Beruflich Dokumente
Kultur Dokumente
Represents an effort to identify and categorize groups of customers and countries according
to common characteristics
Targeting
The process of evaluating segments and focusing marketing efforts on a country, region, or
group of people that has significant potential to respond
Positioning
Global Marketing
Global marketing refers to marketing activities of companies that emphasize four activities:
(2) opportunities to transfer products, brands, and ideas across subsidiaries in different
countries;
(3) emergence of global customers, such as global teenagers or the global elite; and
(4) better links between national marketing infrastructures, which paves the way for a global
marketing infrastructure that results in better management and reduced costs.
Measurability. The segments should be easy to define and measure. Objective country traits
such as socioeconomic variables (e.g., per capita income) can easily be gauged, but the size
of the segments based on culture or lifestyles is much harder to measure. Thus, a larger
scale survey may be required for segmenting global markets depending upon the basis of
GMS.
Size. Segments should be large enough to be worth going after. Britain and Hong Kong can
be grouped together in the same segment, because of previous British supremacy in Hong
Kong, but their population sizes differ.
Accessibility. The segments should be easy to reach via the media. Because of its sheer size,
China seems to be attractive market. However, because of its largely rural population, it has
less access to technology.
Actionability. Effective marketing programs (the four Ps) should be easy to develop. If
segments do not respond differently to the firm's marketing mix, there is no need to
segment the markets. Certain legal issues need to be considered before implementing an
advertisement campaign. For example, many countries, such as India, do not allow direct
slandering of the competitor's products.
Competitive Intensity. The segments should not be preempted by the firm's competition. In
fact, in global marketing, small companies often prefer entry of less competitive markets
and use this as one of the segmentation criteria when assessing international markets.
Conventional Wisdom
Unconventional Wisdom
Demographics
Psychographics
Behavioral Characteristics
Benefits sought
Psychographic Segmentation
Porshe example
Behavior Segmentation
User status
Benefit Segmentation
Based on understanding the problem a product solves, the benefit it offers, or the issue it
addresses
Targeting: 9 Questions
Is there a market need that is not being met by current product/brand offerings?
What are customers buying to satisfy the need for which our product is targeted?
Where is it purchased?
Niche marketing
Multi-segment targeting
Positioning
Attribute or Benefit
Use or User
Competition
International Advertising
1. Perform marketing research.
3. Develop the most effective message(s) for the market segments selected.
The Message Challenges : International communication may fail for variety of reasons:
Media Inadequacy
Message may reach intended audience and be understood but have no effect because
marketer did not correctly asses the needs and wants or the thinking process of the target
market
• Communication Process
2. Encoding : The message from the source converted into effective symbolism for
transmission to a receiver.
3. A message Channel : The sales force and or/ advertising media that convey the encoded
message to the intended receiver.
• Communication Process
4. Decoding : The interpretation by the receiver of the symbolism transmitted from the
information source.
5. Receiver : Consumer action by those who receive the message and are the target for the
thought transmitted.
6. Feedback: Information about the effectiveness of the message that flows from the receiver (
the intended target ) back to the information source for evaluation of the effectiveness of
the process.
7. Noise : Uncontrollable and unpredictable influences such as competitive activities and confusion
the detract from the process and affect any or all of the other six steps..
• If not properly considered, the different cultural contexts can increase the probability of
misunderstandings
• It can never be assumed that “if it sells well in one country, it will sell in another”
• It can never be assumed that if it sells well in one country it will sell in another ! Eg.
Bicycles, Toothpaste
…. If basic needs are incorrectly defined, communications fail because an incorrect or meaningless
message is received even though the remaining steps in the process are executed properly.
Factors are Color, Timing, Values, beliefs, humor, tastes and appropriateness of spokesperson can
cause the international marketer to symbolize the message correctly. Example – Perfume
• Problems of Literacy, media availability and types of media create problems in the
communication process at the encoding step.
Example – Colgate- Palmolive’s selection of the brand name ‘Cue’ for the toothpaste
Legal Constraints
Linguistic Limitations
Cultural Diversity
• Creative Challenges
• Values e.g. bicycle = recreation in USA, but bicycle = transport in Asia; French’s mustard
boycotted in US in 2003 when France didn’t go along with US attack on Iraq
• Humor
• Tastes
• Literacy e.g. using print ads when small % of target market can read
• Media availability e.g. using Internet when small % of target has access
• Endorsements
• Legal Constraints
• Comparative advertising - not allowed in Germany, Belgium, Luxembourg; okay in UK, Spain,
Portugal; restricted in India, Philippines
• Limitations on length & number of commercials - 32 minutes per day in Kuwait; no ads on
BBC in UK, < 7 minutes/hour on UK commercial stations; Germany TV ads must be 20
minutes apart & <12 minutes/hour
• Legal Environment
- Thailand, Hungary, Hong Kong, and Malaysia have bans on certain types of tobacco
advertising
• Message-related Issues
• Misleading claims are grossly exaggerated claims made by advertisers about products.
• Puffery is “advertising or other sales representations, which praise the item to be sold with
subjective opinions, superlatives, or exaggerations, vaguely and generally, stating no specific
facts.”
• Product-related Issues
• In 1997, the FDA loosened controls on drug companies, and prescription drug ads
skyrocketed.
