You work in a medium sized organization that has started marketing more on an in

Question

You work in a medium sized organization that has started marketing more on an international basis. Your company’s marketing function has traditionally been centralized. You are charged with enhancing the advertising program, and have to decide whether to use a global advertising agency, or one that is more local in those specific areas in which you are marketing.  What are some considerations or factors that would go into determining whether to utilize a global ad agency, or ad agencies that are more local?

Explanation / Answer

There are following considerations to determining the ad agency.

1. Nature of the product

The nature of the product and its responsiveness towards the target audience helps in deciding the ad agency. A highly localized product in accordance with the local taste and preference, requires local ad agency. Though, with global products, a global ad agency will be more suitable to bring a synergy among the different market of the same product.

2. Degree of uncertainty avoidance index in the market

It reflects the cultural closeness and openness of the audience. A close culture does not accept the products from outside. Hence, a presence of local ad agency will help to create the communication plan that will link with the audience and will be able to convey the message. It will be difficult in case of global ad agencies with less knowledge of the local market.

3. Indulgence level of the culture in the country

A higher level of indulgence, will be suitable for the global ad agency where a suitable message as per the global reputation is created. Otherwise, a local ad agency will be suitable.

4. Presence of the local issues in the areas

On occasions, the overseas markets have their own local prevailing issues and it is important for the ad agencies to not to overlook those issues. It can be better understood and utilized by the local ad agencies.

5. Level of competition and attractiveness of the industry

High level of competition and attractiveness of the industry in the overseas location will require the in-depth understanding of the market that is only delivered by the local ad agencies.

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