Social Aspects of International Advertising

When we consider International Advertising from the advertiser’s point of view, according to them the primary objective of advertisement is that the product or services which they are offering should be sold in the market. And in achieving the main objective of selling the product or services there are other profound consequences. Advertising puts an influence which is both persuasive and pervasive in nature. Through the selective reinforcement of certain language and values, and social goal, it acts as important force attitudes that underlie behavior not only in the market place, but also in all aspects of life. In an international marketing concern, advertising has an important social influence in a number of ways: many of the international advertising are designed to promote and introduce new products from one market to another. Often this results in sudden change in life-styles, behavior patterns of a society, stimulating for example the adoption of fast food, casual attire or hygiene and beauty products. International advertising encourages desire for products from other countries; it creates expectations about “the good life”, and establishes new areas of consumption. Advertising is thus a potent force for change, while selectively reinforcing life-styles, certain values and role models.

We can see the examples of brands like Levi’s, Adidas, Reebok, Nike, Marlboro and McDonalds which are familiar in almost every corner of the world. These brands have become an object of desire by the teen and young adults throughout the world. Even the scenes and images which have been shown in the international advertising are either in western in origin or reflect western consumption behavior and values.… Read the rest

Challenges Faced by International Advertising

International marketing can be a tricky business. With the increase in global trade, international companies cannot afford to make costly advertising mistakes if they want to be competitive and profitable. Understanding the language and culture of target markets in foreign countries is one of the keys to successful international advertising. Too many companies, however, have jumped into foreign markets with embarrassing results. Out of their blunders, a whole new industry of translation services has emerged.

Faulty Translations

The value of understanding the language of a country cannot he overestimated. Translation mistakes are at the heart of many blunders in international advertising. Since a language is more than the sum of its words, a literal, word-by-word dictionary translation seldom works. The following examples prove this point. Otis Engineering Company once displayed a poster at a trade show in Moscow that turned heads. Due to a poor translation of its message, the sign boasted that the firm’s equipment was great for improving a person’s sex life. The Parker Pen Company suffered an embarrassing moment when it realized that a faulty translation of one of its ads into Spanish resulted in a promise to “help prevent unwanted pregnancies”.

Automobile manufacturers in the United States have made several notorious advertising mistakes that have been well publicized. General Motors learned a costly lesson when it intro­duced its Chevrolet Nova to the Puerto Rican market. Although “nova” means “star” in Span­ish, when it is spoken, it sounds like “no va” which means it doesn’t go. Few people wanted to buy a car with that meaning.… Read the rest

What is International Advertising?

International Advertising, generally speaking, is the promotion of goods, services, companies and ideas, usually in more than one country performed by an identified sponsor. Marketers see advertising as part of an overall promotional strategy. Other components of the promotional mix include publicity, public relations, personal selling, and sales promotion. Advertising is a cogent communication attempt to change or reinforce ones’ prior attitude that is predictable of future behavior.

It can be viewed as a communication process that takes place in multiple cultures that differ in terms of values, communication styles, and consumption patterns. It is also a business activity involving advertisers and the advertising agencies that create ads and buy media in different countries. The sum total of these activities constitutes a worldwide industry that is growing in importance. International advertising is also a major force that both reflects social values, and propagates certain values worldwide.

International advertising involves recognizing that people all over the world have different needs. Companies like Gillette, Coca-Cola, BIC, and Cadbury Schweppes have brands that are recognized across the globe. While many of the products that these businesses sell are targeted at a global audience using a consistent marketing mix, it is also necessary to understand the regional differences, hence it is important to understand the importance of international marketing. Organizations must accept that differences in values, customs, languages and currencies will mean that some products will only suit certain countries and that as well as there being global markets e.g. for BIC and Gillette razors, and for Coca-Cola drinks, there are important regional differences for example advertising in China and India need to focus on local languages.… Read the rest

The Global Advertising Plan

The strategic advertising plan usually is prepared in conjunction with the advertising budget. Basically, the plan outlines the marketing strategy, whereas the budget allocates the funds. Two major approaches to advertising in foreign cultures differ in their orientation: one is market oriented and the other is culture oriented.

The Market Analysis Model

This model is based on data and observation from several countries. It recognizes the existence of local, regional, and international brands in almost every product category. The two major variables are the share of market of brands within a category and the size of the category. A marketing manager must look not only as share but also at market size, growth rates, and growth opportunities. For instance, cola-flavored soft drinks are not nearly as dominant in Germany as they are in the United States. To generate sales in Germany, then, a soft-drink company would have to develop orange and lemon-lime entries. McDonald’s serves beer in Germany, wine in in France, a local fruit-flavored shake in Singapore and Malaysia, and even a Portuguese sausage in Hawaii, in addition to the traditional Big Macs, fish sandwiches, and French fries to cater to local tastes.

The Culture-Oriented Model

The second model of international advertising emphasizes the cultural differences among peoples and nations. This school of thought recognizes that people worldwide share certain needs, but it also stresses the fact that these needs are met differently from culture to culture. Although the same emotions are basic to all humanity, the degree to which these emotions are expressed publicly varies.… Read the rest

Global Market Entry and Exit Strategies

Global Market Entry Strategies:

1. Exporting as an Entry Strategy:

Exporting represents the least commitment on the part of the firm entering a foreign market. Exporting to a foreign market is a strategy many companies follow for at least some of their markets. Since many countries do not offer a large enough opportunity to justify local production, exporting allows a company to centrally manufacture its products for several markets and therefore to obtain economies of scale. Furthermore, since exports add volume to an already existing production operation located elsewhere, the marginal profitability of such exports tends to be high.

A firm has two basic options for carrying out its export operations. The form of exporting can be directly under the firm`s control or indirect and outside the firm`s control. It can contact foreign markets through a domestically located (in the exporters country of operation) intermediary-an approach called indirect exporting. Alternatively, it can use an intermediary located in the foreign market-an approach termed direct exporting.

Indirect Exporting: Indirect exporting includes dealing through export management companies of foreign agents, merchants or distributors. Several types of intermediaries located in the domestic market are ready to assist a manufacturer in contacting international markets or buyers. The major advantage for managers using a domestic intermediary lies in that individual`s knowledge of foreign market conditions. Particularly, for companies with little or no experience in exporting, the use of a domestic intermediary provides the exporter with readily available expertise. The most common types of intermediaries are brokers, combination export and manufacturers` export agents.… Read the rest

Global Marketing Strategies

A global marketing strategy that totally globalizes all marketing activities is not always achievable or desirable (differentiated globalization). In the early phases of development, global marketing strategies were assumed to be of one type only, offering the same marketing strategy across the globe. As marketers gained more experience, many other types of global marketing strategies became apparent. Some of those were much less complicated and exposed a smaller aspect of a marketing strategy to globalization. A more common approach is for a company to globalize its product strategy (product lines, product designs and brand names) and localize distribution and marketing communication.

Integrated Global Marketing Strategy

When a company pursues an integrated global marketing strategy, most elements of the marketing strategy have been globalized. Globalization includes not only the product but also the communications strategy, pricing and distribution as well as such strategic elements as segmentation and positioning. Such a strategy may be advisable for companies that face completely globalized customers along the lines. It also assumes that the way a given industry works is highly similar everywhere, thus allowing a company to unfold its strategy along similar paths in country by country. One company that fits the description of an integrated global marketing strategy to a large degree is CocaCola. That company has achieved a coherent, consistent and integrated global marketing strategy that covers almost all elements of its marketing program from segmentation to positioning, branding, distribution, bottling, advertising and more.

Reality tells us that completely integrated global marketing strategies will continue to be the exception.… Read the rest