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Chapter20

International Advertising and Promotion

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Chapter20

  1. 1. International Advertising and Promotion 2 0 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
  2. 2. Reasons for International Importance SSttaaggnnaattiioonn ooff ddoommeessttiicc mmaarrkkeettss Company survival, particularly those with small Company survival, particularly those with small domestic markets domestic markets GGrroowwtthh aanndd pprrooffiitt ooppppoorrttuunniittiieess EEccoonnoommiicc nneecceessssiittyy
  3. 3. Focusing on China for Growth
  4. 4. Tourism Australia Uses Global Campaign
  5. 5. International Advertising & Promotion Rank Advertiser Outside U.S. Inside U.S. 1 Proctor & Gamble $4,995 $3,527 2 Unilever 3,689 848 3 General Motors 1,145 2,208 4 L’Oreal 2,336 753 5 Toyota Motor Corp. 1,895 1,203 6 Ford Motor Co. 1,168 1,701 7 Time Warner 298 1,838 8 Nestlé 1,509 605 9 Johnson & Johnson 674 1,351 10 Daimler/Chrysler 578 1,425 Ad spending in millions of U.S. dollars
  6. 6. The International Environment Economic Environment Demographic Environment Cultural Environment International Marketing & & Promotional Decisions Political/Legal Environment
  7. 7. International Economic Environment Economic environment • Stage of economic development • Economic infrastructure • Standard of living • Per capita income • Distribution of wealth • Currency stability • Exchange rates Economic environment • Stage of economic development • Economic infrastructure • Standard of living • Per capita income • Distribution of wealth • Currency stability • Exchange rates International Marketing And Promotional Decisions
  8. 8. ICI Dulux Targets Young Households in China *Click outside of the video screen to advance to the next slide
  9. 9. International Demographic Environment International Marketing And Promotional Decisions Demographic environment • Size of population • Number of households • Household size • Age distribution • Occupation distribution • Education levels • Employment rate • Income levels Demographic environment • Size of population • Number of households • Household size • Age distribution • Occupation distribution • Education levels • Employment rate • Income levels
  10. 10. International Cultural Environment Cultural environment • Language • Lifestyles • Values • Norms and customs • Ethics and moral standards • Taboos Cultural environment • Language • Lifestyles • Values • Norms and customs • Ethics and moral standards • Taboos International Marketing And Promotional Decisions
  11. 11. Heineken Translation Issues
  12. 12. Lay’s Targets China Youth Market *Click outside of the video screen to advance to the next slide
  13. 13. International Political/Legal Environment International Marketing And Promotional Decisions Political/legal environment • Government policies • Laws and regulations • Political stability • Nationalism • Attitudes toward multinational companies Political/legal environment • Government policies • Laws and regulations • Political stability • Nationalism • Attitudes toward multinational companies
  14. 14. Test Your Knowledge Since the European Union banned the use of food dyes in seafood, the salmon market has suffered. People mistakenly believe that salmon is naturally pink. Unfortunately, salmon is an unappetizing gray color. This is an example of how _____ factors can inadvertently hurt small businesses. A) economic B) demographic C) political/legal D) cultural E) infrastructure
  15. 15. Advertising Subject to Regulation Products that may be advertised Content or creative approach used Media advertisers are permitted to use The amount of advertising one may do Use of foreign languages in ads Use of materials from outside the country Use of local vs. international ad agencies Specific taxes levied on advertising
  16. 16. Global Marketer’s Dilemma Offer the same product, marketing, and advertising everywhere ? Adapt the product, marketing, and advertising to each society?
  17. 17. Global Marketing & Advertising Advantages Economies of scale in production, distribution Lower costs with less in planning and control Lower advertising production costs Ability to exploit good ideas worldwide Ability to introduce products quickly, worldwide Consistent international brand, company image Simplification of coordination and control
  18. 18. Gillette Launches Mach3 Globally
  19. 19. Problems With Global Advertising Differences in culture, market and economic Differences in culture, market and economic development make it difficult to use global advertising development make it difficult to use global advertising Consumer needs and usage Consumer needs and usage patterns often vary by country or region patterns often vary by country or region Media availability or usage may Media availability or usage may vary by country or region vary by country or region Legal restrictions may make it Legal restrictions may make it difficult to develop an effective universal appeal difficult to develop an effective universal appeal
