Marketing dives deeper into cyberspace

Friday, November 28, 2008
Business First of Columbus - by Paul E. Kostyu

A trivia game popular on college campuses in the 1990s challenged players to connect any actor with movie star Kevin Bacon in as few links – called degrees – as possible. The game played on the concept that we live in a small world.

Guess what? The world is getting smaller, at least figuratively.

With the rise of social media, think YouTube and Facebook, people are finding ways to connect in fewer and fewer degrees. Springboarding off of that is the concept of viral marketing, which used to happen by word of mouth and now is happening especially through social media.

Viral marketing and advertising – unlike traditional advertising seen in newspapers, television and heard on radio – promotes a brand over the Internet or other technology and spreads like a good virus, said Doug Ross, chairman of the marketing and communications master’s degree program at Franklin University.

To continue article click on the title.

NIKE Commercials from different countries

Here are some of NIKE's ad campaigns for different countries. Can you tell which one goes with which country? What are the benefits of using a localized approach for marketing in sports wear and footwear throughout the world?

My opinion is that you are more likely to buy sporting goods from a company if they hit on a certain nationalization appeal to your country. This includes using sports stars or evoking memories of national pride in their commercials, whether it be the world cup, a world famous athlete from your country or whatever it is particularly effective.

Countries include: United States, England, Spain, France, Russia and Germany













NIKE's youtube page

United Colors of Benetton

A couple weeks ago Professor Robles mentioned the Ad campaign that Benetton runs. It directs attention to issues that are totally unrelated to the product they are selling. Is this effective? Is it promoting something other than clothes?

Click on the title to go to their site and look at all of their ad campaigns.

Here are some pictures I found interesting:

What is International Marketing?

Because we are almost in the last week of classes I felt a review slide was necessary. Here is a webpage that I found that pretty much sums up the whole class in a few helpful and meaningful quotes.

The following are just introductions to a more detailed section of the webpage, the list of links can be found by clicking on the title if you want to read more about a certain subject, the website is very helpful.

What is International Marketing?

At its simplest level, international marketing involves the firm in making one or more marketing mix decisions across national boundaries. At its most complex level, it involves the firm in establishing manufacturing facilities overseas and coordinating marketing strategies across the globe.

Doole and Lowe (2001).

Note: Doole and Lowe differentiate between international marketing (simple mix changes) and global marketing (more complex and extensive).

International Marketing is the performance of business activities that direct the flow of a company's goods and services to consumers or users in more than one nation for a profit.

Cateora and Ghauri (1999)

Note: Cateora and Ghauri consider international marketing in the absence of global marketing.

International marketing is the application of marketing orientation and marketing capabilities to international business.

Muhlbacher, Helmuth, and Dahringer (2006)

Note: Muhlbacher et al consider international marketing in relation to marketing orientation and competences (see also Global Marketing).

The international market goes beyond the export marketer and becomes more involved in the marketing environment in the countries in which it is doing business.

Keegan (2002)

Note: Keegan's definition is typical of those that see international marketing a one stage of an internationalisation process.
What is Global Marketing?

Global marketing refers to marketing activities coordinated and integrated across multiple country markets.

Johansson (2000)

Note: Jonny K. Johansson defines global marketing as a bigger brother to international marketing i.e. more of an extension.

. . . The result is a global approach to international marketing. Rather than focusing on country markets, that is, the differences due to the physical location of customers groups, managers concentrate on product markets, that is, groups of customers seeking shared benefits or to be served with the same technology, emphasizing their similarities regardless of geographic areas in which they are located.

Muhlbacher, Helmuth, and Dahringer (2006)

Note: Muhlbacher et al delineate international marketing (adapted) and global marketing (standardised).

Global/transnational marketing focuses upon leveraging a company's assets, experience and products globally and upon adapting to what is truly unique and different in each country.

Keegan (2002)

Note: Keegan takes a strategic, corporate overview to define the transnational nature of global marketing.

So, as with many other elements of marketing, there is no single definition of international marketing, and there could be some confusion about where international marketing begins and global marketing ends. These lessons will assume that both terms are interchangeable, and will define international marketing as follows:

International marketing is simply the application of marketing principles to more than one country.


Environment analysis for international marketing.

