08ac11 Developing standardized advertisements that are marketed worldwide.
It is a process of maintaining uniformity in
operations and marketing processes throughout the world Key Benefits
▪ Cost Reduction ▪ Improved Quality ▪ Global Customers ▪ Global Market Segments Drawbacks of Standardization
Off-Target or Wrong positioning in some
countries Lack of Uniqueness Vulnerable to Country Specific Barriers In reality 100% standardization is rare Some features have to be localized ▪ Packaging, pricing etc Only the “Core Ad” which acts as the foundation is standardized All additional things are standardized in varying degrees to meet local tastes Legal Consumer demographics Culture Local traditions/ customs—e.g., Local usage conditions Pricing Pressures Area of strategies and tactics Standardization of creative strategy and tactics Local Environmental Determinants Cultural Environment Economic Conditions A spectrum Legal Conditions Competition of various Advertising Infrastructure Consumer Profile degrees of The Country of Origin Image adaptation International Firm FirmEnvironmental Determinants Environment Determinants influenced by advertising Managerial * Managerial and and Financial FinancialCharacteristics Characteristics - Corporate - Corporate Strategy Strategy the presence strategy - Internal - Internal Culture Culture - Decision-making - Decision-makingauthority authority or absence continuum - Financial - Financial condition condition of organization of organization *Nature Natureorofproduct product of the local,
Intrinsic Determinants firm and
International advertising objectives Relationship between multinational advertiser intrinsic and advertising agency (ies) Creative Strategies determinants Media Strategy Other elements of the communication mix Support activities and barriers Adaptation of creative strategy and tactics Assumption:Consumers everywhere share the same wants and needs Maintaining consistent image Reducing confusion among world travelers Implementing single-coordinated campaign across countries Reducing development, media, and other costs Luxury products High-tech products Experiential products Favorable country image Assumption: Insurmountable cultural, economic, infrastructural, and political differences across countries Increasing effectiveness by tailoring ads to local conditions Giving more freedom to subsidiaries SCALE ECONOMIES CONSISTENT IMAGE GLOBAL CONSUMER INSIGHTS CREATIVE TALENT CROSS FERTILIZATION CULTURAL DIFFERENCES ADVERTISING REGULATIONS MARKET MATURITY “NOT INVENTED HERE”(NIH) SYNDROME. Global Difficulties with the Communication Process In China: KFC’s slogan: “Finger lickin’ good” came out as “Eat your fingers off” Also in China: Coca-Cola had thousands of signs made using the translation: “Ke-kou-ke-la” ▪ Depending on the dialect this means . . . ▪ “Bite the wax tadpole,” or ▪ “Female horse stuffed with wax” In Taiwan: Pepsi’s slogan, “Come alive with the Pepsi generation” came out as “Pepsi will bring your ancestors back from the dead” 800 products-200 countries Consistent worldwide image as masculine sports oriented company. In Us blades is known as Trac II Worldwide as G-11 Silkience hair conditionr is Soyance in france and sientel in Italy Cleaning Liquid Vif-switzerland Viss-Germany Jif –Britan Cif –France Ford escort advertises the affordability in USA But In India the Ads projected it as a premium segment product In Usa excellent pictures with easy foolproof operation are expected by most of the market. In germany and Japan a camera must take excellent pictures but the camera must also be state of the art in design. In africa where penetration o cameras is < 20% the concept of picture taken must be sold Ultimately, the perspective of standardization is realistic though not absolute. This means the need for minor adaptations to facilitate the process of standardization is required. The mantra followed by successful global companies is THINK GLOBAL! ACT LOCAL! THANK YOU……