Global Advertising

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Global Advertising
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Global Advertising Defined
GLOBAL ADVERTISING media advertising that is
more or less uniform across many countries,
often, but not necessarily in media vehicles with
global reach
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Pros and Cons of Global Advertising
ADVANTAGES

• CONSISTENCY OF BRAND COMMUNICATIONS
• MEDIA SPILLOVER
• COST SAVINGS
• IMPROVED PRODUCTION
• LEVERAGING A GREAT IDEA

DISADVANTAGES

• IMAGES AND SYMBOLS MIGHT NOT BE LOCALLY
  ACCEPTABLE
• APPROPRIATE MEDIA MIGHT NOT BE AVAILABLE
• PRODUCT USAGE IS NOT THE SAME
• LOCAL CREATIVITY IS STIFLED

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Drivers of Global Advertising

• SUPPLY SIDE
• 1) GLOBAL AD AGENCIES
• 2) GLOBAL MEDIA
• DEMAND SIDE
• 3) GLOBAL CUSTOMERS
• 4) PREFERENCE CONVERGENCE
• 5) GLOBAL COMPETITORS

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Four Components of Global Advertising

• STRATEGY Global ads involve products services
  that are positioned similarly across markets,
  wherein the products appeal is consistent
• ORGANIZATION global ads are typically directed
  from headquarters with the help of advertising
  agencies with a global network
• MEDIA with global reach are used, creating
  spillover that crosses borders to reach customers
  in different countries follows traveling
  customers around the globe
• MESSAGE CREATIVE copy visualization may be
  uniform across markets, uniformity decreases
  based on how different each local market is from
  another

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Global Ad Categories

• IDENTICAL ADS ads are identical, usually with
  localization only in terms of language voice-over
  changes simple copy translations (e.g. the
  Marlboro cowboy ads)
• PROTOTYPE ADVERTISING the same ads, but the
  voice-over may be changed to avoid language
  cultural problems, the ad may be re-shot with
  local celebrities (e.g. Drakkar Noir)
• PATTERN STANDARDIZATION similar but less
  structured global approach, wherein the
  positioning theme is unified some alternative
  creative concepts are planned, but execution
  differs between markets (e.g. Xerox)

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Global Ads Same everywhere?
PROTOTYPE ADVERTISING
PATTERN STANDARDIZATION

• Brand Name same
• Theme same
• Visual same
• Positioning same
• Actors same
• Words same
• Language (local)
• Media same
• Materials same
• Slogan same

• Brand Name same
• Theme same
• Visual same
• Positioning same
• Actors not same
• Words not same
• Language (local)
• Media not same
• Materials not all same
• Slogan same

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Web Ads Are Naturally Global
WEB ADS are those boxed inserts on the screen
that appear as you surf the web. They are
interactive in the sense that you can click on
them to get more information about the
product/service.

• Types of Web ads
• Banner ads most common, measured in pixels
• Tickers banner ads that move across the screen
• Interstitial ads ads that flash while a
  request is being handled, filling up idle loading
  time.
• Pop-up ads ads that appear once a site has
  been loaded prior to webpage access
• Transactional ads let you order/request
  something without leaving the current webpage
• Roadblocks full screen ads that users must
  pass through to get to other screens
• Rich media ads the web version of a TV
  commercial, with audio and motion

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The International Mass Communication Process
Producer/marketer/advertiser Sets objectives
and advertising budget
Mass Media Carriesthemessage
Advertisingagency Developsmessage(encoding)and
selectsmedia
Opinionleaders,individuals Receive themessage
andinterpret(decoding)
Individuals Think, feeland act(hierarchyof
effects)
Coordinationandcontrol
Generatefeedbackon effects
Senders cultural setting
Receivers cultural setting
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Cultures and Visual vs Verbal Processing
VISUAL PROCESSING Low literacy Younger
Segments Low Involvement products High context
societies
VERBAL PROCESSING High Literacy Older
segments High involvement products Low context
societies
TV commercials Magazines
Newspapers Radio Ads
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The Hierarchy of Effects
ADVERTISING EXPOSURE
AWARENESS
KNOWLEDGE
LIKING/ATTITUDE
PREFERENCE
TRIAL
REPEAT PURCHASE/LOYALTY
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Matching Ad Objectives and Media
TV, Radio Words (spoken/written), Print,
TV/Radio TV, Magazines, Cinema, Outdoor
Ads Media must be timely, newspapers, TV
AWARENESS KNOWLEDGE ATTITUDE CHANGE IMAGE
BUILDING INFLUENCE BEHAVIOR
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Global Advertising is Most Powerful When

