ADVERTISING

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ADVERTISING

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

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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

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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

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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
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GLOBAL MARKETING SPEND BY SECTOR 2003
Interactive marketing
7.7
Media advertising
Direct Mail
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40.5
15.4
Brand PR/Sponsorship
20.5
Sales Promotion
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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

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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

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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

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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

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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

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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

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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

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GUINESS

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

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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

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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

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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

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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

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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

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AREAS OF INFLUENCE

• Local environment determinants
• Firm environment determinants
• Intrinsic determinants

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LOCAL ENVIRONMENT

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

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FIRM ENVIRONMENT

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

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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

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MEDIA SELECTION

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

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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

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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

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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

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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

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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

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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

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INTERNATIONAL ADVERTISING AGENCIES

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

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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)

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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

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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

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LOCAL AGENCIES

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

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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

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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

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QUESTION

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