One of the fundamental steps that needs to be taken prior to beginning international marketing is the environmental analysis. Of course there are many tools on Marketing Teacher that would prove useful at this stage such as lessons on the marketing environment, PEST Analysis, SWOT Analysis, POWER SWOT and Five Forces Analysis. However, the very specific and unique nature of each individual nation needs to be looked into. Below we consider the nature of an international PEST Analysis, and the influence of tariff and non-tariff barriers.


An International PEST Analysis.

PEST is a well-known and widely applied tool when considering the external nature of the domestic market. However, it is equally as useful when applied to the nature of the international marketing environment.

International PEST Analysis would consider:

* How easy will it be to move from purely domestic to international marketing?
* Would your business benefit from inward foreign investment?
* What is the nature of competition within each individual market, and how will
companies from other nations compete when you meet with them head-to-head in
unfamiliar countries?
* Many other factors that are specific to your organization or industry.


What is the influence of culture on international marketing?

Culture is the way that we do things around here. Culture could relate to a country (national culture), a distinct section of the community (sub-culture), or an organization (corporate culture). It is widely accepted that you are not born with a culture, and that it is learned. So, culture includes all that we have learned in relation to values and norms, customs and traditions, beliefs and religions, rituals and artefacts (i.e. tangible symbols of a culture, such as the Sydney Opera House or the Great Wall of China).


How to Enter a Foreign Market.

This lesson gives an outline of the way in which an organization should select which foreign to enter. The International Marketing Entry Evaluation Process is a five stage process, and its purpose is to gauge which international market or markets offer the best opportunities for our products or services to succeed. The five steps are Country Identification, Preliminary Screening, In-Depth Screening, Final Selection and Direct Experience. Let's take a look at each step in turn.


How does an organization enter an overseas market?
Background

A mode of entry into an international market is the channel which your organization employs to gain entry to a new international market. This lesson considers a number of key alternatives, but recognizes that alteratives are many and diverse. Here you will be consider modes of entry into international markets such as the Internet, Exporting, Licensing, International Agents, International Distributors, Strategic Alliances, Joint Ventures, Overseas Manufacture and International Sales Subsidiaries. Finally we consider the Stages of Internationalization.

It is worth noting that not all authorities on international marketing agree as to which mode of entry sits where. For example, some see franchising as a stand alone mode, whilst others see franchising as part of licensing. In reality, the most important point is that you consider all useful modes of entry into international markets - over and above which pigeon-hole it fits into. If in doubt, always clarify your tutor's preferred view.


Media Choices for International Marketing

Marketing communications in international markets needs to be conducted with care. This lesson will consider some of the key issues that you need to take into account when promoting products or services in overseas markets. There will be influences upon your media choice, cultural issues to be considered, as well as the media choices themselves - personal selling, advertising, and others.
Influences upon International Media Choice.

There are a number of factors that will impact upon choice and availability of media such as:

* The nature and level of competition for marcoms channels in your target market.
* Whether or not there is a rich variety of media in your target market.
* The level of economic development in your target market (for example, in remote
regions of Africa there would be no mains electricity on which to run TVs or
radios).
* The availability of other local resources to assist you with your campaign will
also need to be investigated (for example, sales people or local advertising
expertise).
* Local laws may not allow specific content or references to be made in adverts
(for example, it is not acceptable to show naked legs in adverts displayed in
Muslim countries).
* And of course a lot depends upon the purpose of the international campaign in
the first place. What are your international marketing communications objectives?


How should we set prices for international markets?

This lesson considers the basics of pricing for international marketing. As with all of the international marketing lessons, every country and culture within it will influence price. So here we are going to look at some of the common influences upon pricing decision-making, the impact of grey markets, international approaches to pricing, and more mainstream marketing approaches to pricing that can be applied to an international context.


Standardization versus Adaptation.

As you will see from this website, product is a focal element of the marketing mix. When considering the nature of products and services in international marketing, the same models apply such as:

* Product Life Cycle (PLC) - products could be at different points in the PLC in
various nations, possibly creating new opportunities.
* Ansoff's Matrix - market development could mean that an existing product is
marketed in a new international market.
* Three Levels of a Product - marketers would consider the local market's need for
core, actual and augmented products.
* Internet Marketing and Product - how do eMarketers make product decisions?

However, international product decision-making often centres around the standardization versus adaptation debate. Essentially, do we market the same, standard product in an international market or segment, or do we localize it, and adapted it so that it pleases local tastes? Here are some of the advantages and disadvantage of standardization.

Advertising With a Cause

Do you think this advertising is more effective than just showing the product? Are you more likely to buy this product than another similar product because it is better or because it has a cause behind it?

