Problems with Global Advertising

Opponents of the standardized global approach argue that very few products lend themselves to global advertising.57 Differences in culture, market, and economic development; consumer needs and usage patterns; media availabilities; and legal restrictions make it extremely difficult to develop an effective universal approach to marketing and advertising. Advertising may be particularly difficult to standardize because of cultural differences in circumstances, language, traditions, values, beliefs, lifestyle, music, and so on. Moreover, some experts argue that cultures around the world are becoming more diverse, not less so. Thus, advertising's job of informing and persuading consumers and moving them toward using a particular brand can be done only within a given culture.

Consumer usage patterns and perceptions of a product may vary from one country to another, so advertisers must adjust their marketing and advertising approaches to different problems they may face in different markets. For example, when Nestlé introduced its Nescafé instant coffee brand, the company faced at least five different situations in various parts of the world:

1. In the United States, the idea of instant coffee had great penetration but Nescafé had the minor share.

2. In continental Europe, Nescafé had the major share of the market, but the idea of instant coffee was in the early stages.

3. In the tea-drinking countries, such as the United Kingdom and Japan, tea drinkers had to be converted not just to coffee but to instant coffee.

4. In Latin America, the preferred coffee was a heavy one that could not be duplicated with an instant version.

5. In Scandinavia, Nestlé had to deal with the ingrained custom of keeping a pot of coffee on the stove from early morning until late at night.

Nestlé had to use different advertising strategies for each market; a global campaign would not have been able to address the varying situations adequately. Exhibit

Exhibit 20-7 A. Nescafe instant coffee ad used in Japan B. Nescafe instant coffee ad used in Norway

Exhibit 20-7 A. Nescafe instant coffee ad used in Japan B. Nescafe instant coffee ad used in Norway

Nescafe Coffee Japan

20-7 shows Nescafé ads used in Japan and Norway. Nestlé encountered yet another challenge when it entered the Israeli market in 1995. Nescafé was the generic word for instant coffee as Israelis assumed that it was an abbreviation of the Hebrew word namess (dissolving). Israeli consumers were also not very demanding with respect to the quality of their coffee and considered the low-quality powdered coffee, or nescafé, produced by a local company, suitable fare. To overcome the generic connotation of Nescafé, all of the advertising presented the Nescafé Classic brand as "Nescafé of Nestlé" and portrayed it as the coffee choice of people all around the world (Exhibit 20-8). The company also relied on taste testing at the points of sale so consumers could experience Nescafé Classic's superior quality. Within one year Nestlé had 30 percent of the instant coffee market in Israel.58

Many experts believe that marketing a standardized product the same way all over the world can turn off consumers, alienate employees, and blind a company to diversities in customer needs. For example, when McDonald's expanded to Puerto Rico, it alienated consumers by using American TV ads dubbed in Spanish and then using Hispanic ads that were brought in from New York, which subsequent research showed looked too Mexican.59

Parker Pen also encountered problems when it attempted to use global advertising in the mid-1980s. Local managers in its foreign branches resented the home office centralizing the advertising function with one worldwide agency and mandating the type of advertising appeal used in their markets.60

Such problems have led some major companies to move away from a completely standardized approach. For example, the Colgate-Palmolive Co. has used global advertising for many of its brands, including the Colgate, Palmolive, Fab, and Ajax product

Exhibit 20-8 Nestlé had to reshape Israel's definition of instant coffee

Tooth Pace Advertisement ExamplesMarketing Toothpaste
Exhibit 20-9 Advertising for Colgate toothpaste uses a consistent visual image, but the copy may vary for different markets

lines, and continues to endorse the use of global appeals. Under its current marketing strategy, however, advertising is often modified for a specific country or region, particularly where local creativity can improve the advertising over the global standard. An example of this approach is the advertising used for Colgate toothpaste (see Exhibit 20-9). The globe/smile image is used as the visual in nearly every country where Colgate is marketed, but the copy varies. This ad for the Russian market appeared in the Moscow edition of Reader's Digest.

Some marketing experts claim much of the attention to the advantages of global advertising stems from large ad agencies trying to increase business by encouraging clients to use one agency to handle their marketing communications worldwide.61 Many large multinational companies are indeed consolidating their business with one or a few agencies who have offices around the world and offer international advertising capabilities. However, the consolidations are often driven by the client's increasing emphasis on global markets.62

