International Marketing 16 th edition P h i

International. Marketing 16 th edition P h i l i p R. C a t e o r a M a r y C. G i l l y John L. Graham

Integrated Marketing Communications and International Advertising Chapter 16 With the launch of Spritea in China the company moved from its “Freedom from thirst “ platform to “Spark fresh thinking”. The product launch was at an event featuring Jay Chou, a popular Taiwanese musician, singer and actor. 16 -2

Learning Objectives LO 1 Local market characteristics that affect the advertising and promotion of products LO 2 The strengths and weaknesses of sales promotions and public relations in global marketing LO 3 When global advertising is most effective; when modified advertising is necessary LO 4 The communication process and advertising misfires LO 5 The effects of a single European market on advertising LO 6 The effect of limited media, excessive media, and government regulations on advertising and promotion budgets

WSJ – How Barbie Got Her Geek On By Ann Zimmerman “…Barbie's maker, Mattel Inc. , thought it would be interesting to ask young girls who visited the Barbie. com Web site to vote on what the doll's next career should be. Mattel gave them a choice of architect, anchorwoman, computer engineer, environmentalist and surgeon. All told, more than 600, 000 votes were cast during a four-week period …” 16 -4

Public Relations 1, 840 tweets discussed the voting. It’s a good bet a press-release from Mattel inspired the Wall Street Journal article. What other IMC component s did the marketing team use to create a “buzz” about Barbie? 16 -5

Nike+ Switched Target Market in Spain ü Nike had been targeting the hardcore runners who deemed it “not serious enough”. ü The driving insight, most casual runners run more for fun or to challenge their friends. ü The Nike campaign involved celebrities being woken up. Camera crews, Nike Athletes, friend and consumers caught up in the campaign, all gathered in front of the lazy friends house and ask them to lace up and start clocking up the kilometers. 16 -6

Burger King Shower Girl • Burger King started this IMC campaign in the UK in 2009, to attract the male target market in to the stores for breakfast. Would this work in the U. S. ? 16 -7

Sales Promotions in International Markets Examples of sales promotion include: Cents-off In-store demonstrations Samples Coupons Gifts Product tie-ins Contests Sweepstakes Point-of-purchase displays Sponsoring of special events You. Tube video

Ford Uses Theater to Promote Trucks BUENOS AIRES (Ad. Age. com) - Tapping into Latin America's literary tradition of magic realism, Ford Motor Co. is bringing wondrous tales along with trucks to little-used theaters in rural Argentina. Ford and its agency JWT were inspired to write plays by the launch of the latest Ford Ranger compact pickup, because there wasn't much to say about the truck itself. Characters in Play Explore Another Universe -- With Their Ranger Truck in Tow 16 -9

International Public Relations • Public relations (PR) is creating good relationships with the popular press and other media in order to help companies communicate messages to customers, the general public, and governmental regulators Demonstrated need: 1. Google vs. China over censorship 2. Toyota brake pedal problem Growth at double digit rates: • Building an international profile • Corporate sponsorships 16 -10

Is Paris Hilton Too Sexy for Brazil? • (Ad. Age. com) -- NEW YORK (Ad. Age. com) -- Brazil's selfregulatory body, Conar, is investigating an ad campaign starring Paris Hilton for Devassa Bem Loura beer for being too sexually provocative, even by the racy standards of Brazilian beer ads…Devassa Bem Loura (Portuguese for "Very Blonde") beer was launched last month during Brazil's riotous Carnival. "Very Irreverent, Very Blonde, Very Devassa. Finally She's Arrived. " 16 -11

International Advertising • Decisions involving advertising are those most often affected by cultural differences among country markets • Consumers respond in terms of their culture, its style, feelings, value systems, attitudes, beliefs, and perceptions • Advertising’s function is to interpret the qualities of products in terms of consumer needs, wants, desires, and aspirations, the emotional appeals, symbols, and persuasive approaches Reconciling an international advertising campaign with the cultural uniqueness of markets is the challenge confronting the international or global marketer

