Page 203 - GLOBAL STRATEGIC MARKETING

use sales results as a measure of evaluation. Some evidence is
needed, however, to develop sound advertising budgets, so

comparative analysis may be advisable. The firm has three
organisational options: it can centralise all decision-making for
international advertising at headquarters; it can decentralise the

decision-making to a foreign market; or it can use some mix of these
two options.

6. Centralisation and decentralisation: Whether to centralise or
decentralise is another strategy that an international company should

consider when organising for international advertising. Centralisation
of international advertising means that all the processes of advertising
are prepared usually by one global agency. However, complete

centralisation is quite difficult when the company operates through a
foreign subsidiary. Decentralisation is where each market makes all its

advertising decisions individually. International companies decide on
decentralisation when the size of the international business is too small
to be considered by headquarters, when there is a serious

communication problem between the branch and headquarters (poor
technology), or when the company believes that involving local people

will give the company a good image.

7. Engaging in co-operative advertising abroad: When companies sell
their products overseas through licensees or distributors, there are
three ways to advertise the product: the advertising is handled by them;

they co-operate with the local distributor; or they encourage the
distributor to do such advertising alone. If the last is not feasible for

financial and strategic reasons, the choice is between advertising
alone or co-operating with the distributor.

Whatever, the strategy, it is important that the international marketer is
confident about its approach. For example, when Nike entered China it

used an offensive style of advertising based on direct language to promote