By students, for students.

Global Marketing Management: One world, one voice? (part 3)

In Management, Marketing on March 24, 2013 at 5:15 pm

office

Internal conditions required for standardised advertising

Corporate structure

When MNEs hire several agencies for their regional knowledge, costs rise rapidly as effort is duplicated. Standardising advertising can reduce costs and simplify campaign management and corporate structure.

Highly centralised MNEs are more likely to produce consistent global advertising programmes. In Hill and James’s (1990) study of 175 promotional messages, both strategy and executives are more likely to be changed where business units were more independent, i.e. affluent, high-sales markets.

Management orientation

The attitudes of business leaders are important in determining the structure, strategy and outlook of an organisation. Highly centralised organisations, eager to extend advertising campaigns across regions are frequently governed according to an ethnocentric orientation – the belief that your practices are superior. However, Keegan and Green (2013) oppose the idea that an ethnocentric company can succeed globally, instead advocating a geocentric viewpoint which takes the best of extension and adaptive advertising strategies.

It is possible to cluster countries by the typical management orientation of their MNEs. Significantly, western corporations standardise more than non-western firms. Head of DMB&B’s Japan office explains that the distance and economic heterogeneity across Asia makes a pan-continental campaign less likely to succeed than in Europe (Duncan and Ramaprasad, 1995, p.59). This leads us to the external factors required before standardisation can be considered a sensible business decision.

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