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Belch: Advertising and
Promotion, Sixth Edition
VII. Special Topics and
Perspectives
20. International
Advertising and Promotion
strategies of successful U.S. multinational corporations found that only 9 percent used
totally standardized global advertising for all foreign markets, while 37 percent used
all localized advertising. The remaining 54 percent used a combination strategy, standardizing
portions of their advertising but adapting it for local markets. 71 Marketers
said a major risk of the global approach was a lack of communication owing to cultural
differences. Another study found that most U.S. consumer durable goods manufacturers
used a localized advertising approach—but most used some standardized
messages. 72
A more recent study of international advertising decision makers found that “think
globally, act locally” still appears to be the dominant strategy of international advertisers,
but with a slight revision: “Think globally, act regionally.” 73 Most of the respondents
in this survey said their companies’ worldwide headquarters play a dominant
role in determining their international advertising messages so they are consistent
worldwide. However, there is a trend toward giving regional offices the autonomy to
adapt the global theme for their local markets.
Most managers believe it is important to adapt components of their advertising
messages—such as the language, models, scenic backgrounds, message content, and
symbols—to reflect the culture and frame of reference of consumers in various countries.
Many companies are making these tactical adjustments to their advertising messages
while still pursuing global strategies that will help them project a consistent
global image and turn their products and services into global brands.
Companies developing advertising and promotional programs
for international markets must make certain organizational
and functional decisions similar to those for domestic markets.
These decisions include organization style, agency selection,
advertising research, creative strategy and execution,
and media strategy and selection.
Organizing for International Advertising
One of the first decisions a company must make when it decides to market its products
to other countries is how to organize the international advertising and promotion function.
This decision is likely to depend on how the company is organized overall for
international marketing and business. Three basic options are centralization at the
home office or headquarters, decentralization of decision making to local foreign markets,
or a combination of the two.
Centralization Many companies prefer to centralize the international advertising
and promotion function so that all decisions about agency selection, research, creative
strategy and campaign development, media strategy, and budgeting are made at
the firm’s home office.
Complete centralization is likely when market and media conditions are similar
from one country to another, when the company has only one or a few international
agencies handling all of its advertising, when the company can use standardized
advertising, or when it desires a consistent image worldwide. Centralization may also
be best when a company’s international business is small and it operates through foreign
distributors or licensees who do not become involved in the marketing and promotional
process.
Many companies prefer the centralized organizational structure to protect their foreign
investments and keep control of the marketing effort and corporate and/or brand
image. Centralization can save money, since it reduces the need for staff and administration
at the local subsidiary level. As the trend toward globalized marketing and
advertising strategies continues, more companies are likely to move more toward centralization
of the advertising function to maintain a unified world brand image rather
than presenting a different image in each market. Some foreign managers may actually
prefer centralized decision making, as it removes them from the burden of advertising
and promotional decisions and saves them from defending local decisions to the home
office.
© The McGraw−Hill
Companies, 2003
Decision Areas in
International Advertising
677
Chapter Twenty International Advertising and Promotion