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CHAPTER 13 - GLOBAL MARKETING

Global Marketing Communications Decision 1: Advertising and Public Relations
Under this chapter we will learn the last of 4P, the Promotion P of the marketing mix.
Learning objectives;
Define global advertising and identify the top- rank companies in terms of worldwide ad
spending
Explain the structure of the advertising industry and describe the difference between
agency holding companies and individual agency brand
Identify key ad agency personnel and describe their respective roles in creating global
advertising
Explain how media availability varies around the world
Compare and contrast publicity and public relations and identify global
companies that have recently have been impacted by negative publicity


























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CHAPTER 13

Global Marketing Communications Decisions I: Advertising and Public Relations

Table of Contents

Introduction ............................................................2

Global Advertising ..............................................................................................................2

Global Advertising Content : Standardization versus Adaptation ..5

Pattern Advertising 6

Advertising Agencies : Organizations and Brands ...6

Creating Global Advertising ..6

The Advertising Appeal 7

The Selling Proposition ..8

Advertising Copy Mistake ..8
Cultural Considerations 9
Global Advertising Expenditures and Media Vehicles 9

Media Decision .10

Public Relations and Publicity ...11

Corporate Advertising .12

The Growing Role of Public Relation(PR) in Global Marketing .........12

How PR Practices Differ around the world ..13




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Introduction
Advertising, public relations and other forms of communication, are critical tools in the
marketing program.
Marketing communications-the promotion P of the marketing mix- refers to all forms of
communication used by organizations to inform, remind, explain, persuade and influence the
attitudes and buying behavior of customer and others.
The primary purpose of communications is to tell the customers about the benefits and value
that a company, nation, product, or service offers.
The elements of the promotion mix are advertising, public relations, personal selling and sales
promotion.

Global Advertising
The environment in which marketing communications programs and strategies are
implemented varies from country to country.
The challenge of effectively communicating across border is one of reason that global
companies and their advertising agencies are embracing a concept known as Integrated
Marketing Communication (IMC)
IMC approach clearly recognize that the various elements of a company's
communication strategy must be carefully coordinated.
Example; Nike has embraced the IMC concept;
"We create demand for our brand by being flexible about how we tell the story. We do
not rigidly stay with one approach....We have an integrated marketing model that
involves all elements of the marketing mix from digital to sports marketing, from event
marketing to advertising to entertainment ,all sitting at the table driving ideas"
Trevor Edwards - Nike's VP for Global Brand and Category Management





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Advertising is one element of an IMC program
Advertising may be defined as any sponsored, paid message that is communicated in a non
personal way.
It is designed to communicate with consumer by non personal to;
Single country
Regional or Pan regional
Global

Global Advertising
May defined as messages whose art, copy, headlines, photographs ,tag lines and other
elements have been developed expressly for their worldwide suitability.
A global company possesses a critical marketing advantages with respect of marketing
communications.
It has the opportunity to successfully transform a domestic advertisement campaign
into a worldwide
The potential for effective global advertising also increases as company recognize and
embrace new concepts such as "Product Cultures"
Examples;
o Globalization of Coffee Culture-Starbucks, globalization of Beer Culture, Athletic
shoes and other clothing items can be targeted to a worldwide segment of 18-to
25- year old males etc
o Advertising is often designed to add psychological value to a product or brand, it
play a more communications role in marketing consumer products than in
marketing industrials products.
o Global Advertising also offers companies economies of scale in advertising as
well as improved access to distribution channels.






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Global Advertising Content : Standardization versus Adaptation

The key question for global marketers is whether the specific advertising message and media
strategy must be changed from region to region or country to country because of the
environmental requirements?
Four major difficulties that compromise an organization's communication efforts.
1. The massage may not get through to the intended recipient. Due to an advertiser's lack
of knowledge about appropriate media for reaching certain types go audience.
Eg : Lack of promotion for colleges to promote for intake of new students.

2. The massage may reach the target audience but may be not understood or may even be
misunderstood. Due to an inadequate understanding of the target audience's level of
sophistication or improper coding.
Eg : Promotion via colors, as in some countries difference colors give a difference
meaning

3. The massage may reach the target audience and may be understood but still may not to
Compel / secure the recipient to take action. Due to lack of cultural knowledge about
the target audience.
Eg : Promoting of Islamic insurance/takaful

4. The effectiveness of the massage can be impaired(weakened, diminished, damaged)by
Noise. Noise, is an external influence .
Eg : Government to promote new policy but was not agreed by opposition etc.

Quote by Nils Larsson, External Communication Executive at IKEA;
"We have been in Sweden for 60 years and in China for only 4 or 5 so our feeling is that retail is
local.It is important to take advantage of local humor and the things on people's mind"

Quote From Michael Conrad, the Chief Creative Creative Officer at Leo Burnett
"I can think very few truly global ads that work. Brand are often at different stages around the
world and that means there are different job to do"



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Pattern Advertising
Representing a middle ground between 100 percent standardization and 100 percent
adaptation
A pattern strategy calls for developing a basic pan- regional or global Communication concept
for which copy, artwork or other element can be adapted as required for individual county.

