Global Marketing Management

Chapter 14 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

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Global Marketing ManagementGlobal Marketing Management

Masaaki Kotabe & Kristiaan HelsenMasaaki Kotabe & Kristiaan Helsen Third EditionThird Edition

John Wiley & Sons, Inc., 2004John Wiley & Sons, Inc., 2004


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Chapter 14Chapter 14

Communicating with the Communicating with the

World CustomerWorld Customer


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Chapter OverviewChapter Overview

1. Global Advertising and Culture1. Global Advertising and Culture

2. Setting the Global Advertising Budget2. Setting the Global Advertising Budget

3. Creative Strategy3. Creative Strategy

4. Global Media Decisions4. Global Media Decisions

5. Advertising Regulations5. Advertising Regulations

6. Choosing an Advertising Agency6. Choosing an Advertising Agency

7. Coordinating International Advertising7. Coordinating International Advertising


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Chapter Overview (contd.)Chapter Overview (contd.)

8. Other Forms of Communication8. Other Forms of Communication

9. Globally Integrated Marketing 9. Globally Integrated Marketing Communications (GIMC)Communications (GIMC)


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IntroductionIntroduction

There are many cultural challenges that advertisers There are many cultural challenges that advertisers face in global marketing.face in global marketing.

Global advertising encompasses areas such as Global advertising encompasses areas such as advertising planning, budgeting, resource advertising planning, budgeting, resource allocation issues, message strategy, and media allocation issues, message strategy, and media decisions. Other areas include: local regulations, decisions. Other areas include: local regulations, advertising agency selection, coordination of advertising agency selection, coordination of multi-country communication efforts and regional multi-country communication efforts and regional and global campaigns.and global campaigns.


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1. Global Advertising and Culture1. Global Advertising and Culture

Language BarriersLanguage Barriers– Language is one of the most formidable barriers Language is one of the most formidable barriers

in global marketing.in global marketing.– Three types of Three types of translation errorstranslation errors can occur in can occur in

international marketing:international marketing:» Simple carelessnessSimple carelessness» Multiple-meaning wordsMultiple-meaning words» IdiomsIdioms

Other Cultural BarriersOther Cultural Barriers– ReligionReligion


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1. Global Advertising and Culture 1. Global Advertising and Culture (contd.)(contd.)

– Cultural traps/cultural dimensionsCultural traps/cultural dimensions» Geert Hofstede’sGeert Hofstede’s cultural grid can be used to cultural grid can be used to

assess the appropriateness of comparative assess the appropriateness of comparative advertising campaigns (see Exhibit 14-2). advertising campaigns (see Exhibit 14-2). The five cultural dimensions include:The five cultural dimensions include:

Power distancePower distanceUncertainty avoidanceUncertainty avoidance IndividualismIndividualismMasculinityMasculinityLong-termismLong-termism


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2. Setting the Global Advertising Budget2. Setting the Global Advertising Budget

Companies rely on different kind of Companies rely on different kind of advertising advertising budgeting methodsbudgeting methods which include: See Exhibit 14- which include: See Exhibit 14-33– Percentage of SalesPercentage of Sales– Competitive ParityCompetitive Parity– Objective-and-Task MethodObjective-and-Task Method– Resource AllocationResource Allocation


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3. Creative Strategy3. Creative Strategy

The “Standardization” versus “Adaptation The “Standardization” versus “Adaptation Debate”Debate”

Merits of Standardization:Merits of Standardization:– Scale EconomiesScale Economies– Consistent ImageConsistent Image– Global Consumer SegmentsGlobal Consumer Segments– Creative TalentCreative Talent– Cross-FertilizationCross-Fertilization

Barriers to Standardization:Barriers to Standardization:– Cultural DifferencesCultural Differences


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3. Creative Strategy (contd.)3. Creative Strategy (contd.)

– Advertising RegulationsAdvertising Regulations– Market MaturityMarket Maturity– ““Not-Invented-Here” (NIH) SyndromeNot-Invented-Here” (NIH) Syndrome

Approaches to Creating Advertising Copy:Approaches to Creating Advertising Copy:– ““Laissez FaireLaissez Faire””– Export AdvertisingExport Advertising– Global Prototype AdvertisingGlobal Prototype Advertising– Prototype StandardizationPrototype Standardization


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3. Creative Strategy (contd.)3. Creative Strategy (contd.)

