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Chapter 16
Integrated Marketing
Communications and
International
Advertising
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction
or distribution without the prior written consent of McGraw-Hill Education.
Learning Objectives
LO1 Local market characteristics that affect the advertising and
promotion of products
LO2 The strengths and weaknesses of sales promotions and
public relations in global marketing
LO3 When global advertising is most effective; when modified
advertising is necessary
LO4 The communication process and advertising misfires
LO5 The effects of a single European market on advertising
LO6 The effect of limited media, excessive media, and
government regulations on advertising and promotion
budgets
2
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or distribution without the prior written consent of McGraw-Hill Education.
Integrated Marketing Communications
 Integrated marketing communications (IMC) are composed
of advertising, sales promotions, trade shows, personal
selling, direct selling, and public relations.
• In many markets, the availability of appropriate communication
channels to customers can determine entry decisions.
• Product and service development must be informed by research
regarding the availability of communication channels.
• Once a market offering is developed to meet target market
needs, intended customers must be informed of the offering’s
value and availability.
3
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or distribution without the prior written consent of McGraw-Hill Education.
Sales Promotions in International Markets
 Sales promotions are marketing activities that
stimulate consumer purchases and improve retailer
or middlemen effectiveness and cooperation.
 Sales promotions are short-term efforts directed to
the consumer or retailer to achieve such specific
objectives.
 In markets in which the consumer is hard to reach
because of media limitations, the percentage of the
promotional budget allocated to sales promotions
may have to be increased.
4
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Sales Promotion: Specific Objectives
 Consumer product trial or immediate purchase
 Consumer introduction to the store or brand
 Gaining retail point-of-purchase displays
 Encouraging stores to stock the product
 Supporting and augmenting advertising and personal
sales efforts
5
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or distribution without the prior written consent of McGraw-Hill Education.
International Public Relations
 Creating good relationships with the popular press
and other media to help companies communicate
messages to their publics—customers, the general
public, and governmental regulators
• Encouraging the press to cover positive stories about
companies
• Managing unfavorable rumors, stories, and events
6
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or distribution without the prior written consent of McGraw-Hill Education.
Samsung advertisement in Piazza Navona
The Baroque exuberance of the figure representing the Rio de la Plata seems
to be protesting the banality of the Samsung advertisement in the background.
©JohnGraham
7
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or distribution without the prior written consent of McGraw-Hill Education.
International Advertising
 Global mass media advertising is a powerful tool for
cultural change, and as such, it receives continuing
scrutiny by a wide variety of institutions.
 Advertising expenditures are generally cyclical, though
less so in relationship-oriented countries where
managers and regulators favor stability and long-term
performance.
 We are just beginning to understand some of the key
issues involved in international advertising, but our
knowledge will continue to be quite perishable as the
revolution continues.
8
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Exhibit 16.1
Top 20 Global Advertisers
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or distribution without the prior written consent of McGraw-Hill Education.
9
Source: Advertising Age, 2014. Copyright © 2014 Crain Communication. Reprinted with permission.
Exhibit 16.2
Top 100 Advertisers’ Global Spending by Category
Category
2013
(billions)
Percent Change
from 2012
Percent of
Total
Automotive $16.5 3.6% 11.9%
Retail 16.1 0.2 11.6
Telecommunications, Internet services, ISP 11.2 6.0 8.1
General Services 9.0 3.2 6.5
Food, beverages, candy 8.5 -1.2 6.1
Medicine and remedies 8.2 5.8 5.9
Financial services 7.6 -4.7 5.5
Personal care 7.1 2.1 5.1
Restaurants 6.3 5.3 4.6
Insurance 5.3 7.5 3.8
10
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Source: Advertising Age, Crain Communication
Exhibit 16.3a
Top Ten Advertisers - Russia ($ millions)
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or distribution without the prior written consent of McGraw-Hill Education.
11
Source: From Special Report Global Marketing, Advertising Age, 2012. Copyright © 2012 Crain
Communication. Reprinted with permission.
Exhibit 16.3b
Top Ten Advertisers - China ($ millions)
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or distribution without the prior written consent of McGraw-Hill Education.
12
Source: From Special Report Global Marketing, Advertising Age, 2012. Copyright © 2012 Crain
Communication. Reprinted with permission.
Basic Framework of
International Advertising
 Seven steps are involved:
1. Perform marketing research.
2. Specify the goals of the communication.
3. Develop the most effective message(s) for the market
segments selected.
4. Select effective media.
5. Compose and secure a budget based on what is required
to meet goals.
6. Execute the campaign.
7. Evaluate the campaign relative to the goals specified.
13
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or distribution without the prior written consent of McGraw-Hill Education.
Advertising Strategy and Goals
 Intense competition for world markets and the increasing
sophistication of foreign consumers have led to the need
for more sophisticated advertising strategies.
 In many cases, standardized products may be marketed
globally. But because of differences in cultures, they still
require a different advertising appeal in different
markets.
 Many companies are using market segmentation
strategies that ignore national boundaries.
 Others are proposing newer global market segments
defined by “consumer cultures” related to shared sets of
consumption-related symbols.
14
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or distribution without the prior written consent of McGraw-Hill Education.
Vehicular ads in London
These vehicular ads make an effective advertising medium even in a dense London
fog. Because most London cabs are black, the Snickers ad catches the eye immediately.
©JohnGraham
©JohnGraham
15
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or distribution without the prior written consent of McGraw-Hill Education.
Product Attribute and
Benefit Segmentation
 A market offering really is a bundle of satisfactions
(or utilities) the buyer receives.
• The primary function of the product or service
• Other benefits imputed by the values and customs of the
culture
 While usually agreeing on the benefit of the primary
function of a product, consumers may perceive other
features and psychological attributes of the item
differently.
16
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or distribution without the prior written consent of McGraw-Hill Education.
Regional Segmentation
 The emergence of pan-European communications
media is enticing many companies to push the
balance toward more standardized promotional
efforts.
 Companies strive for harmony in brand names,
advertising, and promotions across Europe.
