Exam 7: The International Market Environment for Brand Promotion

People from different cultures can see the same picture and walk away with extremely different interpretations.

When a company breaks the world into three classes of economic conditions, it does so because

The regulatory restrictions one must be aware of when placing international advertising

A company decides to expand distribution of its brand of spaghetti sauce to several foreign markets. Optimally, market research should

The medium with the most localized worldwide coverage is

The American advertising icon the Marlboro Man is most often pictured alone. He's out roping and branding and riding and smoking and doing whatever manly things he wants to do, whenever he wants to do them. It could be said that he embodies the American spirit of individualism. When rolling out the Marlboro Man to different cultures, it is important to see how people react to this image. Research into ____ would be the most important type of research to conduct.

High per capita income and high GDP define:

One of the most devastating mistakes an advertiser can make is to presume that consumers in one culture have the same ____ as those of another culture.

Scenario 7-2 In 1974, H. J. Heinz Company selected Leo Burnett Company, Inc. to handle national advertising for Heinz Ketchup, and in 2002, after an intensive agency review, awarded the agency the global advertising and brand positioning for Heinz Ketchup and other condiments and sauces. Forget those original 57 varieties: H.J. Heinz now has thousands of products. One of the world's largest food producers, Heinz produces ketchup, condiments, sauces, frozen foods, beans, and pasta. Heinz controls 60% of the US ketchup market. Its customers include US and international food retailers, the food service industry, and the US military. The company's leading brands include Ore-Ida frozen potatoes and Weight Watchers foods. (www.hoovers.com-Heinz). -(Scenario 7-2) Which of the following is not an argument for the localization of marketing efforts?

List and describe the biases that make it difficult to overcome one's own cultural comfort zone. List three types of cross-cultural research and briefly explain why each is helpful in minimizing these biases when marketing a product in a different culture.

One of the biggest mistakes an advertiser can make is to assume that rituals are similar among cultures.

Scenario 7-2 In 1974, H. J. Heinz Company selected Leo Burnett Company, Inc. to handle national advertising for Heinz Ketchup, and in 2002, after an intensive agency review, awarded the agency the global advertising and brand positioning for Heinz Ketchup and other condiments and sauces. Forget those original 57 varieties: H.J. Heinz now has thousands of products. One of the world's largest food producers, Heinz produces ketchup, condiments, sauces, frozen foods, beans, and pasta. Heinz controls 60% of the US ketchup market. Its customers include US and international food retailers, the food service industry, and the US military. The company's leading brands include Ore-Ida frozen potatoes and Weight Watchers foods. (www.hoovers.com-Heinz). -(Scenario 7-2) If Leo Burnett is going to prepare advertisements for one of Heinz's promotions, it will have to pay special attention to ____, as its use requires the most localized market knowledge.

Scenario 7-5 Ash Chemical produces food additives and flavorings in the United States that are used by food processing companies and consumers throughout the world. Ash's products are sold under a variety of brand names based on whether the product is sold to business or consumer users. Demand differences in local markets are attributed to differences in culture, values, tastes, and preferences of end users. As a result, Ash spends a great deal of time conducting market research in dozens of different locales at any given time. Recently, Ash Chemical has devoted significant marketing effort toward Country X and Country Y. -(Scenario 7-5) Country X's consumers are, on average, much younger than consumers in the United States. Which of the following world regions in Country X most likely located in?

Nearly 75 percent of the world's population lives in

Describe the advantages of using a global advertising agency when you begin a global marketing effort. How is an international affiliate different from a global agency in structure? What is the disadvantage to an advertiser in using its agency's international affiliate to reach a market in a different country?

Burger King managers believe that all customers are entitled to be served very high quality food. Therefore, they believe that standardization of offerings leads to higher and more consistent quality levels. Which of the following best describes this behavior?

Scenario 7-4 It doesn't matter where in the world you are or how well off, the fast food culture has become a way of life for all of us. According to the latest findings from ACNielsen, the world's leading market research firm, nearly all Hong Kong people (97%) are fast food patrons. A fast food culture has shaped the lifestyles of us all, and with fast food operators introducing healthier options in the form of salads and low carb meals, consumers today have greater choice than ever before. While building a good brand image is close to the heart of most marketers, it is worth noting that brand image appears to have little influence on consumer choice of take away restaurants. Brand Image ranked the least important among all respondents. Among the international fast food chains and local operators, McDonalds was the world's most popular with 68 percent of people in the 28 major countries picking it as the first choice for take away food. KFC ranks No.2 at 32 percent and Pizza Hut ranks No.3 at 29 percent. Nevertheless local fast food chains also have a strong foothold taking Hong Kong as an example, 62 percent also chose local operators as their choice of fast food restaurants, and as ACNielsen I-Scan ImpulseTM indicates those local chains include Caf'de Coral and Maxim's. (Asians the World's Greatest Fast Food Fans.Two thirds of Hong Kongers frequent at least once a week, December 23, 2004. http://acnielsen.com.) -(Scenario 7-4) In an attempt to get a fix on whether or not to enter this market, an advertiser performs an analysis of economic conditions. Which piece of information is this analysis most likely to reveal?

The biggest challenge facing international advertisers is probably in the area of media. Meeting this challenge is especially important in light of the fact that media costs represent a majority of the costs in most advertising budgets.

The book describes three distinct challenges that complicate the execution of advertising in international settings. The three challenges that must be overcome are

Scenario 7-1 In collaboration with the Ministries of Health and Water, PSI/Tanzania launched WaterGuard, a home water purification solution, in 2002. This simple, low-cost technology enables parents to purify their families drinking water conveniently at home, regardless of whether the water was obtained through a well, community taps, or mobile water vendor. WaterGuard is manufactured in Tanzania by a well established, private-sector soap and detergent company. Each 500 ml bottle of WaterGuard treats more than fifty 20 liter jerry cans of water- enough to provide the average family with clean drinking for a month. WaterGuard is being promoted through TV and radio advertising, point of sale signs, direct marketing events, and billboards. (PSI, http://www.psi.org, January 15, 2005). -(Scenario 7-1) Lowe Scanad East Africa is one of the largest advertising agencies in Tanzania. With an office in Dar es Salaam, it can lay claim to having localized knowledge of a market that is unique in many ways. Over time, however, the development of ____ may help create consumption practices that are similar to those in the United States.