• the image communicated can be identical across
  countries
• the symbols used carry the same meaning across
  countries
• the product features desired are the same
• the usage conditions are similar across
  markets

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Global Promotion, E-Commerce, and Personal
Selling
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Global Sales Promotion Tools

• 1. IN-STORE (P-O-P) AND TRADE PROMOTIONS
• - - WATCH REGULATORY PROBLEMS (IKEA IN GERMANY)
• 2. EVENTS AND SPONSORSHIPS
• - - GLOBAL COMMUNICATIONS WITH GLOBAL BRAND
  (FUJIS OLYMPIC COUP, WINDOWS 95)
• 3. CROSS-MARKETING
• -- MERCHANDISE THAT EXTENDS AND BUILDS THE BRAND

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Global Sales Promotion Tools

• 4. PUBLICITY
• - - (BILL GATES AND MICROSOFT, PHIL KNIGHT AND
  NIKE)
• 5. PUBLIC RELATIONS
• - - (NESTLES BABY FORMULA, NIKES SWEATSHOPS )
• 6. INTERNATIONAL TRADE FAIRS
• -- (MICROLOG EXAMPLE IN CH.4)

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In-Store and Trade Promotion
IN-STORE promotional activities inside the
store TRADE promotional activities targeted at
channel intermediaries

• In-store promotions are more localized than
  advertising
• In-store promotions need to be supported by
  trade promotions
• Different countries/cultures have different
  attitudes towards coupons
• Different countries have different distribution
  infrastructures that limit transferability of
  certain in-store/trade promotions
• Sales promotion needs to be localized because of
  country-unique restrictions/regulations

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Country Regulations of Promotions
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Country Regulations of Promotions
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Country Regulations of Promotions
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Sponsorships and Cross-Marketing
SPONSORSHIPS increase with the advent of global
media and global events (e.g. World Cup,
Olympics). Products associate themselves with
globally recognized sports figures (e.g. Tiger
Woods Nike)
CROSS-MARKETING of related products leverage a
strong brand name into product line extensions
(e.g. Burberrys baby products)
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The New Promotional In-words

• Event marketing
• Cross-marketing
• Product placement
• Cause marketing
• E-commerce
• Pop-up ads
• Banner ads
• Experiential marketing

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Global Publicity
PUBLICITY is the publishing of news about the
company and its products. Very prominent in
hi-tech industries.
GOOD NEWS wherein positive press coverage
enhances consumer interest in the company and its
products BAD NEWS even negative publicity
helps keep the brand name in the public eye (e.g.
Benetton), although some may of course damage
brand equity PRODUCT PLACEMENT using branded
products in film/TV (e.g. BMW Z3 in James Bonds
Goldeneye)
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Global Public Relations
GLOBAL P.R. focuses on creating goodwill toward
the corporation as a whole. PRs become
increasingly important because of
anti-globalization sentiments.

• Global PR targets various groups of stakeholders
  such as
• Stockholders
• Employees
• Customers
• Distributors
• Suppliers
• Financial community
• Media
• Activist groups
• General public
• Government

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International Trade Fairs

• Participation in International Trade fairs is a
  way of identifying potential distributors in a
  new local market.
• At trade fairs, local marketers can introduce a
  companys latest products, discover industry
  trends, spot new competitive developments.
• Participation involves preparation of product and
  sales materials, opening a booth, sending a team
  plus paying a sometimes steep fee. Fairs cost
  money.