– Regional ApproachRegional Approach– Pattern StandardizationPattern Standardization

» Modular ApproachModular Approach


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4. Global Media Decisions4. Global Media Decisions

Media InfrastructureMedia Infrastructure– Media infrastructure differs from country to Media infrastructure differs from country to

countrycountry Media LimitationsMedia Limitations

– The major limitation in many markets is The major limitation in many markets is media availability.media availability.

Recent Developments in the Global Media Recent Developments in the Global Media Landscape:Landscape:

– Growing commercialization and deregulation Growing commercialization and deregulation of mass mediaof mass media


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4. Global Media Decisions (contd.)4. Global Media Decisions (contd.)

– Shift from radio and print to TV advertisingShift from radio and print to TV advertising– Rise of global and regional mediaRise of global and regional media– Growing spread of interactive marketingGrowing spread of interactive marketing– Growing popularity of text messagingGrowing popularity of text messaging– Improved monitoringImproved monitoring– Improved TV-viewership measurementImproved TV-viewership measurement


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5. Advertising Regulations5. Advertising Regulations

The major types of advertising regulations The major types of advertising regulations includeinclude::– Advertising of “Vice Products” and Advertising of “Vice Products” and

PharmaceuticalsPharmaceuticals– Comparative AdvertisingComparative Advertising– Content of Advertising MessagesContent of Advertising Messages– Advertising Targeting ChildrenAdvertising Targeting Children– Other Advertising RegulationsOther Advertising Regulations: Issues of local : Issues of local

languages, tax issues, and advertising rates.languages, tax issues, and advertising rates.


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5.Advertising Regulations (contd.)5.Advertising Regulations (contd.)

Strategies to deal with advertising regulationsStrategies to deal with advertising regulations::– Keep track of regulations and pending Keep track of regulations and pending

legislationlegislation– Screen the campaign early onScreen the campaign early on– Lobbying activitiesLobbying activities– Challenge regulations in courtChallenge regulations in court– Adapt marketing mix strategyAdapt marketing mix strategy


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6. Choosing an Advertising Agency6. Choosing an Advertising Agency

In selecting an ad agency, the international In selecting an ad agency, the international marketer has several optionsmarketer has several options::1. Work with the agency that handles the 1. Work with the agency that handles the

advertising in the firm’s home market.advertising in the firm’s home market.2. Pick a purely local agency in the foreign 2. Pick a purely local agency in the foreign

market.market.3. Choose the local office of a large international 3. Choose the local office of a large international

agency.agency.4. Select an international network of ad agencies 4. Select an international network of ad agencies

that spans the globe.that spans the globe.


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6. Choosing an Advertising Agency 6. Choosing an Advertising Agency (contd.)(contd.)

When screening ad agencies, the following set of When screening ad agencies, the following set of criteria can be usedcriteria can be used::– Market coverageMarket coverage– Quality of coverageQuality of coverage– Expertise with developing a central Expertise with developing a central

international campaigninternational campaign– Creative reputationCreative reputation– Scope and quality of support servicesScope and quality of support services


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6. Choosing an Advertising Agency 6. Choosing an Advertising Agency (contd.)(contd.)

– Desirable image (“global” versus “local”)Desirable image (“global” versus “local”)– Size of the agencySize of the agency– Conflicting accountsConflicting accounts


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7. Coordinating International Advertising7. Coordinating International Advertising

Global or pan-regional advertising approaches Global or pan-regional advertising approaches require a great deal of coordination. The following require a great deal of coordination. The following mechanisms can help:mechanisms can help:– Monetary Incentives (cooperative advertising)Monetary Incentives (cooperative advertising)– Advertising Manuals (brand book)Advertising Manuals (brand book)– Lead-Country ConceptLead-Country Concept– Global or Pan-Regional Meetings: Global or Pan-Regional Meetings: Six Six

guidelinesguidelines to implement a global or pan- to implement a global or pan-regional advertising approach includeregional advertising approach include::


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7. Coordinating International Advertising 7. Coordinating International Advertising (contd.)(contd.)

