Global Marketing Communications Decisions I: Advertising and Public Relations

Global Marketing (Global Edition) Chapter 13

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Introduction
Chapter topics: Integrated Marketing Communications Establish promotional budget Pushing h vs. pulling ll Standardization vs. adaptation Global ad agencies & key roles of personnel Cultural considerations Global media decisions Role R l of f PR and d Publicity P bli i
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Integrated Marketing Communications

Marketing communications tell customers about the benefits and values that a company, product, or service offers Integrated Marketing Communications (IMC) is becoming more popular because of the challenges of communicating across national borders

IMC Builds Brand Equity

We have an integrated marketing model that involves all g mix from digital g to sports p elements of the marketing marketing, from event marketing to advertising to entertainment, all sitting at the table driving ideas.
Trevor Edwards, VP for global brand and category management at Nike
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The Communication Process

Establish Budget
Affordable Percentage of Sales Percentage-of-Sales C Competitive i i Parity i Objective-and-Task

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Pushing vs vs. Pulling

Pushing strategy: promotional effort by a seller to members of the marketing channel intended to stimulate personal selling of the good or service, thereby pushing it through the marketing channel Pulling strategy: promotional effort by a seller to stimulate demand among final users, who will then exert pressure on the distribution channel to carry the good or service, pulling it through the marketing channel 13-7
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Pushing vs vs. Pulling

Marketing activities Intermediaries Demand Marketing activities Demand Intermediaries Demand Marketing activities

Producer

End users

Producer
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End users
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Global Advertising
Advertising is any sponsored, paid message that is communicated in a non-personal p way y Single country Regional Global Global advertising is the use of the same advertising appeals, messages, art, copy, photographs, stories, and video segments for worldwide suitability
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Globalization and Product Cultures

Products such as coffee ff and db beer have emerged as t true global l b l products d t
Starbucks and the coffee ff culture lt Irish pubs in the U.S. German-style G t l beer b halls in Japan

Standardization vs. Adaptation

Primary y Issue
Must the specific advertising message and media strategy be changed from region to region or country to country?

Standardization vs. Adaptation

Four difficulties that compromise an orgns communication efforts:
The message may not get through to the intended recipient p The message may reach the target audience but may not be understood or may even be misunderstood The message may reach the target audience and may be understood, but still may not induce the recipient to take the action desired by the sender The effectiveness of the message can be impaired by

Think of cultural and legal issues

noise

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Pattern Advertising
A middle ground between 100% standardization and 100% adaptation A basic b i pan-regional i l or global l b l communication concept for which copy, artwork, or other elements can be adapted p as required q for individual countries
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Pattern Advertising
Similar: Include layout Dominant visuals on left Brand signature and slogan

Contrasting: Photos y copy py is localized, , Body not simply translated 13-14

Advertising Agencies: Organizations and Brands

Understanding the term organization is key
Umbrella corporations/holding companies have one or more core advertising agencies Each E h organization i ti has h units it specializing i li i in i direct di t marketing, marketing services, public relations, or research

Top 10 Global Ad Agencies

Individual agencies are considered brands

Full service brands create advertising, and provide services such as market research, media buying, and direct marketing
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Selecting an Ad Agency
Company organization
Companies that are decentralized may want to leave the choice to the local subsidiary Is the global agency familiar with local culture and buying habits of a particular country?

Creating Global Advertising

Creative strategy a statement or concept of what a particular message or campaign i will ill say

National responsiveness p Area coverage

Does the agency cover all relevant markets?

Buyer perception
What kind of brand awareness does the company want tt to project? j t?
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synthesizes the purpose of the strategy, joins the product benefit with consumer desire in a fresh, involving way, brings the subject to life, and makes the reader or audience di stop, t l look, k and d listen. li t
J h OToole, John OT l legendary l d ad d man
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Bi idea Big id The Th fl flash h of f insight i i h that h

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Advertising Appeal
Rational approach
Depends on logic and speaks to the consumers ; based on the intellect; consumers need for information

Advertising Appeal
Selling proposition
The p promise or claim that captures p the reason for buying y g the product or the benefit that ownership confers Since products are at differing stages of the product life cycle l in i different diff t national ti l markets k t and d because b of f cultural, social and economic differences, the most effective e ec e appea appeal o or se selling gp proposition opos o may ay vary. ay

