LECTURE NOTES
Seminar 1 | 10-11 |
Advertising as marketing
● Market: to place or establish on the market: to seek to increase sales of a product by
means of distribution and promotion strategies
● Advertising: generating visibility, attention, engagement
Multinational company
● A corporation that has operations and/or offers services in more than one country or
is registered in more than one country
Why global?
● Any company seeks to expand its activities outside its original country because of
insufficient economic chances
● Think globally, act locally (adapt global concepts to local contexts)
Standardized market
● Levitt suggested that ad agencies should treat the whole world as a single market
● One ad everywhere, only the language has to change
Why?
1. Cost efficiency
2. One brand
Linguistic and cultural differences
● Advertisements that were translated wrong
● What is culture?
Pollay’s Hypothesis
● Everything is for sale
● Advertising can act as a distorted mirror in society by presenting unfavorable traits
such as covetousness, materialism, instant gratification, etc.
● Emphasis is on enhancing values that encourage the sale of goods
4 global types of advertising:
● International advertising:
Ads made and disseminated in another country → vague
● Multinational advertising:
Multinational brands e.g., Nestlé, Head & Shoulders, Colgate, Sunsilk. The
development of such ads is usually centralized in headquarters where the strategic
planning is done
● Transnational advertising:
The development of the multinational brand is done in a more participatory and
decentralized manner with input from consumers and local experts
● Multi domestic advertising:
Brand has the same name in different countries but has different brand development
and standardization. Advertising for such a brand varies significantly from one
1
, country to another, based on the marketer’s strategic intention and set of
circumstances, e.g., Shell, Heineken, Coca-Cola
Shockvertising - advertisements that are so shocking you cannot believe these were printed
Seminar 2 | 17-11 |
1. Who is more likely to buy?
2. What are they more likely to buy?
3. How they are likely to buy, repurchase and recommend
Important aspects
● What is contextual trust? State of mind which persuades a person to accept the risk
of something due to + expectations
● Celebrity endorsement, reviews from experts, testimonials, etc
● Data-driven advertising
● Capturing customer feedback
Advertising implications for practice
● Glocalization
● Immersiveness
● Multiscreen media planning
● Cross-device tracking & delivery
● The internet of things
● Social media advertising
Advertising implications for academia
● Media
● Content (short attention span, most popular videos are the shortest ones)
● Messaging sequence
● Data
● Modeling
Culture is important in advertising
● Culture: defined as the collective mental programming of the human mind which
distinguishes one group of people from another
● Low context: explicit messages, little attention for the status of the person, task-
oriented
● High context: not just the message is important, relation oriented
● Polychronic vs monochronic people
The Hofstede model
● Geert Hofstede developed a theory to measure cultural differences
● Problem: how to quantify culture?
Hofstede’s cultural dimensions:
1. Power distance
2
, 2. Individualism versus collectivism
3. Masculinity versus femininity
4. Uncertainty avoidance
5. Long term orientation versus short term orientation
6. Indulgence versus restraint
Power distance
● The degree people are comfortable with influencing upwards. Accept of inequality in
distribution of power in society
● Advertising strategies: luxury articles, some alcoholic beverages, and fashion items
typically appeal to social status needs
● China is a good example of a country with a high power distance and the
Netherlands is a good example of a country with low power distance
Individualism versus collectivism
● In individualistic countries, advertising is more directed towards persuasion and
getting to the point fast, whilst in collectivist countries, advertising is more built on
creating trust
● How personal needs and goals are prioritized versus the needs and goals of the
group
● China is a good example of a country with low individualism and the Netherlands is a
good example of a country with high individualism
Masculinity versus femininity
● In masculine societies, performance and achievement are important, and
achievement must be demonstrated, so status brands in the country are important to
show one’s success
● Masculine societies have different rules for men and women, less so in feminine
cultures
● Social gender roles are distinct
● In feminine societies, social gender roles overlap more
Uncertainty avoidance
● In cultures of strong uncertainty avoidance, there is a need for rules and formality to
structure life, this translates into the search for the truth and a belief in experts
● How comfortable are people with changing the way they work or live (low UA) or
prefer the known systems (high UA)
Long-term versus short-term orientation
● Values included in long-term orientation are perseverance, ordering relationships by
status, thrift, and having a sense of shame
● Values included in short-term orientation are personal steadiness and stability, and
respect for traditions, protecting your face, reciprocation of greetings and gifts. Focus
on happiness
Indulgence versus restraint
● Stands for a tendency to allow relatively free gratification of basic and natural human
desires related to enjoying life and having fun
3
, ● Its opposite pole, restraint, reflects a conviction that such gratification needs to be
curbed and regulated by strict social norms
Seminar 3 | 24-11 |
● Important: product lifecycle!