Absolut Vodka had to pull this ad even though the target market is in Mexico MEXICO CITY (Reuters) - The distillers of Sweden's Absolut vodka have withdrawn an advertisement run in Mexico that angered many U. S. citizens by idealizing an early 19 th century map showing chunks of the United States as Mexican. The billboard ad has the slogan "In an Absolut World" slapped over a pre-1848 map showing California, Arizona and other U. S. states as Mexican territory. Those states were carved out of what had been Mexican lands until that year. 16 -13

Exhibit 16. 1: Top 20 Global Advertisers 16 -14

International Advertising Basic concepts are universal: 1. Perform marketing research 2. Specify the goals of the communication 3. Develop the most effective message(s) for the market segments selected 4. Select effective media 5. Compose and secure a budget 6. Execute the campaign 7. Evaluate the campaign relative to the goals specified 16 -15

Product Attributes & Benefit Segmentation • Different cultures usually agree on the benefit of the primary function of a product or service • Other features and psychological attributes of the item can have significant differences • For example, Blue Diamond assumes – No two markets will react the same – Each will require a different marketing approach and strategy – Only similarity between New York, Tokyo, Moscow, Toronto and Stockholm is the logo 16 -16

Regional Segmentation • Pan-European communications media highlights need for more standardized promotional efforts • Costs savings with a common theme in uniform promotional packaging and design • Legal restrictions slowly being eliminated 16 -17

The International Communications Process Exhibit 16. 4 18

Legal Constraints • Laws that control comparative advertising are heavily regulated and vary from country to country in Europe and elsewhere – Examples: • Germany • Belgium • U. K. • Advertising is restricted on specific products • Television advertising is controlled • Broadcast media accessibility varies • Length and number of commercials have limitations • Internet services are vulnerable • Special taxes apply to advertising 16 -19

TV Usage in Emerging Markets • January 9, 2012, Jana. com – Data shows some countries have large populations who claim to watch little or no programming. 16 -20

Chinese TV Primetime Auction November, 19, 2013 National government broadcaster, China Central Television, raised a record $2. 5 billion at its annual oneday auction of prime-time advertising, an 11% jump over last year. The sale of the most sought-after spots for 2013 was again dominated by local marketers, with multinationals playing a minor role at the event in Beijing. 16 -21

Marc Jacob’s Ad Banned in U. K. The U. K. 's Advertising Standards Authority has banned a print ad for Marc Jacobs' "Oh, Lola" fragrance …featuring Dakota Fanning in a "sexually provocative" position with the bottle between her legs. - November 9, 2011 Prepare the Pro/Con arguments 16 -22

Media Limitations and Production and Cost Limitations • Media limitations may diminish the role of advertising in the promotional program • Examples of production limitations: – Poor-quality printing – Lack of high-grade paper • Low-cost reproduction in small markets poses a problem in many countries 23

Nivea Billboard in Brazil February 07, 2012 Ad Age Global Nivea Sun is demonstrating is effectiveness. The million bead mosaic when hit by sunlight shows the graphics except those covered in the Nivea sunscreen. At night the sign changes, due to the lack of sunlight. 16 -24

Media Planning and Analysis – Tactical Considerations Discuss the various tactical considerations that affect international marketing: Availability Newspapers Cost Coverage Magazines Satellite and cable TV The Internet Social Media Lack of market data Radio and television Direct mail Other media 16 -25

RED Works! Are you using a trade-dress signature color? 16 -26

Exhibit 16. 6: Top 10 Websites in Three Countries (visitors per month) Which Website usage surprised you? Why? 16 -27

Turn to your neighbor and discuss. 16 -28

Beer Sponsorship of Hurling (field hockey)

Advertising on Russian Spaceship

“Monitor Man” in Japan

Exhibit 16. 8: World’s Top 10 Advertising Agencies Teams should identify an Advertising Agency they would recommend for their Country Notebook project 16 -32

Cannes Lion Awards 2013 Coca-Cola Named Creative Marketer of the Year, Wins 20 Additional Cannes Lions : 16 -33