International advertising

Advertising that promotes the same product in several countries is known as international advertising.

A local brand is marketed in one single country.
A regional brand is marketed throughout a region, ie Europe, North America.

International brands are marketed in two or more of the four major regional blocks:
North America
Latin America
Europe
Asia-Pacific

Eastern Europe/Russia
Africa, Middle East and Southern Asia

Three main schools of thought on advertising in another country:

1. Globalization contends that differences between countries is more a matter of degree, so advertisers must focus on the similarities of consumers around the world.

2. Localization argues that advertisers must consider differences among countries, including culture, stage of economic and industrial development, media availability, research availability and legal restrictions.

3. Contingency - reasons that a combination of the two approaches can guide advertising in multiple countries.

ORGANIZATION STRUCTURE FOR MANAGING INTERNATIONAL ADVERTISING

For highly globalized ad efforts there may be one advertising plan for each product regardless of the number of markets entered.  Management is located in one central place for all of Europe and North America, etc. The advertising agency selected would be a large international advertising agency. Benefits: cost, ease of management. Downside:
Missed nuance, poor translations, cultural offenses

For a product using localized advertising, there probably will be a separate advertising plan for each foreign market. Management would be located in each country.  Local advertising agencies are used for planning and implementation. Benefits: Cultural acceptance, no language problems, Ads look like they come from the country where the intended target lives. Downside: Cost, management nightmare, a brand can lose it’s image.

APPROACHES TO CREATING AN INTERNATIONAL AD CAMPAIGN

1. When an ad campaign is a big success in one country and is then modified for use in other countries.

2. A team assembles from around the world to debate, modify, and agree on a basic strategy as the foundation for a centrally conceived campaign.

Variations: Sometimes a lead agency will create the look, the spots, layouts, logos, etc and then create a standards manual.  The manual is sent to foreign countries to be used in their local media.  The manual includes examples of layouts, ad slicks and spots, the logo typeface, approved colors, etc.

POSITIONING THE GLOBAL PRODUCT
Research must be conducted to identify the problems and opportunities facing the product in each of the international markets to be entered. Consumer buying motives are researched in each market, usually by a local research firm.

If consumer buying behavior and the competitive environment are the same across international markets, it may be possible to use a standardized positioning in all markets. The creative idea can be universal across markets.

If perceptions vary from market to market, then a more localized positioning will be required.

BUDGETS

Just as with domestic, there are several models.  Usually, however, a separate budget is created for each market, due to different rates for media, payment differences, barter expectations, etc. Often an objective-task model is used.

SELECTING MEDIA

Global media does not currently exist. Television can transmit images around the world but no one network controls the global transmission.

Satellite Transmission in not universal because of the footprint (coverage of the satellite), and regulations of transmissions by various governments.

The Cable News Network (CNN) is nearly global, however it’s coverage is in english, a language understood by less than 20% of the world’s population.

THE WEB
Is an international marketing and advertising medium but it faces, access, legal, linguistic, currency and technological barriers.

EXECUTION OF INTERNATIONAL CAMPAIGNS

Media planning for international campaign follows the same principles used for a national target audience, frequency versus reach, etc.

Execution is more complicated:
1. Advertising may have to be funded locally for maximum tax benefits or to meet local laws. Seasons are different between the Northern Hemisphere and the Southern Hemisphere. Exchange rates and bank charges for wire transfers have to be taken into consideration.  Commission rates can vary.

MEDIA CHOICES

Media buyer will look for : 1)publications that have international editions;
2) international airline magazines; 3) Multinational satellites.

There are international media buying services as well as local media buying services

SPECIAL INTERNATIONAL CONSIDERATIONS

1. Laws and regulations - are different in every country.
2. Customs and Culture - customs can be subtle and are easier to get wrong.
3. Time - everything takes longer internationally - not many business hours overlap around the world. And in some countries business stops in August as well as National Holidays.
4. Inertia, resistance, rejection and politics - advertising is about change and change frightens people - creative directors in one country may resist having creative come from a distant land.   Government approval for tv commercials can be difficult to obtain, ads can be rejected for a variety of reasons.   Maybe the relations between the us and the country are strained so a product from the us wouldn’t be received well.