• To avoid the confusion that results when a market is
exposed to multiple brand names and advertising
messages
• For reasons of efficiency
17
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The Message: Creative Challenges
 International communications may fail for a variety
of reasons:
• A message may not get through because of media
inadequacy
• The message may be received by the intended audience
but not be understood because of different cultural
interpretations
• The message may reach the intended audience and be
understood but have no effect because the marketer did
not correctly assess the needs and wants or even the
thinking processes of the target market
18
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Global Advertising and the
Communications Process
 An information source. Product message to
communicate
 Encoding. Conversion to effective symbolism for
transmission
 A message channel. Media that conveys the encoded
message
 Decoding. The interpretation by the receiver of the
symbolism
 Receiver. Those who receive the message
 Feedback. Information about the effectiveness of the
message
 Noise. Uncontrollable and unpredictable influences
19
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Exhibit 16.4
The International Communication Process
20
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or distribution without the prior written consent of McGraw-Hill Education.
The Power of Colors
Notice the Coke advantage at work—the red contrasts with the outdoor environment,
while the Cristal aqua blends more with the blue sky and trees.
©JohnGraham
©JohnGraham
21
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or distribution without the prior written consent of McGraw-Hill Education.
Red works!
David Beckham, in his Manchester United red and Formula 1 racecar driver Michael
Schumacher.
©TomPurslow/ManchesterUnitedviaGettyImages
©MarkBaker/APImages
22
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Coke and McDonald’s black and white logos
The stadium pictured is in Buenos Aires, is popularly called La Bombonera, is officially
named Albierto Armano, is the home of the club team Boca Junior, and was the home
team for Argentina’s most famous futbol player ever, Maradona. The McDonald’s sits
adjacent to the city square in the old Inca Empire capital at Cuzco, Peru.
©JohnGraham
©JohnGraham
23
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or distribution without the prior written consent of McGraw-Hill Education.
Decoding Problems
 Errors at the receiver end of the process generally
result from a combination of factors:
• An improper message resulting from incorrect knowledge
of use patterns
• Poor encoding producing a meaningless message
• Poor media selection that does not get the message to the
receiver
• Inaccurate decoding by the receiver so that the message is
garbled or incorrect
• Bad luck
24
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or distribution without the prior written consent of McGraw-Hill Education.
Noise: A Disruptive Force
 Comprises all other external influences:
• Competitive advertising
• Other sales personnel
• Confusion at the receiving end
 It is frequently beyond the control of the sender or
the receiver.
25
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or distribution without the prior written consent of McGraw-Hill Education.
California Fitness Centers in Singapore
City streets in Singapore are alive with advertising. Obviously the image of
“bodyland” southern California sells well around the world.
©JohnGraham
26
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or distribution without the prior written consent of McGraw-Hill Education.
Legal Constraints
 Laws that control comparative advertising vary from country to
country in Europe.
 Comparative advertising is heavily regulated in other parts of the
world as well.
 A variety of restrictions on advertising of specific products exist
around the world.
 Advertising on television is strictly controlled in many countries.
 Internet services are especially vulnerable as EU member states
decide which area of regulation should apply to these services.
 Some countries have special taxes that apply to advertising,
which might restrict creative freedom in media selection.
27
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Linguistic Limitations
 Major barriers include:
• Different languages of different countries
• Different languages or dialects within one country
• Subtler problems of linguistic nuance, argument style,
vernacular, and even accent
 Abstraction, terse writing, and word economy, the most
effective tools of the advertiser, pose problems for
translators.
 Low literacy in many countries seriously impedes
communications and calls for greater creativity and use
of verbal media.
28
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or distribution without the prior written consent of McGraw-Hill Education.
Jamaica
The “true ting” in Jamaica is a grapefruit-flavored soft drink.
©JohnGraham
29
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or distribution without the prior written consent of McGraw-Hill Education.
Spain and China
Giant bulls are posted on hillsides
around rural Spain.
GE joined with the Chinese government
in promoting a green Olympics.
Ironically, many folks around the world
see outdoor advertising itself as a kind
of pollution!
©DenisDoyle/APImages
CourtesyofGE
30
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or distribution without the prior written consent of McGraw-Hill Education.
Cultural Diversity
 “International advertising is almost uniformly
dreadful mostly because people don’t understand
language and culture.”
 Existing perceptions based on tradition and heritages
often render advertising campaigns ineffective or
worse.
 In addition to concerns with differences among
nations, advertisers find that subcultures within a
country require attention.
31
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or distribution without the prior written consent of McGraw-Hill Education.
Media Limitations
 Limitations on creative strategy imposed by media
may:
• diminish the role of advertising in the promotional
program
• force marketers to emphasize other elements of the
promotional mix
 Creative advertisers in some countries have even
developed their own media for overcoming media
limitations.
32
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or distribution without the prior written consent of McGraw-Hill Education.
Production and Cost Limitations
 Creativity is especially important when a budget is
small or where there are severe production
limitations, such as poor-quality printing and a lack
of high-grade paper.
 The necessity for low-cost reproduction in small
markets poses another problem in many countries.
33
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or distribution without the prior written consent of McGraw-Hill Education.
Media Planning and Analysis
 The network effects of the burgeoning electronic
communication media—in the form of PCs, the
Internet, and mobile phones—influence not only
political events and responses to natural disasters
but also everyday life for everyone on the planet.
 The changes in media in the 21st century are
proceeding at a blinding speed.
34
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or distribution without the prior written consent of McGraw-Hill Education.
Tactical Considerations
 In international advertising, an advertiser must
consider the availability, cost, coverage, and
appropriateness of the media.
 The constant competitive churn among these media
makes for a tricky and dynamic landscape for
decisions.
 Effectiveness of advertising varies across media
types, cultures, and products.
 Local variations and lack of market data require
added attention.
35
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or distribution without the prior written consent of McGraw-Hill Education.
Lack of Market Data
 Verification of circulation or coverage figures is a
difficult task.
 Even where advertising coverage can be measured
with some accuracy, there are questions about the
composition of the market reached.
