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.
Decision Areas in International Advertising
Continue reading here: Media Selection
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