2. Reasons for the Importance
of International Markets
Domestic markets for many
products and services are stagnant
Many companies rely on foreign markets to survive,
particularly those with small domestic markets
International markets offer
growth opportunities for many companies
Competition has become global and
marketers must be able to compete globally
5. Top 10 Global Advertisers
International Advertising & Promotion
Rank Advertiser Outside U.S. Inside U.S.
1 Proctor & Gamble $6,364 $3,367
2 Unilever 4,965 752
3 L’Oreal 3,242 798
4 General Motors 1,442 2,232
5 Toyota Motor Corp. 2,181 1,022
6 Coca-Cola Co. 2,231 442
7 Johnson & Johnson 1,181 1,402
8 Ford Motor Co. 1,436 1,012
9 Reckitt Benckiser 1,842 544
10 Nestlé 1,696 618
Ad Spending in Millions of U.S. dollars
6. The International Environment
Economic Cultural
Environment Environment
International
Marketing
And
Promotional
Decisions
Demographic Political/Legal
Environment Environment
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
International Marketing
And Promotional Decisions
8. International Demographic Environment
International Marketing
And Promotional Decisions
Economic environment
• Size of population
• Number of households
• Household size
• Age distribution
• Occupation distribution
• Education level
• Employment rate
• Income level
9. International Cultural Environment
Cultural environment
• Language
• Lifestyles
• Values
• Norms and customs
• Ethics and moral standards
• Taboos
International Marketing
And Promotional Decisions
12. International Political/Legal Environment
International Marketing
And Promotional Decisions
Political/legal environment
• Government policies
• Laws and regulations
• Political stability
• Nationalism
• Attitudes toward multinational
companies
13. Advertising Aspects Subject to Regulation
Type of products that may be advertised
The content or creative approach used
The media advertisers are permitted to use
The amount of advertising one can use
The use of foreign languages in ads
Use of ad materials from outside the country
Use of local versus international ad agencies
The specific taxes levied on advertising
14. Global Marketer’s Dilemma
Should we offer Should we adapt
the same the product,
product, marketing, and
marketing, and advertising to each
advertising of several societies
throughout the throughout the
world? world?
15. Global Marketing and Advertising
Advantages
Economies of scale in production, distribution
Lower costs with less in planning and control
Lower advertising and production costs
Ability to exploit good ideas worldwide
Ability to introduce products quickly, worldwide
Consistent international brand, company identity
Simplification of coordination and control
16. Problems With Global Advertising
Differences in culture, market and economic
conditions make it difficult to use global advertising
Consumers’ needs and usage
Consumers needs and usage
patterns often vary by country or region
Media availability or usage may
vary by country or region
Legal restrictions may make it
difficult to develop an effective universal appeal
21. Decision Areas in International Advertising
Organization
Coordination of
Agency
Other
Selection
IMC Tools
Decision Areas
Advertising and
Media Selection Market
Research
Creative
Decisions
22. Centralization of International Advertising
Budgeting
Media Agency
Strategy Selection
Central
Authority
Campaign Creative
Development Strategy
Research
23. Decentralization of International Advertising
Campaigns
Creative
Region Media
One Research
Budgets
Campaigns
Creative
Central Region Media
Authority Two Research
Budgets
Campaigns
Creative
Region Media
Three Research
Budgets
24. Criteria for Selecting an Agency to Handle
International Advertising
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.
26. Advertising Research
Information on demographic characteristics of
markets
Information on cultural differences such as norms,
lifestyles, and values
Information on consumers’ product usage, brand
attitudes and media preference
Information on media usage and audience size
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
27. Creative Decisions
Creative decisions should be based on advertising
and communication objectives
Copy platforms must be
developed that include major selling ideas
Specific appeals and
execution styles must be selected
Appeals may have to be
adapted for local market conditions
34. Role of Public Relations in Global Marketing
Deal with local governments, media, trade
associations and the general public
Present the company as a good corporate citizen
Serve as part of the IMC program and help
market the product or service
Deal with specific issues and problems the
company may face in foreign markets
Relation to text This slide relates to the opening vignette to the chapter which discusses the emergence of China as a major consumer market. Summary Overview This slide shows an ad used by 7-Up in China. The market for soft-drinks is growing rapidly in China and brands such as 7-Up are being promoted heavily in the world’s most heavily-populated country. Advertising for 7-Up is handled by BBDO CUNAC Advertising Co. Ltd. which is a part of the BBDO Worldwide agency. As in the U.S., 7-Up is marketed to young people and promotes the brands sponsorship of cycling. The copy at the bottom of the ad promotes 7-Ups sponsorship of the Asian XGames. The Chinese characters at the top left of the ad show the 7-Up brand name (in the circle) and the copy translates to “Capable to compete” and “Enjoy all the way to the end.” Use of this slide This slide can be used to show how multinational companies such as marketing their brands in China. China is the world’s fastest growing market and soft drink companies as well as many other marketers are looking to China for growth, particularly their domestic markets are often stagnant.
