Today’s Spring Break

Today’s Spring Break

This spring, I wanted Michael Czinkota’s students to remember their “Marketing Across Borders” class while they traveled to azure beaches and Caribbean getaways. They were to connect their break experiences to some of the themes we have explored in class. Their responses offered an interesting – and illuminating – glimpse into how international marketing shapes the decisions of young travelers.

As digital natives, most of my students performed the research and planning for their trips online. Whether scoring cheaper flights or finding top restaurants, these young travelers turned to social media platforms and travel websites like AirBnb and TripAdvisor, to find affordable, and often all-inclusive, deals for hotels and flights. Students noted the power of word of mouth, which they far preferred over mass-market pamphlets, in guiding travel decisions. Much trust was placed in the reviews of peer travelers.

Much international travel was to Mexico, the Dominican Republic, and Germany.

But even when my students ventured outside their comfort zones, they still encountered elements of the familiar. They noted the prevalence of Japanese manufactured cars, such as Toyota, in countries like Mexico and Jamaica. For food, they found a preponderance of American brands – like McDonalds and Starbucks – that were almost identical to those in Cincinnati, Ohio.

A student, involved in a social justice immersion trip to Jamaica, found international marketing to be an important tool in business development. She found billboards with emotional global brand messages: “Kakoo loves Pepsi!”; “Jamaica, land we love; Honda, car we love.” Many messages were targeted toward tourists and rendered in English rather than local languages.

In terms of favorite topics, many of my students’ broached food. There was a fascination with the globalization of food products. Students were delighted to taste the delicious meals of the world. “Food trends from around the world had penetrated the Costa Rican market: Breakfast places were serving cold brewed ice coffee, kombucha, acai bowls, avocado toast, and homemade vegan bread. Australians own the best taco joint in Tamarindo. A woman from Minnesota was the chef at a local breakfast café. Markets served poke bowls (sushi bowls from Hawaii), arepas (shredded beef sandwiches from Venezuela), and traditional French pastries.”

Students saw a choice of goods that were produced in the U.S. but tasted differently abroad. In the Dominican Republic, there were different taste versions of Coca Cola. Snacks of choice, such as Doritos, were sold at two different prices depending on whether they were sold in American or Mexican packaging. In Puerto Vallarta, Mexico, the point of sale changed in supermarkets. Oreos were sold alongside American cereals rather than in the cookie section!

All these observations contribute to a wider understanding of international marketing forces that shape tourism for young travelers today. Travel can be good – it gives more perspective, more context and more variety. Surely, there will be more alternatives and new experiences, which make life more meaningful, spicy and more interesting.

Michael Czinkota teaches international business and trade at Georgetown University’s McDonough School of Business and the University of Kent. His key book (with Ilkka Ronkainen) is “International Marketing” (10th ed., CENGAGE).

Georgetown University students, Dina El-Saharty and Lisa Burgoa, contributed to this report.

Olympics VS Super Bowl. The Marketing Differences

Michael R. Czinkota  and Charles Skuba

The Super Bowl  reached viewers around the world, but Olympic advertisers will be communicating with a much broader audience from diverse cultures who will bring with them a different set of interests and emotions. To persuade such a multicultural audience, advertising will need to seek commonalities of the mind and heart.  Global advertising agencies have the expertise to create messages that work across borders and avoid the danger of leaving broad groups of viewers bewildered or, worse, offended.

We offer five winning techniques (not exclusive to each other)for creative messaging to global audiences during the Olympics in national and global media campaigns.  

 Universal human emotions come first. The best brands inspire and capture positive, if not joyful, emotion in their customers. Marketers know that emotion often trumps reason in purchase decisions. Dig deep into any customer psyche, whether of a business decision-maker or a teenage gamer, and you’ll find a bundle of emotions that are common to people across cultures.  Although there are cultural differences in what stirs emotion, some things are universal, like love stories and the pursuit of dreams.

For the 2012 London Olympic Games, P&G launched the global “Thank You Mom” campaign that celebrated the love of young Olympic athletes and their mothers. There may be no more powerful bond than the love between a mom and her child and that love is a universal emotion which is why P&G has renewed the theme for 2018.

Expansive imagery is also of major impact. The film industry has conditioned viewers across the world to crave dramatic, expansive imagery. The most successful global films create a powerful impact of sight and sound. The Olympics are a key opportunity for grand imagery. Marketers regularly use striking visuals to capture attention but the bar is being raised.

Inspiring sounds and music follow hand-in-hand with expansive imagery. Music enhances visuals for dramatic and emotional impact.  Marketers must be careful with music selection.  Coca Cola has long used “happiness” music to appeal to young people around the world. Naturally, if the music is great, people will want to share it.

