Global Strategic Market Management

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Global Strategic Market Management
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Guest Lecture 14.1.

• Questions to be answered handed in on 20.1.
• How was the market defined?
• What was the competitive threat?
• What market segment was chosen and why?
• How was the product positioned?
• Key communication considerations?
• What are the culture related issues to be
  considered?

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Global Marketing Communication
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Global marketing communications

• Important because
• if you have to select suitable marketing
  communication instruments for a global company
• if you are to launch an advertising campaign in
  multiple-country markets and have to select one
  or more advertising agencies
• if you are responsible for a global companys
  public relations

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Pay attention to several issues

• constraints such as
• cultural diversity
• media limitations
• legal problems

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Cultural context A
3.Message Channel media/sales force
2. Encoding Message translated into meaning
7. Noise Competitive activities, confusion, etc
4. Decoding
6. Feedback
1. Information source
5. Receiver Action by consumer
Cultural context B
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Global advertising is growing

• The first company to find a global market is
  usually at an advantage
• Is there a global market for the product?
• It is not going to be cheap
• Psychological factors important
• market segments increasingly cross national
  boundaries
• youth culture rahter than ethnic culture
• Sports
• economies of scale
• improved access to distribution channels
• standardisation not always required or advised

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Information technology and advertising

• Internet!
• The use of direct marketing is growing rapidly
• increased use of databases
• credit cards
• toll-free-numbers
• changing lifestyle
• Direct marketing uses a wide spectrum of media
• infrastructure
• cultural issues

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Marketing communications

• serve to tell consumers about the benefits and
  values a product or service offers
• Advertising is one element of marketing
  communications and refers to any sponsored or
  paid message. Global advertising uses the same
  advertising appeals, messages, art, copy, etc.
• The decision of whether to use a global or
  localised campaign depends on the recognition by
  managers of the trade-offs involved, the product
  involved and a companys objectives in a market
• IT enables global marketers to reach audiences
  that can no longer be reached by mass media

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Issues to consider when selecting a global
advertising agency

• Company organization
• national responsiveness
• area coverage
• buyer perception
• The most effective appeal for a product may vary
  within different markets because of cultural,
  social and economic differences
• May require development of different creative
  executions or they may be adapted to other
  markets.

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Issues to consider in global ads

• Extension of visual executions should be
  appropriate in international markets
• The key concerns in advertising within different
  cultural environments relate to values and
  motives, the advertising form and the execution
• The media penetration and regulation in different
  countries have an impact on media decisions

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Some examples America

• Direct approach. lecture or lesson format.
  Competitiveness. data-base arguments. TV verbal.
  Overstatement. hard-selling. Use of power words
  (new, improved, bets, now, world-wide).
  Persuasive communication (facts, reason-why
  arguments) direct and indirect comparison.