The aim of the paper is to evaluate important marketing dimensions of global advertising through analysis and synthesis of certain theoretical knowledge in areas such as: the nature of advertising messages on global markets, modifying messages to necessities of local markets and influence of advertising on the choice the brand of the product. An insight into the marketing mix and analysis of above mentioned advertising (the aim of the paper) are focused on upgrading the image of the product as well as on the rise of sale and profit in global terms.
Advertising is (aside from personal sale, promotion sale and publicity) a critical instrument of mix promotion. As a form of a company’s communication with its environment and as a means of advancement of sale, advertising should point out utility and value advantages offered by the product to existing and potential customers. The power of successful transfer of promotion campaign around the globe is a considerable advantage of a globally oriented company in term of competitiveness.
To expand globally it must find markets for its products worldwide. Locating more precisely target markets and lifting the level of detailed analysts of customer’s buying motives in these markets the management of the company enchants successful implementation of its global advertising strategy. 1. THE NATURE OF A ADVERTISING MESSAGE TO global market Advertising message is of certain content, which is to be conveyed to a recipient.
For the purpose of this assignment, I am assuming myself as the owner of a plastic molded toy company in United States that manufacturers, and distributes plastic molded toys through retailers across the country and around the world. The company is capitalizing on the strong growth in the children’s toys segment and planning to expand in an aggressive manner throughout the nation. The company ...
It is a part of mass public communication and a specific message in the process of mass communication characterized by: 1) its commercial character (it is created and published to initiate and guide the behavior of potential consumers at buying certain products and Received July 5, 1999 72 G. MILOVANOVIC 2) to be distributed to recipients through means of mass communication [1, p. 229]. The content of an advertising message, regardless of whether it is aimed at domestic of foreign markets must be evaluated according to its contribution to sale results.
Advertising message for global markets, as both product and activity, is distributed through different means of mass communication; it endures strong competition and comes in contact with those to whom it isn’t aimed. Such message should be repetitive, general and must stimulate recipient’s behavior. There are not a big number of advertising messages, which are able to draw or constrain attention of recipients to a certain product.
It is mainly the case with some commercial that have been going on for a prolonged time and which can be recognized with customers and general public and are based on advertising appeal as a carrying idea or theme of the advertising message. The aim of the advertiser is to discover the real appeal and to evaluate the role it plays in the overall campaign. Aiming of the content of advertising message at activating one of more motifs through the appeal one cam turn a motive into a necessity for certain products or services.
One should recognize positive and negative promotion appeals. Mainly a positive appeal points out the benefits which a buyer will acquire if he buys a certain product (saving, rationality, purity etc. ).
Negative appeals point out possible damages of inconveniences, which can be absorbed if a certain product is bough and used. Use of advertising appeal in stimulating motives in consumers is often criticized since it is considered to create tension and generates needs for whose fulfillment there are no real possibilities. 2.
Servicing customers in Global market Introduction Marketing communications are the channels used by businesses in the endeavor of persuading, informing and reminding clients about their brands that they sell. Firms can use different promotional tools to reach clients either directly or indirectly. Marketing communication can involve non-personal or personal communication channels. ...
MODIFICATION ADVERTISING MESSAGES TO LOCAL MARKETS Global advertising is more or less uniformed for markets of a number countries and often (yet not always) presupposes the use of means of media of global range. There are global prototypes in which the sound and visual effect can be used to avoid language and cultural barriers. For example Colgate-Palmolive and Coca-Cola companies often use prototype advertisements. These are followed by instructions for acceptable changes in prototypes; ideas for creative changes and suggestions for acceptable media follow these commercials. Localized advertising can be global in its essence.
Contrary to that in multinational advertising messages and/or their creative implementation is modified to the demands of certain markets. To fulfill efficient communication and persuasion through advertising messages and strategy of media it is necessary to change commercials, messages and promotion strategy and to modify it to demands of local markets and regions. However, modification of advertisements too preferential of local markets demands creativity. For example a commercial in Arabic for men’s perfume “Drakkar Noir” showed a woman’s hand stroking man’s hand holding the perfume; in USA the same hand hold the wrist of a man.
