International Advertising SBM 338 Lanny Wilke. The International Environment Economic Stage of economic development Economic infrastructure Standard of.

International Advertising

SBM 338

Lanny Wilke

The International Environment

Economic Stage of economic development Economic infrastructure Standard of living Per capita income Distribution of wealth Currency stability Exchange rates ( World Fact Book )

CulturalLanguageLifestyleValuesNorms and customsEthics and moral standardsTaboos

DemographicSize of populationNumber of householdsHousehold sizeAge distributionOccupation distributionEducation levelsEmployment rate Income levels

Political/legalGovernment policiesLaws and regulationsPolitical stabilityNationalismAttitudes toward multinational

companies

Creating Ads for International Markets

Translating AdsWestern Europe – 15 different

languages & more than 30 different dialects.

Misinterpretations – Spanish translation for Perdue chicken

“It takes a sexually excited man to make a chick affectionate.”

“It takes a tough man to make a tender chicken.”

CokeProduct name translated

into Chinese characters that sounded right.

Meant “bite the wax tadpole.”

There is no greater insult to a national market than to misuse its language.

“you don’t have to make a great fuss” is difficult to translate.

Connotative Meanings can also be problematic

Pepsodent toothpasteUnsuccessful in Southeast Asia

because it promised white teeth Black & yellow teeth are symbols

of prestige. An American ad campaign that used

various shades of green – disaster in MalaysiaSymbolizes death and disease

Tastes, traditions, & customs are important

France – cosmetics used heavily by men – ads to the male market are common.

Some countries don’t use deodorant & shampoo daily – not as fanatical about personal hygiene.

Cultural Values

France – very protective of their culture – quotas for French-language shows on TV & music on the radio

But some American brands have become popular.

JapanUnique values & customs

Strong commitment to the group Social interdependence &

collectivism are important Dislike ads that confront or

disparage the competition & prefer soft sells.

Teenage girls are portrayed in different waysHappy, playful, childlike,

girlish image China

Values are centered around Confucianism. Stresses loyalty & interpersonal relationships

Also emphasizes passive acceptance of fate by seeking harmony with nature; close family ties; tradition.

Create a liking for the product through image & emotional appeals rather than info-laden ads.

Religion Arab countries

Be aware of various taboos. Alcohol Pork Human nudity is forbidden Pictures of anything sacred are

forbidden. Faces of women cannot be shown

(they use drawings to advertise cosmetics)

In Egypt,P&G underwrote a TV talk show

called “Frankly Speaking.” Talked about feminine hygiene

Commercials for Always – 85% of the disposable sanitary pad market

Art Direction

Nonverbal elements DO NOT translate freely regardless of culture.Different meanings for color.Each country has artistic

preferences & peculiarities. Icons – a visual image

representing some idea or thing Snakes – North America – devil

& eroticismFar East - renewal

Legal Restraints

Foreign governments often regulate advertisingSome regulate what ads say, show,

or do, and some ban or restrict what products can be advertised.

Swedes – no advertising to children on TV

Greeks – no toy advertising before 10 p.m.

Europe – broadcast advertising for tobacco products is prohibited & liquor ads are sharply restricted, especially in France.

Australia – limits tobacco ads to point-of-purchase. Ban also covers sporting events.

China – tobacco & liquor ads banned except in hotels for foreigners.

Europe – ban on prescription-drug ads.Even prevents prescription-

drug companies from mentioning their products on their websites or in brochures.

France – margarine cannot be advertised, nor can restaurant chains

Many countries prohibit puffery superlatives.

Germany – advertisers may use only scientifically provable superlatives Coke – “Refreshes you best.” Not

provable. Germany – “Refreshes you

right.” Austria – original would have

been okay.

Many European countries ban coupons, premiums, free tie-in offers, etc.Price cuts advertised only during

“official sales periods.” Often must get government

approval before publishing a sales ad.