 Lack of available market data seems to characterize
most international markets.
36
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or distribution without the prior written consent of McGraw-Hill Education.
Newspapers and Magazines
 The newspaper industry is suffering from lack of competition in
some countries and choking because of it in others.
 In many countries, there is a long time lag before an advertisement
can be run in a newspaper.
 Separation between editorial and advertising content in
newspapers provides another basis for contrast on the international
scene.
 The use of foreign national consumer magazines by international
advertisers has been notably low for many reasons.
 Few magazines have a large circulation or provide dependable
circulation figures.
 Technical magazines are used rather extensively to promote export
goods, but as with newspapers, paper shortages cause placement
problems.
37
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Exhibit 16.5
Media Spending, US$/household, in Selected Countries
(average annual growth rate 2008–2013)
Country TV Radio Print Cinema Outdoor Online
World (11.4) 90 (1.7) 16 (-2.7) 60 (-7.4) 1 (4.1) 15 (-0.6) 45
China (21.3) 41 (15.2) 4 (6.5) 21 (6.9) 0.2 (10.4) 11 (8.8) 18
Japan (5.4) 304 (-1.4) 21 (-4.5) 143 (-7.4) - 79 (-5.8) 155
Australia (14.3) 445 (-0.6) 117 (-0.9) 378 (-9.8) 12 (0.0) 57 (0.6) 409
Russia (29.8) 72 (4.3) 7 (1.3) 14 (-7.6) 3 (13.8) 18 (-3.3) 32
Brazil (18.0) 154 (-2.6) 9 (5.6) 36 (-0.9) 1 (1.9) 6 (8.1) 12
Israel (3.2) 159 (-2.6) 19 (-6.6) 123 (-10.6) 3 (-1.0) 20 (-9.1) 89
South Africa (17.9) 104 (10.3) 33 (9.2) 72 (-1.0) 2 (-8.5) 10 (7.7) 6
Canada (14.4) 254 (-0.3) 117 (-0.2) 181 (-5.7) - 36 (0.3) 239
USA (12.7) 532 (1.4) 137 (-3.5) 333 (-10.5) 6 (4.1) 65 (1.3) 277
Germany (9.7) 130 (-0.6) 24 (-0.1) 281 (-4.5) 2 (-1.3) 25 (-1.5) 131
Source: Euromonitor, 2015.
38
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or distribution without the prior written consent of McGraw-Hill Education.
Radio and Television
 Most adults view television and listen to radio daily.
 Television and radio advertising availability varies
between countries.
 Some countries do not permit any commercial radio
or television.
 Several of the traditional noncommercial countries
have changed their policies in recent years because
television production is so expensive.
39
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or distribution without the prior written consent of McGraw-Hill Education.
Satellite and Cable TV
 Of increasing importance in TV advertising is
the growth and development of satellite TV
broadcasting.
 The expansion of TV coverage will challenge
the creativity of advertisers and put greater
emphasis on global standardized messages.
40
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or distribution without the prior written consent of McGraw-Hill Education.
Drawbacks of Satellite TV
 Governments fear further loss of control over their
airwaves and the spread of “American cultural
imperialism.”
 Because of their ability to span a wide geographical
region covering many different country markets, a
single message is broadcast throughout a wide area.
• With cultural differences in language, preferences, and so
on, a single message may not be as effective.
 Most satellite technology involves some government
regulation that seldom works for long.
41
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or distribution without the prior written consent of McGraw-Hill Education.
Irish beer advertisements
Ireland is behind only the Czech Republic when it comes to per capita consumption of
beer.
©JohnGraham
©JohnGraham
©JohnGraham
42
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction
or distribution without the prior written consent of McGraw-Hill Education.
Direct Mail and the Internet
 A viable medium in an increasing number of countries
 Especially important when other media are not available
 Subject to some odd and novel quirks
 A meaningful way to reach their markets
 The Internet can reach a large portion of the business-to-business
market and is widely used in business-to-business communications
and promotion via catalogs and product descriptions.
 Beyond the control of undesirable information, issues such as pay-
per-view, taxes, unfair competition, import duties, and privacy are
being addressed all over the world.
 The Internet industry is lobbying for a global understanding on
regulation to avoid a crazy quilt of confusing and contradictory
rules.
43
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or distribution without the prior written consent of McGraw-Hill Education.
Exhibit 16.6
Top Ten Websites
(31.9 million visitors per month)
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or distribution without the prior written consent of McGraw-Hill Education.
44
Source: comScore Media Metrix, 2012, online.
Reprinted with permission.
Social Media
 Powerful marketing tools: social networking, blogs,
virtual worlds, and video sharing
 Consumer-generated content is having an impact on
brands (both positive and negative)
 Consumers from many different countries and
cultures can and do interact online
 At more than one billion users, Facebook dominates
social networking around the world
45
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or distribution without the prior written consent of McGraw-Hill Education.
Exhibit 16.7
Top 10 Social Media Users
Average Time Spent on Social Networking Sites, October 2011 (hours per user)
Source: Michael Jung, “Social Networking Is the Most Popular Online Activity,” http://www.thenewage. co.za/38836-1021-53-
Social_ networking_is_the_most_popular_ online_activity, December 26, 2011, online.
46
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or distribution without the prior written consent of McGraw-Hill Education.
Mobile Phone Applications and
Other Media
 As the number of mobile phones continues to explode
around the world, now over 7 billion, so do the number
of applications available to users.
 The top 1 percent of mobile phone users consume half of
the world’s bandwidth, and the gap is growing!
 Restrictions on traditional media or their availability
cause advertisers to call on lesser media to solve
particular local-country problems.
 The cinema is an important medium in many countries.
 Billboards are especially useful in countries with high
illiteracy rates.
47
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Pizza Hut and Diet Pepsi’s novel advertising
Not only do the Russians sell space for space tourists on their rockets, they also sell
advertising space! The Japanese beverage company Suntory promotes its products with
“Monitor Man” during a football match at National Stadium.
