Global Media Decisions
√ (Learning Objective #4)
The next issue facing advertisers is which medium or media to use when communicating with
target audiences. Media availability can vary from country to country.
Some companies use virtually the entire spectrum of available media; Coca-Cola is a good
example. Other companies prefer to utilize one or two media categories.
The available alternatives can be broadly categorized as print media, electronic media, and
other.
Print media range from local daily and weekly newspapers to magazines and business
publications with national, regional, or international audiences.
Electronic media include broadcast television, cable television, radio, and the Internet.
Additionally, advertisers may utilize various forms of outdoor, transit, and direct mail
advertising.
Globally, media decisions must take into account country-specific regulations.
Global Advertising Expenditures and Media Vehicles
Each year, more money is spent on advertising in the United States than anywhere else in the
world. U.S. ad spending in 2014 totaled $176 billion.
However, much of the current growth in advertising expenditures—as much as one third—is
occurring in the BRICS countries.
Worldwide, television is the number one advertising medium; with estimated ad revenues of
$206 billion in 2014, television captured slightly more than 40% of global expenditures.
Newspapers rank second on a worldwide basis, accounting for about 27 percent of advertising
spending.
However, media consumption patterns vary from country to country.
For example, television is the number one medium in both the United States and Japan.
By contrast, newspapers are the leading medium in Germany; television ranks second.
Worldwide, radio continues to be a less important advertising medium than print and television.
However, in countries where advertising budgets are limited, radio’s enormous reach can provide
a cost-effective means of communicating with a large consumer market.
Also, radio can be effective in countries where literacy rates are low.
A clear trend that is gaining traction throughout the world: Spending on customer relationship
management and Internet advertising is gaining ground at the expense of TV and print.
Media Decisions
The availability of television, newspapers, and other forms of broadcast and print media varies
around the world. Moreover, patterns of media consumption differ from country to country as
well.
In many developed countries, for example, newspapers are experiencing circulation and
readership declines as consumers devote more time to new media options such as the Internet.
Even when media availability is high, its use as an advertising vehicle may be limited. For
example, in Europe, television advertising is very limited in Denmark, Norway, and Sweden.
Regulations concerning content of commercials vary; Sweden bans advertising to children
younger than 12 years of age.
As noted earlier, cultural considerations often affect the presentation of the advertising message.
One recent study comparing the content of magazine advertisements in the United States with
those in the Arab world found the following:
People are depicted less often in Arabic magazine ads.
U.S. ads tend to have more information content; by contrast, brevity is considered a
virtue in the Arab world.
U.S. ads contain more price information, and are more likely to include comparative
appeals than Arabic ads.
PUBLIC RELATIONS AND PUBLICITY
(Learning Objective #5)
Public relations (PR) is a “strategic communication process that builds mutually beneficial
relationships between organizations and their publics”.
Public relations personnel are responsible for fostering goodwill, understanding, and acceptance
among a company’s various constituents and stakeholders.
Like advertising, PR is one of four variables in the promotion mix.
By definition, publicity is communication about a company or product for which the company
does not pay. (In the PR world, publicity is sometimes referred to as earned media, and
advertising and promotions are known as unearned media).
PR professionals also play a key role in responding to unflattering media reports or controversies
that arise because of company activities in different parts of the globe. In such instances, PR’s
job is to make sure that the company responds promptly and provide the public with facts.
The basic tools of PR include news releases, newsletters, media kits, press conferences, tours of
plants and other company facilities, articles in trade or professional journals, company
publications and brochures, TV and radio talk show interviews, special events, social media, and
corporate websites.
As noted earlier, a company exerts complete control over the content of its advertising and pays
for message placement in the media. However, the media typically receive many more press
releases and other PR materials than they can use.
Generally speaking, a company has little control over when, or if, a news story runs; nor can the
company directly control the spin, slant, or tone of the story.
To compensate for this lack of control, many companies utilize corporate advertising that,
despite the name, is generally considered part of the PR function. As with “regular” advertising,
a company or organization identified in the ad pays for corporate advertising.
However, unlike regular advertising, the objective of corporate advertising is not to generate
demand by informing, persuading, entertaining, or reminding customers. In the context of
integrated marketing communications, corporate advertising is often used to call attention to the
company’s other communications efforts.
Image advertising enhances the public’s perception of a company, create goodwill, or announce
a major change, such as a merger, acquisition, or divestiture.
In advocacy advertising, a company presents its point of view on a particular issue.
Sometimes a company generates publicity simply by going about the business of global
marketing activities.
