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Chapter16-IntegratedMarketingCommunicationsandInternationalAdvertising
PAGE
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?2020byMcGraw-HillEducation.
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Chapter16— IntegratedMarketingCommunicationsandInternationalAdvertising
TeachingObjectives
Thedebateonthemeritsofstandardizationcomparedtomodificationofinternationaladvertisinghasalwaysseemedtobeafallaciousissue—itseemsobviousthatitisbesttostandardizeanymarketingactivitywheneverpossiblebut,ontheotherhand,ifthereisanyactivityinmarketingthatisculturespecific,itisadvertising.Afterall,advertisingiscommunicationsandtobeunderstoodandtocommunicateeffectivelyyoumustexpressyourselfintheculturallanguageofyouraudience.So,howcantheideaofglobaladvertisingeverbeanythingotherthanstandardizewhenfeasibleandadaptwhereculturallynecessary.Inanycase,sincethisissuecontinuestobedebatedandbecausethereisoftenconfusionaboutglobaladvertising,thesetopicsneedtobediscussed.Inmostcases,actualpracticeistostandardizepartsofthemessageandtolocalizeotherparts.Theteachingobjectivesareto:
Presentacompletecoverageoftheissueofglobaladvertisingcoveringspecificallyglobaladvertising,worldbrands,patternadvertisingandtherelationshipofglobalmarketsegmentationandpromotionalstrategy.
Detailthecreativechallengesconfrontingtheinternationaladvertiser.
ExaminetheeffectsofpanEuropeanadvertising.
Reviewthecommunicationsprocessasawayofbetterunderstandingthediversitythatexistsindevelopinganinternationalpromotionalprogram.
SuggestionsandComments
Theinternationalcommunicationsprocess,Exhibit16-4,isusefulinbringingthediscussionofinternationaladvertisingtogether.Itisagoodwaytoillustratethemanywaysapromotionalcampaigncangoawry.Examplesofmisfiresarelegionandtherearemanytochoosefromforexamples.Somerecentreportsofproblemsare:AhighlysuccessfuladcampaignwhichhadboostedsalesintheU.S.,Canada,EuropeandAustraliaforabrandoftoothpasteforchildrenwasnotwell-receivedinBangkok.“TooAmerican”andtheFrenchandU.K.versionswererejectedaswell.Theproblemhadtodowiththe“patonthehead”mnemonicdevice/imagerywhichwasatthecenterofalltheexecutions.Thatscene,whichclosedallcommercialsinthecampaign,wasdesignedtoexpresstheparent’sappreciationforthegoodbrushingthechildhaddonewiththetoothpaste.ButonedoesnottouchtheheadofanotherpersoninmanyAsiancountries.
Weliketoapproachtheproblemscreatedbydifferencesinlaws,language,culture,etc.ascreativechallengesinthatittakesrealcreativitytoovercomesomeoftheseroadblocsandstillpresentaneffectivepromotionalprogram.Thereareseveralexamplesinthetextthatcanbeusedasillustrations.Acaseinpointisthatproductinformationotherthanthenamecannotbegiveninadvertisements.Togetthroughthecensors,onebillboardforanIranianbrandofwomen’slingeriedisplayednowomen,nolingerieandnomentionoftheunmentionableproductatall.Thead’ssoleimagewasoftheunderwear’splaingreenboxwiththewords“softanddelicate”writtenalongside.Oneadvertisingmanagersaid,“Noonehadacluewhatitmeant.”
LectureOutline
I. GlobalPerspective
II. SalesPromotionsinInternationalMarkets
A. InternationalPublicRelations
B. InternationalAdvertising
III. AdvertisingStrategyandGoals
A. ProductAttributeandBenefitSegmentation
B. RegionalSegmentation
IV. TheMessage:CreativeChallenges
A. TheCommunicationsProcess
B. LegalConstraints
C. LinguisticLimitations
D. MediaLimitations
E. ProductionandCostLimitations
V. MediaPlanningandAnalysis
A. TacticalConsiderations
B. SpecificMediaInformation
VI. CampaignExecutionandAdvertisingAgencies
VII. InternationalControlofAdvertising:BroaderIssues
DiscussionQuestions
1.
Define:
Advertising
Publicrelations
Salespromotion
Integratedmarketingcommunications
Noise
“Perhapsadvertisingisthesideofinternationalmarketingwiththegreatestsimilaritiesfromcountrytocountrythroughouttheworld.Paradoxically,despiteitsmanysimilarities,itmayalsobecreditedwiththegreatestnumberofuniqueproblemsininternationalmarketing.”Discuss.
