Charles R. Taylor and Shintaro Okazaki
Executive Summary
In this article, Taylor and Okazaki examine the level to which subsidiaries of Japanese and U.S. firms operating in the European Union (EU) standardize their advertising. The article also examines the degree to which Japanese and U.S. subsidiaries believe that EU convergence is occurring. It is predicted that perceptions of greater convergence will make firms more likely to standardize their advertising across EU markets. This study examines the reason firms standardize their advertising. The fundamental managerial question is whether there is a trend toward standardized advertising in the EU.
A questionnaire was sent to selected advertising or marketing executives of U.S. and Japanese multinational corporations’ subsidiaries in the United Kingdom, France, Germany, Italy, and the Netherlands. Surveys were sent to 564 firms. A total of 107 usable responses were obtained. The survey asked questions about perceptions of EU convergence, the degree to which the firm’s advertising is standardized, and whether the firm desires to achieve the following goals associated with standardization: cost savings, creation of a uniform brand image, appeal to cross-market segments, and greater headquarters control of strategy.
Taylor and Okazaki find that both Japanese and U.S. managers still note some obstacles in the standardization of advertising in the EU. Both Japanese and U.S. firms indicate that they face similar competitive conditions throughout the EU and moderate differences in advertising infrastructure. However, ratings of the overall similarity of markets were neutral for both the United States and Japan. These findings seem to be consistent with the idea that there has been a gradual trend toward greater feasibility of standardized advertising in the EU, but they also suggest that some obstacles remain. Thus, the results suggest that it is too simplistic to believe that the EU has become a uniform market in which firms can ignore cross-national differences in planning their advertising strategy. Therefore, when managers of firms operating in the EU assess the extent to which they can standardize advertising, they should expect to monitor environmental conditions in the markets in which they operate. Taylor and Okazaki also find that U.S. firms are slightly more likely than Japanese firms to use a standardized advertising strategy in the EU. Firms in the United States tend to put greater emphasis on the creation of a uniform brand image, whereas managers from both countries value cost savings. Japanese firms value the higher level of central control that can emanate from standardization.
Biography
Charles R. Taylor received his PhD in Marketing from Michigan State University. He also holds a bachelor’s degree from the University of Michigan and an MBA from Michigan State University. Professor Taylor’s primary research areas are international advertising and marketing and public policy issues. He has served as a consultant to advertising agencies, sign companies, the automobile industry, and law firms. Professor Taylor is currently examining the impact of standardized advertising on return on investment and the role of new media in promotion. In addition, he is examining the role of signage as a part of integrated marketing communications. He has recently published in Journal of Advertising, Journal of Advertising Research, and Journal of Marketing Research and is coauthor of the book The Marketing Functions of Signs: Understanding Signage and Its Impact on the Economy.
Shintaro Okazaki obtained his PhD from the Universidad Autónoma de Madrid. He also holds a Bachelor of Economics from the Aoyama Gakuin University (Japan) and an MBA from the Oregon State University. His research has been published in international journals, such as European Journal of Marketing, Information & Management, International Journal of Advertising, Journal of International Consumer Marketing, Journal of Marketing Communications, Internet Research, and Electronic Markets, among others. His research interests lie in international marketing communications, cross-cultural consumer behavior, and online direct marketing. Before beginning his academic career, Professor Okazaki worked at Citibank (the Tokyo branch) and was responsible for customer services management.
Journal of International Marketing, Vol. 14, No. 1, March 2006
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