15Managing Global Advertising

Learning Objectives

• List both the advantages and the special requirements of standardized campaigns.

• Define the global theme approach to advertising, and explain how it differs from a totally standardized campaign.

• Explain the market and cultural limitations on the advertising message or on its execution.

• Identify key issues related to advertising that tend to be regulated by national governments.

• Cite ways to avoid faulty translations and ways to minimize the need to translate.

• Explain how media availability, media habits, and scheduling international advertising all affect the advertising campaign.

• Differentiate among the three options of utilizing domestic advertising agencies, using local advertising agencies, and using international advertising networks.

• List the external and internal factors that influence a firm’s decision to centralize or localize its advertising decisions.

Chapter Outline

• Global versus local advertising

• Developing global campaigns

• The global-local decision

• Overcoming language barriers

• Global media strategy

• Organizing the global advertising effort

Overcoming Language and Cultural Barriers

• Some markets or regions require multilingual advertising

• Proper linguistic translation is imperative and challenging– Can be difficult to translate critical words

• Concepts also may not translate well culturally adaptations may be necessary– Benetton’s nursing black mother

– Fed Ex’s naked soccer players

The Regulatory Challenge

• Types of products that can be advertised

• Types of appeals that can be used

• Times that certain products can be promoted

• Use of foreign languages in advertisements

• Use of national symbols in advertisements

• Taxes levied against advertising expenditures

Global Advertising

• Modularized approach – Some features are selected as standard for all advertisements, and other features are localized

• Global theme approach – Same advertising theme is used around the world but is varied slightly in each local execution

Media Availability

• Global media– TV = CNN, BBC World, ESPN, MTV, Satellite

stations– Print = The Economist, Fortune, Time, Business

Week– Internet = banner ads

• But companies cannot expect to use their preferred advertising medium to the fullest extent everywhere it may not be available!

Selecting Ad Agencies

• Domestic Agencies– When firm first goes international, typically turns to domestic

agency for help– But smaller agencies typically don’t have international

experience

• Local Agencies– Understands local environment, creates targeted advertising– Can be difficult to coordinate across several markets

• International Advertising Networks– Can be difficult to be global and local – instead many

companies have formed alliances to serve clients globally with local experience and expertise

Advertising Coordination

• External factors

– Market diversity• Homogeneous customer needs and interests =

more standardized, centralized approach• Heterogeneous customer needs and interests =

more adapted, localized approach

– Competitive set• Similar set of competitors across markets =

more standardized, centralized approach• Differing local competitors in each market =

more adapted, localized approach

Advertising Coordination (cont.)

• Internal factors– Decentralization

• Is only possible if local skill levels and efficiency are acceptable

• May be preferred by companies priding themselves on giving considerable freedom to subsidiary managers