(12) Global Marketing

There are some products that can be marketed around the globe without much variation in the marketing strategy or ad campaign. These are usually durable goods that vary little between markets (e.g., machine parts) or flagship brands that are known across borders. One example of such a brand is Coca-Cola. Coke uses the same strategy from country to country and it often uses the same commercials, just translating them into different languages. Other products that have standardized marketing campaigns include Unilever detergents, Marlboro cigarettes, Perrier water, Kellogg's Frosted Flakes, Pond's skin creams, Ajax cleaners, Canada Dry mixers, Exxon oil, Levi's blue jeans, and British Airways. This trend toward standardized marketing is growing.

Reasons

There are several reasons why companies are turning to global marketing. First of all, it is less expensive. It saves time and money if a company only needs to translate its advertisements in different markets. Second, a unified market is growing across country borders. This market is created in part by global media, such as Rupert Murdoch's Sky Channel, Ted Turner's TBS channel, CNN, and Music Box and MTV, which are both music video channels. These international channels show the same programs everywhere. A new generation of consumers follows the same trends whether they live in Sweden or Colombia. Third, as consumers increase their international travel, companies want them to recognize their products across country lines. As the world gets smaller, companies try to maintain brand consistency.

Obstacles

There are, however, obstacles to the global strategy. Some of the obstacles relate to the products themselves. Certain products, such as unprocessed foods, are difficult to market through a standardized approach. People don't change eating habits readily. Companies usually need to use local strategies for this kind of product. Other obstacles relate to the ad campaigns. Some countries limit or altogether prohibit commercials on TV. A company that depends on a standardized TV ad may have to adapt its ad to other media in these countries. Also many countries require local participation in advertisements so that often ads must be remade locally. Countries also vary on what they consider acceptable advertising material. In the United States and Asia, partial nudity in general advertising is not acceptable; in western Europe it is. Finally, some countries prohibit advertisements that do not reflect local culture, as they fear colonization of the local culture.

(13) In praise of the TV commercial

by John Hegarty, creative director of Bartle Bogle Hegarty, an advertising agency

Imagine for a moment you are the marketing and sales director of a large company. Achieving your sales targets is giving you sleepless nights. The company's share price is under pressure, the board is getting nervous, City institutions are questioning the company's investment policy.

How can you generate extra sales quickly and effectively through your consumer base, and expand your potential market? Suddenly, I appear. I have invented a thing called the television commercial'.

It is a new and unique way of talking to consumers. Between popular programmes, I will sell you slots of time - anything up to 60 seconds. I will even negotiate for you the whole break, so no one else can compete with you.

Within this spot you can say whatever you like in whatever form you like. You control the dialogue, presenting your product or service any way you wish.

Of course, the television commercial has been with us since 1955. Since its arrival, it has been one of the most, if not the most, effective creators of brands and wealth. So why is it that you can hardly pick up a marketing magazine without reading about the death of this medium?

Before you rush to the Internet, or search for some fashionable alternative media, look at these facts. The average adult in the UK watches more than 24 hours of TV every week, 60 per cent of children have a TV set in their bedrooms. One in four adults watch the soap opera Coronation Street, even more watch EastEnders. So why do we read that the likes of Cadbury, the chocolate manufacturer that sponsors Coronation Street, think most advertising is nothing but froth and are putting more money into programme sponsorship? Why did we read that Heinz was pulling out of TV advertising (it has since gone back)?

Could it be that as the medium has become more competitive some companies have found it harder to create advertising that works? The medium is not a guarantee of success. It has to be used imaginatively. Perhaps this is the heart of the problem - it's just that some companies find this process difficult to manage.

From the Financial Times