To learn more about their campaign click on the title.

Barack Obama becomes celebrity sportswear endorser

From Times Online
November 27, 2008

Hannah Strange

Tiger Woods costs $20 million a year. David Beckham, £10m. In these troubled economic times, sportswear manufacturers may find themselves having to reevaluate such costly celebrity endorsements, but fortunately for them the world's most popular gym fanatic has stepped in to offer his services. Cost: $0 for four years, with the possibility to extend in 2012.

The media fascination with Barack Obama's sporting antics is a boon for makers of leading athletic brands, which the president-elect has been pictured wearing on frequent trips to the gym and basketball court. The current presidential favourite appears to be Nike, the famous tick spotted on Mr Obama's attire so regularly that one would be forgiven for suspecting a product placement deal.

Not so, says Nike, but nevertheless the company is pleased that so stylish a figure favours its products.

"We don't make a point of giving the president-elect any products for free, but we're glad that he has such good taste in sportswear, whether he's working it out or taking it easy," Nike spokesman Charlie Brooks unashamedly told The Times.

When Mr Obama strolled down a Hawaii beach in August, it was a Nike t-shirt that he wore. When he showed off his basketball skills in a school challenge in April, his trainers bore the distinctive logo. On occasions he has turned himself into a veritable walking billboard, sporting Nike from head-to-toe.

However the President-Elect has been careful not to show too much favour to the Portland-based brand. Perhaps a little controversially, the Japanese brand ASICS seems to have recently replaced Nike as Mr Obama's footwear of choice. Pictures of post-election gym trips have shown him wearing the ASICSGel Nimbus 10, a new model which retails for around $120 (£80).

ASICS, less well known in the States than its domestic rivals, described itself as "thrilled" with the endorsement.

Eóin Treacy of ASICS UK said: "Barack Obama is said to pick only the best and brightest for his team and he's certainly done that with his footwear."

The North Face, the California-based outdoor wear company, has also benefited from a presidential endorsement. Pictures of Mr Obama in one of their fleece jackets were splashed across the pages of the world's newspapers after he wore it to take his daughters to school just five days after his election victory; he was pictured wearing it again on a gym trip the following week.

Such photo opportunities can be worth millions to sportswear companies, according to branding experts.

To finish the article click on the title.

Creative advertisements from around the world

Sometimes advertisements have to be eye catching to be successful. Here are some examples.

To see more click on the title.

In Slump, Vegas Pushes Escapism

(Newser) – Las Vegas has enthusiastically promoted itself to travelers interested in pastimes other than gambling in recent years, but now that economic woes are tightening leisure budgets, Sin City is taking a hit, reports Advertising Age. With visitor volume and gaming revenue down, casinos are scrambling to respond. One has a less-than-subtle new slogan: "Shut up & play."

Hotels are slashing room rates, and the big names on the Strip are emphasizing service and focusing on wealthy customers. Other hotels have begun relying more on loyalty programs and direct mailing to draw in guests. And the tourism bureau has a new slogan, too: "Crazy times call for crazy fun."

Wall Street Journal Invades News York Times' Ad Turf

By Sarah Rabil

Nov. 21 (Bloomberg) -- The Wall Street Journal is invading the New York Times' advertising turf as competition intensifies in a souring U.S. economy.

Saks Inc., a Times advertiser since 1924, recently chose to promote a new Chanel boutique and made-to-measure men's suits in the Journal. Owner Rupert Murdoch's expansion of general news coverage and a new lifestyle magazine are starting to attract wealthy consumers and create ad space for retailers, said Milton Pedraza, chief executive officer of Luxury Institute LLC.

``They certainly have become a significant part of the advertising mix for luxury brands where they were not before,'' said Pedraza, whose New York research group tracks the market for the most expensive lines of consumer goods and services. ``They're definitely stealing advertising dollars.''

Italian fashion label Dolce & Gabbana SpA and LVMH Moet Hennessy Louis Vuitton SA have also started advertising in the Journal as Murdoch, 77, seeks to overtake the Times. Both newspapers are fighting for a piece of a shrinking U.S. ad market with spending set to contract 6.8 percent next year to $150 billion, according to a Sanford C. Bernstein & Co. estimate. Murdoch is also pressing the fight online.

New York Times Co. cut its dividend yesterday by almost three-fourths as revenue crumbles. The flagship newspaper will probably ``moderate'' ad rate increases for next year and is discussing discounts with advertisers, chief advertising officer Denise Warren said in an interview before the announcement.