Advertising Agencies : Organizations and Brands
Understanding the term of organization is key
Umbrella corporation/or holding companies that include one or more core advertising
agencies
Each organization has unit specializing in direct marketing, marketing services, public
relations or research.
Individual Agencies(agencies brand) are full service agencies-In addition to creating
advertisement, they provide other services such as market research, media buying, and
direct marketing. The agencies are all owned by larger holding companies.

Selecting an Advertising Agency
The following issues should be considered when selecting an advertising agency;
Company Organization~Companies that are decentralized typically allow managers at
the local subsidiary to make ad agency selection decision.
National Responsiveness~Is the global agency familiar with local culture and buying
habits in a particular country?
Area Coverage~Does the candidate agency cover all relevant markets?
Buyer Perception~What kind of brand awareness does the company want to project?


Creating Global Advertising
In a world characterized by information overload, ads must break through the clutter, grab the
audience's attention and linger in their minds.
This require developing an original and effective Creative Strategy-which it is simply a
statement or concept of a what a particular massage or campaign will say.
Advertising agencies can be thought of as "idea factory"

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In creative strategies development is something known as Big Idea.
Big Idea - "The flash of insight that synthesizes the purpose of the strategy, joint the
product benefit with consumer desire in a fresh,involving way,brings the subject to
life,and makes the reader or audience stop,look,or listen"
Legendary ad man John O'Toole
Big Idea - "The Big Idea is easier to illustrate than define,and easier to illustrate by what
it is not than by what it is.It is not a "position".It is not a "execution".It is not a
slogan.The Big Idea is the bridge between an advertising strategy,temporal and worldly
,and an image,powerful and lasting.
By Randall Rothenberg

The Advertising Appeal
The Advertising Appeal is the communication approach that relates to the motives of the target
audience.
Ads based on Rational Appeal-Depend on logic and speak to the consumer's intellect. Rational
Appeals are based on consumers' need for information.
Ads based on an Emotional Appeal-May tug at the heartstrings or uses sense of Humor and
evoke a feeling response that will direct purchaser behavior .

The Selling Proposition
The Selling Proposition is the promise or claim that captures the reason for buying the product
or benefit that ownership confers.
This is due to products are frequently at different stages in their life cycle in various national
markets, cultural, social and economic differences that exist in those markets, the most
effective appeal or selling proposition for a product may vary from market to market.
Effective global advertising may also require developing different presentations of the product's
appeal or selling proposition.
The way an appeal or proposition is presented is called Creative Execution.
Ad agency may choose from a variety of executions, straight sell, scientific evidence,
demonstration, comparison, testimonial , slice of life, animation, fantasy and dramatization.
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Art Director and Art Direction
Art Director Advertising Professional who has the general responsibility for the overall
look of an ad. They will choose graphics, pictures, type styles and other
visual elements that appear in an ad.
Art Direction The visual presentation of an advertisement-the "body language"

Copy and Copywriters
Copy The words that are the spoken or written communication elements in
advertisement.
Copywriters Are language specialists who develop the headlines, sub heads and body.

Advertising Copy Mistake

In Asia, Pepsi's "Come Alive" was interpreted as asking to bring ancestors back from
dead.
In china,CitiCorp's"Citi Never sleeps"was taken to mean that Citi had a sleeping
disorder.
-McDonald's does not use multiple 4's in advertising .


Cultural Considerations

Knowledge of cultural diversity, especially the symbolism associated with cultural traits, is
essential for creating advertisement.
Images of male/female intimacy are in bad taste in Japan; illegal in Saudi Arabia
Wedding rings are worn on the right hand in Spain, Denmark, Holland, Germany
European men kiss the hands of married women only, not single women.
In Germany, France and Japan, a man enters a door before a woman; No Ladies first

Much academic research has been devoted to the impact of culture on advertising.
Tamotsu Kishii identified characteristics that distinguish Japanese from American creative
strategies;
o 1. Indirect rather than direct forms of expression are preferred in the messages.
o 2. There is often little relationship between ad content and the advertised product.
o 3. Only brief dialogue or narration is used in television commercials with minimal
explanatory content.
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o 4. Humor is used to create a bond of mutual feelings .Rather than slapstick, humorous,
dramatization involve family members, neighbors and office colleagues.
o 5. Famous celebrities appear as close acquaintances or everyday people.
o 6. Priority is placed on company trust rather than product quality. Japanese tend to
believe if the firm is large and has a good image, the quality of the products should
also be outstanding.
o 7. The product name is impressed on the viewer with short,15-second commercials.