● Starts with giving bad examples of advertisements → NIVEA racism
● Changed the GAP logo, but the consumers did not like it because of the emotional
band they had with the previous logo
● Globalization discourse is dominated by Anglophone authors who see their own
country’s brands everywhere and think it makes people the same
● ‘Globalization of markets’ Levitt → the world’s needs and desires have
homogenized
● Internet technology → a world culture?
● Global business —> global communities?
● Increased wealth → travel → universal values → increased focus on
similarities, not the differences
The Global-Local Paradox
● The more people know about other countries and cultures, the more they become
aware of their own national and cultural identity
● Along with the unification of the different European nations, when citizens of the
various nations learned more about each other, symbols and appeals in advertising
became more nationally oriented
The Technology Paradox
● People use new technology to do the things they used to do better, nicer, more
efficiently
● They are extensions of human beings (McLuhan)
● People’s behavior is very stable, is based in history: new technology is used to
reinforce existing behavior
The Media Paradox
● Growth of media should lead to a global village: in which all media is accessible to all
citizens
● In reality: regulation, ownership, censorship, conglomeration
● TV, but also the Internet
Convergence & Divergence
● Human behavior is stable
● New technology is often new format of the old (e.g., mobile phones)
● Not necessarily driver
● Convergence of ownership of technology goes with divergence of usage of
technology (e.g., Sony Walkman)
● Persistent variation of consumption & consumer behavior across countries
● Increased wealth in countries typically brings greater cultural manifestation
(divergence)
4
Seminar 1 | 10-11 |
Advertising as marketing
● Market: to place or establish on the market: to seek to increase sales of a product by
means of distribution and promotion strategies
● Advertising: generating visibility, attention, engagement
Multinational company
● A corporation that has operations and/or offers services in more than one country or
is registered in more than one country
Why global?
● Any company seeks to expand its activities outside its original country because of
insufficient economic chances
● Think globally, act locally (adapt global concepts to local contexts)
Standardized market
● Levitt suggested that ad agencies should treat the whole world as a single market
● One ad everywhere, only the language has to change
Why?
1. Cost efficiency
2. One brand
Linguistic and cultural differences
● Advertisements that were translated wrong
● What is culture?
Pollay’s Hypothesis
● Everything is for sale
● Advertising can act as a distorted mirror in society by presenting unfavorable traits
such as covetousness, materialism, instant gratification, etc.
● Emphasis is on enhancing values that encourage the sale of goods
4 global types of advertising:
● International advertising:
Ads made and disseminated in another country → vague
● Multinational advertising:
Multinational brands e.g., Nestlé, Head & Shoulders, Colgate, Sunsilk. The
development of such ads is usually centralized in headquarters where the strategic
planning is done
● Transnational advertising:
The development of the multinational brand is done in a more participatory and
decentralized manner with input from consumers and local experts
● Multi domestic advertising:
Brand has the same name in different countries but has different brand development
and standardization. Advertising for such a brand varies significantly from one
1
, country to another, based on the marketer’s strategic intention and set of
circumstances, e.g., Shell, Heineken, Coca-Cola
Shockvertising - advertisements that are so shocking you cannot believe these were printed
