International Advertising and Promotion
International Advertising and Promotion
20
McGraw-Hill/Irwin
© 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
Reasons for the importance of international
markets
¾ Domestic markets for many products and
services are stagnant
¾ Many companies rely on foreign markets to
survive, particularly those with small domestic
markets
¾ International markets offer growth
opportunities for many companies
¾ Competition has become global and marketers
must be able to compete globally
Markets such as China offer strong growth
opportunities for many companies
International Advertising
¾ The U.S. accounts for over half of the world’s
advertising expenditures
¾ Advertising expenditures outside the U.S. are
growing more rapidly than inside
¾ Every country in the world has advertising of
one form or another
¾ The more affluent the country, the more
monies spent on advertising
The International Environment
International
Marketing
And
¾ Values
¾ Norms and customs
¾ Ethics and moral standards
¾ Taboos
Political/Legal Environment
¾ Government policies
¾ Laws and regulations
¾ Political stability
¾ Nationalism
¾ Attitudes toward multinationals
The Big Question . . .
Should the global marketer offer the
Should the global marketer offer the
same product, marketing, and
same product, marketing, and
advertising throughout the world?
advertising throughout the world?
OR…
OR…
Should the global marketer adapt the
Should the global marketer adapt the
product, marketing, and advertising to
product, marketing, and advertising to
individual markets throughout the
individual markets throughout the
world?
world?
Saab used a global campaign since its
customers are similar around the world
Source: Courtesy Lowe & Partners Worldwide
¾
An in
An in
-
-
between approach:
between approach:
Standardizing products
Localizing advertising messages
“Think globally, act locally”
¾
¾
Adapt messages to respond to
Adapt messages to respond to
differences in language, cultural,
differences in language, cultural,
and market conditions.
and market conditions.
Pattern advertising
Continental Airlines used pattern advertising
to promote its BusinessFirst class
Decision areas in international advertising
¾Organization
¾Agency Selection
¾Advertising and market research
¾Creative Decisions
¾Media Selection
¾Coordination of other IMC tools
International Ad Agencies
¾ Many large, American general agencies
¾ Roles of company advertising department and agency
¾ Level of communication and control desired
¾ Ability of agency to coordinate internationally
¾ Size of company’s international business
¾ Company’s desire for local vs. international image
¾ Company organizational structure
¾ Centralized vs. decentralized
¾ Company level of involvement with international operations
Advertising and market research areas
¾Information on demographic characteristics of
markets
¾Information on cultural differences such as
norms, lifestyles and values
¾Information on consumers’ product usage,
brand attitudes, and media preferences
¾Information on media usage and audience size
¾Copy testing to determine reactions to different
types of advertising appeals and executions
¾Research on the effectiveness of advertising
and promotional programs in foreign markets
Creative Decisions
¾ Creative decisions should be based on
advertising and communication objectives
¾ Copy platforms must be developed that
include major selling ideas
¾ Specific appeals and execution styles
must be selected
¾ Appeals may have to be adapted for local
market conditions
Creative decisions involve determining the
Philippines
Turkey
Factor to consider in developing sales
promotion programs for foreign markets
¾ Economic development
¾ Market maturity
¾ Consumer perceptions
¾ Trade structure
¾ Regulations