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Chapter 20
International Advertising and Promotion
20
Marketing
Undergraduate 4
05/09/2012

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Term
Why are companies focusing on international markets?(5)
Definition
  1. domestic markets offer limited opportunties of Expansion 
     
  2. some comp. must focus on foreign markets to survive
     
  3. can offer opportunities of growth and profits
     
  4. globalization is revolutionizing the world more radically and rapidly 

  5.  imports are taking a larger and larger share of the domestic market for many products
Term
  1. What is the firm doing when utilizing their Promotional Function?

     
  2. Define: Economic Infrastructure (part of the Economic Environment of the International Environment) 
Definition
  1. standing up and speaking out, wanting to be seen or heards
    • is most visible, culture bound - of firms marketing funtions
       
  2. communications, transportation, financial and distribution networks - needed to conduct business in markets effectively
Term
 What are the '4' variables of the International Environment?
Definition
  1. Economic Environment
    • considers: 
      • stage of economic development
      • economic infrastructure 
      • standard of living
      • per capita income
      • distribution of wealth 
      • currency stability 
      • exchange rates
         
  2. Cultural Environment 
    • considers:
      • language - nuances, idioms, subtleties - (must be aware of connotations and words/symbols)
      • lifestyles
      • values
          - ethnocentrism: view own group/society as center of universe - (nationalism)
      • norms and customs - beliefs/shared goals that? 
            - affect what products and services will be bought
            - affecty How they are marketd
      • ethics and moral standards
      • taboos - usually believes in conservative applications
         
  3. Demographic Environment
    • considers:
      • size of population
      • number of households
      • age distribution
      • Household size
      • occupation distribution
      • education levels
      • employement rate
      • income levels
         
  4. Political/Legal Environment (one of most important influencing factors)
    • Considers:
      • Gov't policies
      • laws and regulations - differ owing to:
        • economic and national sovernity considerations
        • nationalistic and cultural factors
        • goal of protecting consumers from false/misleading information (or advertising in general)
      • political stability
      • nationalism 
      • attitudes towards multinational companies
Term

What Government Regulations and Restrictions can affect company's advertising program? (8) -

Part of the Political/Legal Environment of the International Environment)

Definition
  1. Types of products advertised
     
  2. content or creative approaches able to be utilized
     
  3. media that all advertisers are permitted to employ
     
  4. amoung of advertising a single advertiser may use
    in total or specific mediums
     
  5. use of foreign languages in ads
     
  6. use of advertising material perpared outside country
     
  7. use of local vs. international advertising agencies
     
  8. specific taxes that can  be levied agaisnst advertising
Term

'5' Reasons Why Globalization is Important?

Definition
  1. Brands can be adopted for visual appeal
    • avoids translation problems
       
  2. Brands promoted with image campaigns 
    • playing to universal needs, values, emotions
       
  3. High-tech products, new to world, not steeped in cultural heritage of country of origin
     
  4. product w/ nationalistic flavor
    • if country has favorable reputation in field for quality and/or distinctive image 
    • Country of origin effect: consumers general perceptions of quality for products in the domestic country
       
  5. Products appealing to a market segment w/ unviersally similar:
    • taste, interests, needs, and values
    • Examples: Worlds elite AND global consumers (similar needs and interests)
Term
  1. Define: Global Marketing

  2. Define: Global  Advertising 
Definition
  1. company uses common marketing plan for all countries that it operates in (selling product same way all over the world)

  2. way to impletment global marketing by using same advertising approaches throught world (umbrella under global marketing) 
Term
  1. Advantages of Global Marketing

  2. Disadvantages of Global Marketing 
Definition
  1. 1) Economies of scales in production/distribution
    2) lower marketing and advertising costs (including production costs)
               -  result of reductions in planning & control 
    3)  - exploit good ideas AND introduce products 4) quickly  
    4) consistent brand and image
    5) simplification of coordination AND control of mkting/promo programs
     
  2. 1) differences in:
    • culture - language, traditions, beliefs, etc...
    • market
    • economic development
    • consumer needs and usage patterns
    • media availabilities 
    • legal restrictions
Term
  1. What is the Global Marketers Dilema? (2 options)
Definition
  1. A) offer same product, marketing and advertising everywehere - standardization

    B) adapt the product, marketing and advertising to each society (adaption)
Term
  1. '2' approaches to Global Products and Local Messages
Definition
  1. - In-Between Approach
    • Standardizing Products - recognizes similar desires, goals, needs, and uses for products/services
    • Localizing Ad Messages - tailors to local cultures/customs
    • "Think Globally Act Locally" - aka "Global Vision Local Touch"
       