» (1).(1). Top management must be dedicated to Top management must be dedicated to going global.going global.

» (2).(2). Use a third party (e.g., the ad agency) to Use a third party (e.g., the ad agency) to help sell key managers the benefits of a help sell key managers the benefits of a global advertising approach.global advertising approach.

» (3).(3). A global brief based on cross-border A global brief based on cross-border consumer research can help persuade consumer research can help persuade managers to think in terms of global managers to think in terms of global consumers.consumers.


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7. Coordinating International Advertising 7. Coordinating International Advertising (contd.)(contd.)

» (4).(4). Find product champions and give them a Find product champions and give them a charter for the success of the global charter for the success of the global marketing program.marketing program.

» (5).(5). Convince local staff that they have an Convince local staff that they have an opportunity in developing a global opportunity in developing a global campaign.campaign.

» (6).(6). Get local managers on the global Get local managers on the global marketing team -- have them do the job marketing team -- have them do the job themselves.themselves.


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8. Other Forms of Communication8. Other Forms of Communication

Sales PromotionsSales Promotions: Sales promotion refers to a : Sales promotion refers to a collection of short-term incentive tools that lead to collection of short-term incentive tools that lead to quicker and/or larger sales of a particular product quicker and/or larger sales of a particular product by consumers or the trade.by consumers or the trade.– Rationales explaining the local character of Rationales explaining the local character of

promotions:promotions:» Economic developmentEconomic development» Market maturityMarket maturity» Cultural perceptionsCultural perceptions» Trade structure (pull vs. push promotions)Trade structure (pull vs. push promotions)


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8. Other Forms of Communication 8. Other Forms of Communication (contd.)(contd.)

» Government regulationsGovernment regulations Direct Marketing Direct Marketing Event SponsorshipsEvent Sponsorships Trade ShowsTrade Shows: When attending an international : When attending an international

trade show, the following guidelines might prove trade show, the following guidelines might prove useful:useful:– Decide on what trade shows to attend at least a Decide on what trade shows to attend at least a

year in advance.year in advance.– Prepare translation of product materials, price Prepare translation of product materials, price

lists, selling aids.lists, selling aids.


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– Bring plenty of literature. Bring someone who Bring plenty of literature. Bring someone who knows the language or have a translator.knows the language or have a translator.

– Send out, ahead of time, direct-mail pieces to Send out, ahead of time, direct-mail pieces to potential attendees.potential attendees.

– Find out the best possible space, for instance, in Find out the best possible space, for instance, in terms of traffic.terms of traffic.

– Plan the best way to display your products and Plan the best way to display your products and to tell your story.to tell your story.

– Do your homework on potential buyers from Do your homework on potential buyers from other countries.other countries.


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– Assess the impact of trade show participation Assess the impact of trade show participation on the company’s bottom line. Performance on the company’s bottom line. Performance benchmarks may need to be adjusted when benchmarks may need to be adjusted when evaluating trade show effectiveness in different evaluating trade show effectiveness in different countries since attendees might behave countries since attendees might behave differently.differently.


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Integrated Marketing Communications (IMC):Integrated Marketing Communications (IMC):– IMC coordinates different communication IMC coordinates different communication

vehicles – mass advertising, sponsorships, sales vehicles – mass advertising, sponsorships, sales promotion, packaging, point-of-purchase promotion, packaging, point-of-purchase displays, so forth.displays, so forth.

Globally Integrated Marketing Communications Globally Integrated Marketing Communications (GIMC):(GIMC):– GIMC is a system of active promotional GIMC is a system of active promotional

management that strategically coordinates management that strategically coordinates global communications in all of its componentglobal communications in all of its component


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parts. parts. – Both Both horizontally (country-level)horizontally (country-level) and and vertically vertically

(promotion tools) (promotion tools) are used in GIMC.are used in GIMC.


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Copyright © John Wiley & Sons, Inc., 2004Copyright © John Wiley & Sons, Inc., 2004

Global Marketing Management

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Global Marketing Management