Global Marketing Management

Masaaki Kotabe & Kristiaan Helsen

Third Edition
John Wiley & Sons, Inc., 2004
Chapter 14 Kotabe & Helsen's Global Marketing 1
Management, Third Edition, 2004
 Chapter 14

Communicating with the

World Customer

Chapter 14 Kotabe & Helsen's Global Marketing 2

Management, Third Edition, 2004
 Chapter Overview

1. Global Advertising and Culture

2. Setting the Global Advertising Budget
3. Creative Strategy
4. Global Media Decisions
5. Advertising Regulations
6. Choosing an Advertising Agency
7. Coordinating International Advertising

Chapter 14 Kotabe & Helsen's Global Marketing 3

Management, Third Edition, 2004
 Chapter Overview (contd.)

8. Other Forms of Communication

9. Globally Integrated Marketing
Communications (GIMC)

Chapter 14 Kotabe & Helsen's Global Marketing 4

Management, Third Edition, 2004
 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 14 Kotabe & Helsen's Global Marketing 5

Management, Third Edition, 2004
 1. 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
 Other Cultural Barriers
– Religion

Chapter 14 Kotabe & Helsen's Global Marketing 6

Management, Third Edition, 2004
 1. Global Advertising and Culture
(contd.)
– Cultural traps/cultural dimensions
» Geert Hofstede’s cultural grid can be used to
assess the appropriateness of comparative
advertising campaigns (see Exhibit 14-2).
The five cultural dimensions include:
 Power distance
 Uncertainty avoidance
 Individualism
 Masculinity
 Long-termism

Chapter 14 Kotabe & Helsen's Global Marketing 7

Management, Third Edition, 2004
2. Setting the Global Advertising Budget
 Companies rely on different kind of advertising
budgeting methods which include: See Exhibit 14-
3
– Percentage of Sales
– Competitive Parity
– Objective-and-Task Method
– Resource Allocation

Chapter 14 Kotabe & Helsen's Global Marketing 8

Management, Third Edition, 2004
 3. Creative Strategy
 The “Standardization” versus “Adaptation Debate”
 Merits of Standardization:
– Scale Economies
– Consistent Image
– Global Consumer Segments
– Creative Talent
– Cross-Fertilization
 Barriers to Standardization:
– Cultural Differences

Chapter 14 Kotabe & Helsen's Global Marketing 10

Management, Third Edition, 2004
 3. Creative Strategy (contd.)

– Advertising Regulations
– Market Maturity
– “Not-Invented-Here” (NIH) Syndrome
 Approaches to Creating Advertising Copy:
– “Laissez Faire”
– Export Advertising
– Global Prototype Advertising
– Prototype Standardization

Chapter 14 Kotabe & Helsen's Global Marketing 11

Management, Third Edition, 2004
 3. Creative Strategy (contd.)

– Regional Approach
– Pattern Standardization
» Modular Approach

Chapter 14 Kotabe & Helsen's Global Marketing 12

Management, Third Edition, 2004
 4. Global Media Decisions

 Media Infrastructure
– Media infrastructure differs from country to
country
 Media Limitations
– The major limitation in many markets is
media availability.
 Recent Developments in the Global Media
Landscape:
– Growing commercialization and deregulation
of mass media
Chapter 14 Kotabe & Helsen's Global Marketing 13
Management, Third Edition, 2004
 4. Global Media Decisions (contd.)

– Shift from radio and print to TV advertising

– Rise of global and regional media
– Growing spread of interactive marketing
– Growing popularity of text messaging
– Improved monitoring
– Improved TV-viewership measurement

Chapter 14 Kotabe & Helsen's Global Marketing 14

Management, Third Edition, 2004
 5. Advertising Regulations

 The major types of advertising regulations

include:
– Advertising of “Vice Products” and
Pharmaceuticals
– Comparative Advertising
– Content of Advertising Messages
– Advertising Targeting Children
– Other Advertising Regulations: Issues of local
languages, tax issues, and advertising rates.
Chapter 14 Kotabe & Helsen's Global Marketing 16
Management, Third Edition, 2004
 5.Advertising Regulations (contd.)

