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Chp 14 Global Marketing Management

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Challenges that advertisers face in global marketingq
*advertising planning
*budgeting
*resource allocation issues
*message strategy
*media decisions
*local regulations, advertising agency selection, coordination of multi-country communication efforts and regional and global campaigns
Language Barriers
*is the most formidable barriers in global marketing
*there are 3 types of translation erros that can occur in international marketing:
-simple carelessness
-multiple-meaning words
-idioms
Religion
cultural barrier
*the trickiest promotional issues occur in the domain of religion.
Cultural traps/cultural dimensions
*can escape cultural traps by getting input from local staff, distributors or ad agency people.
*Hofstede's cultural grid can be used to assess the appropriateness of comparative advertising campaigns.
*assess the suitablility of camparative advertising campaigns where one brand is contrasted with a competing brand.
The five cultural dimensions
*power distance
*uncertainty avoidance
*individualism
*masculinity
*long-termism
Setting the Global Advertising Budget
*companies rely on different kind of advertising budgeting methods.
*how much should we spend?
*what budgeting rule shall we use?
*how should we allocate our resources across our different markets?
*You look at:
-percentages of sales
-competitive parity
-objective-and-task method
-resource allocation
Percentage of Sales
advertising budgeting method
*sets the overall advertising budget as a percentage of sales.
*the most simple
*based on past or expected sales revenues.
*big downside is that sales revenue drives advertising spending
Competitive Parity
advertising budgeting method
*use the competitors' advertising spending as a benchmark.
*collect signals the "optimal" spending amount.
Objective-and-Task
advertising budgeting method
*the most popular
*the most ellaborate
*promoational efforts are treated as a means to achieve the advertiser's stated objectives.
Resource Allocation
advertising budgeting method
*bottom-up v. top-town.
*top-down is the most common: headquarters sets the overall budget and then splits up the pie among its different affiliates
*Bottom-up:each country subsidiary independently determines how much should be spend within its market and then requests the desired reousrces from headquarters.
Creative Strategy: Merits of Standardization
*one or more elements of the communication campaign are kept the same.
*scale economies:positive impact on the advertiser's bottom line
*consistent image:consistency is sometimes extremely important
*global consumer segments:cross-cultural similarities are a major catalyst behind efforts toward effecting a standardized ad approach
*Creative Talent: scarce supply. Most talented go to the big accounts
*Cross-fertilization: good ideas take time. marketers enourage their affiliates to adopt advertising ideas that have proven successful in other markets
Barriers to Standardization
*Cultural differences: cultural gaps between countries may exist in terms of lifestyle, etc they may also prevail for good that cater toward global sements
*Advertising Regulations: local advertising reg. pose a barrier.
*Market Maturity: gaps in cross-market maturity levels mandate different advertising approaches.
*"Not-Invented-Here" Syndrome: local ad agencies might make stonewalling attempts at standardization.
Advertising Regulations
*a major roadblock that global advertisers face is the bewildering set of regulations.
*regulations are usually imposed by the government
*regulations include:
-advertising of "vice products" and pharmaceuticals
-comparative advertising
-content of advertising message
-advertising targeting children
-issues of local languages, tax issues, and advertising rates

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