Advertising in Sports & Entertainment Name: ______

Unit 6: Global Advertising

Directions: Please complete the following outline during the class discussion of this unit.

I. Global Sports

A. Global Sport - # 1 ______has 3.5 billion people who either watch or play the game. It is popular in all of Europe, Asia, South America, Africa, and it is growing in North America.

B. Global Sport - # 2______has 3 billion people watch or play the game each year.It is popular in England, Australia, New Zealand, some African countries, some Caribbean countries and it is the most popular sport in the countries of India and Pakistan.

C. Global Sport - # 3 ______has 2 billion players or watchers.The sport is most popular in Asian countries, European countries, Australia and around Africa.

D. Global Sport - # 4 ______has 2 billion players or watchers.The sport is most popular in Asian countries, European countries, Australia and around Africa.

E. 5 Tennis, 6 Volleyball, 7 Table Tennis, 8 Baseball, 9 Football, 10 Basketball, & 11 Golf

F. The number and variety of global sports provides international companies many opportunities for advertising and sponsorships.

G. Cathy Pacific Airlines is a Hong Kong based commercial airline.The airline is a long time sponsor of the Hong Kong Sevens Rugby team.

II. Evolution of Global Advertising

  1. ______refers to growing importance and emphasis on international economic relationships.
  2. The use of ______has eliminated barriers to international communication.
  3. Increasing global ______for products encourages international trade.
  4. The need for a ______advertising strategy has never been more essential.

III. Why Businesses Are Going Global

  1. The ______makes all the people and businesses in the world potential customers.
  2. Companies move into foreign markets to gain sales and increase ______.
  3. Improvements in transportation, communication, technology, and banking have made it easier to serve foreign markets.

IV. Worldwide Interdependence

  1. ______is the sale of goods and services to people in other countries.
  2. One –third of all world production is sold outside of the country in which it is produced.
  3. ______means that most countries need to get some of their goods and services from other nations.
  4. Very few, if any, countries are truly self-sufficient.

V. Customization vs. Globalization

A. When marketing products in foreign countries, companies must make product and promotion decisions.

  1. ______means creating completely new products for specific countries.
  2. ______occurs when a company does not change anything about its product or promotion.
  3. ______is changing a product to make it more appropriate for a country's preferences.
  4. ______involves changing the promotion to meet foreign customers' way of thinking.

B. Examples of Customization: Manzanita Sol is a brand of apple-flavored beverages owned by Pepsi Cola and sold mainly in Mexico. Mirinda Orange soda is owned by Pepsi Cola and sold primarily in markets outside the US. The Mirinda Orange Mango soda is sold exclusively in India.

C. Example of Globalization: The Coke Cola Company sells its primary brand, Coke, in India without changing the product and its advertising is essentially the same. McDonald’s uses essential the same advertising in other countries to sell its products. American music was used in McDonald’s commercials in Egypt.

D. Examples of Product Adaptation: Pepsi Fire is a cinnamon-flavored Pepsi and Pepsi Ice is a mint flavored Pepsi. Both Pepsi Fire and Pepsi Ice are sold in Guam, Thailand, Malaysia, Singapore and the Philippines.

E. Example of Promotion Adaptation: Yao Ming is a retired Chinese professional basketball player who last played for the Houston Rockets. At the time of his final season, he was the tallest active player in the NBA at 7ft. 6in.He was born in Shanghai and started playing for the Shanghai Sharks as a teenager. Yao was selected by the Houston Rockets as the first overall pick in the 2002 NBA Draft.After his NBA career ended in 2011 he returned to his home in China.He is one of China's best-known athletes, with sponsorships with several major companies.

F. Another Example of Promotion Adaptation: Rugged individualism is NOT a desired characteristic in most Asian countries, so tobacco manufacturers tailor their ads to the Asian market where social sophistication and financial success are greatly desired.

G. Another Example of Promotion Adaptation: Pepsi Sponsors India’s World Cup Cricket Team

  1. ______is a bat-and-ball game played between two teams of 11 players on a field. At the center of the field is a rectangular 22-yard long area of play. One team bats, trying to score runs while the other team bowls and fields, trying to discharge the batter.
  2. Pepsi out sells Coke by a margin of 3 to 1 in India.
  3. In your opinion, why has Pepsi decided to sponsor Cricket in India? ______

______

  1. Does the Pepsi Cola Company engage in this type of sponsorship in the United States?

______

  1. Why is Cricket so popular in India and other countries such as Pakistan, Hong Kong, Singapore, Australia, New Zealand, South Africa, Bangladesh, and Sri Lanka?