  20. 20. When is globalization appropriate? Brands can be adopted for visual appeal, avoiding translation problems Brands promoted with image campaigns playing to universal needs, values, emotions High-tech products, new to the world, not steeped in the cultural heritage of the country of origin Products with a nationalistic flavor, if the country has a favorable reputation in the field Products appealing to a market segment with universally similar tastes, interests, needs, values Globalization Often Works Best For:
  21. 21. TAG Heuer’s Global Campaign
  22. 22. British Airways Uses Global Advertising *Click outside of the video screen to advance to the next slide
  23. 23. Global Products, Local Messages An In-between Approach Standardizing Products “Think Globally, Act Locally” Localizing Ad Messages Adapt Messages to Respond To Differences in Language Differences in Market Conditions Differences in Cultural Use of Pattern Advertising
  24. 24. TaylorMade Used Pattern Advertising
  25. 25. Decision Areas in International Advertising Organization Organization Style Style Creative Strategy & Execution Creative Strategy & Execution Agency Selection Agency Selection Advertising Research Advertising Research Coordination of Coordination of Other IMC Tools Other IMC Tools Media Strategy and Selection Media Strategy and Selection DDeecciissiioonn AArreeaass
  26. 26. Centralization of International Advertising BBuuddggeettiinngg Central Authority RReesseeaarrcchh Agency Selection Agency Selection Creative Strategy Creative Strategy Media Strategy Media Strategy Campaign Development Campaign Development Central Authority
  27. 27. Decentralized International Advertising Central Authority Central Authority Campaigns Creative Media Research Budgets Campaigns Creative Media Research Budgets Campaigns Creative Media Research Budgets Region One Region One Region Two Region Two Region Three Region Three
  28. 28. Criteria for Selecting an Agency 1. Ability of agency to cover relevant markets. 2. Quality of agency work. 3. Market research, public relations, and other services offered by the agency. 4. Relative roles of company advertising department and strategy. 5. Level of communication and control desired by company.
  29. 29. Criteria for Selecting an Agency 6. Ability of agency to coordinate international campaign. 7. Size of company’s international business. 8. Company’s desire for local versus international image. 9. Company organizational structure for international business and marketing (centralized versus decentralized). 10. Company’s level of involvement with international operations.
  30. 30. Advertising Research Information on demographic characteristics of markets Information on demographic characteristics of markets Information on cultural differences such as norms, lifestyles, and values Information on cultural differences such as norms, lifestyles, and values Information on consumers’ product usage, brand attitudes and media preferences Information on consumers’ product usage, brand attitudes and media preferences Information on media Information on media uussaaggee aanndd aauuddiieennccee ssiizzee Copy testing to determine reactions to different types of advertising appeals and executions Copy testing to determine reactions to different types of advertising appeals and executions Research on the effectiveness of advertising and promotional programs in foreign markets Research on the effectiveness of advertising and promotional programs in foreign markets
  31. 31. Creative Decisions Creative decisions should be based on advertising Creative decisions should be based on advertising and communication objectives and communication objectives Copy platforms must be Copy platforms must be developed that include major selling ideas developed that include major selling ideas Specific appeals and Specific appeals and execution styles must be selected execution styles must be selected Appeals may have to be Appeals may have to be adapted for local market conditions adapted for local market conditions
  32. 32. Coca-Cola Adapts to Local Markets
  33. 33. International Media Selection Issues Widely Differing Characteristics Widely Differing QQuuaalliittyy CCoovveerraaggee RReessttrriiccttiioonnss AAvvaaiillaabbiilliittyy CCoosstt Media Media Information Problems AAvvaaiillaabbiilliittyy RReelliiaabbiilliittyy CCiirrccuullaattiioonn AAuuddiieennccee CCoosstt
  34. 34. Specialized Target Audiences
  35. 35. Broad Coverage of International Media © 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  36. 36. International Sale Promotion EEccoonnoommiicc DDeevveellooppmmeenntt MMaarrkkeett MMaattuurriittyy CCoonnssuummeerr PPeerrcceeppttiioonnss TTrraaddee SSttrruuccttuurree RReegguullaattiioonnss Major Creation Considerations Major Creation Considerations
  37. 37. WD-40 Used Product Samples in Russia
  38. 38. Central vs. Local Roles
  39. 39. Public Relations in Global Marketing Deal with local governments, media, trade Deal with local governments, media, trade associations, and the general public associations, and the general public Present the company Present the company aass aa ggoooodd ccoorrppoorraattee cciittiizzeenn Serve as part of the IMC program and help Serve as part of the IMC program and help market the product or service market the product or service Deal with specific issues and problems the company may face in foreign markets Deal with specific issues and problems the company may face in foreign markets
  40. 40. Worldwide Growth of the Internet

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