International Advertising

This article will focus on how organizations can create an effective international advertising program for their business. Many corporations have seen the need to venture into the international market. As a result, they have challenged their marketing departments to develop advertising campaigns that will highlight their products and services in targeted countries. Although the field is growing, organizations face several challenges as they determine the types of strategies their businesses will utilize in order to make their presence known in the international market. Although there is no one way to create an effective international advertising program, one practitioner has provided three easy steps that can serve as a guideline when developing an effective international advertising strategy.

Many corporations have seen the benefits of expanding their brand presence into the international market. As a result, they have challenged their marketing departments to develop advertising campaigns that will highlight their products and services in targeted countries. Given the popularity, academicians and practitioners have contributed to the literature in terms of what the most effective practices are in international advertising. George Zinkhan (1994) discussed some of the important issues in international advertising in the 1994 special issue of Journal of Advertising. Corporations have increased their international advertising budgets. Global advertising expenditures exceeded $322 billion in 2000 (Burberry, 2000) and continued to grow pass the $400 billion mark (O'Guinn, Allen, & Semenik, 2003). In 2013, global advertising expenditures surpassed $500 billion.

Although the field is growing, organizations face several challenges as they determine the types of strategies their businesses will utilize in order to make their presence known in the international market. Marla Royne Stafford (2005) emphasized four of the major challenges that corporations need to address. Corporations should work on their positions regarding message issues, standardization versus adaptation, media issues, and advertising regulations.

• Message Issues. Corporations must develop a message that accurately reflects the culture of interest. It has been found that specific aspects and psychological factors may differ significantly across cultures (Cateora & Graham, 2002) even though the outcomes may be the same. In most cases, there is a possibility that these variables may have a significant impact on the advertising message. Researchers (Nevett, 1992; Koudelova & Whitelock, 2001) have conducted content analysis to explore this phenomenon. These researchers may use "a coding system to distinguish the differences in appeals, executions, tactics, or cues across two or more countries" (Stafford, 2005, p. 66).
• Adaptation versus Standardization Many in the field continue to debate whether standardization or adaptation is the best method for international advertising. As a result of the different perspectives, three schools of thought have emerged: standardization, adaptation, and contingency. Supporters of the standardization model believe that international advertising should highlight the similar desires of buyers regardless of the country of origin. The adaptation model seeks to ensure that cultural issues are addressed in advertisements. The contingency model falls in the middle of the two previously mentioned approaches. This perspective encourages corporations to make a decision based on the specific circumstance. The suggested approach could change depending on the factors involved.
• Media Issues. "Media options are critical to services, and existing media infrastructures may hamper service providers' efforts to communicate effectively with their potential customers" (Stafford, 2005, p. 66). For example, some countries monitor what can be seen on television (Kotabe & Helsen, 2001), which may hinder an organization's advertising message. The use and growth of the Internet has provided corporations with new opportunities to get their message across the global network. The Internet can be used to minimize some of the challenges previously identified. The Internet offers corporations the ability to advertise goods and services in foreign markets. Organizations must select the appropriate media strategies that will effectively convey their message. The media message is critical because it is a key factor in the success of the advertising campaign, especially in the international marketplace.
• Advertising Regulations. International advertisers must be aware of the various advertising regulations in each of their target markets.

Application

International Advertising Programs

Although there is no one way to create an effective international advertising program, Peter Holt (2004) has provided three easy steps that can serve as a guideline when developing an effective international advertising strategy. He created this design to assist organizations with thinking about how they would like to generate leads in a global market. Holt (2004) believed that an international advertising strategy was the first step in this process. Having a plan will allow the organization to develop a proactive approach in its international expansion. His plan was based on three steps:

Step 1

Prioritize the World.

There are nearly two hundred countries in the world, but that does not mean that an organization should advertise in all of them. Rather, a corporation needs to target which markets make the most sense for its products, and the advertising campaign should be geared toward those countries and cultures that are selected. When conducting an analysis of whether or not to enter a specific market, the organization should identify the challenges facing the country, determine if it will be hard or easy to conduct business in the country, create a grid of the factors that have led to an organization's success with specific products and/or services in the target country, consult the United States Department of Commerce to research the target countries, and contact the International Franchise Association since it has significant information on international development.

