Title: ADVERTISING
1ADVERTISING
- Key Issues
- Standardisation v adaptation
- Media selection
- Agency selection
2WORDS
- Translation doesnt work. People can
instinctively feel when something wasnt written
for them. Michael Collins, World Writers - Coca-cola thinks globally, but it now acts
locally. - Mike Khanna, J Walter Thompson, India
- If you cant speak to me in my own language, you
cant be too smart. - Dutch teenager cited in Another One Bites The
Grass
3INTRODUCTION
- Advertising is still an important part of the
promotional spend - Worldwide spend 400bn in 2005
- Disparities between advertising spend per cap
across markets - Influence of advertising is greater is some
countries than others - Various standardisation options available
- Important decision - waste of spend, ineffective
copy, damage to brand
4PRODUCT TYPE STAGE IN PLC POSITIONING REGULATIONS
AUDIENCE LANGUAGE CULTURE REGULATIONS
INTERNATIONAL ADVERTISING
MEDIA SELECTION AVAILABILITY COST MEDIA
HABITS REGULATIONS SCHEDULING
ADVERTISING STRATEGY STANDARDIZED LOCALIZED GLOBA
L
ORGANISATION DECISION-MAKING AUTHORITY AGENCY
SELECTION
5GLOBAL MARKETING SPEND BY SECTOR 2003
Interactive marketing
7.7
Media advertising
Direct Mail
14
40.5
15.4
Brand PR/Sponsorship
20.5
Sales Promotion
6TRENDS
- Consolidation of media networks and owners e.g.
Viacom, Time Warner - Centralisation of worldwide media planning e.g.
Gillette, Glaxo/Smithkline - Growth of interactive marketing
- Advertising becoming increasingly globalised
7ADVERTISING STRATEGY OPTIONS
- FULLY STANDARDISED
- Product/brand sold across borders
- No adaptation, unified images
- Little or no copy but song/background music
- One language
- Examples Marlboro Cigarettes, Benetton, LOreal
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9OPTIONS cont
- SOME MODIFICATIONS Voice over
- Visuals are central to advert
- In some countries original language used (often
English), in others voice-over necessary - Lip-sync may irritate consumers so lips may not
be shown while person is talking - Examples Gillette (Sensor Excel), Nivea,
Snickers
10OPTIONS cont
- PARTIAL ADAPTATION Different Values
- One basic form (comparison, testimonial or drama)
adapted to local markets - Within one form different adverts made for each
country - Cultural values reflected
- Examples PG - Dreft, Fairy, Ace, Henkel
11OPTIONS cont
- PARTIAL ADAPTATION Different Executions
- One basic idea/theme is basis for different local
executions - Recognisable elements in all adverts
- Different executions developed in different
countries and adopted by others of similar
culture - Examples McDonalds, American Express,
LOreal
12Garnier Nutrisse Advertising
- Previously used uniform advertising dubbed into
language of country - Nutrisse hair colouring product needed a
different approach customer needs trust - Easier to achieve with local celebrity rather
than international model - Same theme, celebrity talking to mother
- Template tweaked for each market
- Italians more theatrical, Germans quieter
- Local marketing sales teams more motivated as
involved in selection
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14OPTIONS cont
- ADAPTATION Multi-Local
- International brands but advertising features
local cultural values - Acceptance that mental images cannot be
standardised - Acceptance that mental images cannot be
standardised - Companies build relationships with consumers and
a major objective is to build trust - Company name often used in endorsement
- Examples Nestlé, Volkswagen, Guiness
15GUINESS
- Varies advertising in each market
- UK consumers black and white executions featuring
surfers and wild horses - Africa James Bond type character, Michael Power
16EXECUTION
- Standardisation is more likely to be achieved
when the following methods are used in
advertising - Visual messages form the main content
- Information cues are limited or minimal
- Music is an important part of the
- communication
- Well known international film stars, popular
celebrities and sports people are featured - Well known symbols and trademarks are featured
17CIRCUMSTANCES FAVOURING ADAPTATION
- When use of spoken and written language forms an
important part of the communication - Where many information cues are given
- If humour is used humour is often very specific
to certain cultures - Where national celebrities or personalities are
used who are not known internationally - With campaigns that rely on specific knowledge
of previous campaigns
18AMERICAN STYLE ADVERTISING
- Reflects assertive culture and competitiveness
- Direct (address often personalised)
- Very verbal and has to make a point
- Overstatement are characteristic
- Explicit conclusions why customer should buy
product - Hard sell approach
- Product merit appeal much used (reason why)
- Celebrities often used as endorsers
- Direct comparisons widely used
19BRITISH STYLE ADVERTISING
- Reflects highly individualistic society
- Young people frequently featured
- Class differences reflected
- Slice of life form popular
- Reliance on persuasion and trend-setting images
- Appeals to the ego and personal success
- Strong role differentiation
- Focus on benefits
