Global Advertising Scope, Challenges – BMS Notes

Information is gathered, processed, analysed, and interpreted in the process of global or worldwide advertising.
The two main goals of research on international advertising are to: (1) help business executives make profitable decisions about advertising abroad for their particular products and services; and (2) add to the body of knowledge about international advertising that may be helpful to a range of business executives, educators, government policy makers, advertising self-regulatory organisations, and other interested parties.
Similar traits and cultural distinctions
Offering of Goods or Services
In international marketing, a business provides the same goods and services everywhere, across borders. Banks, insurance providers, and major retailers such as Wal-Mart come to mind.
International marketing involves customising goods and services for different nations. Consider items like Sharia finance, which are only available in Islamic nations or to Muslim clients in non-Muslim nations, or meat that is prohibited for consumption by Muslims or Israelis.
Global marketing staff members are typically a broad set of individuals that work at the company’s headquarters. They have a variety of abilities that work well together and approach the company’s business from a global perspective.
On the other hand, in international marketing, team members typically come from either the primary country or a country that shares linguistic or cultural similarities with it.
Marketing Budget: The corporate headquarters is where a worldwide marketing team’s budget is directly overseen. Nike, for instance, allots a portion of their worldwide marketing budget to local offices.
Budgetary concerns, on the other hand, are discussed and managed locally inside the subsidiary in international marketing. For instance, McDonald’s runs regional advertisements, some of which are not available in other nations.
Promotional Strategies When it comes to promotional strategies, international marketing teams aim to use advertisements and other forms of communication that appeal to a worldwide audience.
Watching the advertisements that ran during the 2014 FIFA World Cup is a great approach to get an understanding of the concept. Global marketing at its finest: billions of viewers, a global sporting event, and a shared enthusiasm for the game.
Commercials and other promotional strategies used in foreign marketing are customised for the local market.
The autonomy of operations
Marketing does not entail thinking about product sales while seated in a corner office. Four elements make up the conventional marketing mix, or what experts refer to as the “4Ps”: product, price, promotion, and place (of distribution).
Therefore, in terms of operational autonomy, international marketing teams manage domestic operations, while global marketing teams often handle everything from A to Z from the corporate headquarters.
Social Networks
You may immediately determine whether businesses choose international marketing over global marketing by looking at their social media pages. You’ll see, for instance, that McDonald uses a global marketing approach, as evidenced by the variety of its Facebook pages, which include McDonald’s Malaysia, McDonald’s Brazil, McDonald’s Italia, and McDonald’s Polska (Poland).
On the other hand, Nike and Caterpillar just display one page.
Customer Interaction
International marketing involves more active customer engagement. An organisation can improve local interactions with followers and consumers by establishing several channels of communication.
That’s not to imply that consumer interaction strategies are any less effective in global marketing; they’re just different.
However, it is evident that compared to global marketing, international marketing typically generates a higher level of involvement.
Commercials in global marketing are broadcast worldwide, while those in international marketing are aired only in the local market or, at most, in markets that are comparable.
Certain products are rather good candidates for international advertising. We’ve already discussed sports equipment, but there are also music and film options, along with technological goods.
On the other hand, certain nations are unable to sell certain products due to cultural restrictions or government censorship.
Research and Development in the Market
In international marketing as well as global marketing, market research and R&D are equally extensive and comprehensive.
Global marketing, however, can occasionally result in huge failures if market research is improperly done or local customs are not fully examined. Consider the disastrous years that the Chevy Nova and Mazda LaPuta spent in the Spanish market (the Spanish phrases “no va” and “la puta” translate to “it doesn’t go” and “the whore,” respectively).
The Ben-Gay aspirin, McDonald’s Arch Deluxe, and Redux Beverages’ Cocaine Energy Drink are a few more failed products.
Blended Framework
Our tenth example is more of a demonstration of how a hybrid structure—international and global—can aid in a company’s success than it is of a comparison study of global marketing against international marketing analysis.
In the past, Coca-Cola employed a combination strategy that works well, and today, every business uses it, including Mercedes Benz, McDonald’s, Procter & Gamble, and Frito Lay.
Given that shoes are beneficial to everyone with feet, Nike might be beneficial to every culture (which is virtually everyone). The same is true for Caterpillar, as more effective construction made possible by industrial machinery advances humankind as a whole. On the other side, “international marketing” is required if the product solely caters to a single portion of the population or otherwise excludes specific subsets. Businesses that sell pornographic or culturally inappropriate goods can’t apply the same strategy worldwide. For instance, in many Middle Eastern workplaces, where drinking and unsuitable attire are not commonly accepted, lingerie and alcohol enterprises would not be very successful. Tobacco corporations would have to change their messaging to appeal to more socially concerned people. In these cases, targeted or non-targeted marketing would be more beneficial, and international marketing would perform better.