Accepting such differences the promoter avoids possibilities of appearance of unacceptable commercials. In France it is unacceptable to have a commercial showing cheese and a glass of beer. Such a commercial would be in accordance with habits of Germans whereas in France the acceptable combination would be cheese and wine [2, p. 499]. Marketing Dimensions of Global Advertising 73 Certain modifications in advertising are the way to answer demand of different cultures. For example, Goodyear Tire&Rubber in 39 countries used a slogan “Goodyear, take me home” but there were certain differences.
For instance in Philippine they stressed certain emotional family scenes while in Brazil they ended these with a visual joke. Similar to that “Kellogg” used frizzed flakes in similar commercials worldwide (using different names in different countries) [3, p. 463]. A considerable number of globally oriented companies use popular pop stars in global advertisements. Michael Jackson is shown in the main role in Pepsi commercial around the world including Russia. Tina Tarner was also in Pepsi global commercials. When Pepsi wished to localize the commercial it made a generic version.
Advertising Messages and Creative Approaches • Whether advertising converts people into becoming brand-loyal customers or acts as a defensive shield to reassure current buyers, and whether central or peripheral cues are required, there still remains the decision about the nature and form of the message to be conveyed: the creative strategy. • In practice, the generation of suitable messages is ...
Tina Tarner was video taped on a stage. The tape was then sent to different countries where her voice was synchronized by local stars in local tongues [4, p. 210]. It can be deducted that global products need global advertising. It is often the case. For instance promotion campaigns of Swatch, Benetton and Reebok are similar on all continents. Yet, it is always needed to adapt global campaigns local markets. For example, a Levi’s jeans is a global product with a globally recognized brand but it aims at specific markets with different appeals for each of these.
Only positioning of products and brands vary as differences vary among aimed markets [5, pp. 550-551]. Sometimes global advertising of a global brand mishaps and company must turn to multinational adaptation. For example, Parker Pen Company sold pens under the same name on all markets and with support of global advertising. However because of downfall of sale in the mideightees it had to return to multinational advertising strategy i. e. to meet demands of individual markets. So in Germany printed commercials showed a hand with Parker pen writing, “This is how you write with precision”.
In Great Britain, where this brand is a leader, exotic scenes prevailed in commercials (tender stroking of golden point with a nutshell).
Commercials in USA point out the status and image. The were two interesting commercials “you walk into a boardroom and everyone’s naked” and “there is a time when it has to be a Parker”. A different content in commercials was conditioned by the image of a product and different motive of consumers on different markets [6, pp. 462-463]. So even if a company sells the same products worldwide it is not realistic to expect that they will demand uniformed commercials.
Cultural and economic differences between countries and markets often demand off hand difference between basic advertising appeal and creative implementation of that appeal to be made on local markets. For example the basic appeal of S. C. Johnson company, for advertising shaving foam “Edge”, is smooth shaving. To demonstrate such advantages of the foam in USA the company used certain creativity using a credit card. A man strokes his face with a credit card. The side, which used “Edge” foam, is smoother and softer than the other side which used some other brand. Appeal of smooth shaving could be spread on to global markets.
MARKET ANALYSIS 1. 1 MAREKT SIZES AND TRENDS The market for the product can be divided into two segments: the Consumer and the Business Segments. Within the consumer and Business segments, it can be further segmented into four different sub-segments each, based on different characteristics or profile of the sub-segments. 1. 1-1 BUSINESS SEGMENTSThe market size of the Business market has grown from ...
Yet, on many markets, non-existence of credit cards would limit creativity of such an appeal so overall efforts would be inefficient. In producing commodities, the possibility of using the same appeal is far greater than in consuming commodities. Producing commodities are bought and used in the same way and for the same reason in every country. In many consuming commodities a possibility of using the same appeal. However a considerable number of marketing experts holds that consuming good depends so much on local demands that it’s impossible to use any element of mix marketing on foreign markets. 4 G. MILOVANOVIC Translating the message is a subject of great debates among experts in this field. Efficient translation demands: 1) god knowledge of original language and the one into which it is being translated 2) good knowledge of technical aspects of the product and special appeals about the product and ability to write text, which can recreate and affect. Before deciding whether to make a new commercial for foreign market or to simply have it translated into the local tongue the expert must be sure that when the text is translated will be accepts and understood by prospective consumers.