Theparadoxliesinthefactthatadvertisingmethodologyissimilarfromcountrytocountrybutthattheuniqueproblemsofcompanypolicylimitations,legalaspects,linguistics,medialimitations,allposeadistinctproblemtotheinternationaladvertiser.Advertisingmustberelatedtothebasicandexistingmotivationpatterns.Theuniqueproblemistofindthismotivationandorientyourcampaigntothestimuliwhichmustmakethemajorityofthepeoplebuytheproduct.Buttheseproblemsaregenerallymechanicalandcanbeeasilyovercomebylong-rangeresearch.
SomeoneoncecommentedthatadvertisingisAmerica’sgreatestexport.Discuss.
ThiscommentportraysthefactthatAmericawasfirsttorealizethatadvertisingisacrucialelementintheintegratedmarketingplan.SincetheAmericanphilosophyofadvertisinghaspenetratedtheforeignmarket,itissaidtohavebeen“exported.”ManyofAmerica’slargestadvertisingagenciessuccessfullyoperateintheforeignmarket.WorldadvertisingisgenerallypatternedaftertheAmericanadvertisingapproachandsystem.
WithsatelliteTVabletoreachmanycountries,discusshowacompanycanusesatelliteTVanddealeffectivelywithdifferentlanguages,differentcultures,anddifferentlegalsystems.
TherealityofsatelliteTVprovidesthemeanstohavetrulyglobaladvertising.Thisraisesthequestionoftheeffectivenessofstandardizedadvertisingversuslocallyproducedads.Problemsofdifferentlanguagesandlawsraisedoubtsabouttheeffectivenessofpan-Europeanads.InEuropeansatellitebroadcasting,Englishisthepreferredlanguageforprogrammingsincethesatellitesmustcoveraterritorywithmorethan20languagesand28nationalborders.AstudydoneonSkyChannelviewersindicatedthattheEnglishlanguageprogramsareunacceptableformany.GermanswatchtheEnglishlanguageprogramsforaboutaminutebeforedecidingtheyhavethewrongstation.Europeanprogrammingisdeveloping,butslowly.OneofthereasonsforusingU.S.madeprogrammingisthatproducingqualityprogramsforeachcountryistoocostly.Oneapproachtolanguagedifferencesandtheproductioncostsofprogrammingisasix-partseriescalled“Eurocops.”Itisapoliceseriesinwhicheachcountryproducesoneepisodebasedinthecountrywiththeirownpolice,intheirownstyleandwiththeirownproblems.Eachbroadcasterprovidestheepisodeproducedinhiscountrytotheotherfive.Thefivearethendubbedintothelocallanguageandbroadcastlocally.TheideaistoproduceEuropeanprogrammingbutatamuchlowercostpercountrythanifeachcountryhadtoproduceallsixshows.Thereisnoquestionthatcable,satellites,privatization,EUunification,andtheinternetcontinuestorevolutionizebroadcastingandaffectdemandforglobaladvertising.
Outlinesomeofthemajorproblemsconfrontinganinternationaladvertiser.
Ofalltheelementsofthemarketingmix,decisionsinvolvingadvertisingaretheonesmostoftenaffectedbyculturaldifferencesamongcountrymarkets.Consumersreflecttheirculture,itsstyle,feelings,valuesystems,attitudes,beliefs,andperceptions.Sinceadvertising’sfunctionisto“interpretortranslatetheneed/wantsatisfyingqualitiesofproductandservicesintermsofconsumerneeds,wants,desires,andaspirations,”theemotionalappeals,symbols,persuasiveapproachesandothercharacteristicsofanadvertisementmustcoincidewithculturalnormstobeeffective.
Reconcilinginternationaladvertisingandsalespromotioneffortwithculturaluniquenessofmarketsisthechallengeconfrontingtheinternationalorglobalmarketer.Theglobaladvertiserisconfrontedwithlegalandtaxconsiderations,languagelimitations,medialimitationandproductionandcostlimitations.Theselimitationsmustallbedealtwitheffectivelyifacompanyistohaveaneffectiveadvertisement.
Defendeithersideofthepropositionthatadvertisingcanbestandardizedforallcountries.
Yes,thebasictheme,objectives,andphilosophyofinternationaladvertisingcanbestandardized;butthevastmechanicalproblemsmostcertainlycannotbesolvedthroughinternationalstandardization.Theadmancanadapthisbasicskillstoallcountries.Ifbuyingmotivesandcompanyobjectivesarethesameforvariouscountries,thentheadvertisingapproachmaybethesame.Iftheyvary,thencustomizingyourapproachtoeachcountryisamust.
Reviewthebasicareasofadvertisingregulation.Aresuchregulationspurelyforeignphenomena?