Today, Nike’s PR team is doing a better job of counteracting the criticism by effectively
communicating the positive economic impact Nike has had on the nations where it manufactures
its sneakers. (Exhibit 13-6)
Any company that is increasing its activities outside the home country can utilize PR personnel
as boundary spanners between the company and employees, unions, stockholders, customers, the
media, financial analysts, governments, or suppliers. Many companies have their own in-house
PR staff. Companies may also choose to engage the services of an outside PR firm.
The Growing Role of Public Relations in Global Marketing Communications
Public relations professionals with international responsibility must go beyond media relations
and serve as more than a company mouthpiece; they are called upon to simultaneously build
consensus and understanding, create trust and harmony, articulate and influence public opinion,
anticipate conflicts, and resolve disputes.
As companies become more involved in global marketing and the globalization of industries
continues, company management must recognize the value of international PR.
The number of international PR associations is growing as well. PR professionals must build
good personal working relationships with journalists and other media representatives, as well as
with leaders of other primary constituencies.
Therefore, strong interpersonal skills are needed. One of the most basic concepts of the practice
of PR is to know the audience. For the global PR practitioner, this means knowing the audiences
in both the home country and the host country or countries.
How Public Relations Practices Differ around the World
Cultural traditions, social and political contexts, and economic environments in specific
countries can affect public relations practices.
In developing countries, however, the best way to communicate might be through the gong man,
the town crier, the market square, or the chief’s courts.
A company that is ethnocentric in its approach to PR will extend home-country PR activities into
host countries.
The rationale behind this approach is that people everywhere are motivated and persuaded in
much the same manner.
This approach does not take cultural considerations into account. A company adopting a
polycentric approach to PR gives the host-country practitioner more leeway to incorporate local
customs and practices into the PR effort.
Although such an approach has the advantage of local responsiveness, the lack of global
communication and coordination can lead to a PR disaster.
The ultimate test of an organization’s understanding of the power and importance of public
relations occurs during a time of environmental turbulence, especially a potential or actual crisis.
TEACHING TOOLS AND EXERCISES
Additional Cases:
“BP Oil International: Brand Image Program (A)” , by Robert J. Kopp and Philip A. Dover, HBS,
January 2012. BAB196-PDF-ENG.
“Toyota Recalls (C) : Bumpy Road Ahead” by John A. Quelch, Carin-Isabel Knoop, Ryan
Johnson. HBS, 511042-PDF-ENG, 4 p.
“SKII China: Managing Public Relations” by John JR Roberts, Stanford Graduate School of
Business, Nov. 2008, IB81-PDF-ENG, 8 pg.
“Red Bull and Auto Racing: Sponsor or Own a Formula One Team?” George Foster; David W.
Hoyt. HBS SPM35.
“Sony-FIFA Partnership Marketing Program: The Value of Sponsorship”. Mark Jeffery; Saurabh
Mishra. HBS KEL195.
Activity: Students should be preparing or presenting their Cultural-Economic Analysis and
Marketing Plan for their country and product as outlined in Chapter 1.
Out-of-Class Reading: Solberg, Carl Arthur. “The Perennial Issue of Adaptation or
Standardization of International Marketing Communication: Organizational contingencies and
Performance.” Journal of International Marketing 10, no. 3 (2002), pp. 1-21.
Small Group Exercise: Divide the class into small groups. Each group will design a full-page
magazine ad for a new brand of energy drink. Then name of the drink, as well as package design,
is at the discretion of the group. On a separate sheet of paper, specify the benefits stressed or
appeals made in the advertisement. Market this energy drink in three foreign countries.
Internet Exercise: Go to Coca-Cola’s homepage (www.coca-cola.com). Take a tour of the
company’s many country specific homepages (located on the left side of the opening screen).
Take a look at how Coke is diversely advertised in the many countries they operate.
SUGGESTED READINGS
Books
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York: John Wiley & Sons, 2000.
Bly, Robert W. Advertising Managers Handbook. New York: Aspen Publishing, 2002.
Kochan, Nicholas, ed. The World’s Greatest Brands. New York: New York University Press,
1997.
Mueller, Barbara. International Advertising: Communicating Across Cultures. Belmont, CA:
Wadsworth Publishing Company, 1995.
Zenith Media. Advertising Expenditure Forecasts. London: Zenith Media, December 2005.
Articles
Akaka, Melissa Archpru & Alden, Dana L. Global Brand Positioning and Perceptions:
International Advertising and Consumer Culture”. International Journal of Advertising:
The Quarterly Review of Marketing Communications (Volume 29 Number 1, p.37) 2010
Link: http://warc.com/Pages/Store/PDF/IJASample.pdf#page=37
Banerjee, Anish. “Transnational Advertising Development and Management: An Account
Planning Approach and Process Framework.” International Journal of Advertising 13, no.