The expert must think in the language into which he wants to translate the message and to understand connotations of words, phrases and their meaning to evaluate whether the message will be accepted and properly understood. A creative translation is very important rather than literal meaning. It is a condition of good communication. Well formulated of translated message can increase covering the market, sale and profit. However hundreds of examples of wrong formulation and translation are in existence. For example, advertising of Chevrolet’s car “Nova” was not accepted on the Spanish market since in Spanish “No Va” means “Doesn’t go”.
The Ansoff product-market matrix helps to understand and assess marketing or business development strategy. Any business, or part of a business can choose which strategy to employ, or which mix of strategic options to use. This is one simple way of looking at strategic development options: Each of these strategic options holds different opportunities and downsides for different organizations, so ...
Likewise the message of Esso Company (“Put a tiger in your tank”) was a success in USA but not in some countries in Europe and Asia. Modifications were necessary to be consistent with preferences, wishes and attitudes of markets in individual countries. In France, the word “tank” means reservoir yet in this message it would mean oily (risque) so that motor would be an adequate substitute for tank. The message had to be modified in Thailand not to be wrongly understood since the tiger is not a symbol of strength in that country. 3. LIMITING FACTORS IN STANDARDIZATION OF ADVERTISING An important assignment of a manager in globally oriented ompany is to understand all limitations on national and foreign target markets (differences in culture, limitations of media, complex regulations etc. ) and to develop advertising strategy which will enable the real message to be transferred at the right time and in the right manner to prospective customers. Along the line the company can sustain failures a) if the message doesn’t reach the recipient due to inadequate media, b) if the message is receives by prospective recipients and is understood but does not affect the public since the market researcher didn’t adequately evaluate needs and wishes of the aimed at market.
Managers who understand the process of communication can, more efficiently, develop program of global promotion under conditions of varied environment. Many companies use strategy of standardized advertisement. Through standardization unified positioning of advertising message is attained but true realization of printed commercials is different between markets. It is probably the most accepted approach since it enables creative flexibility at local level. Also it enables local management to reflect differences in application of a message in contrast to visualization.
European advertisements of Xerox Company often contain more messages than their advertisements in USA. Kodak, for example, uses global advertisements although it allows local advertising agencies to adapt campaigns to the demands of local markets. Contrary to that Colgate-Palmolive Company has moved from global to strategy, which took into consideration advertising needs of every country, for certain brands of its products Marketing Dimensions of Global Advertising 75 Standardized message allows certain level of modification to meet the demands of local markets.
However, other brands are engaging in more aggressive advertising and increasing brand awareness, bridging the gap of perceived difference between BRAND’S and their products, and offering buyers more choices, hence buyers have medium power. Supplier bargaining power BRAND’S ingredients are mainly chicken essence and a small proportion of caramel. Although these ingredients are relatively easy to ...
In that way it allows certain economy as well as respecting specific demands of local culture. However implementation of strategy of uniform advertisement is often limited by: ? Different functions of products on certain markets. For example u Europe, bottled mineral water is used mainly because of mineral ingredients while in USA it is used regardless. ? Differences in culture. For example, the advertisement of Procter and Gamble for the shampoo “Wash and go” didn’t succeed in Poland because it doesn’t take into account demands of local culture. The advertisement showed a woman coming from the pool to take a shower.
However in Poland only a small percentage of people have pools while majority has baths not shower; ? Different stages of product life expectancy. For example at the time of hyperinflation in Federal Republic of Yugoslavia in 1993 throw away diapers were considered a luxurious commodity; ? Different wishes of consumers. People in different countries can show different willingness to buy the same product, which can influence conception of global commercials. Also people may have similar visions in life but different wishes because of different views toward accepted ways of realization of their vision and ?
Different attitudes of customers. In some countries attitudes of consumers are based on personal experiences and are stronger than attitudes based on indirect sources. Attitudes affect reactions of people to advertising commercials e. g. an original and very successful advertisement in USA for a know perfume “Charlie” which shows behavior of an emancipated woman didn’t have any success in South American countries [3, pp. 463-464]. Managers of internationally oriented company must understand that decisions on standardization or modification of advertising considerably depend on motivation of consumers on certain markets.