Thebasicareasofadvertisingregulationare(1)thelegaltypesuchasGermany’sComparativeTerminologyandDirectComparisonLaws,and(2)taxationonadvertising,prevalentinBritain,France,andAustria.
No,theseregulationsarenotpurelyforeign.HereintheUnitedStatestherearecertainadvertisingcodesandstandardsthatonemustfollow.Thesearegenerallyenforcedbytheadvertisingindustryitself—buttheFCCalsoimposesstrictstandardsof“truthinadvertising.”
Howcanadvertisersovercometheproblemsoflowliteracyintheirmarket?
Theycanovercomelowliteracybymakinguseofadsthatareself-explanatory,andextensiveuseofradiowhichdoesn’thavewrittenwords.
Whatspecialmediaproblemsconfronttheinternationaladvertiser?
Specialproblemsinmedia—availability,cost,andcoverage—confronttheinternationaladvertiser.Localvariationsandlackofmarketdataarealsogreatheadaches.
Availabilityofmediavariesfromcountrytocountryduetogovernmentrestrictions.Countrieshaveeithertoomanyortoofewmediatoadequatelycoverthemajorityofthepopulation.Asfaraspricegoes,theUnitedStatesadmanmustbepreparedtohagglegreatlyovercosts.Mostmediacostsaresubjecttonegotiation.Agencydiscountsareoftensplitwiththeclienttobringcostsdown.Coverageproblemsgenerallyarisewhentryingtoreachcertainsectionsofthepopulation.Therearemanyuneconomicalmediadivisionswhichdonotpermitenoughregionality.Underlyingalltheseproblemsisthelackofmarketinformationwhichhampersagoodcommunicationmixinforeignmarketsandcausesmuchwasteinadcampaigns.
Afterreadingthesectioninthischapterondirectmail,developguidelinestobeusedbyacompanywhendevelopingadirectmailprogram.
Guidelinefordirectmailshouldbethesameasforanyadvertisingprogram,i.e.,identifythetargetmarket,selectamediumthatreachesthetargetmarket,developamessagethatcommunicateshowtheattributesofyourproductfittheneedsofthetargetmarket.Onthislastpointistheissueoftranslation.Youwanttoavoidthemistakeacatalogproducer,R.R.Donnelley,madewhenacollectionofadozenAmericancatalogssenttoJapaneseconsumersreceivedonlymodestresponsesandorders.FailuretoreceivesufficientresponsemayhavereflectedmoreontheAmericanShowcasepackagethanonthesuccessofdirectmailintheJapanesemarket.EventhoughthecoveringletterandbrochuredescribingthecatalogswereinJapanese,thecatalogswereallinEnglish.ThiserrorwasfurtheramplifiedbythefactthatthemailinglistdidnottargetEnglish-speakingJapanese.Inadditiontothesegeneralissues,specialattentionneedstogivetocharacteristicsofmail.Aremailingliststhatincludeyourtargetmarketwithoutexcessivecoverageofnon-targetmarketrecipients?Doesthemailingsystemimposesomeadditionalburdenontherecipient?Forexample,thesituationinChilewherethepersonreceivingmailmustpayaportionofthepostage.
WilltheabilitytobroadcastadvertisementsoverTVsatellitesincreaseordecreasetheneedforstandardizationofadvertisements?Whataretheproblemsassociatedwithsatellitebroadcasting?Comment.
TheabilitytobroadcastadvertisingoverTVsatelliteswillincreasetheneedforstandardizationofadvertisements.TheproblemsassociatedwithsatellitebroadcastingwillfocusoncreatinganadvertisementthatwillbeculturallyacceptableinallthecountriesreceivingtheBCsatellitebroadcastandcreatedinsuchamannerthatlanguagedifferencesthatmayexistwithinthecountrieswillnotaffectthemessagesent.Therearethose,however,whofeelthatsuchanadvertisementwouldbesoblandthatitwouldberelativelyineffective.
Inmanyoftheworld’smarketplaces,abroadvarietyofmediamustbeutilizedtoreachthemajorityofthemarket.Explain.
Duetotheuneconomicaldivisionofmediacoverage,alargeamountofmediamustbeengagedtocoveramajorityofthemarket.Ifanadvertiserwantstoreachhistotalmarket,theexpenditurehewillhavetoincurinusingabroadvarietyofmediaisgreat.Themediacompetitorshavesegmentedthemarketsothatonemustemploymostoftheminasuccessfulcampaign.
CinemaadvertisingisunimportantintheUnitedStatesbutamajormediainsuchcountriesasAustria.Why?
