GLOBAL MARKETING AND ADVERTISING

There are some products that can be marketed around the globe without much variation in the marketing strategy or ad campaign. These are usually durable goods that vary little between markets (e.g., machine parts) or flagship brands that are known across borders. One example of such a brand is Coca-Cola. Coke uses the same strategy from country to country and it often uses the same commercial, just translating them into different languages. Other products that have standardized marketing campaigns include Unilever detergents, Marlboro cigarettes, Perrier water, Kellogg's Frosted Flakes, Pond's skin creams, Ajax cleaners, Canada Dry mixers, Exxon oil, Levi's blue jeans, and British Airways. This trend toward standardized marketing is growing.

Reasons. There are several reasons why companies are turning to global marketing. First of all, it is less expensive. It saves time and money if a company only needs to translate its advertisements in different markets. Second, a unified market is growing across country borders. This market is created in part by global media, such as Rupert Murdoch's Sky Channel, Ted Turner's TBS channel, CNN, and Music Box and MTV, which are both music video channels show the same programs everywhere. A new generation of consumers follows the same trends whether they live in Sweden or Colombia. Third, as consumers increase their international travel, companies want them to recognize their products across country lines. As the world gets smaller, companies try to maintain brand consistency.

Obstacles. There are, however, obstacles to the global strategy. Some of the obstacles relate to the products themselves. Certain products, such as unprocessed foods, are difficult to market through a standardized approach. People don't change eating habits readily. Companies usually need to use local strategies for this kind of product. Other obstacles relate to the ad campaigns. Some countries limit or altogether prohibit commercials on TV. A company that depends on a standardized TV ad may have to adapt its ad to other media in these countries. Also many countries require local participation in advertisements so that often ads must be remade locally. Countries also vary on what they consider acceptable advertising material. In the United States and Asia, partial nudity in general advertising is not acceptable; in western Europe it is. Finally, some countries prohibit advertisements that do not reflect local culture, as they fear colonization of the local culture.