Tag Archives: Advertising

What was I talking about? Oh right, global marketing.

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Newman Partnership, Limited has been hitting the lecture circuit with the new some experiences and concepts. We have been talking to CEO’s and directors of marketing all the way to new students.

Currently, we are on our way to Seattle to get away from all the work that we have been doing. But last week one of our team gave a speech, at the Capital City Club about what he has learned about global marketing, and how European marketplaces differ from US markets. Sloan Newman has worked in several areas of the marketing mix including; advertising, digital marketing, events and public relations, and he has a brain that never stops looking at marketing and how different cultures and products advertise to different audiences. He is going to share some of his thoughts and insights from his recent speech to a board of different senior marketers.

I am now on my way as a professional speaker, in all honesty, I laughed at my friends when they joined the Toast associations when we were in school. But I have been told that I have a decent voice, and I do like to engage with audiences. When I was asked to discuss what was going on in the digital market place in Europe, I thought that it would be a simple discussion about how Europe has different attitudes towards website design. However, when I walked into the designated hall I saw that my sign for my discussion said, “Global Marketing.” With four years abroad working in marketing, I am aware of different attitudes towards marketing and advertising, but I am not qualified speaker on Global Marketing. But if I have learned anything from the mentors in my life it is that if you aren’t fully aware of what is going on then you ask the audience and ask them to fill in the blanks.

In this case, I did try to reinforce some important differences that exist between England, France and Germany and how those differ between the US and each of these countries. However, I have included some of these differences below as well as the audio from the meeting. I would appreciate any insight that you guys could offer.

In the United Kingdom, the messaging is direct and is usually used with aspects of emotional appeals.  The United Kingdom is very stringent about how and what can be said in their advertising and at what times of the day certain messages can be carried on their televisions.  And with Ofcom, the independent regulator and competition authority for the UK communications industries, they can pull and fine companies who provide improper advertising.  English humor is very specific and can easily backfire if not done properly.  As of this week it is a growing place of opportunity for agencies that specialize in product placements in television. The integration of mobile phone marketing is also much more effective than in the US.

In France, visualization is a key aspect to French marketing. Much like Japan, advertising in France is more about the visual imagery more than the messaging.  This is truly a market where sex sells.  And creativity is growing in the digital community due to large investments in infrastructure.  While France was slow to embrace the possibilities of Internet, it is now ranked 24th in the world to be ready for the Networked World (Hutchinson, Harvard).

Germany is the market place that I have found that most reflects the United States.  They are English friendly and much of the print and above the line advertising marketing techniques do follow and mirror American techniques. That means that informational selling points and rational decision-making are a common technique for marketing in Germany.

I have also included the audio from the discussion, which you can download here. speech_08_03_11

Conversations with a MA Marketing Class – Their take-away (part 1 of 2)

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The London Metropolitan UniversityLast week a member of the Newman Partnership, Ltd. spoke at London Metropolitan University. The topics included working in digital marketing and brand equity.

At the end of both of my lectures, one of my favorite professor’s noted some key things to take-away from the lectures.

For digital marketing my old professor reinforced my warning that digital marketing is a growing and developing field making it a very competitive work place. And how it is important to go online and begin using the tools and monitoring capabilities that are already available to students for free. These tools include: Wayback Machine, Google Analytics, Google Keywords, Google AdWords, LinkedIn, Xing.com and others. And how you need to not only know how to use these services but also to analyze the results. Secondly, that for many people it is truly important to find a field that they are passionate about. Because when it comes down to it we should at least enjoy and feel rewarded by the work that we are doing.

In the brand equity course, where I spoke about umbrella vs. individual branding, my professor friend summarized that there is no “easy answer” when choosing umbrella or individual branding. That each case is decided on an individual basis where the strengths and weaknesses of both options are weighed when looking to launch a new brand or product. Because sometimes brand equity can be hurt a firm if it is too closely related to it. And that individual branding can create safety for the firm if the products brand equity goes South, as it was with Sunny Delight.

Tomorrow we will post what the take-away was for the Newman Partnership, Ltd.

Barriers to entry, a short review

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George J. Stigler won an Alfred Nobel Prize in 1982 for his work in economics sciences, and his thoughts on barriers to entry have been shaping marketing ever since. Barriers to entry are obstacles or areas that block the path of a company who is attempting to enter a market.