©YuriKochetkovEuropeanPressAgency/Newscom
©TatsuyukiTayama/Fujifotos/TheImageWorks
48
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Campaign Execution and
Advertising Agencies
 Just as manufacturing firms have become international,
so too have U.S., Japanese, and European advertising
agencies expanded internationally to provide
sophisticated agency assistance worldwide.
 Local agencies also have expanded as the demand for
advertising services by MNCs has developed.
 In most commercially significant countries, an advertiser
has the opportunity to employ a local domestic agency,
its company-owned agency, or one of the multinational
advertising agencies with local branches.
49
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Exhibit 16.8 World’s Top Ten Advertising Agencies
2013
Agency
(parent)
Headquarters
Global Revenues
($ billion 2013)
Percent Change
from 2012
1 WPP Dublin $17.3 4.8%
2 Omnicom Group New York 14.6 2.6
3 Publicis Groupe Paris 9.2 8.7
4 Interpublic Group New York 7.1 7.0
5 Dentsu Tokyo 5.8 -9.4
6 Havas Suresnes, France 2.3 2.1
7 Hakuhodo DY Holdings Tokyo 1.8 -15.7
8
Alliance Data Systems
International
Irvine, TX 1.4 10.6
9
IBM International
Experience
Armonk, NY 1.3 74.3
10 MDC Partners Toronto/New York 1.2 6.1
Source: From Special Report Global Marketing, Advertising Age. Crain Communication.
50
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International Control of Advertising:
Broader Issues
 A study of a representative sample of European consumers
indicated that only half believed ads gave useful information.
 The non-Europeans praised advertising as a way to obtain
valuable information about products.
 European Commission officials are establishing directives to
provide controls on advertising as cable and satellite
broadcasting expands.
 Decency and the blatant use of sex in advertisements also are
receiving public attention.
 The assault on advertising and promotion of tobacco products
is escalating.
 Product placement within TV programming is another area of
advertising receiving the attention of regulators.
51
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or distribution without the prior written consent of McGraw-Hill Education.
Summary
 An IMC program includes coordination among
advertising, sales management, public relations, sales
promotions, and direct marketing.
 Global marketers face unique legal, language, media, and
production limitations in every market.
 The major problem facing international advertisers is
designing the best messages for each market served.
 Advances in communication technologies are causing
dramatic changes in the structure of the international
advertising and communications industries.
52
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Chapter 16 PowerPoint

  • 1. Chapter 16 Integrated Marketing Communications and International Advertising Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 2. Learning Objectives LO1 Local market characteristics that affect the advertising and promotion of products LO2 The strengths and weaknesses of sales promotions and public relations in global marketing LO3 When global advertising is most effective; when modified advertising is necessary LO4 The communication process and advertising misfires LO5 The effects of a single European market on advertising LO6 The effect of limited media, excessive media, and government regulations on advertising and promotion budgets 2 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 3. Integrated Marketing Communications  Integrated marketing communications (IMC) are composed of advertising, sales promotions, trade shows, personal selling, direct selling, and public relations. • In many markets, the availability of appropriate communication channels to customers can determine entry decisions. • Product and service development must be informed by research regarding the availability of communication channels. • Once a market offering is developed to meet target market needs, intended customers must be informed of the offering’s value and availability. 3 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 4. Sales Promotions in International Markets  Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation.  Sales promotions are short-term efforts directed to the consumer or retailer to achieve such specific objectives.  In markets in which the consumer is hard to reach because of media limitations, the percentage of the promotional budget allocated to sales promotions may have to be increased. 4 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 5. Sales Promotion: Specific Objectives  Consumer product trial or immediate purchase  Consumer introduction to the store or brand  Gaining retail point-of-purchase displays  Encouraging stores to stock the product  Supporting and augmenting advertising and personal sales efforts 5 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 6. International Public Relations  Creating good relationships with the popular press and other media to help companies communicate messages to their publics—customers, the general public, and governmental regulators • Encouraging the press to cover positive stories about companies • Managing unfavorable rumors, stories, and events 6 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 7. Samsung advertisement in Piazza Navona The Baroque exuberance of the figure representing the Rio de la Plata seems to be protesting the banality of the Samsung advertisement in the background. ©JohnGraham 7 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 8. International Advertising  Global mass media advertising is a powerful tool for cultural change, and as such, it receives continuing scrutiny by a wide variety of institutions.  Advertising expenditures are generally cyclical, though less so in relationship-oriented countries where managers and regulators favor stability and long-term performance.  We are just beginning to understand some of the key issues involved in international advertising, but our knowledge will continue to be quite perishable as the revolution continues. 8 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 9. Exhibit 16.1 Top 20 Global Advertisers Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 9 Source: Advertising Age, 2014. Copyright © 2014 Crain Communication. Reprinted with permission.
  • 10. Exhibit 16.2 Top 100 Advertisers’ Global Spending by Category Category 2013 (billions) Percent Change from 2012 Percent of Total Automotive $16.5 3.6% 11.9% Retail 16.1 0.2 11.6 Telecommunications, Internet services, ISP 11.2 6.0 8.1 General Services 9.0 3.2 6.5 Food, beverages, candy 8.5 -1.2 6.1 Medicine and remedies 8.2 5.8 5.9 Financial services 7.6 -4.7 5.5 Personal care 7.1 2.1 5.1 Restaurants 6.3 5.3 4.6 Insurance 5.3 7.5 3.8 10 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Source: Advertising Age, Crain Communication
  • 11. Exhibit 16.3a Top Ten Advertisers - Russia ($ millions) Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 11 Source: From Special Report Global Marketing, Advertising Age, 2012. Copyright © 2012 Crain Communication. Reprinted with permission.
  • 12. Exhibit 16.3b Top Ten Advertisers - China ($ millions) Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 12 Source: From Special Report Global Marketing, Advertising Age, 2012. Copyright © 2012 Crain Communication. Reprinted with permission.
