North American Culture and Multinational Firm Advertising - Research Paper Example

?North American Culture and Multinational Firm Advertising Multinational firms may either succeed or fail in their endeavor to incorporate cultural traits and behavior into their marketing and sales initiatives in foreign locales. For this reason, the development of an international marketing strategy is a huge challenge for a multinational firm. The presence of a multinational firm in foreign nation requires management to behave “as a change agent” that is vulnerable to the nature of the culture (Brady 119). In such a situation the flexibility of management is the only way to deal with the uncertainties that come with the development of a global marketing and sales strategy (Kogut 27). Organizational Structure of Multinational Firms Multinational firms are usually structured in the same way as a typical local firm (Sankar and Rau 27). However, there are differences in terms of adopting a standard structure, which has to be followed by the sub-companies in line with the complexity of their business practices. In general, these firms may put emphasis on functionality, product, and/or geography, when planning on the standard organizational structure of their subsidiaries (Sankar and Rau 27). The exposure of multinational firms, to an environment where technology and the level of competition are changing is the factor that forces them to adopt new strategies to make sure that their structure is fit to what is needed in the foreign industry (Britton 201). In most cases, multinational firms adopt a regional organization structure because of the need to develop customized marketing activities that is appropriate to the local culture and situation in a foreign market (Britton 199). This structure is deemed to be the most appropriate organizational form if firms consider localization. This structure is headed by a regional manager instead of a subsidiary manager, who has limited reach to regional offices (Peng 419). Specifically, Avon Products take this organizational form. Avon’s new organizational form and culture allowed the “balance of powers”, which in turn, augment their global business strategies (Hill and Jones 422). Figure 1.0 below is the regional structural form of Avon Products. Figure 1.0 Geographical Area Structure of Avon (Peng 420). Operation of International Advertising Firms The burden of formulating the right advertising concept for a brand is placed on international advertising firms. Since their services are project based, there is often pressure in meeting the demands of clients, especially when these are multinational firms that have high expectations. The basic goal is to promote the same product under the same brand using a uniform strategy (Sotomayor 131). However, because the goal of a multinational firm is to make an advertisement campaign charismatic to various cultures, localization needs to be adopted (Sotomayor 131). Multinational firms now exist in a global market, where there are varied local rules and expectations (Sotomayor 132). As a result, international advertising firms have to suit the campaign to what is culturally acceptable. For instance, when the first novel in the Harry Potter series was promoted in the United States the title was Harry Potter and the Sorcerer’s Stone whereas in other locations, the title was Harry Potter and the Philosopher’s Stone (Sotomayor 132). A change like this has to be made so that the audience may well understand the context of the movie and be enticed to watch it. Fundamentally, the type of product or service, that is set to be promoted, is an important element to consider in international marketing. The factor is crucial because there is a possibility that the product or service will not be acceptable, as per the local culture. The study conducted by Chang of multinational firms and localization in China showed that multinational firms from differing industries have differing growths (Figure 2.0). This figure supports those consumption rates of the types products vary from one industry to another (30-31). Figure 2.0 Industry Growths of MNEs in China from 1998 to 2009 To address this challenge, standardization or localization has to be taken into consideration (Sotomayor 139). Nevertheless, when the target market is from a similar cultural background, say for instance, A French product that targets French immigrants in the United States, there may not be much of a complexity in terms of localization. Advertising in the US has become responsive to market changes and with the nation becoming open to immigrants from around the world, global products are likely to continue in making an attempt to enter the market. Advertising expenditures have been growing as competition in the different business industries is intensifying. Firms advertising expenditures include outspending the advertising expenses of rival firms. For example, Minnesota Mining and Manufacturing (3M) outspend Brillo’s advertising on soap pad products in 1970 for $30 million (Shimp 161). For the international advertising firms, the opportunities that have emerged out of global advertising demands are plenty. This is also attributed to the growth of most economies in the North American region, particularly in the United States and Canada, where most successful multinational firms are headquartered. These two nations are home to multinational firms that dominate the global marketplace. International advertising firms in these nations are therefore, familiar with the dos and don’ts of global advertising. Specific Elements That Comprise Successful Advertising Campaigns The capacity of the media to influencing behavior affects the whole marketing and sales process. Now that there is the social media, advertising campaigns are able to reach out to a much younger audience. However, the different forms of mass media are only instruments to make an ad campaign influential. There are essential elements, which have to be satisfied to come up with a campaign that will affect an audience. These elements have to be taken seriously, especially when targeting the markets in North America like