Lecture 4 - Advertising across countries and cultures

Question 1

What is the importance of international markets?

Answer 1

1) Globalisation of all markets
2) Opportunities for expansion and economies of scale
3) Opportunity for profit and growth
4) Potential for SME
5) Import growth and domestic markets

Question 2

What are the 4 factors that influence international marketing communications?

Answer 2

1) Economic
2) Political/Legal
3) Demographic
4) Cultural

Question 3

Describe the economic factors

Answer 3

They are a countrys economic conditions that indicate its present and future potential for consuming

Developed countries offer greatest opportunities

Question 4

What are some examples of economic factors?

Answer 4

Stages of economic development
Economic infrastructure
Standard of living
Per capita income
Distribution of wealth
Currency stability
Exchange rates

Question 5

Why do China and India represent significant economic opportunities?

Answer 5

7% annual GDP growth since 2010

Biggest market in world for many products

Moving towards a mobile first market - up to 75% of total advertising spend is digital

Consumers spend up to 7 hours a day on phones

Question 6

Describe the political/legal factors?

Answer 6

local advertising regulations and industry codes directly influence the selection and content of marketing communications

Question 7

What are some examples of political/legal factors?

Answer 7

government policies

laws and regulations including media classes and permitted vehicles

political stability

attitudes toward multinational companies

advertising material prepared outside country

specific taxes levied against advertising

Question 8

How can political/ legal factors affect the IMC?

Answer 8

Through types of products advertised, content, creative approach, media permitted, use of social and digital media, amount of advertising by a single advertiser, use of foreign language in ads, use of local vs international ad agencies

Question 9

Describe demographic factors

Answer 9

demographic factors require and help companies to plan campaigns for different countries

Question 10

Provide examples of demographic factors

Answer 10

Size of population
No. of households and size
Age distribution
Occupational distribution
Education levels
Employment rate
Income level and distribution

Question 11

Describe cultural factors

Answer 11

Cultural traits of a country influence not just the needs and wants of consumers but also how they do about satisfying them