international advertising(rajshree)

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International Advertising Definition- International advertising entails dissemination of a commercial message to target audiences in more than one country. Target audiences differ from country to country in terms of how they perceive or interpret symbols or stimuli, respond to humor or emotional appeals, as well as in levels of literacy and languages spoken. How the advertising function is organized also varies. In some cases, multinational firms centralize advertising decisions and budgets and use the same or a limited number of agencies worldwide. In other cases, budgets are decentralized and placed in the hands of local subsidiaries, resulting in greater use of local advertising agencies.

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Page 1: international advertising(rajshree)

International Advertising

Definition-International advertising entails dissemination of a commercial message to target audiences in more than one country. Target audiences differ from country to country in terms of how they perceive or interpret symbols or stimuli, respond to humor or emotional appeals, as well as in levels of literacy and languages spoken. How the advertising function is organized also varies. In some cases, multinational firms centralize advertising decisions and budgets and use the same or a limited number of agencies worldwide. In other cases, budgets are decentralized and placed in the hands of local subsidiaries, resulting in greater use of local advertising agencies.

Page 2: international advertising(rajshree)

Steps involved in international advertising

Perform marketing researchSpecify the goals of the communicationDevelop the most effective message(s) for

the market segments selectedSelect effective mediaCompose and secure a budgetExecute the campaign Evaluate the campaign relative to the goals

specified

Page 3: international advertising(rajshree)

International advertising as a communication process

In international markets the process of communicating to a target audience is more complex because communication takes place across multiple contexts, which differ in terms of language, literacy, and other cultural factors. In addition, media differ in their effectiveness in carrying different appeals

Page 4: international advertising(rajshree)

Global advertising

Global advertising may fail for a variety of reasons

1)Legal constraints- laws that control comparative

advertising vary from country to country in Europe.

It is illegal to use any comparative technology ;you can be sued if you do.

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2)Linguistic limitation-

Language is one of the major barriers to effective communication through advertising. The problem involves different languages of different countries, different languages or dialects within one country

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3)Cultural diversity-

Communication is more difficult because cultural factors largely determine the way various phenomena are perceived. If the perceptual framework is different, perception of the message itself differs.

Knowledge of cultural diversity must encompass the total advertising project

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4)Production and cost limitation

Creativity is especially important when a budget is small and where there are severe production limitations.

In Egypt, static-filled TV and poor

quality billboards have led companies such as coca-cola and nestle to place their advertisements on sails of felluccas.

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5) Media limitationMedia may diminish the role of advertising in

the promotional program and may force the marketers to emphasis the other elements of promotional mix.

A marketer’s creativity is certainly challenged when a television commercial is limited to to 10 showing a year with no two exposure closer than 10 days. In some African countries advertisers run boats up and down the rivers playing popular music and broadcasting commercial into the bush as they travel

Page 9: international advertising(rajshree)

6)Cultural Diversity

Communication is more difficult because cultural factors largely determine the way various phenomena are perceived. If the perceptual framework is different, perception of the message itself differs.

Knowledge of cultural diversity must encompass the total advertising project

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Media planning and analysis1.Tactical considerations- An

advertiser must considera)Costb)Coveragec)Appropriateness of the media.

Page 11: international advertising(rajshree)

2.Availability Some countries have too few

advertising media and others have too many

3.Cost media prices are susceptible to

negotiation in most countries.4.Coverage At times certain advertising media

cannot reach certain sectors of the population .And sometimes the coverage lacks needed information

Page 12: international advertising(rajshree)

Advertising media

Newspaper- In some countries there are so

many newspapers that the advertiser has trouble achieving even partial market coverage and in some countries they have just one or two major daily newspaper.

Page 13: international advertising(rajshree)

2)Magazines There are varied types of consumer

magazines in the world. United states has the maximum.

3)Radio and television these two are the major media. But in most countries television is not

available on the nationwide. Radio is still popular in many countries for many reasons

Page 14: international advertising(rajshree)

4)Direct mail- Direct marketers can promote their

products through all advertising media.

5)Outdoors- outdoor advertising include posters,

billboards, painted bulletins, roadside and store signs and electric spectaculars.Used overseas

Page 15: international advertising(rajshree)

6)Screen(cinema)Has true captive audience. But cinema is a very poor advertising medium

outside of the U.S7)Directories books that provide listings of people,

professions, and institutions. E.g. yellow page telephone directories, with a

listing of various types of companies.8)internet9)Stadium- Common in soccer stadium and

cricket stadium.

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ADVERTISING AND REGULATIONS

Advertising can be affected by local regulations in several ways.

The availability of media (or the lack of it) is one example. When and how

much media time and space are made available, if at all, is determined by local authorities.

In Belgium prohibits the use of electricity for advertising purposes between midnight and 8 a.m.

Page 17: international advertising(rajshree)

Standardized international advertising

It is the practice of advertising the same product in the same way everywhere in the world.

There are three schools of thought on the issue of standardised advertising.

1)standardization 2)individualization 3)compromise

Page 18: international advertising(rajshree)

Standardization- doesn’t believe in the heterogeneity of the market. And the importance of the localized approach.

Individualization-this school has a belief that advertisers must make note of of the differences among countries .

Compromise-lies between standardization and individualization.

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Criterion 1:Identification Does the target group have

unique and measurable characteristic.

Criterion 2: SelectivityCan this group be reached

through the available media with minimum waste?

Criterion 3: ResponseWill this group differently but

more favorably than other groups to this particular

marketing mix(e.g.,a specially prepared advertisement)?

Criterion 4: SizeIs the group significant enough

in terms of size to justify a special attention?

standardization

standardization

standardization

standardization

no

no

no

no

yes

yes

yes

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Criterion 5: Cost/ProfitWill extra cost associated with

the special attention to the group be less than incremental

profit?

Market segmentation

Location (nonstandardization)

standardization

no

yes

yes

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QUESTIONS1.Do you think that there is a market for a

world or international newspaper?Ans. we do not think there is a market for an

international newspaper. Because it is difficult to have an international newspaper when it is very hard to even have a true national newspaper. International herald tribune and the wall street journal are not available everywhere and circulation is low.

It is difficult because almost every newspaper tries to be somewhat local in nature .

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2.As an advertising manager would you use a standardized advertising?

Ans. Yes, I would use standardized advertising . According to Keegan, it is appropriate to use

standardized advertising when,a)There is one product, one message, worldwide. Eg. coke and pepsi.b)Product extension-communications adaptation. A product maybe extended to other countries

because of uniform use conditions but due to varied needs promotional message must be changed.

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c)Product adaptation communications extension.

When use conditions differ but needs remain constant across markets, modification of product but not promotion is necessary

d)Product invention. Used when existing product is too expensive

for foreign consumers.

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3)What special media problems confront the international advertiser?

Ans.a)Legal constraintsb)Linguistic limitationc)Cultural diversityd)Media limitatione)Production and cost limitation

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4)Will the ability to broadcast advertising over t.v satellites increase or decrease the need for standardization of ads? what are the problems associated with satellite broadcasting? comment.

Ans. The ability to broadcast advertising over t.v satellites will increase the standardization of global advertising, more specifically advertising messages. It will

challenge the creativity of advertisers. Most popular foreign show, wheel of fortune,

is shown in both U.K and in France where both french and U.S versions are shown .

Page 26: international advertising(rajshree)

Problems associated with satellite broadcasting is their strength to span a wide geographical region covering different country markets which may not be desirable for some products.

Single message may not be effective due to cultural differences in language, preferences and so on.

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Thank you