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13 Cards in this Set
- Front
- Back
Challenges that advertisers face in global marketingq
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*advertising planning
*budgeting *resource allocation issues *message strategy *media decisions *local regulations, advertising agency selection, coordination of multi-country communication efforts and regional and global campaigns |
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Language Barriers
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*is the most formidable barriers in global marketing
*there are 3 types of translation erros that can occur in international marketing: -simple carelessness -multiple-meaning words -idioms |
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Religion
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cultural barrier
*the trickiest promotional issues occur in the domain of religion. |
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Cultural traps/cultural dimensions
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*can escape cultural traps by getting input from local staff, distributors or ad agency people.
*Hofstede's cultural grid can be used to assess the appropriateness of comparative advertising campaigns. *assess the suitablility of camparative advertising campaigns where one brand is contrasted with a competing brand. |
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The five cultural dimensions
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*power distance
*uncertainty avoidance *individualism *masculinity *long-termism |
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Setting the Global Advertising Budget
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*companies rely on different kind of advertising budgeting methods.
*how much should we spend? *what budgeting rule shall we use? *how should we allocate our resources across our different markets? *You look at: -percentages of sales -competitive parity -objective-and-task method -resource allocation |
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Percentage of Sales
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advertising budgeting method
*sets the overall advertising budget as a percentage of sales. *the most simple *based on past or expected sales revenues. *big downside is that sales revenue drives advertising spending |
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Competitive Parity
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advertising budgeting method
*use the competitors' advertising spending as a benchmark. *collect signals the "optimal" spending amount. |
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Objective-and-Task
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advertising budgeting method
*the most popular *the most ellaborate *promoational efforts are treated as a means to achieve the advertiser's stated objectives. |
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Resource Allocation
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advertising budgeting method
*bottom-up v. top-town. *top-down is the most common: headquarters sets the overall budget and then splits up the pie among its different affiliates *Bottom-up:each country subsidiary independently determines how much should be spend within its market and then requests the desired reousrces from headquarters. |
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Creative Strategy: Merits of Standardization
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*one or more elements of the communication campaign are kept the same.
*scale economies:positive impact on the advertiser's bottom line *consistent image:consistency is sometimes extremely important *global consumer segments:cross-cultural similarities are a major catalyst behind efforts toward effecting a standardized ad approach *Creative Talent: scarce supply. Most talented go to the big accounts *Cross-fertilization: good ideas take time. marketers enourage their affiliates to adopt advertising ideas that have proven successful in other markets |
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Barriers to Standardization
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*Cultural differences: cultural gaps between countries may exist in terms of lifestyle, etc they may also prevail for good that cater toward global sements
*Advertising Regulations: local advertising reg. pose a barrier. *Market Maturity: gaps in cross-market maturity levels mandate different advertising approaches. *"Not-Invented-Here" Syndrome: local ad agencies might make stonewalling attempts at standardization. |
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Advertising Regulations
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*a major roadblock that global advertisers face is the bewildering set of regulations.
*regulations are usually imposed by the government *regulations include: -advertising of "vice products" and pharmaceuticals -comparative advertising -content of advertising message -advertising targeting children -issues of local languages, tax issues, and advertising rates |