Step 2

Establish a Profile for Leads.

Many US franchisors have found that utilizing a master franchising method has provided a level of success when attempting to expand into another country. If this option is pursued, the first step will be to determine who the master licensee will be. When selecting this individual, the organization should ask themselves certain questions when reviewing the qualifications. Some of these questions include: What kind of business experience will the organization require? Is it important that the master licensee has business experience? What kind of human resources will be required? And What type of financial requirement is needed? If the organization is specific with the types of question it asks, it will be able to utilize its time more effectively when determining which resources to use when generating leads. According to Holt, "with the exception of business acumen and financial requirements, the most important element to consider is a shared vision of what you are trying to create and a shared sense of values that drive the relationship" (Holt, 2004, p. 58).

Step 3

Establish a Budget for a Lead Generation Program.

An organization can use a variety of tactics when generating international leads. Each type of tactic has its own costs and benefits. It is the organization's responsibility to determine which programs will yield the greatest profit. Some of the tactical programs include:

• Franchise Trade Missions -- Many have viewed this option as one of the most successful lead generation activities, especially when it is arranged by the US Department of Commerce or the International Franchise Association (IFA). In most cases, the staff at US embassies or consulates arrange meetings between multinational corporations and prequalified businesses. There will be opportunities to have a firsthand view of the target country as well as meet with other international franchise executives. New contacts inside the target country may provide valuable information for international expansion. Unfortunately, there are a few downsides to the tactic. There are only approximately three trade missions per year and they may not be within the areas that the corporations would like to venture.
• Gold Key Programs -- Another similar tactic is to work with the United States Foreign Commercial Service in the target country. In most cases, the US embassies and consulates sponsor a one- or two-day Gold Key Program during which they invite prequalified businesses to come in and meet with corporate executives. The meetings are coordinated based on the criteria that the corporations have established. This tactic is very cost effective and can be an alternative to the franchise trade missions.
• Franchise Trade Shows -- This option is becoming very popular in the global marketplace. The approach has been found to be helpful, especially if the corporation is looking for a specific business. However, it has been found that there are only a small number of master licensees who attend these types of events.
• Industry-Specific Trade Shows -- Some countries have sponsored trade shows geared toward a specific industry. They would invite those corporations that were interested in the target industry and provide information to corporations so that they could expand into the country. By using this approach, there are opportunities to generate leads that could turn into multiple contacts.
• Direct Advertising -- This option is one of the most expensive methods. Some corporations have found it difficult to convey their message effectively in print format, especially in a target country that is unfamiliar with the corporation's product or service. In addition, there is a need to keep printing the message in order to generate a sufficient number of responses. This practice adds to the cost of the initial kickoff campaign message.
• Public Relations -- Corporations can get favorable press by writing articles for publications and taking out advertisements. This approach can be a good source of lead generation, especially when used in conjunction with efforts such as trade missions and the Gold Key Program.

Each corporation will be challenged with evaluating each tactic and determining which options would be appropriate for its international advertising strategy. There is no magic formula or right combination. The final decision should be based on the tactics which support the target goals of the organization.

Viewpoint

The Great Debate

One of the debates that continue to be a source of contention is the value of standardization in the advertising field, especially as it relates to the international market. In 1923, David Brown, a manager at Goodyear, became the first advocate of standardization by supporting the practice of standardizing advertisement across countries (Melewar & Vemmervik, 2004).

Advertising Approaches

There are two extreme schools of thought when developing advertising strategies. As mentioned in the overview section, the different approaches are standardization, adaptation, and contingency. T. C. Melewar and Claes Vemmervik (2004) believed that one could categorize each of these approaches on a continuum when developing advertising strategies. One end of the spectrum evaluates the degree to which an advertisement campaign is considered to be standardized. The other end focuses on the geographical coverage of the campaign. When analyzing the relationship between the schools of thoughts and the two dimensions, the following hypotheses can be made:

• Standardization -- There is an assumption that markets (i.e. arts, tastes, religious beliefs, culture) are converging as a result of faster communication and technology and consumers are becoming more similar over time. Supporters challenge the belief that markets are heterogeneous and do not believe interventions proposed by the adaptation school are necessary. Although people in various cultures may be different, their basic physiological and psychological needs are the same. This belief is in alignment with Abraham Maslow's hierarchy of needs theory. Maslow's theory suggests that all people must satisfy the same five basic needs: physiological needs, safety, love, self-esteem, and self-actualization. According to the theory, people seek to satisfy their needs in a step progression. Therefore, there is a set of universal guidelines that govern all people regardless of cultural differences. Gordon Link (1988) supported this viewpoint and inferred that advertisers should focus on developing a global brand image, which is referred to as global advertising.
• Adaptation (Individualization) -- There is an assumption that advertising must adapt to cultural differences in order to achieve a successful international advertising campaign. Adaptation is necessary because there is a need to create a differential advantage via effective communication and sensitivity toward the local cultures (Hite & Fraser, 1990). Many supporters of this school of thought highlight the differences between countries (i.e. culture, consumer values, and political systems) and the need to consider barriers to standardization (i.e. taste, economic conditions, media options).
• Contingency (Compromise) -- Although there is recognition of local cultural differences, there is equal recognition that standardization may be needed in order to create an effective international advertising strategy. Supporters of this school of thought view advertising to be on a global continuum. The degree of support for the other two schools of thought is based on each individual campaign. "On the left side are companies with highly centralized, multi-domestic operations and products. On the right side are the totally integrated and globally advertised brands and companies. In the middle are companies that increasingly standardize brands or projects, but still adapt to local differences" (Melewar & Vemmervik, 2004, p. 871). There is a strong belief that there are internal and external factors that influence the approach that an organization will utilize when developing its international advertising campaign.

When an organization is evaluating which approach to use, its decision-making process is based on how the organization views the world. If the team prefers standardization, the members focus on issues such as reducing advertising costs and presenting a consistent brand image across the world. However, if the team prefers adaptation, the members will highlight how to achieve differential advantage through local adaptation.

After reviewing the pros and cons of both approaches, many who support the contingency model will start to develop a formula to evaluate the benefits and costs of each method based on the dynamics of campaign. There are a number of researchers who have created contingency models to assist the advertisers with making the right decision.

Conclusion

Many corporations have seen the need to venture into the international market. Corporations have increased their international advertising budgets significantly in recent decades. Global advertising expenditures exceeded $322 billion in 2000 (Burberry, 2000) and surpassed the $500 billion mark in 2013.

Although the field is growing, organizations face several challenges as they determine the types of strategies their businesses will utilize in order to make their presence known in the international market. Corporations should work on their positions regarding message issues, standardization versus adaptation, media issues, and advertising regulations. Holt (2004) has provided three easy steps that can serve as a guideline when developing an effective international advertising strategy. Having a plan will allow the organization to have a proactive approach in its international expansion. Holt's plan (2004) was based on prioritizing the world, establishing a profile for leads, and establishing a budget for lead generation programs.

Corporations will be challenged with evaluating each tactic and determining which options would be appropriate for their international advertising strategy. There is no magic formula or right combination. The final decision should be based on the tactics that support the target goals of the organization.

Terms & Concepts

Adaptation Model: School of thought that supports the assumption that advertising must adapt to cultural differences in order to promote a successful international advertising campaign.

Advertising Strategies: A plan to call the public's attention to your business, usually for the purpose of selling products or services, through the use of various forms of media, such as print or broadcast notices.

Contingency Model: School of thought that recognizes the importance of local cultural differences as well as the benefits of standardizing the advertising effort.

Direct Advertising: The delivery of promotional materials or messages directly to the consumer, using email, mail, telephone, the Internet, etc.

International Advertising: The spreading of promotional appeals and messages from one country to another.

International Franchise Association: Founded in 1960, is a group of franchisors, franchisees, and suppliers that aims to protect, enhance, and promote worldwide franchises.

International Marketing: Those coordinated activities aimed at fostering the buying and selling of goods among nations.

International Master Franchising: Franchise in which the franchisor hands off a part of his rights and responsibilities to another individual who then is tasked with developing franchise outlets within other, international territories.

Leads: Refers to consumers that have expressed interest in an offer, product, or service; potential customers.