Austriahas20percentofalladvertisingincinemaasasolutiontoitshugetaxesagainsttheothermedia;andtheeffectivenessofthistypeofadvertisingisreflectedbyitsdollarexpenditureinthismedium—11percentofthetotaladexpenditureinthecountryperyear.
“Foreignnewspapersobviouslycannotbeconsideredashomogeneousadvertisingentities.”Explain.
Literacyratesvary,andthisresultsincoveragenotbeingconstant(selectiveratherthanintensive).Manycountrieshavetoomanypaperstorunaneffectivecampaignbecauseonemustutilizeallofthemifonedesirestocoverlargegeographicareas.Eventhen,itisnotknownifeffectivereadershipexists.Politicalpositionofthenewspaperinwhichyoudecidetorunanadmayhaveabadeffectonthereputationoftheproduct.
Borrowaforeignmagazinefromthelibrary.ComparetheforeignadvertisingtothatinanAmericanmagazine.
Libraryproject.
Whatissalespromotionandhowisitusedininternationalmarketing?
Salespromotionsincludeallmarketingactivitiesotherthanadvertising,personalselling,andpublicitythatstimulateconsumerpurchasesandimproveretailerormiddlemaneffectivenessandcooperation.Salespromotionsincludesuchitemsascents-off,instoredemonstrations,samples,coupons,producttie-ins,contests,sweepstakes,sponsorshipofspecialevents,andpoint-of-purchasedisplays.Salespromotionsareusedasshort-termeffortsdirectedatconsumerand/orretailertoachievesuchspecificobjectivesas(1)consumerproducttrialand/orimmediatepurchase,(2)consumerintroductiontothestore,(3)gainingretailpoint-of-purchasedisplays,(4)encouragingstorestostockaproduct,and(5)supportingandaugmentingtheadvertising,personalsalesefforts.
Showhowthecommunicationsprocesscanhelpaninternationalmarketeravoidproblemsininternationaladvertising.
Sincepromotionalactivitiesarebasicallycommunicationsprocesses,alltheattendantproblemsindevelopinganeffectivepromotionalstrategyisdomesticmarketingplusalltheculturalproblemsdiscussedinthechaptermustbeovercometohaveasuccessfulinternationalpromotionalprogram.Amajorconsiderationforaforeignmarketeristoascertainthatculturaldiversity,medialimitations,legalproblemsandconstraints,orcontrolofthemessagecanbecommunicatedproperly.Internationaladvertisingandpromotionalcommunicationsfailforavarietyofreasons:(1)themessagemaynotgetthroughbecauseofmediainadequacy,(2)themessagemaybereceivedbytheintendedaudiencebutnotbeunderstoodbecauseofdifferentculturalinterpretations,and(3)themessagemaybereceivedbytheintendedaudienceandbeunderstoodbuthavenoeffectbecausethemarketerdidnotcorrectlyassesstheneedsandwantsofthetargetmarket.Becauseofthemanydifferentinfluencesthatmayjeopardizethesuccessofapromotionalstrategy,thoseinternationalexecutiveswhounderstandthecommunicationsprocesswillprobablybebetterequippedtomanagethatdiversitysincethecommunicationsprocessforcestheinternationaladvertisertoexamineallofthoseareaswhereproblemsinpromotionmaysurface.
Takeeachofthestepsinthecommunicationsprocessandgiveanexampleofhowculturedifferencescanaffectthefinalmessagereceived.
Theinformationsourcemaycreateaproblembecausethemarketerdoesnottrulyunderstandtheneedsandwantsofthetargetmarket.Thisisespeciallyimportantifthemarketerreliesontheself-referencecriterionandmakesthenaiveassumptionthat“ifitsellsinonecountryitwouldsellinanother.”AnexamplewouldbebicyclesdesignedandsoldintheUnitedStatestoconsumersfulfillingrecreational,exerciseneedswhichcannotbesuccessfullysoldforthesamereasonsinamarketwheretheprimaryuseofthebicycleistransportation.Theencodingstepofthecommunicationsprocesscanalsocauseproblemsbecausesuchfactorsascolors,values,beliefs,tastesandothersymbolsutilizedbytheinternationalmarketerdonotcorrectlysymbolizethemessageintended.Forexample,“BodybyFisher”whichdecodedmeant“CorpsebyFisher”wasnotGeneralMotors’intendedmessage.Themessagechannelmaycreateproblemsbecauseofthedifficultyofeffectivelyreachingtargetmarketsinmanycountries.Problems,suchasilliteracy,theavailabilityandtypesofmedia,createproblemsatthislevel.Decodingproblemsaregenerallycreatedbyimpropere
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