Standardization or Differentiation

Standardization or Differentiation

The first issue concerns the degree to which advertising should be adapted to the unique characteristics of various country markets. Some largo advertisers have

attempted to support their global brands with highly standardized worldwide advertising. The chances of success tor standardized advertising depend on how culture­bound a product or service is, the buying behaviour of consumers, the competition, and national laws and regulations. All these factors dictate how well

the advertising concepts cross borders.

Standardization produces many benefits, such as lower advertising costs, greater co­ordination of global advertising efforts and a more consistent world­ wide company or product image. However, standardization also has drawbacks.

Most importantly, it ignores the fact that country markets, not just across the continents, but also within supposedly 'harmonized' trading communities, such

as the European Union, differ greatly in their cultures, demographics and economic conditions. Pan­European advertising, for example, is complicated

because of the EU's ctdtural diversity as reflected in the differences in circum­ stances, language, traditions, music, beliefs, values and lifestyles among member

nations. Ironically, the English have more in common with the Australians, who live on the opposite side of the globe, than with the Germans or the French, their closer neighbours. Cultural differences also exist across Asian countries (Japanese and Indonesian consumers are as alike as the Germans and Italians), as they do among emerging European markets. For example, the three Baltic states ­ Estonia, Latvia and Lithuania ­ are far from being a common market, with each displaying different languages, currencies and consumer habits.

Although advertising messages might be standardized, their executions cannot be, as culture invariably dominates communications. 19 Indeed, a recent survey in Europe among 210 pan­European brand managers showed that a majority (57 per cent) believe it is difficult to standardize advertising execution. 211 Most international advertisers must therefore think globally, but act locally. They develop global advertising strategics that bring efficiency and consistency to their worldwide advertising efforts. Then they adapt their advertising" programmes to make them more responsive to consumer needs and expectations within local markets. In many cases, even when a standard message is used, execution styles are adapted to reflect local moods and consumer expectations.

For example, one Kellogg's Frosted Flakes ad campaign is almost identical worldwide, with only minor adjustments for local cultural differences. 21 The advertising uses a tennis theme that has worldwide appeal and features teenage actors with generic good looks ­ neither too northern European nor too Latin

American. Of course, Kelloggs translates the commercials into different languages. In the English version, for example, Tony growls 'They're Gr­r­reat! 1 , whereas in the German version it's 'Gr­r­rossartig!' Other adaptations are more subtle. In the American ad, after winning the match, Tony leaps over the net in celebration. In other versions, he simply 'high fives' his young" partner. The

reason: Europeans do not jump over the net after winning at tennis. In contrast, Parker Pen Company changes its advertising substantially from country to country:

International Advertising • 813

Print ads in Germany simply show the Parker Pen held in a hand that is writing a headline ­ 'This is how you write with precision.' In the UK, where it is the brand leader, [ads emphasize] the exotic processes used to

make pens, such as gently polishing the gold nibs with walnut chips ... In America, the ad campaign's theme is status and image. The headlines are

... 'Here's how you tell who's boss', and 'There are times when it has to be Parker.' The company considers the different themes necessary because

ot" different product images and ... customer motives in each market. 22

Successful standardized advertising is most likely to work for capital goods or business­to­business marketing, where targets are more homogeneous in their needs and buy the product for the same reasons. For example, whether it be a European, Asian or American construction company, the purchase of bulldozers is governed by similar economic rationality (for example, productivity, lifetime cost of running the equipment, parts delivery)­ Consumer­goods advertising is less amenable to cross­cultural standardization. However, considerable simi­ larities are found in segments, such as the world's rich to whom lifestyle goods

and brands like Cartier, Montblanc, Mercedes and Hugo Boss appeal. Similarly, youth culture across the globe may be targeted with a common message. Brands

such as Nike, Pepsi and Jeep are advertised in much the same way globally; Jeep has created a worldwide brand image of ruggedness and reliability; Nike urges Americans, Africans, Asians and Europeans alike to 'Just do it'; Pepsi uses a stan­ dard appeal to target the world's youth.

Several basic conditions favour a standardized approach: • Product or brand values offered to consumers and as conveyed by the

advertisement are similar in every target country. • Target customers in each country have similar expectations regarding the

product and they do not differ in the way they evaluate the product. For example, business airline passengers' expectations of airline services are virtually the same in all countries.

t The target groups in each country are homogeneous, so that similar media can be used to reach them.

t The advertised product is in the same stage of its life cycle in every country market. Different messages and executions are needed for the product that is newly launched into one market and one that is already in its growth stage in another.

f The brand is a true 'megabrand' with a strong position in each market as well as the advertising budget necessary to support it in each market.

• The advertising idea must be transportable (universal, functional appeals, fantasies and symbols, fashions, movies/television, international celebrities and current events travel better than cultural values such as idiosyncratic lifestyles, habits and sports and leisure activities, local accents and language, and endorsements by local celebrities).

t The different countries can support the same advertising style of execution, or the company's preferred style can be accommodated in each country. Many European countries find the display of emotions in American ads ludicrous, and whereas lifestyle and glamour work well in the United States, innovative, modern and attention­get ting styles are better received in France. Humour, subtlety, understatement and irony are favoured in the United Kingdom; while in Germany, rational, descriptive and informative executions will not go wrong.

814 • Chapter 19 Mass Communications: Advertising, Sales Promotion and Public Relations

• If countries can be clustered on the basis of showing similar economic, cultural, legal and media characteristics, standardized advertising becomes more feasible. 23

There is no simple answer for companies as to whether a standardized or differentiated approach would work best for their brand. They must therefore identify both the differences and similarities among target audiences in different national or regional markets, and determine opportunities for standardization or differentiation.