Challenges
International marketing is becoming more difficult to pursue even though the world is making great strides in information technology, global efforts to facilitate smooth international trade, and creative and superior ways of organising marketing efforts (such as horizontal, network, and virtual organisations).
1. Tariff Barriers: These are the levies and charges levied against imports. It is challenging for marketers from guest countries to turn a profit while selling their products in host nations. Sometimes deliberately designed tariff regulations that limit international marketing efforts are created in order to stop imported products and/or promote native ones. International trade is made unclear for traders by frequent changes in tariff rates and varying tariff rates for different product categories. Exporters encounter challenges due to defensive tactics and antidumping taxes imposed on imports.
2. Administrative Policies: International (export and/or import) marketing is made more difficult by bureaucratic regulations or administrative processes in both the host and the guest countries. Certain nations have excessively drawn-out protocols that importers and exporters must go through. Some international players face numerous issues as a result of unfair transactions made to have formalities or difficulties resolved. International marketers must become used to the legal requirements of many jurisdictions in which they wish to conduct business.
3. Considerable Diversities: Every nation has a distinct civilization and culture of its own. They present unique challenges for global marketers. Global consumers differ greatly in terms of their wants, tastes, habits, languages, expectations, ability to purchase, patterns of consumption and purchase, and other cultural and social factors. Understanding and incorporating the social and personal traits of customers from other nations can be a genuine challenge. It is more challenging to comprehend international consumers’ behaviour than that of local or domestic markets.
Similarly, designing and adjusting a marketing mix over time for foreign markets appears more challenging than for local ones. Further research and effort are required for market segmentation, product design, pricing, and distribution. It is a difficult undertaking to promote products in international markets. It is not an easy game to play when preparing and executing messages in appropriate medium for international markets.
Diversity in language and religion presents the biggest obstacle for global business players. The earth is home to 6000 different languages. In terms of native speakers, the largest group is from China (20%), followed by Hindi (6%), and then English (5 percent ). However, English is acknowledged as a universal business language.
English-speaking nations are able to make up the biggest portion (40%) of international trade. Religious differences seem to be hard to deal with because they influence people’s needs and desires. Right now, there are 1.7 billion Christians worldwide, followed by 1.0 billion Muslims, 750 million Hindus, and 750 million Buddhists (350 millions).
4. The Political Climate or Instability:
Some of the actual obstacles that international markers face are different political systems (democracy or dictatorship), diverse economic systems (market economy, command economy, and mixed economy), and political instability. Governments in other countries have their own goals, attitudes, and approaches to the international trades; political environments in various courtiers present opportunities or obstacles to international marketers. They could take a liberal or restricted (protectionist) stance when it comes to conducting business internationally. Particularly, the political philosophies of powerful countries have a greater impact on global marketing initiatives.
The long-term political climate in the world is erratic and unclear. International trade is impacted directly by the economic policies of many countries, including their export-import, industrial, fiscal, and agricultural policies. International traders face innumerable challenges as a result of drastic changes to these policies. Particular consideration must be given to the international political and legal context while working with global markets.
5. Location Restraints (Varieties of Geography):
Trade is nearly impossible in distant foreign nations. It is quite difficult when it comes to perishable goods. Using the sea to export and import goods and arrange for efficient sales takes more time and carries greater risk. Marketers must exercise greater caution when segmenting and choosing overseas markets.
6. Exchange Rate Variations: Each country has its own currency that can be exchanged for other countries’ currencies. Every day, people trade currencies, and exchange rates might fluctuate. In national and international markets, currencies such as the Indian Rupee, European Dollar, US Dollar, Japanese Yen, etc., are valued or depreciated in relation to other currencies. When two courtiers experience unusual and unanticipated fluctuations in currency exchange rates, it can lead to significant issues with settlement.
7. Issues with Ethics and Norms:
The moral standards, norms, and guidelines that direct the behaviour of individuals and organisations are referred to as ethics. Formal rules and regulations reflect them profoundly. Every worldwide business player is required to abide by several rules of conduct that are specified in different parts of the world. On the other hand, the trend of globalisation has highlighted certain universal ethics. Another matter concerning business ethics is corruption.
8. Racism and Terrorism: Terrorism is a global problem that affects the entire world. Everywhere in the world, people are always afraid that terrorists may attack. While there is no economic risk associated with foreign trade, there is a risk to life. International commerce activity are also hindered by racism.
9. Additional Challenges: In addition to these issues, global markets present a number of other challenges, including:
Warming of the planet and shifting natural environments
Variations in natural climates and weather
International organisations’ improper or insufficient support for and control over international trade
Disasters, both man-made and natural
Variations in weights, standards, measurements, currencies, and advertising strategies
Some countries’ protectionist policies