``Given what's going on with the economy, we want to be careful,'' she said.

Close Watch

The Times is also expanding financial news coverage, executive editor Bill Keller said. While Keller says the newspapers aren't locked in a ``mano-a-mano death struggle,'' he can name more than 25 business stories where the Times beat its New York rival this year.

``When somebody says he's willing to spend the bank to become the new version of the New York Times, you watch them closely,'' Keller said in an interview. The Journal is the first newspaper he reads every morning after the Times.

Keller isn't the only one eyeing the competition. Michael Rooney, the Journal's chief revenue officer, said he flips through the Times everyday to see who's advertising and instructs sales people to contact potential clients.

News Corp. has the resources to keep investing in the Journal, said Wachovia Capital Markets analyst John Janedis. The Times hasn't been as aggressive, he said.

``If this becomes a prolonged recession, it becomes an advertising war, and it becomes who can tough it out longer,'' New York-based Janedis said.

Ad Plunge

Ad revenue at the New York Times, the International Herald Tribune and their Web sites fell 15 percent in October to $113.9 million, the company said yesterday. Luxury accounts for more than 10 percent of ad sales within that unit. News Corp. doesn't break out financial information for the Journal.

Class A shares of News Corp., which acquired Journal-owner Dow Jones & Co. last year for $5.2 billion, have lost 70 percent this year on the New York Stock Exchange and rose 13 percent to $6.19 at 4:15 p.m. today. New York Times, also down 70 percent for the year, slid 6.6 percent to $5.34.

The Journal is only offering set discounts for bulk, new advertiser or repeat-purchase deals, Rooney said. The publication plans to raise rates for 2009 because of expanded coverage, more subscribers and other investments, Rooney said.

``We will increase rates next year,'' he said. ``We'll do that because we're investing in our product.''

The average individually paid circulation of the Journal rose 2.4 percent to 1.4 million as of September from a year ago, according to the Audit Bureau of Circulations. The Times' slid 5.5 percent to 858,985 on that basis.

to continue to the rest of the article click on the title above

For Luxury Brands, Less Money to Spend on Ads

By STEPHANIE CLIFFORD
Published: November 23, 2008

Gold was raining from above for luxury brands in the good old days of 2007.

Tradema of America distributes Girard-Perregaux watches in the United States and is slashing its ad budget by 20 percent.

Last December, the designer Marc Jacobs held his annual holiday party for 800 guests, including revelers from Vogue, W, and Harper’s Bazaar, in the Rainbow Room at Rockefeller Center. With the theme of Arabian Nights, Mr. Jacobs had arranged for tableaux vivants, contortionists, five open bars, bare-chested women bedecked in gold necklaces, bare-chested men balancing candelabras on their heads and, at one point, a shower of gold glitter poured over the guests.

Mr. Jacobs has held the party for each of the last 18 years, but on Nov. 4, a short e-mail message was sent out by his business partner, Robert Duffy: “Due to the financial climate, I had to make the decision to cancel the 2008 holiday party.”

After getting through most of this year unscathed, luxury brands are suffering. Rich consumers who were relatively insulated from the economic downturn continued spending, but that has changed in the last few months. While luxury spending began to fall slightly from June, in October alone, it dropped 20.1 percent, according to MasterCard SpendingPulse, which estimates consumer spending in the retail and service sectors.

That drop-off means more bad news for magazines and newspapers in the United States that had grown increasingly dependent on luxury advertising.

Ad pages at the top luxury magazines fell 22 percent year over year for the December issues, according to Media Industry Newsletter. Vogue, for example, dropped from 284 pages last December, to 221 pages this December, while Food & Wine went from 160 pages to 126, according to the newsletter.

That has meant cutbacks at publishers. In October, Condé Nast announced it would reduce Men’s Vogue from 10 issues a year to two, reduce the number of issues of Condé Nast Portfolio and cut magazine budgets by 5 percent. Niche Media, which publishes Gotham and Hamptons, laid off some employees and closed a shelter magazine. American Express Publishing, which owns Departures, Travel & Leisure and Food & Wine, is laying off 4 percent of its staff.

“It’s definitely an environment that most have never seen,” said Ed Ventimiglia, the publisher of Departures. “Everyone is very concerned and somewhat confused as to what they should do.”

To continue to the rest of the article click on the title above