Across Europe – ads on TV must be clearly recognizable and kept separate from other programming.Paid product placements in

programs are typically prohibited. Saudi Arabia – ads are not permitted

on the state-run radio system. Ads in magazines & newspapers are subject to government & religious restrictions.

Comparative ads – illegal in Korea & Belgium.

Brazil – advertising codes so restrictive that few comparative ads have ever been approved.

Greece – Ads that make specific claims, such as “20 percent fewer calories,” are not permitted.

Copyright & other legal restrictions make it difficult to maintain the same name from market to market.

In Germany, France, & many other countries, there are legal restrictions prohibiting the word diet.

The Result?

Government restrictions may also influence the use of foreign languages in advertising.Most countries allow foreign

languages in print & direct mail.Some do not allow foreign-

language commercials on TV or radio, or in movie ads

Some restrict foreign-language ads to media targeted to foreigners in their country.

All commercials aired on Malaysian TV must be made in Malaysia.

Advantages of Global Marketing & Advertising

Economies of scale in production & distribution

Lower marketing & advertising costs as a result of reductions in planning & control

Lower advertising production costs Ability to exploit good ideas on a

worldwide basis & introduce products quickly

A consistent international brand and/or company image.

Simplification of coordination & control of marketing & promotional programs.

Problems with Global Advertising

Extremely difficult to develop an effective universal approach due to:Differences in culture, market, &

economic developmentConsumer needs & usage patternsMedia availabilitiesLegal restrictions

Consumer usage patterns & perceptions of a product may vary from one country to another.

Nestle faced at least 5 different situations when introducing instant

coffee. U.S. – the idea of instant coffee had

great penetration but Nescafe had the minor share.

Continental Europe – Nescafe had the major market share, but the idea of instant coffee was in the early stages.

Tea-Drinking Countries (such as England & Japan) – tea drinkers had to be converted, not just to coffee, but to instant coffee.

Latin America – the preferred coffee was a heavy one that could not be duplicated with an instant version.

Scandinavia – Nestle had to deal with the custom of keeping a pot of coffee on the stove from early morning until late at night.

Japan & Norway

Israel – A New Challenge

Nescafe was the generic word for instant coffeeThey assumed that it was an

abbreviation of the Hebrew word namess (dissolving).

Israeli consumers were not very demanding regarding quality of their coffee.A local company also produced a

low-quality powdered coffee.

Nescafe had to overcome the generic connotation.They portrayed it as the coffee of

choice of people all around the world.

Presented the Classic brand as “Nescafe of Nestle.”

Also relied on taste testing.

Many companies have moved away from a completely standardized approach

ColgateModifies ads for a specific country

or regionUses local creativityUses the globe/smile in nearly

every country, but the copy varies.

Colgate in Russia

When is globalization appropriate?

Brands or messages that can be adapted for a visual appeal, avoiding the problems of trying to translate words into dozens of languages.

Brands that are promoted with image campaigns that play to universal appeals such as sex or wealth.Jewelry, liquor, cosmetics,

cigarettes

High-tech products and new products coming to the world for the first time, not steeped in the cultural heritage of the country.Examples – personal computers,

calculators, VCRs, TVs, audio equipment

Xerox, Hewlett-Packard, IBM

Products with nationalistic flavor if the country has a reputation in the field.Swiss watches, French wine,

German beer or carsJeep “the American legend” in

Europe & JapanJack Daniels & Southern Comfort

Products that appeal to a market segment with universally similar tastes, interests, needs, and values. The world’s elite

Fine jewelry, expensive clothing, quality autos.

Bally leather goods, Cartier jewelry, Godiva chocolates, Louis Vuitton luggage.

Teenagers – Levis, Benetton, Nike, Coke, Pepsi, MTV

Global Products, Local Messages

Pattern advertising – ads follow a basic approach, but themes, copy, & sometimes visual elements are adapted to individual market differences.

Another approach – produce a variety of ads with a similar theme & format and allow managers in various countries or regions to select those messages they believe will work best.

International Media

International Promotions

That’s it for today.

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