Global Marketing Management Global Cultural Environment

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Global Marketing Management Global Cultural Environment Powered By Docstoc
					                        MKTG 3215-001
                           Spring 2012
                       Mrs. Tamara L. Cohen

Global Marketing Management

Global Communications Decisions
Class # 21
Tuesday, April 24         Tuesday, May 1
• South Korea             • Greece
• Vietnam                 • Latvia

Thursday, April 26        Thursday, May 10; 2 - 4:30 pm
• Japan                   • China           • Romania
• Brazil                  • Jamaica         • Spain

            Hand in on your Presentation day :
           Final Report (hard copy & soft copy)
           Presentation (hard copy & soft copy)
      Each Group’s Presentation should be 15 minutes long
              + 3 minutes question-and-answer.
     Global Communications
                Preparation for this class:
                Read Course Reader #10

Homework #9:
Unconventional communications
  Global media planners must
  think ‘outside the box’. Find out
  about an unusual media usage in
  the global marketplace. Write
  one paragraph.
1. Sales Promotions
2. International Public Relations
3. International Advertising Strategy
4. Regional segmentation
5. Media planning
1. Sales Promotions
     in International Markets
Sales promotions                                           P.O.P.

  = marketing activities that stimulate consumer
    purchases & improve retailer / middleman
    effectiveness & cooperation e.g. cents off, in-store demo’s,
     samples, coupons, gifts, product tie-ins, contests, sponsorships, p.o.p.
   – short-term efforts directed to consumer or retailer,
     to achieve specific objectives e.g. consumer product trial /
     purchase, encouraging stores to stock product
• In markets with media limitations % of promotional
  budget allocated to sales promotions may have to
• Product sampling - effective when product is new / small
  market share
Product sampling
       Le Relais Bébés
Nestlé’s effective campaign to
penetrate French baby market
    2. International Public Relations
Public relations (PR) = creating good
 relationships with popular press & other media
     - helps companies communicate       messages
       to customers, general public, &
       governmental regulators
•   BP Gulf oil spill, 2010
•   global workplace standards (Nike)
•   building an international profile
•   corporate sponsorships
rank                                             SPENDING 2009
2009   ADVERTISER             HEADQUARTERS         ($ billions)
  1    Proctor & Gamble Co.   Cincinnati, OH          $9.73
  2    Unilever               London & Rotterdam      $5.72
  3    L'Oreal                Clichy, France          $4.04
  4    General Motors Corp.   Detroit, MI             $3.67
  5    Toyota Motor Corp.     Toyota City, Japan      $3.20
  6    Coco-Cola Co.          Atlanta, GA             $2.67
  7    Johnson & Johnson      New Brunswick, NJ       $2.60
  8    Ford Motor Co.         Dearborn, MI            $2.45
  9    Reckitt Benckiser      Slough, U.K.            $2.37
 10    Nestlé                 Vevey, Switzerland      $2.31
11.Volkswagen          21.Danone Groupe
12.Honda Motor Co.     22.General Electric
13.Mars Inc.           23.Time Warner
14.McDonald’s Corp.    24.PSA Peugeot Citroen
15.Sony Corp.          25.Pfizer
16.GlaxoSmithKline     26.Yum Brands
17.Deutsche Telekom    27.PepsiCo
18.Kraft Foods         28.Maxingvest
19.Nissan Motors Co.   29.Panasonic Corp.
20.Walt Disney         30.Ferrero
How much should you spend on Advertising?
                           or rather,
   How do you spend most effectively?
1. What is typical advertising-to-sales ratio in your field?
2. Is your business built to leverage volume or to
   leverage margin?
 Advertising % of sales:             Marketing % of sales:
 Wal-Mart 0.4%                       • Car industry 2.5 - 3.5%
 Target 2%                           • Liquor 5.5 - 7.5 %
 Best Buy (specialty retailer) 3+%   • Packaged goods 4 -10%
 Macy’s (upscale dep’t store) 5%     • Service businesses spend
                                       more because they are
                                       more margin-oriented,
                                       especially in growth phase.
     3. International Advertising
          Strategy Formulation
Of all elements of marketing mix, decisions
   involving advertising are most often
   affected by cultural differences.
1. Perform marketing research
2. Specify goals of communication
3. Develop most effective message(s) for
   market segments selected (most daunting)
4.   Select effective media
5.   Compose and secure a budget
6.   Execute campaign
7.   Evaluate campaign relative to goals specified
Advertising Strategy & Goals
• Marketing problems
   – require careful marketing research
   – thoughtful & creative advertising campaigns
      • in country, regional, and global markets
• Increased need for more sophisticated
  advertising strategies
• Standardization versus Customization (ad
• Consumer cultures e.g. convenience, America,
  youth, internationalism, humanitarianism, environmentalism
        Product Attributes &
       Benefit of Segmentation
• Different cultures usually agree on benefit of
  primary function of product / service
• Other features & psychological attributes of
  item can have significant differences
  – cameras
  – Yogurt - Dannon
  – Almonds - Blue Diamond
• No 2 markets will react the same
  – each has its own set of differences
  – each will require different marketing approach & strategy
4. Regional Segmentation
• Pan-European communications            of
  media highlights need for more       Scale
  standardized promotional efforts
• Costs savings with common theme in
  uniform promotional packaging & design
• Legal restrictions slowly being eliminated
• Latin America also becoming
  attractive regional segment
      Global Advertising
& the Communications Process
   (developing an effective message)