Standardization Model: School of thought that supports the assumption that markets are converging as a result of faster communication and consumers are becoming increasingly similar over time.

Bibliography

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Hilliard, H., Matulich, E., Haytko, D., & Rustogi, H. (2012). An International Look at Attitude towards Advertising, Brand Considerations, and Market Expertise: United States, China, and India. Journal of International Business Research, 1129-41. Retrieved December 1, 2014, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=82601388

Hite, R., & Fraser, C. (1988). International advertising strategies of multinational corporations. Journal of Advertising Research, 28(4), 9-17. Retrieved July 8, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=8832147&site=ehost-live

Hite, R., & Fraser, C. (1990). Configuration and coordination of global advertising. Journal of Business Research, 21(4), 335-344. Retrieved July 8, 2007, from EBSCO Online Database Business Source Complete. http://search.ebsco-host.com/login.aspx?direct=true&db=bth&AN=18811820&site=ehost-live

Holt, P. (2004). Marketing for growth: How to create a great international advertising program. Franchising World, 36(1), 58-59. Retrieved July 5, 2007, from EBSCO Online Database Business Source Complete. http://search.ebsco-host.com/login.aspx?direct=true&db=bth&AN=12011483&site=ehost-live

Kotabe, M., & Helsen, K. (2001). Global marketing management (2nd ed.). New York: John Wiley.

Koudelova, R., & Whitelock, J. (2001). A cross-cultural analysis of television advertising in the United Kingdom and the Czech Republic. International Marketing Review, 18(3), 286-300. Retrieved July 5, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=6449779&site=ehost-live

Link, G. (1988). Global advertising: An update. Journal of Consumer Marketing, 5(2), 69-75. Retrieved July 8, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=5335549&site=ehost-live

Melewar, T., & Vemmervik, C. (2004). International advertising strategy: A review, reassessment and recommendation. Management Decision, 42(7), 863-881. Retrieved July 5, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=14741055&site=ehost-live

Nevett, T. (1992). Differences between American and British television advertising: Explanations and implications. Journal of Advertising, 21(4), 61-73. Retrieved July 8, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=9308265330&site=ehost-live

O'Guinn, T., Allen, C., & Semenik, R. (2003). Advertising and integrated brand promotion, (3rd ed.). Mason, OH: southWestern.

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Shoham, A. (1999). Bounded rationality, planning, standardization of international strategy, and export performance: A structural model examination. Journal of International Marketing, 7(2), 24-50. Retrieved July 8, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=2501258&site=ehost-live

Stafford, M. R. (2005). International services advertising (ISA). Journal of Advertising, 34(1), 65-86. Retrieved July 5, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=14741055&site=ehost-live

Taylor, C. R. (2014). Corporate Social Responsibility and Advertising. International Journal of Advertising, 33(1), 11-15. Retrieved December 1, 2014, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=94699146&site=ehost-live

Suggested Reading

Daechun An. (2013). Cultural influence on perceptions of advertising creativity: a cross-cultural comparison of U.S. and Korean advertising students. International Journal of Marketing Studies, 5(5), 75-87. Retrieved November 19, 2013 from EBSCO online database Business Source Premier. http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=91906576

Hoeken, H., van den Brandt, C., Crijns, R., Dominguez, N., Hendriks, B., Planken, B., et al. (2003). International advertising in Western Europe: Should differences in uncertainty avoidance be considered when advertising in Belgium, France, The Netherlands and Spain? Journal of Business Communication, 40(3), 195-218. Retrieved July 5, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=10564790&site=ehost-live

Kumar, V., Sharma, A., Shah, R., & Rajan, B. (2013). Establishing Profitable Customer Loyalty for Multinational Companies in the Emerging Economies: A Conceptual Framework. Journal Of International Marketing, 21(1), 57-80. Retrieved December 1, 2014, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=85872955

Taylor, C. (2005). Moving international advertising research forward. Journal of Advertising, 34(1), 7-16. Retrieved July 5, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=16683236&site=ehost-live

Zou, S. (2005). Contributions to international advertising research. Journal of Advertising, 34(1), 99-110. Retrieved July 5, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=16683320&site=ehost-live