Download - © 2005 Prentice Hall13-1 Chapter 13 Communications Decisions: Advertising and Public Relations
© 2005 Prentice Hall 13-1
Chapter 13 Communications Decisions:
Advertising and Public Relations
13-2
managing marketing
from global headquarters
©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.
International Marketing Mix DecisionsStrategic Alternatives in international and
global marketing mix decisions. Managerial issues
Creative Challenges in International Communications
• Legal and tax considerations
• Language limitations
• Cultural diversity
• Media limitations
• Production and cost limitations
• Legal and tax considerations
• Language limitations
• Cultural diversity
• Media limitations
• Production and cost limitations
13-3
managing marketing
from global headquarters
©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.
International Marketing Mix DecisionsStrategic Alternatives in international and
global marketing mix decisions. Managerial issues
Plan globally and act locally
Standardise where possible and adapt where necessary.
– Advertising of “Vice Products” and Pharmaceuticals
– Comparative Advertising
– Content of Advertising Messages
– Advertising Targeting Children
– Other Advertising Regulations: Issues of local languages, tax issues, and advertising rates.
13-4
managing marketing
from global headquarters
©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.
International Marketing Mix DecisionsStrategic Alternatives in international and
global marketing mix decisions. Managerial issues
Barriers to standardising International Communications
CUSTOMER RESPONSECUSTOMER RESPONSE Language, LiteracyLanguage, Literacy Perception, Association and SymbolismPerception, Association and Symbolism
MEDIAMEDIA Media Availability and ReachMedia Availability and Reach Media Cost EffectivenessMedia Cost Effectiveness
REGULATIONREGULATION Message and Budget RestrictionsMessage and Budget Restrictions Regulation of In-Store Promotions, Direct Marketing, Regulation of In-Store Promotions, Direct Marketing,
Sampling, etc.Sampling, etc.
CUSTOMER RESPONSECUSTOMER RESPONSE Language, LiteracyLanguage, Literacy Perception, Association and SymbolismPerception, Association and Symbolism
MEDIAMEDIA Media Availability and ReachMedia Availability and Reach Media Cost EffectivenessMedia Cost Effectiveness
REGULATIONREGULATION Message and Budget RestrictionsMessage and Budget Restrictions Regulation of In-Store Promotions, Direct Marketing, Regulation of In-Store Promotions, Direct Marketing,
Sampling, etc.Sampling, etc.
13-5
managing marketing
from global headquarters
©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.
International Marketing Mix DecisionsStrategic Alternatives in international and
global marketing mix decisions. Managerial issues
Example: Sub cultures within the same country
The future is bright, the future
is orange
13-6
managing marketing
from global headquarters
©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.
International Marketing Mix DecisionsStrategic Alternatives in international and
global marketing mix decisions. Managerial issues
Promoting global communications
The emergence of global media.
The influence of television satellites.
Enlargement and overlapping of media.
Technological and social changes open the door for more specific and segmented marketing.
Advertising agencies internationalise.
The emergence of global media.
The influence of television satellites.
Enlargement and overlapping of media.
Technological and social changes open the door for more specific and segmented marketing.
Advertising agencies internationalise.
13-7
managing marketing
from global headquarters
©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.
International Marketing Mix DecisionsStrategic Alternatives in international and
global marketing mix decisions. Managerial issues
Benefits of global communications
Significant Cost Savings
Uniform Image (Synergies)
Use of Good Ideas
International Customers
BUT
Difficulty of Finding Universal Appeals
Significant Cost Savings
Uniform Image (Synergies)
Use of Good Ideas
International Customers
BUT
Difficulty of Finding Universal Appeals
13-8
managing marketing
from global headquarters
©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.
International Marketing Mix DecisionsStrategic Alternatives in international and
global marketing mix decisions. Managerial issues
Lost in translation : Example Rice Krispies
13-9
managing marketing
from global headquarters
©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.
International Marketing Mix DecisionsStrategic Alternatives in international and
global marketing mix decisions. Managerial issues
In many Asian countries Ronald McDonald is known as Donald McDonald
..because of problems with the pronuncaition of the letter “R”
Lost in translation
13-10
managing marketing
from global headquarters
©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.
International Marketing Mix DecisionsStrategic Alternatives in international and
global marketing mix decisions. Managerial issues
Soft drink launched in Japan with the brand namePocari Sweat
To the Japanese this foreign-sounding name which conveyed a positive, healthy, thirst-quenching image
Sweat
Foreign Sounding “Words”
Footing = JoggingParking = Car Park
Lost in translation
13-11
managing marketing
from global headquarters
©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.
International Marketing Mix DecisionsStrategic Alternatives in international and
global marketing mix decisions. Managerial issues
Names of Japanese Products the Products
1.Clean Life Rubber cleaning gloves2. I’ve shampoo3.Love-love Shaver4.Volume Up Water Hair spray5. Hope Cigarettes6. Mouth Jazz Mouth Liquid7. Creap Powder milk8. Meltykiss Sweets9. Super Winky Condoms
Lost in translation
13-12
managing marketing
from global headquarters
©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.