• Different cultural contexts can increase
  probability of misunderstandings
• Effective communication
  – demands existence of “psychological overlap”
    between sender & receiver
• NEVER assume that “if it sells well in one
  country, it will sell in another”
•   Language “lost in translation”
•   Color e.g. green = cool in Europe, but green = danger/disease in tropics
•   Timing e.g. seasons & clothing fashions
•   Values e.g. bicycle = recreation in USA, but bicycle = transport in Asia; French’s
    mustard boycotted in US in 2003 when France didn’t go along with US attack on Iraq
•   Beliefs e.g. rain = refreshing in Europe, but rain = fertility in Africa
•   Humor
•   Tastes
•   Appropriate endorser e.g. who is most recognizable athlete in world?
•   Literacy e.g. using print ads when small % of target market can read
•   Media availability e.g. using Internet when small % of target has access
•   Feedback step of communications (ad testing; noise)
          Legal Constraints
• Comparative advertising - not allowed in Germany,
  Belgium, Luxembourg; okay in UK, Spain, Portugal; restricted
  in India, Philippines
• Advertising of specific products - restrictions on
  advertising pharmaceuticals (Canada); toys, tobacco, liquor
• Control of advertising on TV
• Limitations on length & number of commercials
• Internet services - EU addressing regulation; should TV
  rules apply?
• Special taxes that apply to advertising

1980s: Government forbade
  mixing languages in
  advertising, so banned

     Cultural Diversity
Problems associated with communicating to
  people in diverse cultures present one of the
  great creative challenges in advertising.

• Knowledge of cultural diversity must
  encompass total advertising project
• Existing perceptions based on tradition &
  heritages often hard to overcome
• Subcultures
• Changing traditions
            5. Media planning
•   Availability - huge variations among countries
•   Cost - agents & negotiation
•   Coverage - difficult to reach some sectors; lack of info re coverage
•   Lack of market data - accurate data uncertain
•   Newspapers - too many in some countries, too few in others
•   Magazines - few with large circulation; best for technical products
•   Radio & TV - major communications media in most countries
•   Satellite & cable TV - increasing importance
• Direct mail - especially important when other
  media not available; beware Chile

• Internet - evolving; B2B; catalogs; many consumer goods
  companies have e-stores; direct internet marketing

• New Social Media - Word-of-Mouth / BUZZ marketing & peer
  recommendations always key; Internet has advanced pace & reach of
  Word-of-Mouth; e.g. Papa John’s Pizza blog

• Other media e.g. cinema; billboards (high illiteracy)
Giant 3-D
murals for
flip flop


    Red Bull car

    Supermarket trolley
 El Toro
Osborne Brandy
   in Spain
                    The original London
                      Black Taxicab

Now they come
  in all colors,
  though the
  iconic shape is
  still the same.
    Guerilla Marketing
•   specifically for small business & entrepreneur
•   always use combination of marketing methods
•   based on human psychology not experience, etc        gorilla
•   marketing investments: time, energy, imagination (not $)
•   measure PROFIT not sales
•   create std of excellence with acute focus rather than diversity
•   instead of trying to get new customers, aim for more
    referrals, more transactions with existing customers, larger
•   forget competition; focus on coop. with other businesses
•   use current technology as tool to empower business
•   VIRAL marketing - through social networks
•   GRASS ROOTS & ASTROTURF (imitate grass roots)
            “Need a
            new BBQ?”

Mr. Clean
                   Elevator ad
International Advertising

Ad firms have become international, like every other
  business. Advertiser should employ local ad agency or
  multinational agency with local representation.

•   local modifications
•   cross-cultural communication can be difficult
•   decency standards differ - sex, modesty, Western excess
•   tobacco
•   Myanmar has stringent individual censorship boards
          Keys to success in
         Global Communication
• Integrated marketing communications program
  includes coordinated advertising, sales
  management, public relations, sales promotions,
  & direct marketing.
• Unique legal, media, production limitations in
  every market
• Wide variety of media choices, old & new
• Communication technology (especially Internet) will
  continue to cause dramatic changes in
  international advertising & communications
Next class: Global Distribution Decisions

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