  • 13. Basic Framework of International Advertising  Seven steps are involved: 1. Perform marketing research. 2. Specify the goals of the communication. 3. Develop the most effective message(s) for the market segments selected. 4. Select effective media. 5. Compose and secure a budget based on what is required to meet goals. 6. Execute the campaign. 7. Evaluate the campaign relative to the goals specified. 13 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 14. Advertising Strategy and Goals  Intense competition for world markets and the increasing sophistication of foreign consumers have led to the need for more sophisticated advertising strategies.  In many cases, standardized products may be marketed globally. But because of differences in cultures, they still require a different advertising appeal in different markets.  Many companies are using market segmentation strategies that ignore national boundaries.  Others are proposing newer global market segments defined by “consumer cultures” related to shared sets of consumption-related symbols. 14 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 15. Vehicular ads in London These vehicular ads make an effective advertising medium even in a dense London fog. Because most London cabs are black, the Snickers ad catches the eye immediately. ©JohnGraham ©JohnGraham 15 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 16. Product Attribute and Benefit Segmentation  A market offering really is a bundle of satisfactions (or utilities) the buyer receives. • The primary function of the product or service • Other benefits imputed by the values and customs of the culture  While usually agreeing on the benefit of the primary function of a product, consumers may perceive other features and psychological attributes of the item differently. 16 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 17. Regional Segmentation  The emergence of pan-European communications media is enticing many companies to push the balance toward more standardized promotional efforts.  Companies strive for harmony in brand names, advertising, and promotions across Europe. • To avoid the confusion that results when a market is exposed to multiple brand names and advertising messages • For reasons of efficiency 17 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 18. The Message: Creative Challenges  International communications may fail for a variety of reasons: • A message may not get through because of media inadequacy • The message may be received by the intended audience but not be understood because of different cultural interpretations • The message may reach the intended audience and be understood but have no effect because the marketer did not correctly assess the needs and wants or even the thinking processes of the target market 18 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 19. Global Advertising and the Communications Process  An information source. Product message to communicate  Encoding. Conversion to effective symbolism for transmission  A message channel. Media that conveys the encoded message  Decoding. The interpretation by the receiver of the symbolism  Receiver. Those who receive the message  Feedback. Information about the effectiveness of the message  Noise. Uncontrollable and unpredictable influences 19 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 20. Exhibit 16.4 The International Communication Process 20 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 21. The Power of Colors Notice the Coke advantage at work—the red contrasts with the outdoor environment, while the Cristal aqua blends more with the blue sky and trees. ©JohnGraham ©JohnGraham 21 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 22. Red works! David Beckham, in his Manchester United red and Formula 1 racecar driver Michael Schumacher. ©TomPurslow/ManchesterUnitedviaGettyImages ©MarkBaker/APImages 22 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 23. Coke and McDonald’s black and white logos The stadium pictured is in Buenos Aires, is popularly called La Bombonera, is officially named Albierto Armano, is the home of the club team Boca Junior, and was the home team for Argentina’s most famous futbol player ever, Maradona. The McDonald’s sits adjacent to the city square in the old Inca Empire capital at Cuzco, Peru. ©JohnGraham ©JohnGraham 23 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 24. Decoding Problems  Errors at the receiver end of the process generally result from a combination of factors: • An improper message resulting from incorrect knowledge of use patterns • Poor encoding producing a meaningless message • Poor media selection that does not get the message to the receiver • Inaccurate decoding by the receiver so that the message is garbled or incorrect • Bad luck 24 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 25. Noise: A Disruptive Force  Comprises all other external influences: • Competitive advertising • Other sales personnel • Confusion at the receiving end  It is frequently beyond the control of the sender or the receiver. 25 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 26. California Fitness Centers in Singapore City streets in Singapore are alive with advertising. Obviously the image of “bodyland” southern California sells well around the world. ©JohnGraham 26 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 27. Legal Constraints  Laws that control comparative advertising vary from country to country in Europe.  Comparative advertising is heavily regulated in other parts of the world as well.  A variety of restrictions on advertising of specific products exist around the world.  Advertising on television is strictly controlled in many countries.  Internet services are especially vulnerable as EU member states decide which area of regulation should apply to these services.  Some countries have special taxes that apply to advertising, which might restrict creative freedom in media selection. 27 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 28. Linguistic Limitations  Major barriers include: • Different languages of different countries • Different languages or dialects within one country • Subtler problems of linguistic nuance, argument style, vernacular, and even accent  Abstraction, terse writing, and word economy, the most effective tools of the advertiser, pose problems for translators.  Low literacy in many countries seriously impedes communications and calls for greater creativity and use of verbal media. 28 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 29. Jamaica The “true ting” in Jamaica is a grapefruit-flavored soft drink. ©JohnGraham 29 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 30. Spain and China Giant bulls are posted on hillsides around rural Spain. GE joined with the Chinese government in promoting a green Olympics. Ironically, many folks around the world see outdoor advertising itself as a kind of pollution! ©DenisDoyle/APImages CourtesyofGE 30 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 31. Cultural Diversity  “International advertising is almost uniformly dreadful mostly because people don’t understand language and culture.”  Existing perceptions based on tradition and heritages often render advertising campaigns ineffective or worse.  In addition to concerns with differences among nations, advertisers find that subcultures within a country require attention. 31 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 32. Media Limitations  Limitations on creative strategy imposed by media may: • diminish the role of advertising in the promotional program • force marketers to emphasize other elements of the promotional mix  Creative advertisers in some countries have even developed their own media for overcoming media limitations. 