For those of us who either slept through marketing economics, or it has blurred together between not sleeping and partying, I think a little refresher is in order. This is just a brief overview of barriers to market entry, so let us not over examine it.

Barriers protect firms who are competing in a market, by keeping newcomers out. They are also key to a company’s pricing power, giving a company the ability to raise or lower prices without losing customers.

Common types of barriers include: Advertising, Control of resources, Customer loyalty, Economies of scale, Distributor agreements, Government regulations, Inelastic demand, Intellectual property, Network effect, Predatory pricing, Research and development, Sunk costs and Vertical integration.

Michael Porter, the Bishop William Lawrence University Professor at Harvard Business School has defined some clear effects of high and low entry and exit barriers of market entrance.

  • High entry barriers have very few players, creating higher profits.
  • Low entry barriers have many players, creating lower profits.
  • Markets with high exit barriers are seen as unstable, causing profits to fluctuate.
  • Markets with low exit barriers are more self-regulated, and profits do not fluctuate as much.

There are also four general types of competition that relate to these theories:

  1. Perfect competition: Almost no entry barriers
  2. Monopolistic competition: Low entry barriers
  3. Oligopoly: High entry barriers
  4. Monopoly: Extremely High, almost Absolute entry barriers

So what does it all mean?
Simply, that if you think about things before you act then you’re twice as likely to accomplish your goals. But more importantly, there are many things that you should consider before launching a product into a new market. And as always, I have a quick example from my school days.

Example: Nike Air Jordans are for Gods
I remember, only slightly, reviewing case studies relating to missing the mark with product launches. One such case study that has always stuck with me is the case of Nike vs. CAIR. The article revolved around how Nike, in 1997-98 was force to recall 800,000 shoes because they had almost directly translated the word “Air” into “Allah.” This is probably one of the best cases of how a company must be aware of cultural differences when entering a new market, and how different cultures now play into market entrance.

Using Globalization and New Media to Connect the World

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It wasn’t long ago when the common University mentality was that English was the language of business, 2003 to be accurate. But this was another thing that University seems to have been wrong about. Fast forward to 2010 and the advancement of a globally interconnected world and it would appear that the only way forward for globalization is the adoption of many languages and cultures.

I have spent the weekend skydiving with a commune of skydivers at Medio in Celle, Germany. The divers spend their afternoons jumping out of airplanes and the evenings uploading and being plugged into the wireless Internet. They review pages and contact people in French, Spanish, English and German. They talk with friends and friends from all over the world in multiple languages.

While the old guard is still working in only English, the newer younger generation is changing and networking the world in multiple languages. It is no longer simply enough to spend four semesters learning to read basic Spanish in University. If leaders of tomorrow want to continue to succeed and excel in international business then it will be a must that they begin learning to communicate in multiple languages and living and being apart of foreign communities.

To learn to be effective in the world of globalization one must not simply learn to communicate in multiple languages they must also be able to integrate and understand multiple cultural attitudes, and not expect that the world of Universities will bring these opportunities to campus dorms. Even if a student takes a semester abroad, it is not likely that they will actually have the chance to integrate into or learn about what the culture is truly like. For those of you who are interested in learning more about language options, I would suggest busuu.com to see a great option.

In 1996 in the “English Only Worldwide or Language Ecology?” Robert Phillipson and Tove Skutnabb-Kangas discussed the concept that the worldwide web could be helping to develop the ecology-of-language. As we actively move into a less clear understanding of what the future will bring, one thing appears to be evident. To be successful in the world of marketing to be successful we must learn to work together. We must be willing and interested in learning more than just languages. We must also be interested in understanding cultural differences. The world of digital marketing, just like all other aspects of life we can no longer living with blinders of the world around us.

These developments have been thanks, in no small part, to the strong infrastructure that has been developed by France and Germany with their own language specific environments. But to be able to reach target audiences we must do more than simply know that they exist, we must have insight of the cultural norms and attitudes. Your ROI seems to be more effective when it is spent on hiring smaller boutique agencies that have key insight into your target audience, and not simply hiring a large global agency who is oblivious to the rest of the world.

Having worked in a global agency, I have seen first-hand how an agency can attempt to bring in outsiders as CEO’s. And I have seen these people cost agencies multi-million dollar accounts. Not mention adding a client that no longer wishes to work with our agency.