Chapter 19 International Advertising and Promotion PDF

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Professor Cauley...

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Chapter 19: International Advertising and Promotio Monday, November 18, 2019

12:23 PM

The Importance of International Markets • Reasons for increased importance of international markets ○ Limited opportunities for expansion in the domestic market ○ Survival of the company ○ Growth and profit opportunities ○ Balance of trade deficit: monetary value of imports exceeds that of exports • The political/legal environment ○ Advertising areas subject to regulation § Types of products that may be advertised § Content or creative approach used § Media that advertisers are allowed to use § Amount of advertising allowed § Use of foreign language in ads § Materials from outside the country § Local vs international ad agencies § Specific taxes levied on advertising • Reasons for having different strategies for foreign markets ○ Unfamiliar marketing environment ○ Language issues ○ Lack of availability of media options ○ Difference in values, customs, consumption patterns, and habits of consumers Global vs Localized Advertising • Global marketing: common marketing plan for all countries • Global advertising: way to implement global marketing strategy by using the same basic advertising approach in all markets • Advantages of global marketing and advertising ○ Economies of scale in production and distribution ○ Lower marketing and advertising costs ○ Lower advertising production costs ○ Ability to exploit good ideas and introduce products worldwide

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Consistent international brand image Simplified coordination and control of marketing and promotional programs • Problems with global marketing ○ Differences in culture, market, and economic development ○ Consumer needs and usage patterns ○ Media availability ○ Legal restrictions ○ Risk of alienating employees When is Globalization Appropriate? • Brands or messages can be adapted for a visual appeal • Brands are promoted with image campaigns that play to universal needs, values, and emotions • Country of origin effect: consumers' general perceptions of quality for products made in a given country • Firms market high-tech and new products that are not steeped in the cultural heritage of a country • Products appeal to a market segment with universally similar tastes, interests, needs, and values Global Products, Local Messages • Methods ○ Pattern advertising: ads follow a basic approach, but themes, copy, and visual elements are adapted to differences in local markets § Producing a variety of ads and messages and letting the regional managers choose the best suited • Organizing for international advertising ○ Centralization: at the home office of headquarters § Market and media conditions are similar from one country to another § Company can use standardized advertising § Company has only one or a few international agencies handling all of its advertising § Company wants a consistent image worldwide ○ Decentralization: decision making by local foreign markets § Used when companies believe local managers know the marketing situation in their countries the best ○ Combination of the two • Agency selection

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○ Agency with both domestic and overseas offices ○ Agency that belongs to a network of foreign agencies ○ Local agency Creative strategy decisions ○ Standardized approach: advertisement must transcend cultural differences and communicate effectively in every country ○ Localized advertising: must determine what type of selling idea, ad appeal, and executive style will work in each market Media selection ○ International issues § Differences in the types of available media § Varying time spent watching tv § Amount of commercial time available § Clutter § Tolerance of advertising § Coverage, cost, quality, and restrictions § Unstable political climate § Limited and unreliable media information ○ Local media § Print is the most used medium worldwide § Restrictions and regulations have limited the development of TV as a dominant advertising medium § Radio, direct mail, billboards, cinema, and transit advertising provide: □ Flexibility □ Opportunity to reach specific market segments and local markets within a country...