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Belch: Advertising and
Promotion, Sixth Edition
VII. Special Topics and
Perspectives
20. International
Advertising and Promotion
Figure 20-1 Advertising spending outside the United States, top 10 companies, 2000
in the United States and Canada along with the industrialized countries of Western
Europe and the Pacific Rim, including Japan, South Korea, and Australia. However,
advertising spending is increasing rapidly in China and in several Latin American
countries, such as Mexico and Brazil. 12
More and more companies recognize that an effective promotional program is
important for companies competing in foreign markets. As one international marketing
scholar notes:
Promotion is the most visible as well as the most culture bound of the firm’s marketing functions.
Marketing includes the whole collection of activities the firm performs in relating to its
market, but in other functions the firm relates to the market in a quieter, more passive way.
With the promotional function, however, the firm is standing up and speaking out, wanting to
be seen and heard. 13
Many companies have run into difficulties developing and implementing advertising
and promotion programs for international markets. Companies that promote their
products or services abroad face an unfamiliar marketing environment and customers
with different sets of values, customs, consumption patterns, and habits, as well as differing
purchase motives and abilities. Languages vary from country to country and
even within a country, such as India or Switzerland. Media options are quite limited in
many countries, owing to lack of availability or limited effectiveness. These factors
demand different creative and media strategies as well as changes in other elements of
the advertising and promotional program for foreign markets.
© The McGraw−Hill
Companies, 2003
Ad Spending (Millions, US$)
Rank Advertiser Headquarters Outside the U.S. U.S. Worldwide
1. Unilever London, England/
Rotterdam, Netherlands
$2,967 $ 698 $3,665
2. Procter & Gamble Cincinnati, Ohio 2,610 1,542 4,152
3. Nestlé Vevey, Switzerland 1,560 327 1,887
4. Toyota Motor Corp. Toyota City, Japan 1,345 790 2,135
5. Volkswagen Wolfsburg, Germany 1,290 424 1,714
6. Coca-Cola Atlanta, Georgia 1,176 403 1,579
7. Ford Motor Co. Dearborn, Michigan 1,127 1,196 2,323
8. General Motors Detroit, Michigan 1,028 2,951 3,979
9. PSA Peugeot Citroen Paris, France 1,004 0 1,004
10. Fiat Turin, Italy 988 2 990
Source: adageglobal.com.
The International Environment
Just as with domestic marketing, companies
engaging in international marketing must carefully
analyze the major environmental factors of each
market in which they compete, including economic, demographic, cultural, and political/legal
variables. Figure 20-2 shows some of the factors marketers must consider in
each category when analyzing the environment of each country or market. These factors
are important in evaluating the potential of each country as well as designing and
implementing a marketing and promotional program.
The Economic Environment
A country’s economic conditions indicate its present and future potential for consuming,
since products and services can be sold only to countries where there is enough income
to buy them. This is generally not a problem in developed countries such as the United
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Chapter Twenty International Advertising and Promotion