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Tài liệu International advertising and promotion

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20 International Advertising and Promotion McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Reasons for the importance of international markets ¾ Domestic markets for many products and services are stagnant ¾ Many companies rely on foreign markets to survive, particularly those with small domestic markets ¾ International markets offer growth opportunities for many companies ¾ Competition has become global and marketers must be able to compete globally Markets such as China offer strong growth opportunities for many companies International Advertising ¾ The U.S. accounts for over half of the world’s advertising expenditures ¾ Advertising expenditures outside the U.S. are growing more rapidly than inside ¾ Every country in the world has advertising of one form or another ¾ The more affluent the country, the more monies spent on advertising The International Environment Economic Environment Political/Legal Environment International Marketing And Promotional Decisions Cultural Environment Demographic Environment Economic Environment ¾ Stage of economic development ¾ Economic infrastructure ¾ Standard of living ¾ Per capita income ¾ Distribution of wealth ¾ Currency stability ¾ Exchange rates Demographic Environment ¾ Size of population ¾ Number of households ¾ Household size ¾ Age distribution ¾ Occupation distribution ¾ Education levels ¾ Employment rates ¾ Income levels Cultural Environment ¾ Language ¾ Lifestyles ¾ Values ¾ Norms and customs ¾ Ethics and moral standards ¾ Taboos Political/Legal Environment ¾ Government policies ¾ Laws and regulations ¾ Political stability ¾ Nationalism ¾ Attitudes toward multinationals The Big Question . . . Should the global marketer offer the same product, marketing, and advertising throughout the world? OR… Should the global marketer adapt the product, marketing, and advertising to individual markets throughout the world? Saab used a global campaign since its customers are similar around the world Source: Courtesy Lowe & Partners Worldwide (The Martin Agency, Lowe Brindfars for SAAB Automobile AB). Global Marketing and Advertising Advantages ¾ Economies of scale in production, distribution ¾ Lower costs with less in planning and control ¾ Lower advertising and production costs ¾ Ability to exploit good ideas worldwide ¾ Ability to introduce products quickly, worldwide ¾ Consistent international brand, company identity ¾ Simplification of coordination and control When is Globalization Appropriate? ¾Brands can be adopted for a visual appeal, avoiding the problems of trying to translate words into different languages ¾Brands that are promoted with image campaigns that play to universal appeals such as sex or wealth ¾High-tech products and new products coming to the world for the first time, not steeped in cultural heritage of the country ¾Products with with a nationalistic flavor if the country has a reputation in the field ¾Products that appeal to a market segment with universally similar tastes, interests, needs, and values Young people are a global market segment for many products Global Products, Local Messages ¾ An in-between approach: ƒ Standardizing products ƒ Localizing advertising messages ƒ “Think globally, act locally” ¾ Adapt messages to respond to differences in language, cultural, and market conditions. ƒ Pattern advertising Continental Airlines used pattern advertising to promote its BusinessFirst class Decision areas in international advertising ¾Organization ¾Agency Selection ¾Advertising and market research ¾Creative Decisions ¾Media Selection ¾Coordination of other IMC tools International Ad Agencies ¾ Many large, American general agencies operate internationally ¾ Foreign billings account for over a third of total billings by the top 10 American agencies ¾ Large multinational companies often deal with large, international agencies ¾ Overseas offices are usually staffed with multilingual, multinational personnel Foreign Local Agencies ¾ Staffed with local talent who understand local attitudes, culture, media, and conditions ¾ Especially effective for launching consumer products in a single, new geographic area ¾ Poses some problems if a product is to be launched in multiple, local, foreign markets Criteria for Selecting an Agency for International Advertising ¾ Ability of agency to cover relevant markets ¾ Quality of agency work ¾ Market research, PR, and other services offered ¾ Roles of company advertising department and agency ¾ Level of communication and control desired ¾ Ability of agency to coordinate internationally ¾ Size of company’s international business ¾ Company’s desire for local vs. international image ¾ Company organizational structure ¾ Centralized vs. decentralized ¾ Company level of involvement with international operations
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