 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 14 Kotabe & Helsen's Global Marketing 17

Management, Third Edition, 2004
 6. Choosing an Advertising Agency
 In selecting an ad agency, the international marketer
has several options:
1. Work with the agency that handles the
advertising in the firm’s home market.
2. Pick a purely local agency in the foreign
market.
3. Choose the local office of a large
international agency.
4. Select an international network of ad
agencies that spans the globe.
Chapter 14 Kotabe & Helsen's Global Marketing 18
Management, Third Edition, 2004
 6. Choosing an Advertising Agency
(contd.)
 When screening ad agencies, the following set of
criteria can be used:
– Market coverage
– Quality of coverage
– Expertise with developing a central
international campaign
– Creative reputation
– Scope and quality of support services

Chapter 14 Kotabe & Helsen's Global Marketing 19

Management, Third Edition, 2004
 6. Choosing an Advertising Agency
(contd.)
– Desirable image (“global” versus “local”)
– Size of the agency
– Conflicting accounts

Chapter 14 Kotabe & Helsen's Global Marketing 20

Management, Third Edition, 2004
7. Coordinating International Advertising

 Global or pan-regional advertising approaches

require a great deal of coordination. The following
mechanisms can help:
– Monetary Incentives (cooperative advertising)
– Advertising Manuals (brand book)
– Lead-Country Concept
– Global or Pan-Regional Meetings: Six
guidelines to implement a global or pan-
regional advertising approach include:
Chapter 14 Kotabe & Helsen's Global Marketing 21
Management, Third Edition, 2004
7. Coordinating International Advertising
(contd.)
» (1). Top management must be dedicated to
going global.
» (2). Use a third party (e.g., the ad agency) to
help sell key managers the benefits of a global
advertising approach.
» (3). A global brief based on cross-border
consumer research can help persuade managers
to think in terms of global consumers.

Chapter 14 Kotabe & Helsen's Global Marketing 22

Management, Third Edition, 2004
7. Coordinating International Advertising
(contd.)
» (4). Find product champions and give them a
charter for the success of the global marketing
program.
» (5). Convince local staff that they have an
opportunity in developing a global campaign.
» (6). Get local managers on the global
marketing team -- have them do the job
themselves.

Chapter 14 Kotabe & Helsen's Global Marketing 23

Management, Third Edition, 2004
 8. Other Forms of Communication
 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:
» Economic development
» Market maturity
» Cultural perceptions
» Trade structure (pull vs. push promotions)

Chapter 14 Kotabe & Helsen's Global Marketing 24

Management, Third Edition, 2004
 8. Other Forms of Communication
(contd.)
» Government regulations
 Direct Marketing
 Event Sponsorships
 Trade Shows: When attending an international
trade show, the following guidelines might prove
useful:
– Decide on what trade shows to attend at least a
year in advance.
– Prepare translation of product materials, price
lists, selling aids.

Chapter 14 Kotabe & Helsen's Global Marketing 25

Management, Third Edition, 2004
 8. Other Forms of Communication
(contd.)
– 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.
– Do your homework on potential buyers from
other countries.
Chapter 14 Kotabe & Helsen's Global Marketing 26
Management, Third Edition, 2004
 8. Other Forms of Communication
(contd.)
– 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 14 Kotabe & Helsen's Global Marketing 27

Management, Third Edition, 2004
 9. 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.
 Globally Integrated Marketing Communications
(GIMC):
– GIMC is a system of active promotional
management that strategically coordinates
global communications in all of its component

Chapter 14 Kotabe & Helsen's Global Marketing 28

Management, Third Edition, 2004
 9. Globally Integrated Marketing
Communications (GIMC)
parts.
– Both horizontally (country-level) and vertically
(promotion tools) are used in GIMC.

Chapter 14 Kotabe & Helsen's Global Marketing 29

Management, Third Edition, 2004
 Copyright © John Wiley & Sons, Inc., 2004

Chapter 14 Kotabe & Helsen's Global Marketing 30

Management, Third Edition, 2004