Marketing 3344

Taking on a Huge International Advertising and IBP Challenge

International Advertising

Advertising that crosses national and cultural boundaries Important issue: Cultures not nations define the nature of advertising messages

Overcoming Cultural Barriers

Barriers to successful international advertising: Ethnocentrism Tendency to view and value things through ones own cultural perspective Self-Reference Criterion (SRC) Unconscious reference to own cultural values, experiences, and knowledge to make decisions

Cross-Cultural Audience Research

Economic conditions (LDC, NIH, HIC) Demographic characteristics Values Custom and ritual Product use and preferences

Challenges in Executing Advertising Worldwide

The Creative Challenge The Media Challenge The Regulatory Challenge

Creative Challenge

Written and spoken language Translation difficulties Culture-bound picturing Assumptions and inferences Identifying cross-cultural icons and symbols

Ad in Context Example
Why could this ad be Why could this ad be used on a world-wide used on a world-wide basis? basis?

The Media Challenge

Availability and Coverage Too few options Too many options Global television now possible though Costs and Pricing Complex due to many options No set pricing in some markets Global coverage is expensive

Regulatory Challenges
What are the . . . Products that can be advertised? Appeals that can be used? Times that products may be promoted? Rules regarding foreign language use? Restrictions on using national symbols? Taxes levied against advertising?

Regulatory Challenges

Can you use: Ads directed to children? Foreign languages in ads? National symbols in ads? Advertising may be taxed

International Agency Options

Global Agency
Greater integration Economies of scale

Local agency
Highly localized Execution risks

International affiliates
Local market expertise Cultural adaptation

Ad Campaigns: Global versus Local

Global Campaigns
Message

Local Campaigns
Message 1 Message 1 Message 2 Message Message 3 Message 3

Market A

Market B

Market C

Ad in Context Example
Why can Jack Why can Jack Daniels use a Daniels use a global ad campaign global ad campaign when other when other advertisers often advertisers often cannot? cannot?

Trends Promoting Global Advertising

Global communications Global youth Universal demographics and lifestyle trends Americanization of consumption values

Arguments Against Using Global Campaigns

Audiences in different cultures place value on different brand attributes Global campaigns can defy local customs or ignore local competition Local managers will not support a global campaign and message