32 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 33. Production and Cost Limitations  Creativity is especially important when a budget is small or where there are severe production limitations, such as poor-quality printing and a lack of high-grade paper.  The necessity for low-cost reproduction in small markets poses another problem in many countries. 33 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 34. Media Planning and Analysis  The network effects of the burgeoning electronic communication media—in the form of PCs, the Internet, and mobile phones—influence not only political events and responses to natural disasters but also everyday life for everyone on the planet.  The changes in media in the 21st century are proceeding at a blinding speed. 34 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 35. Tactical Considerations  In international advertising, an advertiser must consider the availability, cost, coverage, and appropriateness of the media.  The constant competitive churn among these media makes for a tricky and dynamic landscape for decisions.  Effectiveness of advertising varies across media types, cultures, and products.  Local variations and lack of market data require added attention. 35 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 36. Lack of Market Data  Verification of circulation or coverage figures is a difficult task.  Even where advertising coverage can be measured with some accuracy, there are questions about the composition of the market reached.  Lack of available market data seems to characterize most international markets. 36 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 37. Newspapers and Magazines  The newspaper industry is suffering from lack of competition in some countries and choking because of it in others.  In many countries, there is a long time lag before an advertisement can be run in a newspaper.  Separation between editorial and advertising content in newspapers provides another basis for contrast on the international scene.  The use of foreign national consumer magazines by international advertisers has been notably low for many reasons.  Few magazines have a large circulation or provide dependable circulation figures.  Technical magazines are used rather extensively to promote export goods, but as with newspapers, paper shortages cause placement problems. 37 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 38. Exhibit 16.5 Media Spending, US$/household, in Selected Countries (average annual growth rate 2008–2013) Country TV Radio Print Cinema Outdoor Online World (11.4) 90 (1.7) 16 (-2.7) 60 (-7.4) 1 (4.1) 15 (-0.6) 45 China (21.3) 41 (15.2) 4 (6.5) 21 (6.9) 0.2 (10.4) 11 (8.8) 18 Japan (5.4) 304 (-1.4) 21 (-4.5) 143 (-7.4) - 79 (-5.8) 155 Australia (14.3) 445 (-0.6) 117 (-0.9) 378 (-9.8) 12 (0.0) 57 (0.6) 409 Russia (29.8) 72 (4.3) 7 (1.3) 14 (-7.6) 3 (13.8) 18 (-3.3) 32 Brazil (18.0) 154 (-2.6) 9 (5.6) 36 (-0.9) 1 (1.9) 6 (8.1) 12 Israel (3.2) 159 (-2.6) 19 (-6.6) 123 (-10.6) 3 (-1.0) 20 (-9.1) 89 South Africa (17.9) 104 (10.3) 33 (9.2) 72 (-1.0) 2 (-8.5) 10 (7.7) 6 Canada (14.4) 254 (-0.3) 117 (-0.2) 181 (-5.7) - 36 (0.3) 239 USA (12.7) 532 (1.4) 137 (-3.5) 333 (-10.5) 6 (4.1) 65 (1.3) 277 Germany (9.7) 130 (-0.6) 24 (-0.1) 281 (-4.5) 2 (-1.3) 25 (-1.5) 131 Source: Euromonitor, 2015. 38 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 39. Radio and Television  Most adults view television and listen to radio daily.  Television and radio advertising availability varies between countries.  Some countries do not permit any commercial radio or television.  Several of the traditional noncommercial countries have changed their policies in recent years because television production is so expensive. 39 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 40. Satellite and Cable TV  Of increasing importance in TV advertising is the growth and development of satellite TV broadcasting.  The expansion of TV coverage will challenge the creativity of advertisers and put greater emphasis on global standardized messages. 40 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 41. Drawbacks of Satellite TV  Governments fear further loss of control over their airwaves and the spread of “American cultural imperialism.”  Because of their ability to span a wide geographical region covering many different country markets, a single message is broadcast throughout a wide area. • With cultural differences in language, preferences, and so on, a single message may not be as effective.  Most satellite technology involves some government regulation that seldom works for long. 41 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 42. Irish beer advertisements Ireland is behind only the Czech Republic when it comes to per capita consumption of beer. ©JohnGraham ©JohnGraham ©JohnGraham 42 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 43. Direct Mail and the Internet  A viable medium in an increasing number of countries  Especially important when other media are not available  Subject to some odd and novel quirks  A meaningful way to reach their markets  The Internet can reach a large portion of the business-to-business market and is widely used in business-to-business communications and promotion via catalogs and product descriptions.  Beyond the control of undesirable information, issues such as pay- per-view, taxes, unfair competition, import duties, and privacy are being addressed all over the world.  The Internet industry is lobbying for a global understanding on regulation to avoid a crazy quilt of confusing and contradictory rules. 43 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 44. Exhibit 16.6 Top Ten Websites (31.9 million visitors per month) Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 44 Source: comScore Media Metrix, 2012, online. Reprinted with permission.
  • 45. Social Media  Powerful marketing tools: social networking, blogs, virtual worlds, and video sharing  Consumer-generated content is having an impact on brands (both positive and negative)  Consumers from many different countries and cultures can and do interact online  At more than one billion users, Facebook dominates social networking around the world 45 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 46. Exhibit 16.7 Top 10 Social Media Users Average Time Spent on Social Networking Sites, October 2011 (hours per user) Source: Michael Jung, “Social Networking Is the Most Popular Online Activity,” http://www.thenewage. co.za/38836-1021-53- Social_ networking_is_the_most_popular_ online_activity, December 26, 2011, online. 46 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 47. Mobile Phone Applications and Other Media  As the number of mobile phones continues to explode around the world, now over 7 billion, so do the number of applications available to users.  The top 1 percent of mobile phone users consume half of the world’s bandwidth, and the gap is growing!  Restrictions on traditional media or their availability cause advertisers to call on lesser media to solve particular local-country problems.  The cinema is an important medium in many countries.  Billboards are especially useful in countries with high illiteracy rates. 47 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 48. Pizza Hut and Diet Pepsi’s novel advertising Not only do the Russians sell space for space tourists on their rockets, they also sell advertising space! The Japanese beverage company Suntory promotes its products with “Monitor Man” during a football match at National Stadium. ©YuriKochetkovEuropeanPressAgency/Newscom ©TatsuyukiTayama/Fujifotos/TheImageWorks 48 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 49. Campaign Execution and Advertising Agencies  Just as manufacturing firms have become international, so too have U.S., Japanese, and European advertising agencies expanded internationally to provide sophisticated agency assistance worldwide.  Local agencies also have expanded as the demand for advertising services by MNCs has developed.  