International Marketing Mix DecisionsStrategic Alternatives in international and
global marketing mix decisions. Managerial issues
Lost in translation
13-13
managing marketing
from global headquarters
©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.
International Marketing Mix DecisionsStrategic Alternatives in international and
global marketing mix decisions. Managerial issues
HooverBand-AidPolaroidKleenexSuper-glueQ-TipsXeroxCokePampersScotch TapeLevisAlka Seltzer
Coffee-MateSweet-n-LowTampax
Lost in translation
13-14
managing marketing
from global headquarters
©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.
International Marketing Mix DecisionsStrategic Alternatives in international and
global marketing mix decisions. Managerial issues
Schweppes
tonic water - “translation” for Italian market
Il Water
Lost in translation
13-15
managing marketing
from global headquarters
©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.
International Marketing Mix DecisionsStrategic Alternatives in international and
global marketing mix decisions. Managerial issues
© Gerard Ryan. Professor de la Universitat Rovira I Virgili I Professor Col·laborador d’ESADE
Denim o Jean = dzhinsi in RussianParking & FootingFeeling & weekendself service = ‘le self’ in FrenchThe Japanese language has 20,000 English words !
Lost in translation
13-16
managing marketing
from global headquarters
©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.
International Marketing Mix DecisionsStrategic Alternatives in international and
global marketing mix decisions. Managerial issues
New evening plan from AirtelFor those moments when you let your tongue flow
Lost in translation
13-17
managing marketing
from global headquarters
©2005 Dr.Gerard Ryan, Universitat Rovira i Virgili.
International Marketing Mix DecisionsStrategic Alternatives in international and
global marketing mix decisions. Managerial issues
02/12/05
Europe
2 of December 2005
USA
February 12 2005
Best before...
Lost in translation
13-18
Global Marketing Communications
The primary purpose of marketing communications is to tell customers abut 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
13-19
Global Advertising
Advertising is any sponsored, paid message that is communicated in a non-personal way– Single country
– Regional
– Global
Global advertising is the use of the same advertising appeals, messages, art, copy, photographs, stories, and video segments in multiple country markets
13-20
Standardization vs. Adaptation
Primary Question– Must the specific advertising message
and media strategy be changed from region to region or country to country?
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Standardization vs. Adaptation
Four difficulties that compromise an organization’s communication efforts– The message may not get through to the intended
recipient. – 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 noise.
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Standardization vs. Adaptation
“Eighteen-year olds in Paris have more in common with 18-year-olds in New York
than with their own parents. They buy the same products, go to the same movies,
listen to the same music, sip the same colas. Global advertising merely works on that
premise.”
- William Roedy, Director, MTV Europe
13-23
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 unites specializing in direct
marketing, marketing services, public relations, or research
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 Advertising Agency
Company organization– Companies that are decentralized ma want to leave the
choice to the local subsidiaryNational responsiveness– Is the global agency familiar with local culture and
buying habits of a particular country?Area coverage– Does the agency cover all relevant markets
Buyer perception– What kind of brand awareness does the company want
to project?
13-25
Creating Global Advertising
Creative strategyBig ideaAdvertising appeal– Rational approach– Emotional approach
Selling propositionCreative execution– Art & Copy
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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
13-27
Cultural Considerations – Japanese and American Differences
Indirect rather than direct forms of expression are preferred in the messagesThere is often little relationship between ad content and the advertised productOnly brief dialogue or narration is used in television commercials, with minimal explanatory contentHumor is used to create a bond of mutual feelingsFamous celebrities appear as close acquaintances or everyday peoplePriority is placed on company trust rather than product qualityThe product name is impressed on the viewer with short, 15-second commercials
13-28
Cultural Considerations
13-29
Global Media Decisions
Prepare new copy for foreign markets in host country’s language
Translate the original copy into target language
Leave some or all copy elements in home country language
13-30
Media Decisions – Saudi Arabia
Use of comparative advertising claims is prohibitedNon-censored films cannot be advertisedWomen may only appear in those commercials that relate to family affairs, and their appearance must be in a decent manner that ensures feminine dignityWomen must wear a long suitable dress which fully covers her body except face and palms
13-31
Public Relations and Publicity
Fosters goodwill and understanding
Generates favorable publicity
Tools– News releases
– Media kits
– Press conferences
– Tours
– Articles in trade and professional journals
– TV and radio talk show appearances
– Special events
13-32
The Growing Role of Public Relations in Global Marketing
Public Relations expenditures are growing at an average of 20% per year
In India they are reported to be growing by 200% annually
Reasons for the growth– Increased governmental relations between countries
– Technology
– Societal issues like the environment
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Public Relations Practices around the World
Public relations practices can be affected by:– Cultural traditions– Social and political contexts– Economic environments
Public relations professionals must understand these differences and tailor the message appropriately
13-34
Looking Ahead
Chapter 14 Global Marketing Decisions: Sales Promotion, Personal Selling, Special Forms of Marketing Communication