Global Advertising Expenditures and Media Vehicles

Each year, more money spent on advertisement in US than everywhere in the world.US
spending on advertisement in 2010 worth about $151B.
To put this figures in perspective, consider that 2010 ads spending in Japan, consider
second(2nd) largest in advertising market, totaled $43B.
One third (1/3) of current growth in ad spending by BRIC countries
Russia alone represent a $7.8B advertising market, ad growing at 30% as compared to us
at only 3-4% growth.
Worldwide, Television is recognized the no.1 medium of advertisement with expected
revenues generated at $176B in 2008.Television has captured one third of the global
expenditures.
Newspaper ranked second on worldwide basis, accounting about 27% of advertisement
spending
However media consumption vary from country to country, eg US and Japan, television
no one and newspaper come second as contrast in Germany, newspaper become no
one and television no second.
Worldwide, radio is to be less consumption as advertisement medium as compared to
print and television.
However, in some countries, where the budget is limited, radio's enormous reach can
provide cost -effective mode of communication.
Also, radio can be effective for countries where the literacy rates are low.

"The U.S online advertising market is much bigger than Europe's but it is a
crowded market and the room for growth is shrinking.In Europe,online
advertising is growth much faster and portal like yahoo want to tap into that"

Jupiter Research






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Media Decision

The availability of television, newspaper and other form of broadcast and print media varies
round the world. Moreover, pattern of media consumption differ from country to country.
In many developed countries, newspaper are experiencing circulation and readership declines
as consumer devote to news media option such as Internet

o Media Decision in India and Europe;
India has 300 daily newspaper with very minimal/ dime cost, therefore redesigned
newspaper and glossy supplement lure a new generation readers.
critical factor, India lacks penetration on cable television and the fact that only 4
million Indians subscribe to an Internet.
Moscow with the massive traffic jam and commuting delays; affluent people spend
hours in traffic jam and have a little time to read/watch tv
Even when media availability is high, it's use in advertising vehicle is limited. In
Europe, television advertising is very limited in Denmark, Norway and Sweden.
Sweden ban advertising for children younger than 12 year old where Print media
has recorded three times higher the annual spending on tv
o Media Decision in U.S and Arab;
Women appears in ads in Arab magazines wear long dresses ; their presence
generally is relevant to the advertised product
U.S adds tend to have more information content, by contrast, brevity is considered a
virtue in the Arab world. Context plays a greater role In interpreting an Arab
massage than in U.S
U.S ads contain more price information, and more likely to include Comparative
appeals than Arab ads.
Non censored films cannot be advertised
Women may only appears in those commercials that involved family affairs, and
their appearance must be in a decent manner that ensures feminine dignity






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Public Relations and Publicity
Public Relation(PR)
Is the department or function responsible for evaluating public opinion about and
attitudes toward the organization and its product or brands.
Like advertising, PR is one of four variables in the promotion mix

Public Relations Personnel
Are responsible for fostering goodwill,understanding,and acceptance among a
company's various constituents and publics
One of the task of PR practitioner is to generate Publicity.
o Publicity is communication about the company or product for which the
company does not pay.
In PR world, Publicity is sometimes referred to as Earned Media,and Advertising and Promotion
are known as Unearned Media.
PR is also play key role in responding to unflattering media reports ,crises,or controversies that
arises because of company activities in different parts of the globe.
The basic tools of PR included;
- -news release
- -newsletters
- -media kits
- -press conference
- -tour
- -articles in trade or professional journal
- -company publications and brochures
- -tv and radio talk show appearances
- -special events
- -social media and
- -corporate web sites









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Corporate Advertising
-compensate for this lack of control over publicity
-Is generally considered part of PR function.
-calls attention to the company's other communication efforts.
Image Advertising - enhance the public's perception of the company ;create goodwill; or
announces a major change ,such as a merger, acquisition or divestiture.
E.g A campaign from Daimler AG announced an Eco-friendly fuel call Sun Diesel
Advocacy advertising - in advocacy advertising, a company present it's point of view on a
particular issues.
E.g Japan's Fuji Photo Film asked its advertising agency to develop an advocacy
campaign for the United State.

The Growing Role of Public Relation(PR) in Global Marketing
Public Relation professionals with international responsibility must go beyond media relations
and serve as more than a company mouthpiece.
They are called upon to simultaneously to build consensus and understanding, create trust and
harmony, articulate and influence public opinion, anticipate conflicts and resolve disputes.
PR expenditures are growing at an average of 20% per year
In India they are reported to be growing by 200% annually
The reasons for growing in Public Relation;
Is increased Governmental Relation between countries.
Governments, Organization, and societies are dealing with broad-based
Issues of mutual concern, such as a global recession, trade relation the environment
and the world peace.
The Technology
The technology driven communication revolution that has ushered in the Information
Age makes public relation a profession truly global reach.
Social issue like environment
In spite the technology advances, the PR professional must build good personal working
relationships with journalist and other media representative as well as with leaders if other
primary constituencies. Therefore, strong interpersonal skills are needed.

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How PR Practices Differ around the world

Public Relation practices can be affected by;
Culture Traditions
-Social and political contexts
-Economical environment

Public Relations professionals must understand all these differences and tailor and suit the
massages and requirement appropriately.
In the developing countries, and even in the industrialized countries, the practices are differs.
PR professionals are viewed as part of the marketing function rather than as distinct and
separate specialist in a company.