In most commercially significant countries, an advertiser has the opportunity to employ a local domestic agency, its company-owned agency, or one of the multinational advertising agencies with local branches. 49 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 50. Exhibit 16.8 World’s Top Ten Advertising Agencies 2013 Agency (parent) Headquarters Global Revenues ($ billion 2013) Percent Change from 2012 1 WPP Dublin $17.3 4.8% 2 Omnicom Group New York 14.6 2.6 3 Publicis Groupe Paris 9.2 8.7 4 Interpublic Group New York 7.1 7.0 5 Dentsu Tokyo 5.8 -9.4 6 Havas Suresnes, France 2.3 2.1 7 Hakuhodo DY Holdings Tokyo 1.8 -15.7 8 Alliance Data Systems International Irvine, TX 1.4 10.6 9 IBM International Experience Armonk, NY 1.3 74.3 10 MDC Partners Toronto/New York 1.2 6.1 Source: From Special Report Global Marketing, Advertising Age. Crain Communication. 50 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 51. International Control of Advertising: Broader Issues  A study of a representative sample of European consumers indicated that only half believed ads gave useful information.  The non-Europeans praised advertising as a way to obtain valuable information about products.  European Commission officials are establishing directives to provide controls on advertising as cable and satellite broadcasting expands.  Decency and the blatant use of sex in advertisements also are receiving public attention.  The assault on advertising and promotion of tobacco products is escalating.  Product placement within TV programming is another area of advertising receiving the attention of regulators. 51 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 52. Summary  An IMC program includes coordination among advertising, sales management, public relations, sales promotions, and direct marketing.  Global marketers face unique legal, language, media, and production limitations in every market.  The major problem facing international advertisers is designing the best messages for each market served.  Advances in communication technologies are causing dramatic changes in the structure of the international advertising and communications industries. 52 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Editor's Notes

  1. For most companies, advertising and personal selling are the major components in the marketing communications mix. The goal of most companies, large and small, is to achieve the synergies possible when sales promotions, public relations efforts, and advertising are used in concert.
  2. As is true in advertising, the success of a promotion may depend on local adaptation. Furthermore, research has shown that responses to promotions can vary across promotional types and cultures. Effective sales promotions can enhance the advertising and personal selling efforts and, in some instances, may be effective substitutes when environmental constraints prevent the full utilization of advertising.
  3. Major constraints are imposed by local laws, which may not permit premiums or free gifts to be given. Some countries’ laws control the amount of discount given at retail, others require permits for all sales promotions, and in at least one country, no competitor is permitted to spend more on a sales promotion than any other company selling the product.
  4. The importance of public relations in international marketing is perhaps best demonstrated by several recent controversies: (1) the Google China political fight over censorship and hacking; (2) a wave of suicides by employees at Foxconn’s factories in China, which makes electronics products for the likes of Apple, Hewlett-Packard, and Dell; (3) the criticism of Ketcham, ironically itself a prominent American public relations firm, that has represented Vladimir Putin and Russia to the tune of tens of millions of dollars since 2006; and (4) the Toyota brake pedal problem.
  5. Piazza Navona in the heart of Rome is one of the favorite places in the Eternal City for both locals and tourists. At its center is a masterpiece of Baroque Roman sculpture, the Fontana dei Quattro Fiumi (Fountain of Four Rivers) by Gian Lorenzo Bernini (1651). The four major rivers of the world depicted are the Danube (Europe), Ganges (Asia), Nile (Africa), and Rio de la Plata (the Americas). Samsung has made a common international marketing mistake here, confusing public relations and advertising [Gaia Pianigiani and Jim Yardley, “Corporate Medicis to the Rescue,” New York Times, July 16, 2014, pp. C1, 5]. Samsung is helping pay for the restoration of the building facing the piazza, and Romans appreciate that. But the advertisement disrupts the aesthetics of the place. Better would have been a smaller, less obtrusive sign simply taking credit for the restoration. It is ironic that the Samsung ad uses the tagline, “messa a fuoco rapida” which we later learned means “fast focus” in English. The focus on the ad was intentionally made soft, putting the emphasis on the sculpture.
  6. The Russian list includes only one local company -- Sistema is a holding company selling products and services in across several categories including media, finance, petroleum, and retailing.
  7. Increased costs, problems of coordinating advertising programs in multiple countries, and a desire for a broader company or product image have caused multinational companies (MNCs) to seek greater control and efficiency without sacrificing local responsiveness. In the quest for more effective and responsive promotion programs, the policies covering centralized or decentralized authority, use of single or multiple foreign or domestic agencies, appropriation and allocation procedures, copy, media, and research are being examined.
  8. Consider the different market-perceived needs for a camera. In the United States, excellent pictures with easy, foolproof operation are expected by most of the market; in Germany and Japan, a camera must take excellent pictures, but the camera must also be state of the art in design. In Africa, where penetration of cameras is less than 20 percent of the households, the concept of picture taking must be sold.
  9. As media coverage across Europe expands, it will become more common for markets to be exposed to multiple messages and brands of the same product. A pan- European promotional strategy would mean identifying a market segment across all European countries and designing a promotional concept appealing to market segment similarities.
  10. The encoding step causes problems even with a “proper” message. At this step, such factors as color, timing, values, beliefs, humor, tastes, and appropriateness of spokespersons can cause the international marketer to symbolize the message incorrectly.
  11. The communications process steps are encased in Cultural Context A and Cultural Context B to illustrate the influences complicating the process when the message is encoded in one culture and decoded in another. If not properly considered, the different cultural contexts can increase the probability of misunderstandings.
  12. Cristal is a popular brand of bottled water actually owned by Coca-Cola and sold in the Yucatan Peninsula in Mexico. The Coke ads are emblazoned on a café in the central plaza of Canas, Costa Rica.
  13. The white jerseys of the Spanish and American teams don’t catch the eye as did the Manchester United red. Most recently Beckham has teamed up with the Red campaign (along with Oprah and Bono) to promote products of firms that donate revenues to the Global Fund to Fight AIDS. Other firms involved in the project include Dell, Microsoft, American Express, Armani, Converse, Hallmark, Apple, and The Gap. Schumacher has made more money than any other sports figure as he dominates the sport most watched on television globally. And the flamboyant red jumpsuit and red Ferraris helped. The other red brands—Marlboro and Vodafone—loved him too.