Relation to text This slide relates to the material on pp. 635-637 which discusses the importance of global markets to many companies. Summary Overview This slide shows a print ad from the “Australian Invitation” global campaign developed by Tourism Australia to attract visitors to the country. Tourism Australia is the government agency responsible for the country’s international and domestic tourism marketing. The “Australian Invitation” campaign is designed to attract a market segment known as Experience Seekers who are experienced travelers who view travel as an important aspect of their lifestyle. The print ads in the “Australian Invitation” campaign use beautiful images showcasing the diversity of experiences across Australia in a range of geographical and environmental settings. This particular ad shows a picture of the world famous Sydney Opera House and harbor at night. Use of this slide This slide can be used to show how Tourism Australia markets the country as a tourist destination. Australia’s tourist industry is the major sector of its economy and relies heavily on visitors from around the world. As discussed in the text, many companies and industry must focus on foreign markets to survive as their domestic markets are very small.
Relation to text This slide relates to material on pp. 639-641 and Figure 20-2 of the text. Summary Overview This slide shows the factors that make up the international demographic environment. These factors are: Size of population Number of households Household size Age distribution Occupation distribution Education level Employment rate Income level Use of this slide This slide can be used to discuss the international demographic environment. Major demographic differences exist among countries as well as within them. Marketers must consider these factors as demographic information can reveal the market potential of various foreign markets and provide insight into the living standards and lifestyles in a particular country. This information can help companies plan IMC campaigns in these markets.
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Relation to text This slide relates to the opening vignette to the chapter which discusses the emergence of China as a major consumer market. Summary Overview This slide shows an ad used by 7-Up in China. The market for soft-drinks is growing rapidly in China and brands such as 7-Up are being promoted heavily in the world’s most heavily-populated country. Advertising for 7-Up is handled by BBDO CUNAC Advertising Co. Ltd. which is a part of the BBDO Worldwide agency. As in the U.S., 7-Up is marketed to young people and promotes the brands sponsorship of cycling. The copy at the bottom of the ad promotes 7-Ups sponsorship of the Asian XGames. The Chinese characters at the top left of the ad show the 7-Up brand name (in the circle) and the copy translates to “Capable to compete” and “Enjoy all the way to the end.” Use of this slide This slide can be used to show how multinational companies such as marketing their brands in China. China is the world’s fastest growing market and soft drink companies as well as many other marketers are looking to China for growth, particularly their domestic markets are often stagnant.
Relation to text This slide relates to the material on pp. 647-48 of the text which discusses advertising for Nescafe instant coffee. Summary Overview This slide shows a print ad for NESCAFE President, which was used as part of the 25 th anniversary campaign for the brand in Japan. As discussed in the text, Nestle has to use different advertising strategies for Nescafe since the marketing situation for instant coffee varies by country. Nestle positions Nescafe President as a premium brand of instant coffee. The copy at the bottom of the ad reads beautiful coffee. Use of this slide This slide can be used to show how a marketer adapts its advertising to local markets. Nestle faces different situations regarding the ways consumers consume coffee and how they perceive instant coffee. Thus, they have to adapt their advertising to local markets rather than using a global campaign.
Relation to text This slide relates to material on pp. 643-646 and Figure 20-2 of the text. Summary Overview This slide shows the factors that make up the international political/legal environment. These factors are: Government policies Laws and regulations Political stability Nationalism Attitudes toward multinational companies Use of this slide This slide can be used to discuss the international political/legal environment which is one of the most important factors influencing the advertising and promotional programs. Many countries place restrictions on the advertising of various products such as cigarettes, liquor, and pharmaceuticals. Government regulations and restrictions can affect various aspects of a company’s advertising program as shown on the next slide.
Relation to text This slide relates to material on pp. 646-647 of the text. Summary Overview This slide shows the advantages of using a global marketing and advertising strategy which are: Economies of scale in production, distribution Lower costs with less in planning and control Lower advertising and production costs Ability to exploit good ideas worldwide Ability to introduce products quickly, worldwide Consistent international brand, company identity Simplification of coordination and control Use of this slide This slide can be used to discuss the advantages of using a global marketing strategy and advertising program. Advocates of global marketing and advertising contend that standardized products and advertising messages can be used since people everywhere basically want the same products and services and live the same way.
becoming more diverse, not less.