______

VI. Culture and Customs

A. Differences in ______and ______make global advertising more challenging than advertising at home.

B. What is commonly understood in one country may not be so easily translated outside the home country.

  1. Ford's Fiera didn’t do well with Spanish-speaking Latin-Americans, since "fiera" means "ugly old woman“ in Spanish.
  2. The Chevrolet Nova was produced by General Motors from 1962 until 1988. While the car was very successful in the United States, exports of the vehicle were less than expected. The name Nova translated into Spanish as no go. Consumers in Spanish speaking countries were reluctant to purchase a car named the “No Go.”
  3. In Taiwan, the translation of the Pepsi slogan "Come alive with the Pepsi Generation" came out as "Pepsi will bring your ancestors back from the dead."
  4. KFC is the largest chain restaurant in China. There are 3 times as many KFC restaurants in China as in the US.The KFC slogan of "finger-lickin' good" was accidently translated in some early advertising as "eat your fingers off."
  5. The French perfume manufacturer of Champs-Elysees used one print ad in France and another version, with the model more conservatively dressed, in ads used in Middle Eastern countries.
  6. Nike offended Muslims in June, 1997 when the "flaming air" logo for its Nike Air sneakers looked too similar to the Arabic form of God's name, "Allah". Nike pulled more than 38,000 pairs of sneakers from the market.
  7. Gerber is the name of the famous American baby food maker.The word gerber is also the French word for vomiting. Gerber has not expanded its operations to French speaking countries.
  8. In China in 2007 (which was the year of the pig) all advertising which included pictures of pigs was banned. This was to maintain harmony with the country's Muslim population of around 2%. The ban included pictures of sausages that contained pork, and even advertising that included an animated (cartoon) pig.
  9. In 2005 France's Catholic Church won a court injunction to ban a clothing advertisement (by clothing designers Marithe and Francois Girbaud) based upon Leonardo da Vinci's painting of The Last Supper.

VII. Joining the Global Economy

  1. A ______is the capability to produce products or services more efficiently and economically than the competition.
  1. American movie producers have a comparative advantage in the production of movies – most of the world’s movies are made by Hollywood studios.
  1. With ______a company owns and operates production facilities in another country.
  1. ______consists of owning all or part of an existing business in another country.
  1. In a______independent companies develop a relationship to cooperate in common business activities.
  1. A ______is a business that has operations throughout the world and that conducts planning for worldwide markets.
  1. In November 2009, Disney received approval from the Chinese government to build a Disneyland resort in the Pudong district of Shanghai. The resort is expected to open in 2013.

VIII. Understanding International Markets

  1. The ______is based on agriculture and raw material development through activities such as mining, oil production, and harvesting timber.
  1. In an______, the primary business activity is the manufacturing of products.India and China are countries that are rapidly developing industrial economies.
  1. A ______is based on a mix of business and consumer products and services produced and marketed in the global marketplace. These countries have a very high standard of living.

IX. Understanding International Markets – Conditions of the Economy

  1. ______(GDP) is the total value of goods and services produced within a country during a year.A growing GDP is a sign of a strong economy.
  1. A country’s ______is a measure of the quality of life for its citizens.It is based on factors such as housing, food, education, clothing, transportation, and employment opportunities.A country’s standard of living is calculated by dividing the total income of the country (GDP) by its population. This is known as GDP per capita.A country with a high standard of living produces and sells larger quantities of goods and services, meaning more jobs, higher wages, and better markets for businesses.
  1. ______is the average output by workers for a specific period of time.Productivity shows the efficiency of a country’s work force and the technology used in production. Productivity can increase as a result of having a more educated workforce, more efficient operations, and increased use of technology to support work procedures.
  1. ______is the amount of goods and services that can be purchased with a specific amount of money.

X. Trade Agreements & Alliances

A. A ______is a group of two or more countries who agree to remove restrictions between them on the sales of goods and services while imposing barriers on trade from other countries who are not part of the bloc.

B. Governments make agreements with each other to set up trade alliances that establish guidelines for international trade. Some alliances in the interest of worldwide free trade are:World Trade Organization, North American Free Trade Agreement, and European Union

  1. The WTO is a global coalition of 135 governments that makes the rules governing international trade.The WTO was formed in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT).
  1. NAFTA is an international trade agreement among the United States, Canada, and Mexico. It went into effect on January 1, 1994.
  1. The EU is Europe's trading bloc. It was established by the Maastricht Treaty, which called not only for free trade among member nations, but also for a single European currency and a central European bank.

- The European Union’s currency is known as the ______.

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