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ADVERTISING

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Michael Collins, World Writers 'Coca-cola thinks globally, but it now acts locally. ... Africa James Bond type character, Michael Power. EXECUTION ... – PowerPoint PPT presentation

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Title: ADVERTISING


1
ADVERTISING
  • Key Issues
  • Standardisation v adaptation
  • Media selection
  • Agency selection

2
WORDS
  • Translation doesnt work. People can
    instinctively feel when something wasnt written
    for them. Michael Collins, World Writers
  • Coca-cola thinks globally, but it now acts
    locally.
  • Mike Khanna, J Walter Thompson, India
  • If you cant speak to me in my own language, you
    cant be too smart.
  • Dutch teenager cited in Another One Bites The
    Grass

3
INTRODUCTION
  • Advertising is still an important part of the
    promotional spend
  • Worldwide spend 400bn in 2005
  • Disparities between advertising spend per cap
    across markets
  • Influence of advertising is greater is some
    countries than others
  • Various standardisation options available
  • Important decision - waste of spend, ineffective
    copy, damage to brand

4
PRODUCT TYPE STAGE IN PLC POSITIONING REGULATIONS
AUDIENCE LANGUAGE CULTURE REGULATIONS
INTERNATIONAL ADVERTISING
MEDIA SELECTION AVAILABILITY COST MEDIA
HABITS REGULATIONS SCHEDULING
ADVERTISING STRATEGY STANDARDIZED LOCALIZED GLOBA
L
ORGANISATION DECISION-MAKING AUTHORITY AGENCY
SELECTION
5
GLOBAL MARKETING SPEND BY SECTOR 2003
Interactive marketing
7.7
Media advertising
Direct Mail
14
40.5
15.4
Brand PR/Sponsorship
20.5
Sales Promotion
6
TRENDS
  • Consolidation of media networks and owners e.g.
    Viacom, Time Warner
  • Centralisation of worldwide media planning e.g.
    Gillette, Glaxo/Smithkline
  • Growth of interactive marketing
  • Advertising becoming increasingly globalised

7
ADVERTISING STRATEGY OPTIONS
  • FULLY STANDARDISED
  • Product/brand sold across borders
  • No adaptation, unified images
  • Little or no copy but song/background music
  • One language
  • Examples Marlboro Cigarettes, Benetton, LOreal

8
(No Transcript)
9
OPTIONS cont
  • SOME MODIFICATIONS Voice over
  • Visuals are central to advert
  • In some countries original language used (often
    English), in others voice-over necessary
  • Lip-sync may irritate consumers so lips may not
    be shown while person is talking
  • Examples Gillette (Sensor Excel), Nivea,
    Snickers

10
OPTIONS cont
  • PARTIAL ADAPTATION Different Values
  • One basic form (comparison, testimonial or drama)
    adapted to local markets
  • Within one form different adverts made for each
    country
  • Cultural values reflected
  • Examples PG - Dreft, Fairy, Ace, Henkel

11
OPTIONS cont
  • PARTIAL ADAPTATION Different Executions
  • One basic idea/theme is basis for different local
    executions
  • Recognisable elements in all adverts
  • Different executions developed in different
    countries and adopted by others of similar
    culture
  • Examples McDonalds, American Express,
    LOreal

12
Garnier Nutrisse Advertising
  • Previously used uniform advertising dubbed into
    language of country
  • Nutrisse hair colouring product needed a
    different approach customer needs trust
  • Easier to achieve with local celebrity rather
    than international model
  • Same theme, celebrity talking to mother
  • Template tweaked for each market
  • Italians more theatrical, Germans quieter
  • Local marketing sales teams more motivated as
    involved in selection

13
(No Transcript)
14
OPTIONS cont
  • ADAPTATION Multi-Local
  • International brands but advertising features
    local cultural values
  • Acceptance that mental images cannot be
    standardised
  • Acceptance that mental images cannot be
    standardised
  • Companies build relationships with consumers and
    a major objective is to build trust
  • Company name often used in endorsement
  • Examples Nestlé, Volkswagen, Guiness

15
GUINESS
  • Varies advertising in each market
  • UK consumers black and white executions featuring
    surfers and wild horses
  • Africa James Bond type character, Michael Power

16
EXECUTION
  • Standardisation is more likely to be achieved
    when the following methods are used in
    advertising
  • Visual messages form the main content
  • Information cues are limited or minimal
  • Music is an important part of the
  • communication
  • Well known international film stars, popular
    celebrities and sports people are featured
  • Well known symbols and trademarks are featured

17
CIRCUMSTANCES FAVOURING ADAPTATION
  • When use of spoken and written language forms an
    important part of the communication
  • Where many information cues are given
  • If humour is used humour is often very specific
    to certain cultures
  • Where national celebrities or personalities are
    used who are not known internationally
  • With campaigns that rely on specific knowledge
    of previous campaigns

18
AMERICAN STYLE ADVERTISING
  • Reflects assertive culture and competitiveness
  • Direct (address often personalised)
  • Very verbal and has to make a point
  • Overstatement are characteristic
  • Explicit conclusions why customer should buy
    product
  • Hard sell approach
  • Product merit appeal much used (reason why)
  • Celebrities often used as endorsers
  • Direct comparisons widely used

19
BRITISH STYLE ADVERTISING
  • Reflects highly individualistic society
  • Young people frequently featured
  • Class differences reflected
  • Slice of life form popular
  • Reliance on persuasion and trend-setting images
  • Appeals to the ego and personal success
  • Strong role differentiation
  • Focus on benefits
  • Humour and parody used
  • Entertainment based

