Advantages of a Standardised approach
One of the main advantages derived from adopting a standardised communications approach is the opportunity to enjoy significant reductions in production costs. Thus the savings on production costs can be transferred and can be spent on acquiring even greater advertising space in the media.
Unilever paid $700,000 for one series of commercials to be used in 18 different European and Asian countries. By re-using its commercials the company saved in production costs and furthermore were able to spend more on the original version and thus produce a much better advertisement (Vignali 2001).
Another significant advantage of adopting a standardised approach is that it serves to minimise confusion among buyers who travel. Many companies market their products under the same brand name in several countries within the same region, and considering the tremendous amount of international travel these days as well as the considerable overlap in media across national borders, companies are striving to create a single brand image to avoid any confusion caused through conflicting local campaigns (Jeannet & Henessey 2001)
Benetton, with their ‘United Colours of Benetton’ advertising campaign enjoyed great success using a standardised approach (Turban et al 2000). Coca-Cola and British Airways have successful standardised campaigns too.
Kotler (2003) tells us that companies can use one message everywhere, varying only the language, name and colours. Exxon used “Put a tiger in your tank” with minor variations and gained international recognition.
A study conducted by interviewing 100 executives from 27 major MNC’s such as Coca-Cola, Proctor & Gamble and Revlon showed that 63% of the total communications programs were highly standardised (Kirpliani 1995).
Modification
Despite the obvious advantages of a standardised communications strategy there exists a number of significant factors that impinge upon the effectiveness of such a strategy. As Kirpalani (1995) states, ‘the cost efficiency of standardisation is obvious, but the effectiveness is not’.
The increasing costs of media space and airtime, the increased fragmentation of media audiences and the intensification of competition for the attention of audiences, have all contributed to an increasing realisation that firms have to modify their communications mix when entering into foreign markets (Burnley 1998).
Message constraints:
Knowledge of culture is essential. It helps the firm anticipate how consumers in various markets are likely to respond to their actions. El Kahal (1994), "ignorance of cultural difference is not just unfortunate, it is bad business".
There are considerable differences as to what is culturally acceptable in different countries of the world.
- For example in France some adverts contain a lot of nudity, whilst in Arab countries not much flesh is visible.
- Colours need to be changed to avoid ‘taboos’ in some countries (Kotler 2003)
China-black is unlucky, India- white means mourning; Malaysia- green is associated with disease. N.Ireland- Red/white/blue & Green/White/Orange
- Literacy rates- may have to use symbols
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Language- Although some languages are used in more than one country, there are many more languages than countries There are approximately 3,000 different languages and 10,000 different dialects in the world with less than 300 nations (El Kahal 1994)
e.g. Parker-‘avoid embarrassment use Parker Ink’ translated in Brazil to- ‘avoid pregnancy use Parker Ink’
e.g. Coors-‘turn it loose’ translated in Spain to ‘suffer from diarrhea’
- Style of advertising- The UK uses a lot of humour in its adverts but in Germany they want the hard sell and not a funny story
Media Availability
Terpstra (1994) tells us that communication infrastructure varies from one country to another. Firms must look at the availability of media within the target country and select the most appropriate medium.
- In Germany & Sweden over 80% of advertising is done in print
- TV ownership in USA & Japan is 1 per 2, whilst its 1 per 50 in India (Burnley 1998)
- TV is the most popular in Brazil due to low levels of literacy
- Ave. person in India goes to the cinema 3 times per week-thus best form of advertising
- In Sweden TV advertising is forbidden whilst there are over 750 channels advertising in the USA
Govt. Constraints
- Saunders (2000) tells us that tobacco advertising is banned in France, Belgium and Germany.
- In Korea all actors have to be Korean
- Lithuania- pet food ads banned before 11 P.M
- Confectionary ads must use a toothbrush symbol in various Scandinavian countries
- France- no breaks in programmes, ads must be at the end
- In Germany competitions must not require any skill and must not require any proof of purchase. Coupons are forbidden whilst these are very popular in the USA
Personal Selling
Especially important for small firms.
- Status of salesperson- Some countries they are well received, but in Western countries they are frowned upon
- Whether to recruit locally or use ex-patriates
- Gender Issues- cant speak to the woman in Arab countires
Sponsorship
- One of the most rapidly growing forms of promotion as its really useful for firms whose advertising is restricted. For example alcohol firms can advertise on football shirts
- Sponsoring events with a global appeal e.g. Olympics. Bank Of Ireland sponsored Special Olympics
- Product placement in films and TV programmes
Internet
- Knows no bounds. Easyjet offers its website in various different languages
With the intensification of competition for the attention of foreign audiences whose cultures are remote from those of domestic markets, commonsense dictates that a "contingency" or "adaptation" approach would be the most useful as a competitive weapon (Burnley 1998).
Porter “think global act local”