If consumers on different markets buy similar products (for different reasons) than the strategy must respect these differences. On the other side when consumers from different markets react similarly to certain stimuli it is not necessary to create different advertising messages. Debate among theoreticians supporting standardization and those who support local modified advertising will continue. However it is not advisable to support only extremes since none of them is consistent. It is certain that considerable obstacles in implementation of standardize advertising strategy will remain (e. . political, economical, and cultural and other differences between market and consumer (buyer).
That should not discourage managers to formulate global advertising strategy and to channel it to worldwide markets, standardizing what is possible and modifying what is necessary. 4. ADVERTISING AND CHOICE OF PRODUCT BRAND With the process of intensification of global markets there is a rise in need for consistent image of product brands. In that way consumers can avoid confusion in the process of buying on words wide markets. Such logic made the British Airways company 76 G. MILOVANOVIC o choose global advertising strategy with the slogan “World’s Favorite Airline” and Gillette company to accept global advertising for Gillette sensor with a slogan: “The Best a Man Can Get”. Global brands (“Coca-Cola”, “Pepsi-Cola”, “McDonald’s and others) are mainly the result of development and implementation of global marketing strategy. Global brands have the same name, the same style and demands the same creative strategy everywhere in the world. Even when cultural differences limit application of standard advertising program the company can possess a globally recognizable brand.
For example, “Nescafe” is a very known brand of instant coffee of Nestle Company and is used world over although advertising messages vary to satisfy demands of different cultures. In Japan and Great Britain advertising show preferences for tea. In France, Germany and Brazil preferences are towards grinned coffee, which demands different advertising messages and formulations. However even in that situation, there is certain standardization; all commercials have one common emotional characteristic (“whatever good coffee means to you and however you like to serve, Nestle has a coffee for you”) [7, p. 2]. Deighton J. C. M. Henderson and S. A. Neslin confirm that advertising can influence the probability of choice of certain brands in three ways: 1) to increase probability of change of brand (brand switching) in a household 2) to contribute that the household continue to buy the brand it used to (repeat purchasing) or 3) not to influence probability of choice of brand by the household [8, p. 28]. Change of brand (brand switching) can be a result of building of consciousness about the brand by the way of advertising or changing trust toward the brand.
Repeated purchase can be a result of direct influence of advertising or alternatively integration between advertising and experience in utility of the product. According to the concept of “farming”, economical promotion can increase the probability of buying again of a certain brand of a product overpowering what they learned through the experience of using the products. As an alternative to the concept of “framing” a concept of “usage dominance”, which presupposes that experience in the use of a certain product overrules persuasive influence of communication, that is advertising had no influence upon previous purchase of certain brands.
There are two types of “framing” (depending on time sequence): 1) when advertising some before the experience of using the product of a certain brand (predictive framing) and 2) when advertising follows the usage of the product of a certain brand (diagnostic framing).
By researching Deighton J. C. M. Henderson and S. A. Neslin established that advertising can influence (on) the consumers to buy again the same brands of the product, but the condition is its positive influence in the purchase before hand. Preferences of buyers toward certain brand are the result of their actions and attitudes toward the brand.
Current advertising positively influences the current buying of certain bran of the product. The primary role of the advertising is to increase the conscience and trust in the brand (to announce the existing brands or persuade the consumers that the brands posses different attributes).
If those efforts are successful, the consumer will be probably buying that brand. Some researches, which were directed to measuring time endurance of the advertising have proved that it often effect in the short period of time [9, pp. 45-156]. Other researches showed that advertising has disproportional influence on “the loyalty” toward Marketing Dimensions of Global Advertising 77 the brand. With intensifying of advertising the loyal consumers increase the extend of buying of the product of a certain brand. The consumers with a low loyalty do not show the increase of extending the purchasing. Deighton J. pointed out that advertising before buying the product could point the consumers on the best attributes of the brand [10, pp. 736-770].