Relation to text This slide relates to the material on pp. 648-650, which discusses global advertising. Summary Overview This slide shows an ad from Swiss watchmaker TAG Heuer. The company feels that it is important to have a consistent advertising message and image in each country, therefore they use different celebrity ambassadors for various countries. The ad on the left was used in Japan and features race car driver Kimi Raiknonen who is very famous in the country. The ad on the right was used in India and features Sushmita Sen, one of the most popular actresses in the country. Use of this slide This ad can be used to show an example of a global campaign could be used effectively. Tag Heur uses a global campaign as the ads use the same layout, logo, product images, slogan and tagline. The only element of the ad that changes from country to country is the celebrity ambassador who appears in the ad.
Relation to text This slide relates to material on pp. 651-652 of the text. Summary Overview This slide shows the in-between approach to global advertising. This approach standardizes the product and basic marketing strategy, but localizes the advertising messages. Some agencies call this approach “Think globally, act locally.” Most messages are adapted to respond to: Differences in language Differences in cultural Differences in market conditions Pattern advertising is also used whereby ads follow the basic approach, but themes, copy, and visual elements are adapted to differences in local markets. Use of this slide This slide can be used to discuss the in-between approach to global marketing and advertising. This approach recognizes similar desires, goals, needs, and uses for products and services but tailors advertising to the local cultures and conditions of each market. Pattern advertising is commonly used to adapt messages to local markets.
Relation to text This slide relates to material on pp. 652-663 of the text. Summary Overview This slide shows the various organizational and functional decisions that need to be made by companies that are developing advertising and promotional programs for international markets. These decisions are: Organization Agency selection Advertising and market research Creative decisions Media selection Coordination of other IMC tools Use of this slide This slide can be used to introduce the various organizational and functional decisions that need to be made by companies when developing international advertising and promotional programs.
Relation to text This slide relates to material on pp. 652-654 of the text. Summary Overview There are various organizational options available to a company that is developing international advertising and promotional programs. This slide shows the centralization option which involves centralizing the international advertising and promotion function so that all decisions regarding agency selection, creative strategy, research, campaign development, media strategy, and budgeting are made at the firm’s home office or headquarters. Use of this slide This slide can be used to discuss the centralization option for organizing the advertising and promotions functions. Centralization is an appropriate option when market and media conditions are similar from one country to another, the company has only one or a few international agencies handling all of its advertising, the company can use standardized advertising, and the company desires a consistent image Centralization can also save money and reduce the number of staff needed.
Relation to text This slide relates to material on p. 654 of the text. Summary Overview This slide shows how a decentralized international organization might look and the various activities of each region. Under a decentralized organizational structure, marketing and advertising managers in each region have the authority to make their own advertising and promotional decisions. Local managers would be responsible for: Selecting ad agencies Selecting campaign themes Approving creative work Selecting advertising media Conducting research Developing budgets Use of this slide This slide can be used to demonstrate how a decentralized organization would look and the various decisions/responsibilities of each region. This approach is often used when companies believe local managers know the marketing situations in their countries the best. Decentralization also works well in small or unique markets where headquarters’ involvement is not worthwhile or advertising must be tailored to the local market.
Relation to text This slide relates to material on pp. 655-658 and Figure 20-3 of the text. Summary Overview This slide presents the first five of ten key criteria for selecting an agency to handle international advertising. One of the most important decisions for a firm engaged in international marketing is the choice of an advertising agency. Use of this slide This slide can be used to discuss the what goes into selecting an agency. Three basic alternatives include: 1) A major agency with both domestic and overseas offices, 2) An agency that, rather than having its own foreign offices or branches, is affiliated with agencies in other countries or belongs to a network of foreign agencies, and 3) A local agency for each national market in which it sells its products or services.
Relation to text This slide relates to material on pp. 655-658 and Figure 20-3 of the text. Summary Overview This slide presents five additional key criteria for selecting an agency to handle international advertising.
Relation to text This slide relates to material on pp. 658-659 of the text. Summary Overview This slide lists a number of areas where research on foreign markets can help firms make better advertising decisions. Use of this slide This slide can be used to discuss the important role research plays in the development of international advertising and promotion programs, helping managers make better, more informed decisions.
Relation to text This slide relates to material on pp. 659-660 of the text. Summary Overview The slide shows the creative decisions that need to be made for each market and some of the considerations in making them. These include: Creative decisions should be based on advertising and communication objectives Copy platforms must be developed that include major selling ideas Specific appeals and execution styles must be selected Appeals may have to be adapted for local market conditions Use of this slide This slide can be used to discuss the creative decisions that need to be made for each market. Creative strategy development for international markets is basically similar in process and procedure to that for domestic advertising.
