Lecture Global marketing management (7th edition): Chapter 13 - Masaaki Kotabe, Kristiaan Helsen
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GLOBAL
MARKETING
MANAGEMENT
Seventh Edition
MASAAKI KOTABKE | KRISTIAAN HELSEN
Chapter 13 PowerPoint
Global Communication
Strategies
Chapter Overview
1. Global Advertising and Culture
2. Setting the Global Advertising Budget
3. Creative Strategy
4. Global Media Decisions
5. Advertising Regulations
6. Choosing an Advertising Agency
7. Other Communication Platforms
8. Globally Integrated Marketing Communications
(GIMC)
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Introduction
• There are many cultural challenges that advertisers
face in global marketing.
• Global advertising encompasses areas such as
advertising planning, budgeting, resource allocation
issues, message strategy, and media decisions.
Other areas include: local regulations, advertising
agency selection, coordination of multi-country
communication efforts and regional and global
campaigns.
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1. Global Advertising and Culture
• Language Barriers
– Language is one of the most formidable barriers in
global marketing.
– Three types of translation errors can occur in
international marketing:
• Simple carelessness
• Multiple-meaning words
• Idioms
(See Exhibit 13-1.)
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Exhibit 13-1: Five Different Ways
of Saying Tires in Spanish
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1. Global Advertising and Culture
• Other Cultural Barriers
– Religion
• Communications and Cultural Values
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Power distance
Uncertainty
Individualism/Collectivism
Masculinity
Long-termism
Celebrity endorsements
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2. Setting the Global Advertising Budget
• Spending Questions for global marketers:
– How much should we spend?
– What budgeting rule shall we use?
– How shall we allocate our resources across different
markets?
• Budgeting rules:
–
–
–
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Percentage of Sales Method
Competitive Parity
Objective-and-Task Method
Resource Allocation
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Exhibit 13-2: Average ad Spending per
Capita (2014)
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Exhibit 13-3: Examples of Universal Appeals
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Exhibit 13-4: Global Advertising Shares by
Category (%)
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Exhibit 13-5: China’s 1995 Advertising Law
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3. Creative Strategy
• The “Standardization” versus “Adaptation”
Debate
• Merits of Standardization:
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Scale Economies
Consistent Image
Globalization of Media
Global Consumer Segments
Creative Talent
Cross-Fertilization
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3. Creative Strategy
• Barriers to Standardization
–
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Cultural differences
Advertising regulations
Market Maturity
“Not invented here” (NIH) syndrome
• Approaches to Creating Advertising Copy
–
–
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“Laissez-Faire”
Export Advertising
Prototype standardization
Concept Cooperation
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4. Global Media Decisions
In some countries, media decisions are much more critical
than the creative aspects of the communication
campaign.
• Media Infrastructure
– Differences are in media availability, accessibility, media
costs, and media habits.
• Media Limitations
• Recent Trends in the Global Media Landscape
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Growth of commercialization
Rise of global and regional media
Growth of nontraditional interactive media
Improved media monitoring
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Exhibit 13-6: Advertising Agency Selection
Criteria
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3. Creative Strategy
• Approaches to Creating Advertising Copy:
–
–
–
–
–
–
“Laissez Faire”
Export Advertising
Global Prototype Advertising
Prototype Standardization
Regional Approach
Concept Cooperation
• Modular Approach
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4. Global Media Decisions
•
Media Infrastructure
–
•
Media infrastructure differs from country to country
Media Limitations
–
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The major limitation in many markets is media
availability.
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Exhibit 13-7: Which Techniques Are Allowed
in Europe
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5. Advertising Regulations
• Major advertising regulations:
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Advertising of “Vice Products” & Pharmaceuticals
Comparative Advertising
Foreign-made ads
Content of Advertising Messages
Advertising Targeting Children
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5. Advertising Regulations
• Strategies to deal with advertising regulations:
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–
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–
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Keep track of regulations and pending legislation
Screen the campaign early on
Lobbying activities
Challenge regulations in court
Adapt marketing mix strategy
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Exhibit 13-8: 2015 Projected Global
Sponsorship by Region (Billions of Dollars)
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6. Choosing an Advertising Agency
• Options for choosing an ad agency:
1. Work with the agency that handles the advertising in
the firm’s home market.
2. Pick a purely local agency in the foreign market.
3. Choose the local office of a large international
agency.
4. Select an international network of ad agencies that
spans the globe.
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Exhibit 13-9: Guidelines for Event Sponsors
to Cope with Ambush Marketing
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6. Choosing an Advertising Agency
• When screening ad agencies, consider:
– Market coverage
– Creative talent
– Expertise with developing a central international
campaign
– Creative reputation
– Scope and quality of support services
– Desirable image (“global” versus “local”)
– Size of the agency
– Conflicting accounts
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7. Other Communication Platforms
• Sales Promotions
Sales promotion refers to a collection of short-term
incentive tools that lead to quicker and/or larger sales of
a particular product by consumers or the trade.
– Rationales explaining the local character of
promotions:
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•
•
•
•
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Economic development
Market maturity
Cultural perceptions
Trade structure (pull vs. push promotions)
Government regulations
Direct marketing
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