Exam 7: The International Market Environment for Brand Promotion

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) Research has suggested that the relatively low income consumers in Country Y constitute a market with great potential for Ash. Which of the following is most likely to be Country Y?

Scenario 7-3 Biba is a French magazine whose audience comprises mainly women readers. In addition, it enjoys a fairly sizable international distribution. On occasion, the magazine runs advertisements from the French equivalent of the Department of Public Health. In one such ad, the visual consists of the corner of an earth-tone beach towel with sand around it. Lying on the towel is a pair of women's sunglasses, a book, a rock, and a condom in a foil wrapper. The headline reads in French, "Protection maximale." -(Scenario 7-3) If a condom manufacturer was considering entering a different culture with its product, just about any research it performed would have the potential for enlightenment. However, if the company was specifically trying to determine if the underlying core beliefs of a culture precluded it from being able to sell a form of birth control, the company would be best advised to research the culture's

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) In 1990, when the first radio advertisements were aired in Tanzania, many listeners were bewildered by the concept of advertising. They simply did not understand what they were listening to. This is an example of

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) A small U.S.-based company that makes and markets gardening tools has entered the Chinese market. However, management has been very frustrated by a lack of standardization in its strategic and creative efforts to reach the different regions of the country. The company is most likely using

Scenario 7-3 Biba is a French magazine whose audience comprises mainly women readers. In addition, it enjoys a fairly sizable international distribution. On occasion, the magazine runs advertisements from the French equivalent of the Department of Public Health. In one such ad, the visual consists of the corner of an earth-tone beach towel with sand around it. Lying on the towel is a pair of women's sunglasses, a book, a rock, and a condom in a foil wrapper. The headline reads in French, "Protection maximale." -(Scenario 7-3) A person from a different culture sees the ad and decides that the French are immoral because they run condom ads in magazines, whereas they are not seen in general consumer magazines in this country. This person is engaging in

Advertising agencies must continuously decide how to overcome cultural barriers to communicate effectively.

Advertisers must structure their advertising to accommodate the wide variety of international regulations.

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) An international company is about to enter the Chinese market with a campaign in the medium that requires the most local knowledge to use correctly. It is going to use

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 buys a lot more of Ash's products for use in food processing than they do for direct sales to consumers. Which of the following classes of economic development likely best describes Country X?

The advantage of a global (or worldwide) agency in preparing international advertising is that

Global agencies have the backing and resources to tap into local cultures better than any other type of agency.

Which of the following is not associated with the high costs of international advertising?

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) Local agencies that lost business to the global agency will be unhappy with the decision. They can rightly argue that the agency that won the business

There are a few human expressions that are commonly interpreted in the similar ways.

Which of the following is assisting media buyers in meeting the global media-buying challenge?

Scenario 7-3 Biba is a French magazine whose audience comprises mainly women readers. In addition, it enjoys a fairly sizable international distribution. On occasion, the magazine runs advertisements from the French equivalent of the Department of Public Health. In one such ad, the visual consists of the corner of an earth-tone beach towel with sand around it. Lying on the towel is a pair of women's sunglasses, a book, a rock, and a condom in a foil wrapper. The headline reads in French, "Protection maximale." -(Scenario 7-3) If a condom manufacturer considers doing a global campaign for a specific brand of condoms, it must be especially concerned with two of the three major challenges that complicate the execution of advertising in international settings. These challenges 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) A marketer of jams and jellies considers entering the Tanzanian market. As it researches the market, it discovers that Tanzanians eat their bread dry. To discover this, the marketer most likely performed

Explain why an understanding of the role of picturing is important to an advertiser. Describe the visual in a print advertisement that you have seen recently. Explain why it may or may not be interpreted differently by someone in a culture other than your own.

The world marketplace seems to be shifting toward conditions that increase the likelihood of globalized campaigns. Which of the following is not a trend that will encourage this move?

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) If PSA began marketing water purification in Tanzania without ever asking if the Tanzanian market knew anything about water pollution, the organization is