DISCUSSION QUESTIONS
13-1. In what ways can global brands and global advertising campaigns benefit a company?
The Chapter 11 opening quotation by the Colgate executive applies here; “You get a lot
more benefit and you can do a lot more with a global brand than you can with a local
preferences continue to converge, consumer products companies in particular will have
13-2. How does the “standardized versus localized” debate apply to advertising?
In general, advertising can be used to inform or persuade. If a global market exists for a
product, or if a global product is developed from the ground up, opportunities to
At Coca-Cola, for example, a TV ad could include a wide shot of hundreds of children
singing together, plus a close-up of a youngster from the local country market. Other
13-3. What is the difference between an advertising appeal and creative execution?
The message appeal relates to an individual’s or organization’s buying motives. Motives
may be rational or emotional. Much advertising for consumer packaged goods and
13-4. Starting with Chapter 1, review the ads that appear in this text. Can you identify ads that
use emotional appeals? Rational appeals? What is the communication task of each ad? To
inform? To persuade? To remind? To entertain?
The following is one view / one opinion on the appeals and communication tasks for each
of the chapter’s ads. It would be an interesting in-class assignment to see if students from
Chapter 1: 1.1: E/P; 1.2: E/E; 1.4: E/P
Chapter 2: 2.5: E/R; 2.8: R/I
13-5. How do the media options available to advertisers vary in different parts of the world?
What can advertisers do to cope with media limitations in certain countries?
Media availability varies widely in world markets. Even when a particular media vehicle
is available, government regulations can limit, or even prohibit, some or all types of
some parts of the world which should create a more favorable climate for advertising.
13-6. What are some of the ways PR practices vary in different parts of the world?
Global PR practitioners may be called upon to build consensus, create trust, and
anticipate conflicts. The means to achieve these objectives may vary. PR often depends
on press releases that result in stories appearing in newspapers and magazines. PR firms
CASES
Case 13-1: Coca-Cola: Using Advertising and Public Relations to Respond to a Changing
World
Overview: Big Soda has been linked to the issue of obesity around the world. In addition, Coca-
Cola has been singled out for criticism out for its operations in key emerging markets such as
China and India. And, as soft-drink consumption declines, the company must find new and
authentic ways to communicate with customers.
Coca-Cola is one of the world’s truly iconic brands, however sales of Coca-Cola have been
declining as consumers switch to bottled tea, juice, and water. To counteract the negative
perception and negative publicity about Big Soda, the company launched its own print ad
campaign that featured smaller-format cans and bottles.
The challenges facing Coca-Cola provide a case study in the roles of advertising, public
relations, and other forms of marketing communication in the marketing program.
Because of its status as the world’s largest beverage company and its presence in more than 200
countries, Coca-Cola is often the target of anti-globalization protests.
Despite achievements and accolades, Coke missed its revenue and profit targets in 2014. A recent
Gallup poll revealed that nearly two-thirds of Americans are avoiding soda.
Discussion Questions
13-7. Do you believe that soft drinks and other sugared beverages contribute to obesity, diabetes,
and other health-related issues?
their own choices.
13-8. Assess Coca-Cola’s response to the obesity controversy.
Coca-Cola launched its own print ad campaign that featured smaller cans and bottles.
They also created a video that was met with tremendous backlash. Although the
13-9. Do you think Coca-Cola and its advertising agencies can develop a compelling new global
campaign that acknowledges issues such as obesity? Does it make sense to continue the
happiness theme?
Yes I do think that they can develop a compelling new global campaign. Coca-Cola
Case 13-2: The BP Oil Spill
Overview: The catastrophic explosion on the Deepwater Horizon oil-drilling platform in the Gulf
of Mexico in April 2010 killed 11 workers and allowed millions of gallons of oil to spill into the
waters off the Louisiana coast. Numerous efforts to stop the leak failed. As an estimated 30,000
barrels of oil leaked from the stricken well each day, Deepwater Horizon became the worst oil
spill in U.S. history, surpassing the 1989 Exxon Valdez accident in Alaska. As one newspaper
noted in mid-2010,
Some industry observers wondered whether the rhetoric directed against BP was motivated in
part by the perception that the company is British. Global companies must ensure that they have
successfully positioned themselves as diverse entities with representation from the various
markets in which they have operations.
Crisis management practitioners are in wide agreement that in times of crisis it is imperative for
company spokespersons to tell the truth and to take responsibility. Failure to do so can result in
lost credibility.
Another point of view is that some corporate crises are so monumental that traditional PR
approaches will simply not suffice. Hoping to regain some credibility in Washington, BP
assembled a team of consultants and lobbyists to help it prepare for congressional testimony and
respond to government inquiries.
Finally, there is the prospect of shareholder suits from investors who have seen the value of their
BP holdings plummet in the wake of the crisis.
Discussion Questions
13-10. Use information contained in the case to compare and contrast publicity, public relations,
and advertising.
Crisis management practitioners are in wide agreement that in times of crisis, it is
imperative for company spokespersons to tell the truth and take responsibility. Failure to
A contrasting point of view is that some corporate crises are so monumental that
BP tried to reassure the public that it was doing everything possible. Full-page print ads
13-11. On October 1, 2010, an American, Bob Dudley, replaced Tony Hayward as chief
executive of BP. Does this change in leadership surprise you?
No, Bob Dudley an American was the right choice given the fact that the U.S. market
13-12. As noted in the case, PR professionals offered differing views of the effectiveness of BP’s
public relations strategy. Do you agree with Howard Rubinstein’s assessment or Eric
Dezenhall’s?
Student’s answers may vary. I agree with Dezenhall’s assessment. This crisis was so
monumental that traditional PR approaches will not be enough. As Dezanhall stated
13-13. Do you think BP’s advertising campaign highlighting the number of alleged fraudulent
damage claims was the right response?
I am not sure why they would have done these full-page ads telling the public that they
were receiving fraudulent claims. They should have just handled this in-house.
Case 13-3: Scotch Whiskey in China: A Taste of the Good Life
Overview: Scotch whisky is a textbook example of a global product. Wealthy consumers with
discerning palates do not hesitate to pay premium prices for top global brands such as Chivas
Regal and Johnnie Walker. In China, for example, the self-satisfaction that goes along with
achieving a goal may not be enough; acknowledgment of the achievement by peers is also
important. Market segmentation is an integral part of Diageo’s approach to the Chinese market.
In 2000, France’s Pernod Ricard SA acquired the Chivas Regal brand from Seagram. Between
2000 and 2002, Chivas experienced a 10 percent overall decline in sales volume, while Johnnie
Walker posted a 12 percent gain.
13-14. Why are Diageo, Pernod Ricard, and other marketers of global spirits brands localizing
advertising campaigns in emerging markets?
Market segmentation is critical for the success of Scotch whisky from country to country
because the reasons that people drink Scotch—aspiration goals such as success and
13-15. How do consumption habits for products such as Scotch whisky vary from country to
country?
Scotch whisky is a global product. Wealthy consumers with discerning and
discriminating palates pay premium prices for top brands—Scotch drinkers around the
13-16. Why are some spirits products and brands strictly local – pastis in France, for example, or
Moutai in China – whereas others have global potential?
Cultural differences are the primary reasons behind these differences. Spirits represent
aspirational products or products used to / identified with achievements in one’s life.
Therefore, these “stages” of achievements are celebrated differently among the different
13-17. What strategies should Diago, Pernod-Ricard, and other Western spirits brands pursue in
China?
In China, achieving a goal is not enough if you don’t show others that you have
accomplished it. So the Western brands of Scotch must practice market segmentation and