Advertising and Other Modes of Communication
Global advertising or international advertising consists of collecting, processing, analyzing and interpreting information. There are two main purposes of international advertising research:
(1) To assist business executives to make profitable international advertising decisions for their specific products and services.
(2) To contribute to general knowledge of international advertising that is potentially useful to a variety of business executives, educators, government policy makers, advertising self-regulatory organizations and others interested in understanding the process and effects of international advertising.
Product or Service Offering
In global marketing, a company offers the same products and services across the board, in multiple countries. Think about banks, insurance companies and large retail chains like Wal-Mart.
In international marketing, products and services are tailored to specific countries. Think about Sharia finance products, which are only offered in Islamic countries or to Muslim customers in non-Muslim countries – or meat that is banned from Israeli or Muslim diet.
Global marketing personnel tend to work at the company’s headquarters and generally are a diverse group of people. They possess various skills that collectively mesh well together, and take a global view of the company’s market.
Conversely, in international marketing, team members tend to hail exclusively from the same country or a country with linguistic or cultural affinity with the primary country.
The budget of a global marketing team is managed directly from the corporate headquarters. For example, Nike sets a global marketing budget, which then trickles down to local offices.
In international marketing, however, budget issues are negotiated and handled at the local level, within the subsidiary. Take for example McDonald, which runs local ads, some of which you will never see in another country.
When it comes to promotion tactics, global marketing teams try to run ads and other communication ploys that are in sync with a global audience.
An excellent way to understand is to see ads that were run during the 2014 FIFA World Cup – a perfect mix for global marketing: global sports event, billions of viewers, one passion for the game.
In international marketing, commercials and other promotion tactics are tailored for the local market.
Marketing does not mean you sit in a corner office and think about how to sell a product. The typical marketing mix has four components, what experts call the 4Ps: product, price, promotion and place (of distribution).
So in terms of operational autonomy, global marketing teams tend to run everything from A to Z, from the corporate headquarters, whereas international marketing teams handle things domestically.
By reviewing their social media pages, you can quickly see which companies favor global marketing over international marketing – and vice versa. For example, you will notice that McDonald adopts an international marketing strategy, with Facebook pages as diverse as McDonald’s Malaysia, McDonald’s Brazil, McDonald’s Italia and McDonald’s Polska (Poland).
Conversely, Nike or Caterpillar runs a single page.
Customer engagement is more active in international marketing. By setting multiple communication channels, a company can better engage with fans and customers at a local level.
That is not to say that global marketing is less effective when it comes to customer engagement – the tactics are just different.
But it is clear that international marketing tends to produce a higher level of engagement than global marketing.
In global marketing, commercials are run all over the world, whereas international marketing favors ad airing in the local market exclusively – or in similar markets, at most.
Some products lend themselves pretty well to global advertising. We already talked about sport gear; you also have movies and songs as well as technology products.
Other products, conversely, cannot exist in some countries because of cultural prohibition or legal censorship.
Market Research and R&D
Market research and R&D are as deep and broad in global marketing as they are in international marketing.
Sometimes, though, global marketing can produce big flops when market research has not properly conducted or local customs thoroughly studied. Think, for example, of Chevy Nova’s and Mazda LaPuta’s unfortunate stints in the Spanish market (in Spanish, ‘no va’ and ‘la puta’ mean ‘it doesn’t go’ and ‘the whore,’ respectively.).
Other product flops include the Ben-Gay aspirin, McDonald’s Arch Deluxe, and the Cocaine Energy Drink produced by Redux Beverages.
Our number 10 example is not really an example of comparative global marketing vs. international marketing analysis, but an illustration of how a hybrid structure – international and global – can help companies succeed.
Coca-Cola used that mixed tactic effectively in the earlier days, and is nowadays followed by every company, from Mercedes Benz to Frito Lay to Procter & Gamble to McDonald’s.
Every culture could benefit from Nike, since shoes are a benefit to everyone with feet (which is virtually everyone). The same is true of Caterpillar, since industrial machinery helps to advance mankind in general through more efficient construction. On the other hand, if it is a product that only serves one sub-set of people, or otherwise excludes certain subsets, then an “international marketing” approach is necessary.
Companies with risqué or culturally insensitive products can’t use the same approach everywhere. For example, alcohol and lingerie companies wouldn’t have much fortune in many middle eastern companies where drinking and dressing inappropriately are not widely viewed as acceptable.
Cigarette companies would need to modify their message for more socially conscious populations. In these scenarios, international marketing would work better and either no marketing, or specifically tailored marketing would be of greater benefit.