  14. For the blue-and-yellow-uniformed Maradona and his team Boca Junior, Coke’s red and white are also the hated colors of their main futbol competitor in Buenos Aires, River Plate. The negotiations between Coca-Cola and the Boca Junior club executives must have been fascinating with millions of dollars on the table, with many thousands of raucous fans acting as a very much involved, and potentially riotous, audience. So, a black-and-white Coke logo was the creative solution. We note that Sinteplast, a large paint company and local sponsor, was able to include its red, white, and blue logo on the stadium—the colors of passion! The red and gold of McDonald’s was traded for black in Cuzco because the area is an official UNESCO World Heritage Site, and the money that supports this designation includes rules that preclude “intrusive” advertising.
  15. Obviously the image of “bodyland” southern California sells well around the world. However, there’s an interesting irony in that brand name for Muslim customers. The word California first appears in the eleventh-century epic poem The Song of Roland; there it literally means the “caliph’s domain”—the Caliph of Baghdad ruled the Islamic Empire then. The Spaniards who named California in the early 1500s thought they were in Asia! Moreover, the deeper meaning of the brand name is lost even on the modern Muslims who comprise 15 percent of Singapore’s current population!
  16. Companies that rely on television infomercials and television shopping are restricted by the limitations placed on the length and number of television commercials permitted when their programs are classified as advertisements.
  17. Communication is impeded by the great diversity of cultural heritage and education that exists within countries and that causes varying interpretations of even single sentences and simple concepts. Multiple languages within a country or advertising area pose another problem for the advertiser.
  18. The slogan is, of course, a take-off on “the real thing” advertising of Coca-Cola some decades ago. “Ting” is obviously a Creole version of “thing” for Jamaicans. They were originally meant to advertise Osborne Brandy, but they have evolved into a national symbol. Not even Coca-Cola can make that strong a claim.
  19. For example, marketing researchers in Hong Kong found that cheese is associated with Yeung-Yen (foreigners) and thus rejected by some Chinese. Toyota introduced the Prado SUV in China only to learn that the name sounded like the Chinese word for “rule by force.” This name reminded some Chinese of the 1937 invasion by Japan—not a nice memory at all.
  20. A marketer’s creativity is certainly challenged when a television commercial is limited to 10 showings a year with no two exposures closer than 10 days, as is the case in Italy. In some African countries, advertisers run boats up and down the rivers playing popular music and broadcasting commercials into rural areas as they travel.
  21. For example, the poor quality of high-circulation glossy magazines and other quality publications in eastern Europe has caused Colgate-Palmolive to depart from its customary heavy use of print media in the West for other media. In Egypt, static-filled television and poor-quality billboards have led companies such as Coca-Cola and Nestlé to place their advertisements on the sails of feluccas, boats that sail along the Nile.
  22. Although nearly every sizable nation essentially has the same kinds of media, a number of specific considerations, problems, and differences are encountered from one nation to another. Major multinationals are beginning to recognize the importance of planning communications channels as media companies continue to rationalize and evolve.
  23. Radio and television audiences are always difficult to measure, but at least in most countries, geographic coverage is known. Advertisers need information on income, age, and geographic distribution, but such basic data seem chronically elusive except in the largest markets.
  24. Over the last five years the average loss has been over 7%. The losses are also widespread. This is an ongoing disaster for the industry. AdAge.com estimates that spending on online media already exceeds that on print.
  25. Ad skipping devices such as Dish's AdHop function are making ads disappear from your TV screen. Netflix streaming and binge watching are also killing the appeal of TV advertising. Of course, all this is happening in the U.S., but all such innovations tend to spread around the world.
  26. PVI (Princeton Video Imaging) is an innovation that will make regional advertising in diverse cultures easier than it presently is when using cable or satellite television. PVI allows ESPN, which offers this service, to fill visual real estate—blank walls, streets, stadium sidings—with computer-generated visuals that look like they belong in the scene.
  27. Given the ubiquitous Guinness advertising in Dublin, it’s not surprising that Irish livers need assurance. Actually, Royal Liver Assurance is a British pension/insurance company with offices in Dublin (it was established in the 1850s as the Liverpool Liver Burial Society). “Hurling” is a rather brutal form of field hockey popular in Ireland. The Irish government recognizes the causal effects of advertising on consumption—beer ads are not allowed on radio or TV before sports programs and may not be shown more than once per night on any one channel.
  28. For example, in Chile, direct mail is virtually eliminated as an effective medium because the sender pays only part of the mailing fee; the letter carrier must collect additional postage for every item delivered. Obviously, advertisers cannot afford to alienate customers by forcing them to pay for unsolicited advertisements.
  29. It charges about $1 million a day to run a video ad on Facebook, but at least initially those "invited" to advertise are screened by the company. The ads will have to be judged "meaningful" as rated by users, and if selected, they will play without sound, and users will be able to scroll past them without watching them. It will be interesting to see how this works.
  30. In Uganda, rice farmers who had trouble with aphids texted Farmer’s Friend for advice and received a message telling them how to make a pesticide using soap and paraffin. A farmer with blighted tomato plants learned how to control the problem by spraying the plants with a milk-based mixture. Farmer’s Friend is one of a range of phone-based services launched in 2009 by MTN, Google, and the Grameen Foundation’s “Application Laboratory,” or App Lab.
  31. “Monitor Man” puts on an LCD display, showing ads for Pepsi and other products, and walks around the stadium. The job requires some muscle, as the equipment weighs about 15 pounds. All this effort is perhaps purposely reminiscent of the Simpson’s “Duff Man.”
  32. A local domestic agency may provide a company with the best cultural interpretation in situations in which local modification is sought, but the level of sophistication can be weak. The best compromise is a multinational agency with local branches, because it has the sophistication of a major agency with local representation. Compensation arrangements for advertising agencies throughout the world are based on the U.S. system of 15 percent commissions.