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CHAPTER 15
Managing Global Advertising
CHAPTER OUTLINE
XCIII. Global versus Local Advertising
XCIV. Developing Global Campaigns
B. Local Media Availability
C. Media Habits
D. Scheduling International Advertising
XCVIII. Organizing the Global Advertising Effort
A. Selection of an Advertising Agency
B. Coordinating International Advertising
XCIX. Conclusion
CHAPTER OBJECTIVES
At the end of this chapter, students should be able to do the following:
List both the advantages and the special requirements of standardized campaigns.
Define the global theme approach to advertising, and explain how it differs from a totally
standardized campaign.
Explain the market and cultural limitations on the advertising message and on its execution.
localize its advertising efforts.
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QUESTIONS FOR DISCUSSION
1. What has motivated the apparent increase in the use of more standardized advertising
across national markets?
From a companys point of view, the most enticing benefit of a standardized advertising
campaign is the cost savings that the resulting economies of scope provide. Since companies
2. What do you think causes attitudes about the credibility of advertising to vary among
countries and across media?
Consumers in markets with a long history of advertising, bombarded by advertising noise on
a regular basis, may be more skeptical of advertising credibility. Questions regarding
3. What advice would you give to a U.S. firm interested in advertising in Japan?
The dominant style of advertising in Japan is an image-oriented approach, or soft sell,
which contrasts strongly with the more factual approach, or hard sell, more common in the
United States. In Japan, consumers are more moved by emotion and aesthetic rather than
shied away from if Dentsu is already handling a competitors product in the Japanese market.
4. How should the advertising industry have to react to evolving conditions in developing
countries?
As these markets are increasingly affected by globalization, advertisers will need to
understand the resulting consumer changes in tastes, preferences, attitudes, and behaviors and
5. How will increased Internet access affect international advertising?
Like other global media, the Internet can provide international marketers greater opportunities
CASE 15.1: ADVERTISING TO KIDS
Although specific advertising regulations vary country to country, many countries closely regulate
advertising to children. This case explains how different countries protect child audiences from the
potentially harmful effects of advertising.
DISCUSSION QUESTIONS
1. Why is advertising directed at children and teens regulated in so many cultures? Why is
there so much variation in these regulations?
Across the world, adults are protective of children. Adults are often fearful that
advertisements that are violent or sexual in nature or that portray adults engaging in unhealthy
2. Should the European Union develop a common policy toward advertising that targets
children? Why or why not? What barriers to such a policy might exist?
A common policy regarding advertising that targets children would make it easier for
3. What restrictions on advertising directed at children would you favor? Why?
Some students easily eschew government regulation of advertising to children, arguing that
children are not affected by advertising messages. They argue that children are constantly
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CASE 15.3: SHANGHAICOSMOPOLITAN.COM
Social media is an exciting but challenging area for advertisers worldwide. This case comes at this
issue from the media owners, two young Chinese who created a social networking site for young
professionals in Shanghai. The site is a success with users. However, the two entrepreneurs must
find a way to financially support the site. Can the site be attractive to advertisers? Is there a way to
advertise without alienating users?
1. Why do you think young Chinese professionals frequent expensive restaurants and
purchase luxury goods? What are the implications for multinational firms that wish to
communicate to this market segment?
The cultural concept of power distance may be one explanation for this phenomenon. Young
Chinese professionals want to be respected by others. What could be a better way to signal
their social and economic status to others than to frequent expensive restaurants and purchase
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2. Evaluate Andy’s option of promoting banner and pop-up ads for increasing advertising
revenue.
Social networking websites are built for friends to communicate and talk about daily life.
Banners and pop-ups are considered intrusive. They interrupt Internet users normal
3. Why do you think the group discount zone appears to work in a social networking site
in China? Would the group discount zone work in social networking websites in your
country? Why or why not?
As noted above, Chinese young professionals are in favor of expensive restaurants and luxury
goods, but they may not have sufficient buying power to afford everything they want. They
4. Why would a multinational firm be interested in participating in the group discount
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zone? Why might they be disinterested?
There are several reasons why a multinational firm could be interested in participating.
Although multinationals earn less money participating in group discounts, this
A multinational firm might be disinterested for several reasons.
Any decision to lower prices is a serious decision, because margins are immediately
and negatively impacted. Therefore, a marketer has to determine a sound system for
group discounts. For example, how much discount will be offered to a group of 20
consumers? How much discount will be offered to a group of 100 consumers? The
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5. Should Andy allow Wang Hong to sell surplus products on the Group Discount Zone?
Why or why not?
In fact, what Wang Hong suggests is a very common practice in China. Even Chinese
managers working at MNCs will conspire with suppliers to sell excess product. Although