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Chapter global communication strategies. After studying this chapter you will be able to understand: After studying this chapter you will be able to understand: How global marketing management differs from international marketing management, the need for planning to achieve company goals, the important factors for each alternative marketentry strategy, the increasing importance of international strategic alliances.
GLOBAL MARKETING MANAGEMENT Seventh Edition MASAAKI KOTABKE | KRISTIAAN HELSEN Chapter 13 PowerPoint Global Communication Strategies Chapter Overview Global Advertising and Culture Setting the Global Advertising Budget Creative Strategy Global Media Decisions Advertising Regulations Choosing an Advertising Agency Other Communication Platforms Globally Integrated Marketing Communications (GIMC) Chapter 13 Copyright © 2017 John Wiley & Sons, Inc 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 Chapter 13 Copyright © 2017 John Wiley & Sons, Inc 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.) Chapter 13 Copyright © 2017 John Wiley & Sons, Inc Exhibit 13-1: Five Different Ways of Saying Tires in Spanish Chapter 13 Copyright â 2017 John Wiley & Sons, Inc Global Advertising and Culture • Other Cultural Barriers – Religion • Communications and Cultural Values – – – – – – Power distance Uncertainty Individualism/Collectivism Masculinity Long-termism Celebrity endorsements Chapter 13 Copyright © 2017 John Wiley & Sons, Inc 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: – – – – Percentage of Sales Method Competitive Parity Objective-and-Task Method Resource Allocation Chapter 13 Copyright © 2017 John Wiley & Sons, Inc Exhibit 13-2: Average ad Spending per Capita (2014) Chapter 13 Copyright © 2017 John Wiley & Sons, Inc Exhibit 13-3: Examples of Universal Appeals Chapter 13 Copyright © 2017 John Wiley & Sons, Inc Exhibit 13-4: Global Advertising Shares by Category (%) Chapter 13 Copyright © 2017 John Wiley & Sons, Inc 10 Global Media Decisions • Media Infrastructure – • Media infrastructure differs from country to country Media Limitations – Chapter 13 The major limitation in many markets is media availability Copyright © 2017 John Wiley & Sons, Inc 17 Exhibit 13-7: Which Techniques Are Allowed in Europe Chapter 13 Copyright © 2017 John Wiley & Sons, Inc 18 Advertising Regulations • Major advertising regulations: – – – – – Advertising of “Vice Products” & Pharmaceuticals Comparative Advertising Foreign-made ads Content of Advertising Messages Advertising Targeting Children Chapter 13 Copyright © 2017 John Wiley & Sons, Inc 19 Advertising Regulations • Strategies to deal with advertising regulations: – – – – – Keep track of regulations and pending legislation Screen the campaign early on Lobbying activities Challenge regulations in court Adapt marketing mix strategy Chapter 13 Copyright © 2017 John Wiley & Sons, Inc 20 Exhibit 13-8: 2015 Projected Global Sponsorship by Region (Billions of Dollars) Chapter 13 Copyright © 2017 John Wiley & Sons, Inc 21 Choosing an Advertising Agency • Options for choosing an ad agency: Work with the agency that handles the advertising in the firm’s home market Pick a purely local agency in the foreign market Choose the local office of a large international agency Select an international network of ad agencies that spans the globe Chapter 13 Copyright © 2017 John Wiley & Sons, Inc 22 Exhibit 13-9: Guidelines for Event Sponsors to Cope with Ambush Marketing Chapter 13 Copyright © 2017 John Wiley & Sons, Inc 23 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 Chapter 13 Copyright © 2017 John Wiley & Sons, Inc 24 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: Chapter 13 • • • • • • Economic development Market maturity Cultural perceptions Trade structure (pull vs push promotions) Government regulations Direct marketing Copyright © 2017 John Wiley & Sons, Inc 25 Exhibit 1310: Introducing the Krispy Kreme “Real Strawberry” Donuts Range in Korea Chapter 13 Copyright © 2017 John Wiley & Sons, Inc 26 Other Communication Platforms • • • • • • • Global Sponsorships Mobile (Brand-in-the-Hand) Marketing Trade shows Product Placement Branded Entertainment (Content) Viral Marketing Global Public Relations and Publicity Chapter 13 Copyright © 2017 John Wiley & Sons, Inc 27 Other Communication Platforms Trade Shows • Decide on what trade shows to attend at least a year in advance • Prepare translation of product materials, price lists, selling aids • Bring plenty of literature • Bring someone who knows the language or have a translator • Send out, ahead of time, direct-mail pieces to potential attendees • Find out the best possible space, for instance, in terms of traffic • Plan the best way to display your products and to tell your story Chapter 13 Copyright © 2017 John Wiley & Sons, Inc 28 Other Communication Platforms Trade Shows • Do your homework on potential buyers from other countries • Assess the impact of trade show participation on the company’s bottom line Performance benchmarks may need to be adjusted when evaluating trade show effectiveness in different countries since attendees might behave differently Chapter 13 Copyright © 2017 John Wiley & Sons, Inc 29 Exhibit 1311: Examples of Internationa l PR Campaigns Chapter 13 Copyright © 2017 John Wiley & Sons, Inc 30 Globally Integrated Marketing Communications (GIMC) • Integrated Marketing Communications (IMC): – IMC coordinates different communication vehicles – mass advertising, sponsorships, sales promotion, packaging, point-of-purchase displays, so forth – GIMC is a system of active promotional management that strategically coordinates global communications in all of its component parts – Both horizontal (country-level) and vertical (promotion tools) approaches are used in GIMC Chapter 13 Copyright © 2017 John Wiley & Sons, Inc 31 ... & Sons, Inc Exhibit 1 3- 3: Examples of Universal Appeals Chapter 13 Copyright © 2017 John Wiley & Sons, Inc Exhibit 1 3- 4: Global Advertising Shares by Category (%) Chapter 13 Copyright © 2017... • • • Global Sponsorships Mobile (Brand-in-the-Hand) Marketing Trade shows Product Placement Branded Entertainment (Content) Viral Marketing Global Public Relations and Publicity Chapter 13 Copyright... barriers in global marketing – Three types of translation errors can occur in international marketing: • Simple carelessness • Multiple-meaning words • Idioms (See Exhibit 1 3- 1.) Chapter 13 Copyright