Ch7 Global Marketing Communications Decisions I: Advertising and Public Relations

Marketing communications
Marketing communications tell customers about the benefits and values that a company, product, or service offers.
IMC
Integrated Marketing Communications (IMC) is becoming more popular because of the challenges of communicating across national borders
“We have an integrated marketing model that involves all elements of the marketing mix from digital to sports marketing, from event marketing to advertising to entertainment, all sitting at the table driving ideas.”
GLOBAL ADVERTISING
1-Advertising is any sponsored, paid message that is communicated in a non-personal way
-Single country
-Regional
-Global
2-Global advertising is the use of the same advertising appeals, messages, art, copy, photographs, stories, and video segments for worldwide suitability
Standardization vs. Adaptation, Primary Issue
Primary Issue
Must the specific advertising message and media strategy be changed from region to region or country to country?
Think of cultural and legal issues
Product Cycle
evolution of traded goods and manufacturers (intro, growth, maturity, decline) MP3 players
Product life Cycle
The stages through which goods and services move from the time they are introduced on the market until they are taken off the market.
Globalization and Product Cultures
Products such as coffee and beer have emerged as true global products
Starbucks and the coffee culture
-Irish pubs in the U.S.
-German-style beer halls in Japan
Standardization vs. Adaptation
Four difficulties that compromise an organization’s communication efforts:
1-The message may not get through to the intended recipient (lack of knowledge of media).
2-The message may reach the target audience but may not be understood or may even be misunderstood (encoding).
3-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 (lack of cultural knowledge).
4-The effectiveness of the message can be impaired by noise.
Why adapt?
1-Written and spoken language differences
2-Differences in symbolic meaning
3-Differences in humour
4-Lack of cross cultural icons
5-Difference in value systems
6-Collectivism and individualism
7-Government regulation
International Advertising (Germany)
Germany
Advertisements on specific hours of the day (20 minutes per day; not after 8 p.m.), except on Sundays and holidays
International Advertising ( France)
-Up to 9 minutes of advertising per hour on average in a day.
-For public channels, advertising is forbidden after 8 p.m. and will completely disappear in 2012
International Advertising ( Denmark)
Commercial breaks are strictly prohibited and advertising targeted to children is restricted
International Advertising ( Norway)
No channel may interrupt a television program, at any time, for advertising breaks
International Advertising (India)
If consumers see an advertisement, which they consider misleading or offensive, they can write to Advertising Standard Council of India
International Advertising ( Malaysia)
20 minutes with 10 – 15 advertisement per commercial break.
Advertising Agencies: Organizations and (Brands)
Individual agencies are considered brands
Full service brands create advertising, and provide services such as market
Advertising Agencies: (Organizations) and Brands
Understanding the term organization is key
Umbrella corporations/holding companies have one or more ‘core’ advertising agencies
Each ‘organization’ has units specializing in direct marketing, marketing services, public relations, or research
Individual agencies
Selecting an Advertising Agency
1- Company organization:
Companies that are decentralized may want to leave the choice to the local subsidiary
3-National responsiveness:
Is the global agency familiar with local culture and buying habits of a particular country?
3-Area coverage
Does the agency cover all relevant markets?
4-Buyer perception
What kind of brand awareness does the company want to project?
Creating Global Advertising
1-Creative strategy—a statement or concept of what a particular message or campaign will say
2-Big idea— “The flash of insight that 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 stop, look, and listen.”
John O’Toole, legendary ad man
Absolut Vodka, Mastercard

3. Advertising Appeal
Rational approach
Depend on logic and speak to the consumer’s intellect; based on the consumer’s need for information
Emotional approach
Tugs at the heartstrings or uses humor
4. Selling proposition
-The promise or claim that captures the reason for buying the product or the benefit that ownership confers
-Since products are at differing stages of the product life cycle in different national markets and because of cultural, social and economic differences, the most effective appeal or selling proposition may vary.
5. Creative execution
The way an appeal or proposition is presented

straight sell
scientific evidence
demonstration
comparison
slice of life
animation
fantasy
dramatization

The Big Idea
“The Big Idea is easier to illustrate than define, and easier to illustrate by what it is not than by what it is. It is not a “position”…It is not an “execution”… It is not a slogan. The Big Idea is the bridge between an advertising strategy, temporal and worldly, and an image, powerful and lasting.”

-Randall Rothenberg, author

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, and other visual elements that appear in an ad
Art Direction
The visional presentation of an advertisement
Copy and Copywriters
-Copy is written or spoken communication elements
-Copywriters are language specialists who develop headlines, subheads, and body copy
Copywriting decision
1-Prepare new copy for foreign markets in host country’s language
2-Translate the original copy into target language
3-Leave some or all copy
elements in home country
language
Advertising Copy Mistakes
-In Asia, Pepsi’s “Come Alive” was interpreted as asking to bring ancestors back from the dead
-In China, Citicorp’s “Citi Never Sleeps” was taken to mean that Citi had a sleeping disorder, like insomnia
-McDonald’s does not use multiple 4’s in advertising prices in China; “four” sounds like the word “death”
Cultural Considerations
-Use of colours
– 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, Germany
-European men kiss the hands of married women only, not single women
– In Germany, France and Japan, a man enters a door before a woman; no ladies first!
Cultural Considerations-
Japanese & American Differences
-Indirect rather than direct forms of expression are preferred in the messages
-There is often little relationship between ad content and the advertised product
-Only brief dialogue or narration is used in television commercials, with minimal explanatory content
-Humor is used to create a bond of mutual feelings
-Famous celebrities appear as close acquaintances or everyday people
-Priority is placed on company trust rather than product quality
-The product name is impressed on the viewer with short, 15-second commercials
Global Media Decisions
1. 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
2. Must know country-specific regulations
-Ex. France bans TV ads by retailers
-Belgium and Luxembourg explicitly ban comparative advertising, whereas it is clearly authorized in the United Kingdom, Ireland, Spain and Portugal
Pattern Advertising
A middle ground between 100% standardization and 100% adaptation
A basic pan-regional or global communication concept for which copy, artwork, or other elements can be adapted as required for individual countries eg. Dove, Kit-Kat
Global Advertising Expenditures
and Media Vehicles
-More money spent in U.S. than anywhere else in the world; $160 billion in 2012.
-Japan is #2 at $52 billion.
-1/3 of current growth in ad spending in BRIC
-Russia has a $9.7 billion ad market with 13% growth annually; U.S. and European growth is 3.5-4.5%.
-Worldwide, TV is the #1 medium with estimated spending of $163 billion in 2012; TV captured slightly more than 40% of global ad spending
-In Germany newspapers are #1 advertising vehicle
-In Mexico – pay for full page as and get front coverage, India booking is 6 months in advance