– In 1996, the FDA restricted tobacco advertising within 1,000 feet of a school, and said ads in
publications with 55% readership under age 18 could only run black and white text ads.
– The FDA’s Master Settlement Agreement required the tobacco industry to pay $206 billion
over 25 years to 46 states, half of which supports antismoking ads targeting children.
– Liquor companies and television networks have voluntarily reduced alcohol advertising.
• Regulatory Environment
Federal Trade Commission (FTC)
• Established in 1914, the FTC regulates deceptive and misleading advertising, focusing on:
- Violations: can fine companies for violating 1) a trade regulation rule or, (2) cease
and desist order.
- Also oversees advertising involving weight loss products, children and elderly,
telemarketing, and
“LEKKERISH LIQUORICE”
• Cultural Diversity
Problems associated with communicating to people in diverse cultures present one of the great
creative challenges in advertising.
• Subcultures
• Changing traditions
• Linguistic Limitations
• Translation challenges
• Simple carelessness
• Multiple-meaning words
• Idioms
• Low literacy in many countries
• Linguistic Limitations
• Examples :
• A Company marketing tomato paste in the middle east found that in Arabic the phrase “
tomato paste” translates as “ tomato glue”.
• The word ‘ball’ translates in Spanish as bola, which means ball in one country, revolution in
another, a lie or fabrication in another, and is an obscenity in yet another
• Cultural Diversity
• Existing perceptions based on tradition and heritages are often hard to overcome
• Subcultures
• Changing traditions
• Media limitations may diminish the role of advertising in the promotional program
- Poor-quality printing
• Internet - evolving; B2B; catalogs; many consumer goods companies have e-stores
• New Social Media - Word-of-Mouth (WOM) / BUZZ marketing & peer recommendations
always key; Internet has advanced pace & reach of WOM; e.g. Papa John’s Pizza blog
Now they come in all colors, though the iconic shape is still the same.
• Media Penetration
in Selected Countries (per 1,000 persons)
• Availability
• Cost
• Coverage
• Newspapers
• Magazines
• Direct mail
• The Internet
• Other media
• Campaign Execution and Advertising Agencies
- Company-owned agency
• Compensation
• Consumer criticism
• Deceptive advertising
• Self-regulation
• Government regulations
• Microsoft
• Microsoft
• Summary
• The major problem facing international advertisers is designing the best messages for each
market served.
• The availability and quality of advertising media vary substantially around the world.
3. Develop most effective message(s) for market segments selected (most daunting)
6. Execute campaign
Specialized media reach small segments of the market only. In the Netherlands, there are
catholic, Protestant ,socialist, neutral, and other specialized broadcasting systems
4.
In viewing, advertising in newspapers and magazines is limited to 110 percent of space, and
to 5 percent of time, or three minutes an hour, on radio and TV
Media prices are susceptible to negotiation in most countries. Agency space discounts are often
split with the client to bring down the cost of media. The advertiser may find that the cost of
reaching a prospect through advertising depends on the agent’s bargaining ability. The per-contract
cost varies widely from country to country
bus
stop
Supermarket trolley
For example, in Chile, direct mail is virtually eliminated as an effective medium because the
sender pays only part of the mailing fee; the letter carrier must collect additional postage for
every item delivered. Obviously, advertisers cannot afford to alienate customers by forcing them
to pay for unsolicited advertisements
• Internet - evolving; B2B; catalogs; many consumer goods companies have e-stores
Now they come in all colors, though the iconic shape is still the same.
• 2008: This is definitely a growing trend! London's black cabs are ubiquitous and famous all
over the world and by law they have to be kept in excellent condition. The average black taxi
covers 126 miles per day in major UK cities carrying 38.4 million people to their chosen
destinations each year! That is an amazing reach and coverage over the UK. Research has
shown that when interviewed 71% of adults said they notice taxi advertising and people in
the 15 - 34 year bracket are 24 times more likely to notice taxi advertising than the average
person.
Media Strategy
Medium
Efficiency
Contextual fit
Scheduling
Television Advertising:
Advantages and Disadvantages
High reach
Some targeting
Repetition possible
High prestige
Limited targeting
Perishable message
Some distrust
Clutter
Radio Advertising:
Advantages and Disadvantages
Local coverage
Low cost
Quick
High frequency
Limited targeting
Local coverage
Auditory only
Clutter
Low attention
Perishable message
Magazine Advertising:
Advantages and Disadvantages
Good targeting
Quality of color
Longevity of ad
Can be saved
Pass-along readership
Visual only
Visual clutter
Newspapers:
Advantages and Disadvantages
Can be saved
Limited targeting
Short life
Low attention-getting
Poor reproduction
Clutter
Poor pass-along
Outdoor Advertising:
Advantages and Disadvantages
Low cost
Location specific
High visibility
Repetition opportunity
Low targeting
Limited content
Poor image
Local restrictions
Direct Mail Advertising:
Advantages and Disadvantages
Good targeting
Can be personalized
Intense coverage
Speed
Flexible format
Can be saved
No ad competition
Poor image
Clutter
Competitive Parity
"Sophisticated" Modeling
Advertising Scheduling
Frequency
Duplication
Wear-in, wear-out
Portfolio tests
Jury tests
Theater tests
Post testing
Attitude tests
Sales tests