Continue reading here: When Is Globalization Appropriate

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Readers' Questions

  • Phyllis
    How the advertising pyramid is relevant to successful advertising in the regional and global market?
    1 year ago
  • The advertising pyramid is a model that illustrates how an effective advertising campaign should be structured and executed in order to maximize its success in both regional and global markets. According to this model, the foundation of an effective ad campaign should be built on comprehensive research, accurate targeting, and creative messaging. From there, the pyramid should be composed of various levels of advertising channels, including digital and traditional media, as well as other marketing strategies. These tie the campaign together, allowing it to reach the right audience more effectively and efficiently. With this in place, the campaign can be optimized to achieve maximum results in regional and global markets.
    • jimmy
      What are the problems that advertisers may face during global advertising?
      1 year ago
      1. Language and cultural barriers: Without an understanding of local customs, cultures, and languages, global advertising campaigns can backfire very quickly. It’s important to research the local market, create ads that are appropriate for the local population, and localize the message to ensure maximum success.
      2. Unexpected regulations: Different countries have different regulations when it comes to advertising. It’s important to understand and adhere to all local regulations when creating an international ad campaign.
      3. Social media censorship: Social media platforms can be used to reach large audiences around the world, but there are different rules and restrictions in place in different countries. It’s important to understand the restrictions for each social media platform and country before launching a campaign.
      4. Lack of geographical knowledge: Even if you’re targeting one global region, the countries within that region can differ vastly. It’s important to understand the individual countries in the region, the cultures, and key influencers to ensure that your campaign is successful.
      5. Budget limitations: Producing global campaigns can be expensive. It’s important to find ways to reduce costs and make the most out of your budget.
      • elen
        What are the advantagrs and draw backs of standered global advertising?
        1 year ago
      • Advantages of Standard Global Advertising: 1. Cost Efficiency: Using standardized global advertising allows companies to reach a larger audience with a single ad campaign, which can lead to cost savings compared to creating multiple localized campaigns. 2. Brand Consistency: Standard global advertising ensures that the brand's message, image, and identity remain consistent across different markets and cultures. This can build a stronger brand equity and increase customer loyalty. 3. Time Efficiency: Creating a single ad campaign for multiple markets reduces the time and effort required to develop and execute localized campaigns. It allows companies to quickly launch their advertising efforts globally. 4. Scale and Reach: A standardized global advertising approach can help brands reach a wider audience and increase brand awareness globally more effectively than localized advertising. 5. Knowledge Transfer: Standard global advertising enables companies to share knowledge, insights, and best practices across different markets. It promotes collaboration and learning within the organization. Drawbacks of Standard Global Advertising:
        1. Cultural Differences: Implementing a standardized advertising approach may overlook cultural sensitivities and preferences, which can result in the message being misunderstood or perceived negatively in certain markets.
        2. Language Barriers: Language nuances, idioms, and cultural references can be challenging to translate accurately in a standardized global advertising campaign. This can lead to miscommunication and a diluted impact on the audience.
        3. Lack of Localization: Standardized global advertising may not effectively address specific market needs and preferences. It can overlook cultural nuances and limit the ability to tailor the campaign to individual regions, potentially resulting in decreased relevancy.
        4. Regulatory and Legal Constraints: Different countries have various advertising regulations and restrictions. A standardized global advertising campaign may overlook these legal requirements, leading to potential legal conflicts in certain markets.
        5. Competitor Response: Relying on a standardized global advertising strategy can make it easier for competitors to counteract and differentiate their offerings. Localized advertising campaigns may have more impact and be more effective in capturing market share.
        • demi
          Why is the governance of global advertising difficult?
          1 year ago
        • Global advertising governance is difficult because it affects different markets and countries, each with their own rules and regulations. Additionally, the complex digital landscape and cross-border data flows make it difficult to monitor and enforce global advertising standards. Finally, the global advertising landscape is constantly evolving, making it difficult for organizations to keep up with changing regulations and technologies.
          • frediana
            What is the problems with a global advertising campaign?
            1 year ago
          • The major problems with a global advertising campaign include:
            1. Language and cultural barriers: Trying to create an effective advertising campaign requires understanding the target audience in each country. Language and cultural differences can create huge barriers when attempting to communicate with people from other countries.
            2. Cost: A global advertising campaign can be expensive, due to the amount of resources and time required to create a campaign that is effective and accessible across multiple countries.
            3. Legal and regulatory issues: Advertising regulations can vary from country to country, making it difficult to create an advertising campaign that complies with all laws and regulations.
            4. Different media consumption habits: Consumers across the globe have different media consumption habits, which can make it difficult to create an effective campaign.
            5. Competition: The global marketplace is becoming increasingly competitive, making it difficult to stand out from the crowd.
            • Hobson Puddifoot
              What are the problems that advertisers have in globel market?
              1 year ago
              1. Increased Competition: With the vast amount of digital platforms available today, advertisers are faced with increased competition from global competitors.
              2. Ability to Measure Success: It is difficult to measure success on a global scale because different countries have different metrics.
              3. Unfamiliarity with Culture: Different countries and cultures have different values and behaviors, which can be difficult for an advertiser to understand.
              4. Multiple Languages: Advertising in multiple languages can be challenging and costly.
              5. Legal Restrictions: Different countries have different laws regarding advertising, which can be difficult to stay on top of.
              6. Ad Fraud: Ad fraud is a major problem in the global market and it is difficult to track and stop it.
              • shaun
                What are the main challenges or problems of global advertising?
                1 year ago
                1. Lack of Cultural Awareness: Global advertising campaigns often lack an understanding of the target country's culture, values, and beliefs, which can lead to misunderstandings and alienation.
                2. Language Barriers: Language barriers can pose a major challenge in global advertising, as translating messages and materials into multiple languages can be difficult and expensive.
                3. Multi-Platform Strategy: Creating an effective multi-platform strategy that can be adapted to different countries is a complex challenge.
                4. Regulation: Different countries have different regulations when it comes to advertising, which may need to be taken into account when creating a global campaign.
                5. Budget Limitations: Creating a global campaign can require a large budget and thus could potentially be out of reach for smaller companies.