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Part Seven Special Topics and Perspectives
Belch: Advertising and
Promotion, Sixth Edition
Figure 20-3 Criteria for
selecting an agency to handle
international advertising
VII. Special Topics and
Perspectives
20. International
Advertising and Promotion
© The McGraw−Hill
Companies, 2003
• Ability of agency to cover relevant markets
• Quality of agency work
• Market research, public relations, and other services offered by agency
• Relative roles of company advertising department and agency
• Level of communication and control desired by company
• Ability of agency to coordinate international campaign
• Size of company’s international business
• Company’s desire for local versus international image
• Company organizational structure for international business and marketing
(centralized versus decentralized)
• Company’s level of involvement with international operations
markets. Figure 20-3 lists some criteria a company might use in selecting an agency. In
a study conducted among marketing directors of European companies, creative capability
was ranked the most important factor in selecting an advertising agency network,
followed by understanding of the market, understanding of marketing goals, and ability
to produce integrated communications. Size of the agency and agency reputation were
cited as important criteria by less than 2 percent of the respondents. 79 Another recent
study found that most clients choose an agency based on its creative reputation and the
creative presentation it had made. However, a large number of clients felt their agencies
lacked international expertise and account coordination ability. 80
Some companies choose a combination of the three alternatives just discussed
because their involvement in each market differs, as do the advertising environment and
situation in each country. Several experts in international marketing and advertising
advocate the use of international agencies by international companies, particularly those
firms moving toward global marketing and striving for a consistent corporate or brand
image around the world. The trend toward mergers and acquisitions and the formation of
mega-agencies with global marketing and advertising capabilities suggests the international
agency approach will become the preferred arrangement among large companies.
Advertising Research
Research plays the same important role in the development of international advertising
and promotion programs that it does domestically—helping managers make better,
more informed decisions. However, many companies do not conduct advertising
research in international markets. Probably the main reason for this is the high cost of
conducting research in foreign markets, coupled with the limited budgets many firms
have for international advertising and promotion. When international markets represent
a small percentage of overall sales, investments in research are difficult to justify.
Rather than quality marketing information, generalizations based on casual observations
of foreign markets have guided the promotional process.
As companies increase their investment in international marketing, they are recognizing
the importance of conducting marketing and advertising research to better
understand the characteristics and subtleties of consumers in foreign markets. There
are a number of areas where research on foreign markets can help firms make better
advertising decisions:
• Information on demographic characteristics of markets.
• Information on cultural differences such as norms, lifestyles, and values.
• Information on consumers’ product usage, brand attitudes, and media
preferences.
• Information on media usage and audience size.
• Copy testing to determine reactions to different types of advertising appeals and
executions.
• Research on the effectiveness of advertising and promotional programs in
foreign markets.