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Part Seven Special Topics and Perspectives
Belch: Advertising and
Promotion, Sixth Edition
VII. Special Topics and
Perspectives
Many developing countries are becoming more stable
and open to trade and direct foreign investment,
while education levels are also improving. The World
Bank has reported that the economic growth rate for
developing countries is about twice that of developed
nations and is expected to reach nearly 4 percent. While
investment in these markets still requires a long-term
Exhibit 20-3 This
Heineken ad did not
translate well into some
languages
20. International
Advertising and Promotion
© The McGraw−Hill
Companies, 2003
perspective, many companies are recognizing that the
billions of consumers in the third world are eager to
become consumers and represent a rich opportunity.
Sources: Dana James, “B2-4B Spells Profits,” Marketing News,
Nov. 5, 2001, pp. 1, 11–14; Normandy Madden, “Marketing in the
Field,” Adage Global, October 2001, p. 8.
The Demographic Environment
Major demographic differences exist among countries as well as within them. Marketers
must consider income levels and distribution, age and occupation distributions
of the population, household size, education, and employment rates. In some countries,
literacy rates are also a factor; people who cannot read will not respond well to
print ads. Demographic data can provide insight into the living standards and lifestyles
in a particular country to help companies plan ad campaigns.
Demographic information can reveal the market potential of various foreign markets.
India’s population topped 1 billion in 2000. Only China, with 1.2 billion people,
has a larger population. 18 Latin America remains one of the world’s largest potential
markets, although the meager income of most consumers in the region is still a problem.
Brazil, the largest consumer market in South America, now has a population of
200 million and is a growing market for many products and services. More than 50
percent of the Latin American market is younger than age 26, and 30 percent is under
15. Moreover, children are the fastest-growing segment of that market. These numbers
have caught the attention of international advertisers such as Mattel, Hasbro, Burger
King, and others. 19 Indonesia also has a very young population, with more people
under the age of 16 than the United States, and they are very receptive to Western
ways and products. For example, Tower Records, a California-based chain of music
stores, opened stores in Bangkok that are nearly identical to its U.S. outlets and are
very popular with the youth in Thailand. 20
The Cultural Environment
Another important aspect of the international marketing environment is the culture of
each country. Cultural variables marketers must consider include language, customs,
tastes, attitudes, lifestyles, values, and ethical/moral standards. Nearly every country
exhibits cultural traits that influence not just the needs and wants of consumers
but how they go about satisfying them.
Marketers must be sensitive not only in determining what products and
services they can sell foreign cultures but also in communicating with
them. Advertising is often the most effective way to communicate with
potential buyers and create markets in other countries. But it can also be
one of the most difficult aspects of the international marketing program
because of problems in developing messages that will be understood in
various countries.
International advertisers often have problems with language. The advertiser
must know not only the native tongue of the country but also its
nuances, idioms, and subtleties. International marketers must be aware of
the connotations of words and symbols used in their messages and understand
how advertising copy and slogans are translated. Marketers often
encounter problems in translating their advertising messages and brand
names into various languages. The Heineken ad in Exhibit 20-3 is one
example. Although this ad worked well in the United States and other
English-speaking countries, the line “you don’t have to make a great fuss”
could not be translated in a meaningful way into many other languages.
Advertisers can encounter problems with the connotative meaning of
signs and symbols used in their messages. For example, Pepsodent toothpaste
was unsuccessful in Southeast Asia because it promised white teeth