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Belch: Advertising and Promotion, Sixth Edition VII. Special Topics and Perspectives more than 9 percent in 2001, making McDonald’s French operation the fastest growing in Europe. While sales have increased, the company’s uneasy relationship with the French encountered yet another problem in May 2002 when McDonald’s France placed a full-page “advertorial” in the magazine Femme Actuelle headlined “McDonald’s—Is It Causing Obesity in Children?” The ad was run in response to a report showing that child obesity in France had doubled to 16 percent in 10 years. In the copy of the ad McDonald’s France stated that “The number of visits to its outlets should be limited.” Forbidding children from eating fast food would be counterproductive. However, there is no reason to eat excessive amounts of junk food, nor go more than once a week to McDonalds.” As might be expected, the ad provoked a furious response from 20. International Advertising and Promotion part of their integrated marketing communications programs. Marketers are also using mass-media advertising to drive consumers to their websites and provide them with detailed information about their products and services, encourage them to participate in online promotions, or allow them to make purchases. Exhibit 20-21 shows a page from the Japanese website the Gillette Company developed for its Mach3 shaving system. A number of global business-to-business marketers such as Dell Computer, IBM, Xerox, and Hewlett-Packard are using websites to provide customers with information and conduct business with them. As the digital revolution continues, marketers will be making greater use of the Internet in their global as well as local IMC programs. However, they will also face some challenges with respect to the way they approach global marketing and branding. As more consumers worldwide have access to the same information and same brands via the World Wide Web, many marketers will have to rethink their strategies of producing the same product under different names and tailoring promotions to local markets. It is predicted that marketers will use more global brands and promotional campaigns to take advantage of the worldwide exposure that will be available through the Internet. © The McGraw−Hill Companies, 2003 McDonald’s American corporate headquarters in Chicago, which issued a statement noting that the ad was the opinion of only one consultant and the company does not share this view. McDonald’s can only hope that the latest controversy does not add to its problems in France. To the French, nothing is as symbolic as food, and many have already decided that McDonald’s symbolizes globally homogenized tastes and the “McDomination” of its market. Sources: Marian Burros, “McDonald’s France Says Slow Down on the Fast Food,” New York Times, Oct. 30, 2002, p. C7; David Woodruff, “Just Say No: Jose Bove Has Made a Career as a Professional Agitator; His Latest Target: Globalization,” The Wall Street Journal, Oct. 1, 2001, p. A1; Larry Speer, “McDonald’s Self Defense Is Its French Connection,” Advertising Age, Sept. 13, 1999, p. 26. Exhibit 20-21 Gillette developed a Japanese website for its Mach3 razor 697 Chapter Twenty International Advertising and Promotion
Belch: Advertising and Promotion, Sixth Edition VII. Special Topics and Perspectives Summary Many U.S. companies are recognizing not only the opportunities but also the necessity of marketing their products and services internationally because of saturated markets and intense competition from both domestic and foreign competitors. Advertising and promotion are important parts of the international marketing program of a multinational corporation. Advertising is generally the most cost-effective way to communicate with buyers and create a market in other countries. International marketers must carefully analyze the major environmental forces in each market where they compete, including economic, demographic, cultural, and political/ legal factors. These factors are important not only in assessing the potential of each country as a market but also in designing and implementing advertising and promotional programs. In recent years, much attention has focused on global marketing, where a standard marketing pro- Key Terms balance-of-trade deficit, 660 economic infrastructure, 662 698 20. International Advertising and Promotion gram is used in all markets. Part of global marketing is global advertising, where the same basic advertising approach is used in all markets. Opponents of the global (standardized) approach argue that differences in culture, market and economic conditions, and consumer needs and wants make a universal approach to marketing and advertising impractical. Many companies use an in-between approach, standardizing their basic marketing strategy but localizing advertising messages to fit each market. There are a number of important decision areas in the development of advertising and promotional programs for international markets. These include organization, agency selection, advertising research, creative strategy and execution, and media strategy and selection. Sales promotion, personal selling, public relations, and Internet websites are also part of the promotional mix of international cultural values, 665 global marketing, 669 global advertising, 669 Discussion Questions 1. The opening vignette to the chapter discusses the requirements developed by the A. C. Nielsen Company to be on its global brand list. Do you think that a brand should have to meet these criteria in order to achieve global brand status? Why might marketers disagree with the requirements set by A. C. Nielsen? 2. Why are international markets so important to U.S. companies such as Starbucks, McDonald’s and pattern advertising, 674 localized advertising strategy, 684 Coca-Cola, as well as to European companies such as Nestlé, Unilever, and Nokia? Discuss the role of advertising and other forms of promotion in these companies’ international marketing programs. 3. Discuss the importance of the economic environment in a country in evaluating its market potential. How do the economic conditions and factors impact the type of integrated marketing com- © The McGraw−Hill Companies, 2003 marketers. Sales promotion programs usually must be adapted to local markets. Factors to consider include stage of market development, market maturity, consumer perceptions of promotional tools, trade structure, and legal restrictions and regulations. Personal selling is the most important element of some companies’ international marketing programs, since it is their main form of contact with foreign customers. PR programs are also important to help international marketers develop and maintain favorable relationships with governments, media, and consumers in foreign countries. The use of the Internet as a marketing tool varies by region. In many countries, there are few Internet users and few local companies with websites. But as the number of consumers online grows, so too does the number of large international marketers using the Internet to support their ad campaigns. direct broadcast by satellite (DBS), 689 munications program a company can use in a country? 4. Global Perspective 20-1 discusses how many multinational companies have begun focusing more attention on the 4 billion consumers who live in the remote, rural communities of developing countries. Discuss the challenges companies face in marketing their products to the world’s poorest consumers. How do they have to
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IN2 Name and Company Index Belch: A
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