2 (1994), pp. 95-124.
Cervellon, Marie-Cecile, and Laurette Dube. “Standardization versus Cultural Adaptation in
Food Advertising: Insights from a Two-Culture Market.” International Journal of
Advertising 19, no. 4 (2000), pp. 429-447.
Compaine, Benjamin. “Global Media.” Foreign Policy (November/December 2002), pp. 20-28.
De Mooij, Marieke & Hofstede, Geert. The Hofstede Model: Applications to Global Branding
and Advertising Strategy and Research” . International Journal of Advertising: The
Quarterly Review of Marketing Communications (Volume 29 Number 1, p.85) 2010
De Mooij, Marieke, “Tailoring Your Strategy to Fit the Culture”, IESE – Insight Magazine,
Stanford Graduate School of Business, November 2007, IIRO26-PDF_ENG, 8 pages.
Endicott, R. Craig. “Global Marketing.” Advertising Age (November 14, 2005), pp. 1-3.
Harris, Greg. “International Advertising Standardization: What Do the Multinationals Actually
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Hiebert, Ray E. “Advertising and Public Relations in Transition from Communism: The Case of
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International Journal of Advertising: The Quarterly Review of Marketing
Communications (Volume 29 Number 1, p.111) 2010
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Josephs, Ray, and Juanita W. Josephs. “Public Relations, the U.K. Way.” Public Relations
Journal (April 1994), pp. 14-18.
Kruckeberg, Dean. “A Global Perspective on Public Relations Ethics: The Middle East.” Public
Relations Review 22, no. 2 (Summer 1996), pp. 181-189.
Leslie, D.A. “Global Scan: The Globalization of Advertising Agencies, Concepts, and
Campaigns.” Economic Geography 71, no. 4 (October 1995), pp. 402-426.
Melevar, T.C., Sarah Turnbull, and George Balabanis. “International Advertising Strategies of
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no. 4 (2000), pp. 529-547.
Mueller, Barbara. “Multinational Advertising: Factors Influencing the Standardized versus
Specialized Approach.” International Marketing Review 8, no. 1 (1991), pp. 7-18.
Na, Woonbong, and Roger Marshall. “A Cross-Cultural Assessment of the Advertising Agency
Selection Process: An Empirical Test in Korea and New Zealand.” International Journal
of Advertising 20, no. 1 (2001) pp. 49-66.
Nessmann, Karl. “Public Relations in Europe: A Comparison with the United States.” Public
Relations Journal 21, no. 2 (Summer 1995), pp. 151-160.
Newsom, Doug, and Bob Carrell. “Professional Public Relations in India: Need Outstrips
Supply.” Public Relations Journal 20, no. 2 (Summer 1994), pp. 183-188.
Parameswaran, Ravi, and R. Mohan Pisharodi. “Facets of Country of Origin Image: An
Empirical Assessment.” Journal of Advertising 23, no. 1 (March 1994), pp. 43-56.
Plakoyiannaku, Emmanuella, Zotos, Yorgos. “Female Role Stereotypes in Print Advertising:
Identifying Associations with Magazine and Product Categories”. European Journal of
Marketing. 2009. v. 43, issue 11/12. pp 1411-1434.
Sirisagul, Kanya. “Global Advertising Practices: A Comparative Study.” Journal of Global
Marketing 14, no. 3 (2000), pp. 77-97.
Solberg, Carl Arthur. “The Perennial Issue of Adaptation or Standardization of International
Marketing Communication: Organizational contingencies and Performance.” Journal of
International Marketing 10, no. 3 (2002), pp. 1-21.
Taylor, Charles R., R. Dale Wilson, and Gordon E. Miracle, “The Effect of Brand Differentiating
Messages on the Effectiveness of Korean Advertising.” Journal of International
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Wang, Ying, Sun Shaojing. “Examining the Role of Beliefs and Attitudes in Online Advertising:
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Zandpour, Fred. “Global Reach and Local Touch: Achieving Cultural Fitness in TV Advertising.”
Journal of Advertising Research 34, no. 5 (September/October 1994), pp. 35-63.
_____ and Katrin R. Harich. “Think and Feel Country Clusters: A New Approach to International
Advertising Standardization.” International Journal of Advertising 15, no. 4 (1996), pp.
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Zavrl, Frani and Dejan Vercic. “Performing Public Relations in Central and Eastern Europe.”
International Public Relations Journal 18, no. 2 (1995), pp. 21-23.