Creative execution E ti Emotional l approach h

Tugs at the heartstrings or uses humor
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The way an appeal or proposition is presented straight sell, scientific evidence, demonstration, comparison, slice , animation, , fantasy, y, dramatization of life,
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emphasize distinctive shape of bottle & personality of magazine/city where it appears Capture spirit of 3 Asian cities: g , Beijing j g & Kyoto y Bangkok,

Absolut vodka ads

Art Directors and Art Direction

Art Directors
Advertising professional who has the general responsibility for the overall look of an ad Will choose graphics, pictures type styles pictures, styles, and other visual elements that appear in an ad

Art Direction
The visional presentation of an advertisement
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Copy and Copywriters

Copy is written or spoken communication elements Copywriters are language specialists who develop headlines, subheads and body subheads, copy
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Advertising Copy Mistakes

In Asia, Pepsis Come Alive was interpreted as asking ki to t b bring i ancestors t back b k from f the th dead In China, Citicorps Citi Never Sleeps was taken to mean that Citi had a sleeping disorder, like insomnia McDonalds does not use multiple p 4s in advertising prices in China; four sounds like the word death
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Rolls-Royce Motor Cars Advertising

Rolls-Royce Motor Cars Advertising

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Cultural Considerations
Images of male/female intimacy are in bad taste in Japan; illegal in Saudi Arabia Wedding rings are worn on the right hand in Spain, Denmark, Holland, and Germany European E men ki kiss the th hands h d of f married i d women only, not single women y, France, , and Japan, p , a man enters a door In Germany, before a woman; no ladies first

Japanese and American Cultural Differences

I Indirect di t rather th than th direct di t forms f of f expression i are preferred in the messages There is often little relationship between ad content and the advertised product Only y brief dialogue g or narration is used in television commercials, with minimal explanatory content Humor is used to create a bond of mutual feelings Famous celebrities l b appear as close l acquaintances or everyday people Priority is placed on company trust rather than product quality product name is impressed p on the viewer with short, , The p 15-second commercials
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Think and Feel Country Clusters

Effective Advertising Appeal Alternatives

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Global Media Decisions

Which medium or media to use?
Print such as daily and weekly newspapers to magazines with regional, national, or international audiences Electronic media like broadcast TV, cable TV, radio, and the internet Other such as outdoor, transit, and direct mail

Global Ad Expenditures and Media Vehicles

More money spent in U.S. than anywhere else in the world; $151 billion in 2010 Japan is #2 at $43 billion 1/3 of current growth in ad spending in BRIC Russia has a $7.8 billion ad market with 30% growth annually; U.S. and European growth is 4-5% Worldwide, TV is the #1 medium with estimated spending of $176 billion in 2008; TV spending increased 78% between 1990 and 2000 in the EU In I G Germany newspapers are #1 advertising d ti i vehicle hi l
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Must know country country-specific specific regulations

Ex. France bans TV ads by retailers

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Media Decisions
The availability of TV, newspapers and other media varies widely globally In developed countries, newspapers are declining as Internet usage rises In India, newly redesigned papers are growing 300 daily papers, papers only 4 million Indians subscribe to Internet service In Moscow, billboards are #1; in a city built for 30,000 cars, there are 3 million, creating massive traffic jams and captive audiences
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Media Decisions: Arab Countries

People are depicted less often than in the US Women may only appear in those commercials that relate the advertised product Women must wear long dresses Brevity is a virtue in ads Use of comparative advertising claims very limited US ads have more price information
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Media Decisions: Scandinavia

Limited TV ads in Sweden Norway, Sweden, Norway and Denmark No advertising to children under 12 in Sweden Spending on print media is 3 times higher than TV
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Public Relations
Fosters goodwill and understanding Generates favorable publicity Tools l News releases Media Medi kits kit Press conferences Tours Articles in trade and prof journals TV and radio talk show appearances Special events Social media Corporate web sites
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Negative Publicity Affecting Global Marketers

Advertising as a PR Function
Corporate advertising
Compensates for lack of control over publicity Calls attention to the companys other communication i ti efforts ff t

Image advertising
Enhances the publics perception, creates goodwill

Advocacy y advertising g
Presents the companys point of view on a particular issue
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The Growing Role of PR in Global Marketing

PRs role is growing in the post global recession Build consensus and understanding Create harmony and trust Articulate and influence public opinion Anticipate conflicts and resolve disputes Internet, social media, satellite links allow PR pros to stay in touch with media anywhere, anytime
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PR Practices Around the World

Public relations practices can be affected by:
Cultural traditions Social and political contexts Economic environments

S Smartphones t h , broadband b db d

Public relations professionals must understand these differences and tailor the message appropriately
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