After buying and using the product of a certain brand, the advertising could influence on that what was left in the memories of consumers of the product of a certain brand. In both cases there is an interaction between the experience and the growth of probability of repeating the purchasing of the product of a certain brand. Looking for the connection between advertising and experience (positive and negative) Smite R. found out that positive experience of the consumers in using the product under influence of advertising message which was noticed before and after that experience [11, pp. 04-219]. The influence of negative experience was softening in the great extent, when advertising followed certain experiences in using the product. The influence of negative experience was softening in a situation when the advertising came before using the product of a certain brand. Therefore, it’s not questionable that advertising can influence the attitudes of the consumers toward a certain brand of the product. The influence of advertising can last for a long time. The advertising messages can cause different reactions of the recipients.
The influence of advertising is often manifested in the increasing of the number of individuals who will agree to taste and use the product of a certain brand. If the influence of the experience is shown in a great extent, the advertising won’t influence seriously the probability of purchasing again. The consumer displayed to different levels of advertising often shows different levels of advertising often shows different attitudes toward the brands of advertised products. The advertising influences a little the probability of purchasing again, at those consumers who recently bought the advertised brand of a product. . CONCLUSION The advertising message for global market as a specific content, which should be transmitted to the receiver using different forms of mass communicating, must stimulate the behavior of the receiver. The intensifying of the process of globalization shows that markets (before everything in industrially developed countries) resemble each other and that possibilities of enlarging the same and similar advertising messages are increasing (regardless of the fact that the situation with media is considerably changing).
The presence of numerous cultural, economical, political and other differences between the markets of certain countries demands that the managers adopt the advertising strategies and/or messages to the demands of local markets. Also, those differences demand before all, before making final decisions about taking promotional actions of the foreign markets, that the managers consult the experts for those markets or to confine the creating of promotional actions and implementation of promotional actions to the local advertising agencies.
With the help of local national advertising agencies, which have the access to the global network, the managers of the globally oriented enterprises will be able to avoid the doubling of the advertising efforts and also to increase the rational use of budget of advertising. Finally, some brands of the product, in 78 G. MILOVANOVIC some countries, will be promoted more effectively by implementation of standard advertising messages, while for the others, however, the local (modified) advertising messages will be needed. REFERENCES 1. Vracar, D. , Strategije trzisnog komuniciranja, Privredne vesti, “Europublic” D. O. O. , Beograd, 1996. . Keegan, W. J. , Global Marketing Management, Forth Edition, Prentice Hall, Englewood Cliffs, New Jersey, 1989. 3. O’Shaughnessy, J. , Competitive Marketing: A Strategic Approach, Third Edition, Routledge, London, 1992. 4. Global Marketing Campaigns with a Local Touch, Business International, July 4, 1988. 5. Johansson, J. K. , Global Marketing: Foreign Entry, Local Marketing, and Global Management, IRWIN, Chicago, 1997. 6. Cateora, Ph. R. , International Marketing, Seventh Edition, IRWIN, Boston, 1990. 7. Link, G. L. , Global Advertising: An Update, Journal of Consumer Marketing, Spring, 1988. 8. Deighton, J. , Henderson, C. M. and Scott, A. N. , The Effects of Advertising on Brand Switching and Repeat Purchasing, Journal of Marketing Research, Vol. XXXI, February, 1994. 9. Srinivasan, V. and Weir, H. A. , A Direct Aggregation Approach to Inferring Microparameters of the Koyck Advertising-Sale Relationship from Macro Data, Journal of Marketing Research, 25, May 1988. 10. Deighton, J. , The Interaction of Advertising and Evidence, Journal of Consumer Research, 11, December 1984. 11. Robert, S. , Integrating Information from Advertising and Trial: Processes and Effects on Consumer Response to Product Information, Journal of Marketing Research, 30 May 1993.
MARKETING DIMENZIJE GLOBALNE PROPAGANDE Goran Milovanovic Cilj rada je da se, analizom i sintezom nekih aktuelnih teorijskih saznanja, ocene znacajnije marketing dimenzije globalne privredne propagande (priroda propagandnih poruka za globalna trzista, smisao prilagodavanja poruka zahtevima lokalnih trzista i identifikovanje nekih uticaja privredne propagande na izbor marke proizvoda).
Pregled nekih pristupa ovom instrumentu marketing mix-a kao i analiza pomenutih dimenzija privredne propagande (predmetno odredenje rada) fokusirani su na unapredenje imidza proizvoda kao i rast prodaje i profita u globalnim poslovnim okvirima.