Seminar 2 | 17-11 |
1. Who is more likely to buy?
2. What are they more likely to buy?
3. How they are likely to buy, repurchase and recommend
Important aspects
● What is contextual trust? State of mind which persuades a person to accept the risk
of something due to + expectations
● Celebrity endorsement, reviews from experts, testimonials, etc
● Data-driven advertising
● Capturing customer feedback
Advertising implications for practice
● Glocalization
● Immersiveness
● Multiscreen media planning
● Cross-device tracking & delivery
● The internet of things
● Social media advertising
Advertising implications for academia
● Media
● Content (short attention span, most popular videos are the shortest ones)
● Messaging sequence
● Data
● Modeling
Culture is important in advertising
● Culture: defined as the collective mental programming of the human mind which
distinguishes one group of people from another
● Low context: explicit messages, little attention for the status of the person, task-
oriented
● High context: not just the message is important, relation oriented
● Polychronic vs monochronic people
The Hofstede model
● Geert Hofstede developed a theory to measure cultural differences
● Problem: how to quantify culture?
Hofstede’s cultural dimensions:
1. Power distance
2
, 2. Individualism versus collectivism
3. Masculinity versus femininity
4. Uncertainty avoidance
5. Long term orientation versus short term orientation
6. Indulgence versus restraint
Power distance
● The degree people are comfortable with influencing upwards. Accept of inequality in
distribution of power in society
● Advertising strategies: luxury articles, some alcoholic beverages, and fashion items
typically appeal to social status needs
● China is a good example of a country with a high power distance and the
Netherlands is a good example of a country with low power distance
Individualism versus collectivism
● In individualistic countries, advertising is more directed towards persuasion and
getting to the point fast, whilst in collectivist countries, advertising is more built on
creating trust
● How personal needs and goals are prioritized versus the needs and goals of the
group
● China is a good example of a country with low individualism and the Netherlands is a
good example of a country with high individualism
Masculinity versus femininity
● In masculine societies, performance and achievement are important, and
achievement must be demonstrated, so status brands in the country are important to
show one’s success
● Masculine societies have different rules for men and women, less so in feminine
cultures
● Social gender roles are distinct
● In feminine societies, social gender roles overlap more
Uncertainty avoidance
● In cultures of strong uncertainty avoidance, there is a need for rules and formality to
structure life, this translates into the search for the truth and a belief in experts
● How comfortable are people with changing the way they work or live (low UA) or
prefer the known systems (high UA)
Long-term versus short-term orientation
● Values included in long-term orientation are perseverance, ordering relationships by
status, thrift, and having a sense of shame
● Values included in short-term orientation are personal steadiness and stability, and
respect for traditions, protecting your face, reciprocation of greetings and gifts. Focus
on happiness
Indulgence versus restraint
● Stands for a tendency to allow relatively free gratification of basic and natural human
desires related to enjoying life and having fun
3
, ● Its opposite pole, restraint, reflects a conviction that such gratification needs to be
curbed and regulated by strict social norms
Seminar 3 | 24-11 |
● Important: product lifecycle!
● Starts with giving bad examples of advertisements → NIVEA racism
● Changed the GAP logo, but the consumers did not like it because of the emotional
band they had with the previous logo
● Globalization discourse is dominated by Anglophone authors who see their own
country’s brands everywhere and think it makes people the same
● ‘Globalization of markets’ Levitt → the world’s needs and desires have
homogenized
● Internet technology → a world culture?
● Global business —> global communities?
● Increased wealth → travel → universal values → increased focus on
similarities, not the differences
The Global-Local Paradox
● The more people know about other countries and cultures, the more they become
aware of their own national and cultural identity
● Along with the unification of the different European nations, when citizens of the
various nations learned more about each other, symbols and appeals in advertising
became more nationally oriented
The Technology Paradox
● People use new technology to do the things they used to do better, nicer, more
efficiently
● They are extensions of human beings (McLuhan)
● People’s behavior is very stable, is based in history: new technology is used to
reinforce existing behavior
The Media Paradox
● Growth of media should lead to a global village: in which all media is accessible to all
citizens
● In reality: regulation, ownership, censorship, conglomeration
● TV, but also the Internet
Convergence & Divergence
● Human behavior is stable
● New technology is often new format of the old (e.g., mobile phones)
● Not necessarily driver
● Convergence of ownership of technology goes with divergence of usage of
technology (e.g., Sony Walkman)
● Persistent variation of consumption & consumer behavior across countries
● Increased wealth in countries typically brings greater cultural manifestation
(divergence)
4