Relation to text This slide relates to the material on pp. 659-660 of the text. Summary Overview This slide shows a print ad used in Viet Nam as part of the “Coca-Cola. Enjoy” global campaign. Coca-Cola announced a new strategy a few years ago giving managers in various regions and countries more freedom to adapt their marketing and advertising to local conditions. The new approach puts a stronger emphasis on creative executions that are tailored to regional and international markets. The company first used this new approach when it launched its “Coca-Cola Enjoy” advertising campaign in 2000. The new campaign for Coca-Cola Classic replaced the “Always” global campaign that the company used for the world’s leading soft drink for a number of years. The “Always” campaign pushed emotional benefits like the familiar Coke taste and authenticity. However, many potential consumers outside the U.S. did not have a long-term relationship with Coke to make the theme work well. Thus, Coca-Cola felt at new ad theme was needed for markets such as China and Viet Nam where the previous “Always” theme was vague and meant little to people without a life-long association to Coke and its feeling good benefits. Use of this slide This slide can be used to show how global marketers such as Coca-Cola often adapt their campaigns for local markets. Most young Asians consume Coke as a status symbol to look trendy and affluent and sales dropped dramatically in many countries when the Asian recession hit in the late ‘90s and continued into the new millennium. Coca-Cola executives feel that strategically, enjoy is more of an action word and takes the reasons for drinking a Coke from a badge of success to physical pleasure. The “Enjoy” campaign focuses on why it is a pleasure to drink Coca-Cola. The campaign also fits with the direction the company is going, which is to empower local managers and give them the freedom to adapt the campaign to their local markets. Coca-Cola advertising in the U.S. switched to the “Real” campaign for its Coke Classic brand in early 2003. However, the “Coca-Cola Enjoy” theme is still being used in some Asian countries.
Relation to text This slide relates to the material on pp. 661-662 and Exhibit 20-16 that discusses local media. Summary Overview This slide shows an ad for President magazine which is a publication that reaches top executives in Japan. Companies that are interested in reaching Japanese executives find this publication an effective way to reach these decisions makers and leaders. Use of this slide This slide can be used to show an example of local media that are available to marketers who want to reach individuals in a specific country. Many advertisers use local media to reach consumers as well as business people in specific countries.
Relation to text This slide relates to material on pp. 660-663 of the text. Summary Overview This slide shows the issues facing international advertisers in their media selection decisions. Some of these issues are: Widely differing characteristics Quality Coverage Restrictions Availability Cost Media information problems Availability Reliability Circulation Audience Cost Use of this slide This slide can be used to discuss the issues facing international advertisers in their media selection decisions. Because of the varying characteristics and information, the media strategy and selection can be one of the most challenging areas for international marketers.
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Relation to text This slide relates to material on pp. 665-667 of the text. Summary Overview This slide shows the important differences among countries that marketers must consider when developing a sales promotion program. These differences are: Economic development – limitations on sales promotion in less developed countries Market maturity – will affect the type of sales promotion tool than can be used Consumer perceptions – how the sales promotion tool is perceived by consumers Trade structure – willingness of retailers to accommodate sales promotions Regulations – can restrict many sales promotion tools such as contest, coupons, samples Use of this slide This slide can be used to discuss the differences among countries that marketers must consider when developing international sales promotion programs. Sales promotion activity in international markets is growing due in part to the transfer of promotion concepts and techniques from country to country and part to the proliferation of media. Nonetheless, the vast differences among countries necessitate that sales promotion programs be adapted to local markets.
Relation to text This slide relates to the material on p. 665 and Exhibit 20-19. Summary Overview This slide shows a sample used by the WD-40 company to promote trial of its lubricant product in Russia. The headline on the sample says “One Can. One Thousand Uses.” WD-40 is a global brand that positions itself as a multipurpose problem solver that cleans, protects, penetrates, lubricates and displaces moisture. The company uses sampling programs in the U.S. as well as foreign markets to encourage trial and let consumers experience the versatility of the product. The sample package shown here was translated into 20 different languages and used in countries around the globe. Use of this slide This slide can be used to show how companies are using sales promotion tools such as sampling in various countries. Marketers are finding that sales promotion tools and techniques can work well in many different countries.
Relation to text This slide relates to material on pp. 669-670 of the text. Summary Overview Many companies involved in international marketing are recognizing the importance of using public relations to support and enhance their marketing and advertising efforts. This slide shows the role of pubic relations in global marketing, which is to: Deal with local governments, media, trade associations, and the general public Present the company as a good corporate citizen Serve as part of the IMC program and help market the product or service Deal with specific issues and problems the company may face in foreign markets Use of this slide This slide can be used to discuss the role and the activities of public relations in global marketing programs. Public relations are becoming increasingly more important as companies generally need a favorable image to be successful in foreign markets.