the US where customers are straightforward and not easily led. Target The first element is the target. The question of who wants a firm to appeal to has to be addressed before everything else is done in creating and an ad campaign (Levisay). The target has to be identified specifically in order to develop an appropriate communication strategy that will work to reach out to this audience. An advertising campaign must begin with the target market to understand the characteristics that make them ideal targets of the product (Kotler, Roberto, and Lee 97). It has to be understood that the firm is communicating with an individual, who is likely to obtain a benefit out of using the product and not another firm (Levisay). The aim is to know what the individual wants and develop a communication concept that will convey the message, which the firm wishes to transfer to its target audience. Value Proposition Another important element to consider in making an advertising campaign is the value proposition. The message that a firm wants to impart to its target audience has to be clear and concise. This element stresses the significance of persuasion as the product is presented as a solution to the dilemma that the target is experiencing. Realistic examples of how the product can help in solving their dilemmas are useful to create a persuasive value proposition (Levisay). Now that competition is made complicated by globalization, the efficacy of a product must be presented in a way that is realistic and not overrated, especially when the target audience are Western consumers. Creativity and Innovation Creativity and innovation are also important to create a successful advertising campaign. For instance, when an advertising campaign is put up to launch a brand, the team assigned with the project must come up with a campaign name that is catchy or easy to remember. The campaign has to be memorable for viewers to make the brand or the product recognizable in its new market. The advertising team must have a creative and innovative approach to enable the forming of a concept that is not out of the present trend and, at the same time, unique to the taste of viewers. Relevance Apart from the message that a campaign targets to spread, the campaign must also have its relevance. This relevance has to be incorporated to the message, for it to appear meaningful in the eyes of its audience. The message has to relate to, for example, a current happening that is affecting the lives of people, be it associated with entertainment, politics, and etc. Another example would be when a brand that offers the same product, phases it out of the market. When the product is phased out, another product will serve as an alternative, and that would be the perfect time for the product to have its relevance in the market. The Proper Outlet There are several media outlets, which are now accessible for advertisers. Social media websites such as Facebook, Twitter, and YouTube have also become avenues for advertising, especially, when the target are the younger audiences. When choosing an appropriate outlet for an advertising campaign, it is advisable to first undergo with the process of trial and error. That means advertising the campaign to the different media channels, and then eventually determining, which one has gathered the most number of audiences. In doing so, the advertising firm will know, which one to focus on in the event that a follow-up is demanded by the client. Conclusion Generally, there is no standard technique in advertising. As for multinational firms, it is preferable to understand first the culture of their target to avoid cultural conflict, when making the advertising campaign. That is, MNEs should invest in strategies that consider cultural factors across the all aspects of business as structure, product and other business operations. Hence, the complex organizational structure of multinational firms is also a factor in advertising, for it has to be attuned with the demands of the industry. In the US market, for instance, the influences of Western culture on consumer behavior are evident, and so, multinational firms wanting to penetrate this market must make it a point to adopt a structure that coincides with the Western culture. Once the organizational structure is set, dealings with the advertising firm have to be finalized. At this point, plans of having advertising to launch a product are detailed. The elements that comprise an effective advertising campaign have to be present for the successful entrance of a multinational firm in the North American market. Works Cited Brady, Donald. Essentials of International Marketing. New York: M.E. Sharpe, Inc. 2011. Britton, John. Canada and the Global Economy: The Geography of Structural and Technological Change. Canada: McGill-Queen’s University Press. 1999. Print. Chang, Sea-Jin. Multinational Firms in China: Entry Strategies, Competition and Firm Performance. Great Britain: Oxford University Press, 2013. Print. Hill, Charles, and Gareth R. Jones. Strategic Management Theory: An Integrated Approach. USA: Cengage Learning, 2010. Print. Kogut, Bruce. Designing Global Strategies: Profiting From Operational Flexibility Readings in International Business. Cambridge: The MIT Press. 1993. Print. Kotler, Philip, Ned Roberto, and Nancy Lee. “Social Marketing: Improving the Quality of Life (2nd Edition): Book Review.” Australasian Journal of Marketing 11 (1) (2003). Print. Levisay, Barb. “The 6 Essential Elements of a Successful Marketing Campaign.” Redmond Channel Partner, 2012. Web.< http://rcpmag.com/Blogs/Marketing-Matters/2012/01/6-Essential-Elements-of-Successful-Marketing.aspx>. Peng, Mike W. Global Business. USA: Cengage Learning, 2011. Print. Sankar, Chetan and Karl Heinz Rau. Implementation Strategies for SAP R/3 in a Multinational Organization: Lessons from a Real World Case Study. Hershey, PA: Cybertech Publishing. 2006. Print. Shimp, Terence A. Advertising, Promotion, and Other Aspects of Integrated Marketing Communications. USA: Thomson, 2007. Print. Sotomayor, Jesus Maroto Ortiz. Challenging Times for International Advertising Campaigns. 2007. Web. . Read More