20
JAPANESE STYLE ADVERTISING
  • Goal is to make friends with consumers and get
    them to trust/respect seller
  • Indirect and soft-sell approach (direct perceived
    as insult to consumers intelligence)
  • Identification of brand/company name/product is
    less important than pleasing consumer
  • Product benefits not used explicitly
  • Symbols all used to create serene advertisements
  • Competitive or comparative advertising not used
  • Elders are respected and dependency is valued
  • Celebrities used often including westerners
  • TV adverts intertwined with world of entertainment

21
AREAS OF INFLUENCE
  • Local environment determinants
  • Firm environment determinants
  • Intrinsic determinants

22
LOCAL ENVIRONMENT
  • Market differences
  • Economic conditions
  • Legal conditions
  • Advertising infrastructure
  • Consumer differences
  • Cultural environment
  • Competition
  • Consumer profile
  • Country of origin image
  • Experience with brand

23
FIRM ENVIRONMENT
  • Managerial and financial characteristics
  • Corporate strategy
  • Internal culture
  • Decision-making authority
  • Financial condition of the organisation
  • Nature of product

24
INTRINSIC DETERMINANTS
  • International advertising objectives
  • Relationship between multinational advertiser and
    advertising agency(ies)
  • Creative strategy
  • Media strategy
  • Other elements of the communication mix
  • Support activities and barriers

25
MEDIA SELECTION
  • Potential differences
  • Number/type available
  • Significance
  • Target groups
  • Reach
  • Frequency

26
TELEVISION
  • Ownership levels vary
  • Low in Brazil, High in Europe
  • Heavy restrictions in some countries
    Norway/Sweden/Saudi Arabia
  • Range of programmes available for targetting
    purposes is variable

27
PRINT
  • Balance between national and regional titles
  • USA has more regional titles than UK
  • Readership levels vary
  • Low in LDCs with low education and literacy
    levels
  • Magazine reach varies
  • Europe has many more consumer magazines with
    limited circulation. USA has national magazines
    with high circulation
  • Readership patterns may vary High in
    Sweden/Norway, low in France/Greece

28
RADIO
  • Commercial stations - national, regional or
    local?
  • Unavailable for advertising in some countries
    e.g. Norway, Saudi Arabia
  • Useful for specific markets where literacy and
    income is low (e.g. Brazil) or with geographical
    diversity (e.g. Australia)
  • Unlikely to support advertisments in a non-local
    language

29
OTHER MEDIA
  • Cinema
  • Attendance levels vary e.g. low in Italy
  • Effectiveness at reaching target market depends
    on films show
  • Outdoor Sites (posters, billboards, transport)
  • Sites may be restricted by planning legislation
    e.g. UK high, Spain low
  • Impact is variable and depends on travel flow
  • Mobile phones
  • Internet

30
MEDIA DEVELOPMENTS
  • Increasing internationalisation of printed media
  • E.g. The Economist, Financial Times, Time
    Magazine, Elle, Cosmopolitan
  • Growth of satellite and cable channels on global,
    regional and national basis
  • Increasing advertising around world events
  • E.g. World Cup, Olympic Games, Grand Prix
  • Potential for internet as alternative media

31
REGULATIONS IN ADVERTISING
  • Product
  • Type Alcohol, Tobacco,
  • Claims Use of superlatives
  • Knocking of competitors
  • Target Audience
  • Protection Children, Young People
  • Violation of Culture Muslim Countries
  • Standards Offensive images
  • Media
  • Prohibition Commercial advertising banned
  • Scheduling Time/space available for
  • advertising. Blocking regulations

32
INTERNATIONAL ADVERTISING AGENCIES
  • American J.Walter Thompson
  • British Saatchi
  • French Euro RSCG
  • Japanese Dentsu
  • The Mega Agency WPP Group

33
SELECTION OF AGENCY
  • Presented as TWO MAJOR ALTERNATIVES
  • Use international agency with domestic and
    overseas offices/affiliations (Network
    operations)
  • OR
  • Use local agencies based in each national market
    (may be affiliated)

34
AGENCY SELECTION CRITERIA
  • Market coverage
  • Quality of coverage
  • Range of services provided
  • Desired level of control
  • Agency structure
  • Network affiliation
  • Location of decision making authority
  • List of clients

35
BENEFITS OF USING THE INTERNATIONAL AGENCY
  • Facilitates global advertising strategy
  • Can handle world brands
  • Multi-market coverage
  • Cost savings
  • Efficiency in communications/co-ordination
  • voids duplication
  • To take advantage of international developments

36
LOCAL AGENCIES
  • Can offer
  • Better quality
  • Local knowledge
  • Increased flexibility
  • More creativity
  • Affiliation to international networks

37
CIRCUMSTANCES FAVOURING LOCAL AGENCIES
  • Company pursuing localised advertising strategy
  • Decision-making is decentralised
  • Local laws promote national production
  • Not invented here syndrome may be a problem
  • Nationalistic attitude

38
SUMMARY
  • Growing globalisation of advertising, but still
    need for adaptation in many cases
  • Continuum of options rather than 2 extremes
  • Global advertising rarely practised in purest
    form
  • Need to speak to consumers at local level, but
    maintain global visibility
  • Globalisation of agencies
  • Globalisation of media

39
QUESTION
  • Discuss the feasibility of consumer goods
    manufacturers using standardised advertising in
    Asian markets.
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