  2. Pattern Advertising:
      - Follow basic globalization approach but Adapting messages to respond to Differences in:
    • Language
    • Culture
    • Market Conditions
    • Use of pattern Advertising
Term
What are the '3' ways companys can Organize overal for International marketing and business?
Definition
  1. Centeral Authority/Centeralization (made in home office)
      - when market and media conditions are similar to one another
      - when comp has one or few international agencies handling all advertising 
      - When standardized advertising can be used
      - When desiring consistent image worldwide  
    • Budgeting
    • Media Strategy
    • Campaign Development
    • Research
    • Agency Selection
    • Creative Strategy
       
  2. Decenteralization
      - marketing advertisers in each market have authority to make own advert/promo decisions
    • Local managers: select ad agencies, 
      • develop budgets, 
      • conduct research, 
      • appreave creative themes/executions
      • select advertising media
    • Approach used when:
      • local managers know marketing situation in country best
      • local managers would be more effective and motivated 
      • used in small or unique markets where HQ involvement is not worthwhile
         
  3. Combination of Two (local manager words closely with local or regional mkting managers from international agency)
      - allows consistency in companys international advertising 
      - permits lcoal input and adaption of promotion program 
    • international agency:
      • sets budgetary authority
      • sets advertising and promotional objectives 
      • approves creative themes/executions
      • approves media selection
    • Local managers: 
      • submit advertising plans and budgets for markets 
      • working/selects with local ad agencies
Term

Part of the Combination Approach for Organizing International Advertising

 

'10' Criterion for selecting Agency to handle International Advertising 

Definition
  1. Agecny to cover relevant markets
     
  2. quality of agency work
     
  3. market research, PR, and other services
     
  4. Level of comm. and control desired by company
     
  5. ability of agency to Coordinate International Campaign 
     
  6. size of company's international business
     
  7. comp. desire for local vs. international image
     
  8. comp. organizational structure for international bus. and marketing (centralized vs. decenteralized)
     
  9. Company's level of involevment with international operations
Term

Part of the Combination Approach for Organizing International Advertising 

 

What are the '3' Basic Alternatives for selecting an Agency for international advertising?

Definition
  1. Choose major agency with both domestic and overseas offices
    • US based Agency with foreign offices - 
      • greater control and convienence
      • facilitates coordination of overseas advertising
    • Reasons for consolidation:
      • develop consitend global image
      • increase cost efficiencies
      • gain greater leverage over agencies
      • ability to communicate and manage globally 
    • Risks involved:
      • no backup agency if fails to deliver
      • prob sellign idea to regional offices
  2. Agency Afiliated with Agencies in other Countries OR Network of foreign agencies
    • offers multinational coverage and contacts
    • provides detailed knowledge of market condions, media, etc...
       
  3. Select local agency for each national market in which it sells goods/services
    • best understanding of market and advertising environment 
    • may develop most effective advertising
        - willing to take risks   
    • best talent in each market 
    • increases involvement and morale of foregin subsidiary managers 
Term
'4' requirements for making Creative Decisions
Definition
  1. should be based on advertising AND communications objectives
     
  2. Copy Platforms MUST be develop that include major selling ideas
     
  3. Specific appeals and exuction styles must be selected
    • emotional appeals: may differ in cultural backgrounds
  4.  
  5. Appeals maybe to be adapted for local market conditions
    • Standardized approach - creative team must develop advertising that will transcend cultural differences and communicate effectively in EVERY country - products can be positioned differently in every country
    • localized advertising strategy - creative team must determine what type of selling idea, ad appeal, and execution style will work in each market 
Term
'2' Issues with International Media Selection
Definition
  1. Widely differing Characteristics
    • quality 
    • coverage
    • restrictions
    • availability 
    • cost
       
  2. Media Information Problems
    • Availabiltiy
    • Reliability
    • Circulation
    • Audience
    • Cost 
Term

'5' Major Considerations for International Sales Promotion 

Definition
  1. Economic Development
     
  2. Market Maturity 
     
  3. Consumer Perceptions
     
  4. Trade Structure
     
  5. Regulations
     
Term

Framework for analyzing Role of Centralized(headquarters) Vs. Local Mgmt in Sales Promotion decisions

 

Centeral VS Local Roles (Image)

Definition
[image]
Term
Management of Sales Promotions in Foreign Markets
Definition
  1. Headquarters:
    • influence greatest for global brands, 
    • least for local brands
    • Determins Promo strategy
      • international communication objectives
      • positioning
      • allocation of comm. budget to sales promo vs. advertising
      • weight of consumer vs. trade promotions
    • responsible for cross-fertilization of ideas, practices, and information w/ local mgmt. 
       
  2. Local management:
    • implementation of programs
    • avoid contradictory brand comm. and promo activities that(upset activities in nearby markets)
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