertising agencies
  in international marketing
• Changes in U.S. advertising and marketing
  practices as a result of global competition

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Objectives_2

• Understand
• Cultural and political considerations in
  international marketing
• Organizing advertising management to compete in
  the global marketplace
• Effects of a diverse U.S. population on domestic
  advertising and media

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Top Global Marketers

• Procter Gamble
• General Motors
• Unilever
• Ford
• LOreal
• Toyota
• Time Warner

• Johnson Johnson
• Nestle
• Walt Disney
• Nissan
• Altria Group
• Honda
• Coca-Cola
• Sony

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Source of Anti-American Opinions Abroad
Exploitation
Corrupting influence
Insensitivity and arrogance
Hyper-consumerism
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Glocalization as an Advertising Influence

• The creation or distribution of products or
  services intended for a global or transregional
  market but customized to suit local laws or
  customs
• Using electronic communication technologies to
  provide local messages on a global or
  transregional basis

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Exhibit 23.2 Internet World Users by Language
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Internet Promotions Targeting International
Audience Should

• Provide opportunities to opt in or opt out of
  future communication
• Give honest and credible information
• Prohibit the use of randomly generated addresses
• Set standards to prevent relaying email from
  computers with authorization

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Global Marketing

• Global marketing refers to the use of advertising
  and marketing strategies on an international
  basis.

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The EU A Regional Free Trade Area
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McDonalds Utilizes Global Themes
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Potential Problems in Global Advertising
Execution
Language differences
Media research and usage
Cultural considerations
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Exhibit 23.4 Continuum of Marketing/Advertising
Strategy
Company Oriented Consumer Oriented
Global Marketing
Marketing Concept
One strategy Different strategy One
execution Different execution
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Applications of the Continuum

• Export both the product and the advertising to
  other countries
• Adopt a product and a marketing plan exclusively
  for the international market or large
  geographical areas
• Export product, but change name
• Keep name and strategy, but adapt product to
  country needs

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WPP Illustrates the Growth in Major Advertising
Centers Outside the US
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Worlds Top Marketing Organizations

• Omnicom
• WPP
• Interpublic
• Publicis Groupe
• Dentsu
• Havas
• Aegis Group

• Hakuhodo DY Holdings
• Asatsu-DK
• Carlson Marketing Group
• MDC Partners
• Incepta Group

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Agency-Client Conflicts and Consolidation

• Noncompete principle protects client
• Agency approaches relationship as a partner in
  client success
• Agency clients defined by product lines
• Fire walls exist between agencies in holding
  companies

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Problems Agencies Face When Meeting Client
Demands
Need to accommodate clients organizational
structure
Need to manage centrally, but
communicate locally
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PG Uses Global Themes for its Core Brands
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Evolution of Multinationals (MNCs)
Moving into foreign markets
Local emphasis in marketing strategy
Research-supported localization and segmentation
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International Problems in Media Planning

• Media availability and usage levels
• Legal regulations
• Comparative advertising
• Advertising to children
• Internet advertising
• Standards of truth
• Lack of reliable audience research

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Trends Affecting Marketing to Diverse Populations
Majority- minority transition
Difficulty Determining race
World citizens
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Home Depots Global Communications
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Exhibit 23.11Diversity in Music Preferences
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Exhibit 23.12 Steady Growth Expected
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Top Hispanic Newspaper
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Top Hispanic Magazine
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Exhibit 23.15 Crest Recognizes the Changing
Demographics of the American Market
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Factors Inhibiting Use of Ethnic Marketing

• Little or no experience
• Language barriers make research challenging
• Lack of ethnic-oriented syndicated research
  studies

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Differences between Hispanic buyers and general
population

• More enjoyment of shopping
• More influenced by advertising
• More likely to pay with cash
• More likely to download music
• Preference for Spanish language

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For Discussion

• How are cultural considerations relevant to the
  execution of an international advertising
  campaign?
• What effect has cultural assimilation had on
  American marketing?