- Humour and parody used
- Entertainment based
20JAPANESE STYLE ADVERTISING
- Goal is to make friends with consumers and get
them to trust/respect seller - Indirect and soft-sell approach (direct perceived
as insult to consumers intelligence) - Identification of brand/company name/product is
less important than pleasing consumer - Product benefits not used explicitly
- Symbols all used to create serene advertisements
- Competitive or comparative advertising not used
- Elders are respected and dependency is valued
- Celebrities used often including westerners
- TV adverts intertwined with world of entertainment
21AREAS OF INFLUENCE
- Local environment determinants
- Firm environment determinants
- Intrinsic determinants
22LOCAL ENVIRONMENT
- Market differences
- Economic conditions
- Legal conditions
- Advertising infrastructure
- Consumer differences
- Cultural environment
- Competition
- Consumer profile
- Country of origin image
- Experience with brand
23FIRM ENVIRONMENT
- Managerial and financial characteristics
- Corporate strategy
- Internal culture
- Decision-making authority
- Financial condition of the organisation
- Nature of product
24INTRINSIC DETERMINANTS
- International advertising objectives
- Relationship between multinational advertiser and
advertising agency(ies) - Creative strategy
- Media strategy
- Other elements of the communication mix
- Support activities and barriers
25MEDIA SELECTION
- Potential differences
- Number/type available
- Significance
- Target groups
- Reach
- Frequency
26TELEVISION
- Ownership levels vary
- Low in Brazil, High in Europe
- Heavy restrictions in some countries
Norway/Sweden/Saudi Arabia - Range of programmes available for targetting
purposes is variable
27PRINT
- Balance between national and regional titles
- USA has more regional titles than UK
- Readership levels vary
- Low in LDCs with low education and literacy
levels - Magazine reach varies
- Europe has many more consumer magazines with
limited circulation. USA has national magazines
with high circulation - Readership patterns may vary High in
Sweden/Norway, low in France/Greece
28RADIO
- Commercial stations - national, regional or
local? - Unavailable for advertising in some countries
e.g. Norway, Saudi Arabia - Useful for specific markets where literacy and
income is low (e.g. Brazil) or with geographical
diversity (e.g. Australia) - Unlikely to support advertisments in a non-local
language
29OTHER MEDIA
- Cinema
- Attendance levels vary e.g. low in Italy
- Effectiveness at reaching target market depends
on films show - Outdoor Sites (posters, billboards, transport)
- Sites may be restricted by planning legislation
e.g. UK high, Spain low - Impact is variable and depends on travel flow
- Mobile phones
- Internet
30MEDIA DEVELOPMENTS
- Increasing internationalisation of printed media
- E.g. The Economist, Financial Times, Time
Magazine, Elle, Cosmopolitan - Growth of satellite and cable channels on global,
regional and national basis - Increasing advertising around world events
- E.g. World Cup, Olympic Games, Grand Prix
- Potential for internet as alternative media
31REGULATIONS IN ADVERTISING
- Product
- Type Alcohol, Tobacco,
- Claims Use of superlatives
- Knocking of competitors
- Target Audience
- Protection Children, Young People
- Violation of Culture Muslim Countries
- Standards Offensive images
- Media
- Prohibition Commercial advertising banned
- Scheduling Time/space available for
- advertising. Blocking regulations
32INTERNATIONAL ADVERTISING AGENCIES
- American J.Walter Thompson
- British Saatchi
- French Euro RSCG
- Japanese Dentsu
- The Mega Agency WPP Group
33SELECTION OF AGENCY
- Presented as TWO MAJOR ALTERNATIVES
- Use international agency with domestic and
overseas offices/affiliations (Network
operations) - OR
- Use local agencies based in each national market
(may be affiliated)
34AGENCY SELECTION CRITERIA
- Market coverage
- Quality of coverage
- Range of services provided
- Desired level of control
- Agency structure
- Network affiliation
- Location of decision making authority
- List of clients
35BENEFITS OF USING THE INTERNATIONAL AGENCY
- Facilitates global advertising strategy
- Can handle world brands
- Multi-market coverage
- Cost savings
- Efficiency in communications/co-ordination
- voids duplication
- To take advantage of international developments
36LOCAL AGENCIES
- Can offer
- Better quality
- Local knowledge
- Increased flexibility
- More creativity
- Affiliation to international networks
37CIRCUMSTANCES FAVOURING LOCAL AGENCIES
- Company pursuing localised advertising strategy
- Decision-making is decentralised
- Local laws promote national production
- Not invented here syndrome may be a problem
- Nationalistic attitude
38SUMMARY
- Growing globalisation of advertising, but still
need for adaptation in many cases - Continuum of options rather than 2 extremes
- Global advertising rarely practised in purest
form - Need to speak to consumers at local level, but
maintain global visibility - Globalisation of agencies
- Globalisation of media
39QUESTION
- Discuss the feasibility of consumer goods
manufacturers using standardised advertising in
Asian markets.