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Direct Marketing
DIRECT MARKETING an interactive marketing system
that uses one or more advertising media to effect
a measurable response and/or transaction at any
location.

• MAIL ORDER catalogs, sales offers through
  snail mail
• TELEMARKETING phone calls from companies to
  households
• DIRECT RESPONSE TV (DRTV) TV commercials with
  phone numbers to let viewers call for purchases.

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E-Commerce Pros
E-COMMERCE buying selling of goods/services
online, a.k.a. online marketing the online
marketplace is naturally global
PROS

• Easy and convenient for the customer
• Creates a natural one-to-one relationship
  between buyer and seller
• Fosters customer loyalty and increases customer
  retention rates
• Helps the company focus on providing customer
  value
• Lowers costs for buyers and sellers from the
  pre-purchase stage to the post-purchase stage
• Facilitates price comparisons

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E-Commerce Cons
CONS

• Can reach only a certain segment, those with
  desktops and Internet access
• Cannot provide the full tactile experience with
  the product or the personal interaction in
  services
• E-commerce needs good electronic communication
  links
• Customers are put off by computers and
  technology
• Perceived risks involved can be great
• Without credit cards, e-commerce would be
  unthinkable

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Successful E-Commerce Cases
SERVICES
PRODUCTS

• Personal computers (e.g. Dell)
• Books (e.g. Amazon)
• Computer software
• Cameras
• Leisure apparel (e.g. Eddie Bauer)
• Sports equipment
• Compact discs

• Airline tickets
• Tourist packages
• Banking services
• Brokerage services
• Rental cars
• Hotel reservations

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Successful E-Commerce B2B

• E-commerce has been particularly successful in
  business-to-business transactions. Reasons
• Many products use standardized components where
  price is the only concern.
• The Internet makes it easy to compare prices
  and entry barriers are low for new entrants.
• Technology is diffused rapidly so new entrants
  can access state-of-the-art technology.
• Cost pressures inside the corporations force the
  use of low-cost suppliers.

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Global Personal Selling
Culture affects the people skills of the global
marketer. Good salesmanship varies across
countries. Personal selling is usually the
least global of all marketing activities.
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Global Personal Selling

• How transferable are selling strategies
  techniques? The following are factors that affect
  transferability
• DIFFERING HUMAN RELATIONS
• (e.g. the role of a salesperson is looked down
  on by hierarchical cultures)
• DEGREE OF MARKET DEVELOPMENT
• (e.g. level of customer sophistication)
• DIFFERING REGULATORY ENVIRONMENTS
• (e.g. salesperson costs escalate in countries
  where fringe benefits are high)
• GEOGRAPHIC PHYSICAL DIMENSIONS
• (e.g. climate, transportation conditions,
  population density)

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Global Personal Selling
Presentations made during a sales visit usually
consist of five distinct stages

• ATTENTION get the customer to listen to you
• INTEREST get the customer interested in what
  you have to say
• DESIRE get the customer to desire what you are
  selling
• CONVICTION get the buyer convinced that the
  offer is a good deal
• ACTION get the customers signature on the
  contract

In foreign markets, these stages are still valid
but the salesperson needs to adapt these stages
to the local culture.
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Culture and Salesmanship
LOW CONTEXT CULTURES
HIGH CONTEXT CULTURES

• PREPARATION
• GREAT PRODUCT
• THE PERSON
• CULTURAL AWARENESS
• RELATIONSHIP ORIENTED

• PREPARATION
• GREAT PRODUCT
• APPEARANCE
• ENTHUSIASM
• SELF-CONFIDENCE
• GREAT CLOSER OF TRANSACTION

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IMC- Integrated Marketing Communications
IMC combining various communication disciplines
(e.g. media advertising, direct marketing, sales
promotion, internet advertising, public
relations) to ensure clarity, consistency,
maximum communications impact.

• IMC examples
• Intel in China distribution of bicycle
  reflectors
• Citibank in Thailand credit card agents at
  malls
• Yonex in Indonesia badminton team sponsorship