Then there is symbolism. For simple communication of an idea, it’s hard to beat. Marketers often employ symbolism to enhance and distinguish their campaign and product messaging.

If you can show product advantage in advertising, your  marketing effort is working.  The trick is to get people’s attention to your message and also sell. Also, marketers would be smart to walk away from messaging that depends upon slang or references to national pop culture.  If you didn’t grow up watching American television, you might not understand a lot of pop culture references that U.S. audiences instantly absorb.

Super Bowl advertising is uniquely tuned to American audiences while that of the Olympics must be globally focused. Both will employ many of the techniques identified here.  Marketers are literally going for the global gold. For the audience, the Olympic marketing messages will be quite different from the ones of the Super Bowl but well worth waiting for.

 

Prof. Michael Czinkota researches international marketing and business issues at Georgetown University in Washington D.C. He served in trade policy positions in the George H.W. Bush and Ronald Reagan administrations. His International Marketing text is now in its 10th edition. czinkotm@georgetown.edu

 Charles Skuba teaches international business and marketing at Georgetown University. He served in the George W. Bush administration in trade policy positions in the U.S. Department of Commerce and previously was a senior executive in advertising. cjs29@georgetown.edu

Getting so much stronger all the time

As one observes the international activities of President Trump, one must admire his tenacity, focus, and, let it be said, his successes. Far from isolating himself from the world, as many media reports had suggested, President Trump is becoming increasingly well entrenched in his world leadership role. Far from other leaders running away from him, they increasingly can to rub against his cloth in order to achieve at least symbolic proximity.

I will demonstrate this with two examples taken from his activities in the last five days, taken from the international business field  alone –  alone – so no need to worry about another discussion of the Deputy FBI director’s resignation.: One was the Trump visit to Davos, Switzerland, where business leaders, policy makers and think tank figures met to exchange ideas and plans , combining mostly in the  fields of business, investment, trade, and the macro policies which are promoted to address problems perhaps too large for any country alone. Media sages predicted an outcast Trump with no audience, no interest and no influence.

Well, the contrary occurred. One President Trump had announced his attendance, the list of attendees from other nations was upgraded by title and influence – Trumps presence led to a strengthening of Davos. Those that had referred to the Trump experience of a cold shoulder must have been very chagrined by the discussion between Trump and Klaus Schwab – the founder and head of the World Economic Forum. Schwab showered considerable praise on Trump and his first year achievements, a claim that was widely repeated to high ranking members of business and policy.

In an elegant turnaround, chroniclers of Davos  found one new thought and explanation. Trump is wealthy and in business, so no wonder the other attendees liked him, they are birds of the same feather. No matter that many business people, a year ago, were concerned about what the novice politician would do. Turns out, Trump was not blessed with predicted naiveté, but rather had some meaningful plans, many of which he shepherded forward. Far from being a disaster, Davos was a Trump triumph.

The second example comes from the State of the Union address. Again, many predictions were negative, ranging from limited content to rising attendance boycotts. Well, again something must have been wrong with the crystal ball. The speech was elegant, strong and inspiring. Trump used his great talent as a story teller to introduce modern day heroes to Congress, America and the world, and was able to communicate a feeling of pride, comfort, and leadership. How could anyone avoid applauding – and as we know, when the applause comes you’ve done at least some winning over.

But the strongest part of the President’s speech consisted of what he didn’t say. Let me first tell a story myself. In London, on Jermyn Street I went into a haberdashery to buy a cotton shirt. They were very expensive and I asked the salesman to prove that they were worth the money. He explained that all luxury shirts have some extra buttons sewn in, so that in case of loss, there would be a replacement available. Now come the evidence: His shirts did not have any spare buttons, because theirs did not fall off. The absence of even good things can be of substantial proof.

The speech, about 80 minutes long, had only two minutes worth of comments on trade and globalization. We know how important jobs, international competition and competitiveness are to the President. The lack of mention shows that he is convinced that res ipsa loquitur – things speak for themselves. The economy is not limping along but on a definite fast track. Production sites are re-located back to the United States. Innovation, concentration and investments give our companies and their employees new wings.

So at the end of his first year in office, Trump has reason to be proud and we can accept his moments of exuberance – unusual perhaps but deservedly present.  Let me reiterate what I consider the strongest line in the speech: Americans are dreamers too. Let’s keep it that way!

Michael Czinkota teaches international business and trade at Georgetown University’s McDonough School of Business and the University of Kent. His key book (with Ilkka Ronkainen) is “International Marketing” (10th ed., CENGAGE).