Transcript Chapter 18

Chapter 18
Global
Promotional
Strategies
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Planning Promotional Campaigns
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Determine the target audience
Determine specific campaign objectives
Determine the budget
Determine media strategy
Determine the message
Determine the campaign approach
Determine campaign effectiveness
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Planning Promotional Campaigns
• The target audience
– Expectations of various audiences have to be
researched to ensure the appropriateness of campaign
decision making.
– Some firms may sponsor events to boost its image with
the government and the local community; one of the
approaches available is cause-related marketing.
– An important aspect of research is to determine
multimarket target audience similarities.
– Companies are engaging in corporate image
advertising in support of their more traditional tactical
product-specific and local advertising efforts.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Planning Promotional Campaigns
• The target audience
– An umbrella campaign may help multidivisional
companies to either boost the image of lesser-known
product lines or make the company itself be
understood correctly or perceived more positively.
– Companies may announce repositioning strategies
through image campaigns to both external and internal
constituents. (GE’s Ecoimagination Campaign)
– Costs may also be saved in engaging in global image
campaigning, especially if the same campaign or core
concepts can be used across borders.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Planning Promotional Campaigns
• Campaign objectives
– Can be divided into overall global and regional
objectives as well as local objectives.
– Objectives that are set at the local level are more
specific and set measurable targets for individual
markets.
– Have to be measurable for control purposes.
– Local objectives are developed as a combination of
headquarters (global or regional) and country
organization involvement.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Planning Promotional Campaigns
• Budget
– The promotional budget links established objectives
with media, message, and control decisions.
– Budgets can also be used as a control mechanism if
headquarters retains final budget approval.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 18.2 - Budgeting Methods for
Promotional Programs
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Planning Promotional Campaigns
• Media strategy - The major factors determining the
choice of the media vehicles to be used are:
– The availability of media in a given market.
– The product or service itself.
– Media habits of the intended audience.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 18.4 - Restrictions on Advertisements for
Specific Products in Selected European Countries
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Planning Promotional Campaigns
• Global media
– Media vehicles that have target audiences on at least
three continents and for which the media buying takes
place through a centralized office.
– Advertising in global media is dominated by major
consumer ad categories, particularly airlines, financial
services, telecommunications, automobiles, and
tobacco.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Planning Promotional Campaigns
• Global media
– In choosing global media, media buyers most
importantly consider targetability, client-compatible
editorial, and editorial quality.
– The Internet provides the international marketer with a
global medium.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Planning Promotional Campaigns
• The promotional message
– Executing an advertising campaign in multiple markets
requires a balance between conveying the message
and allowing for local nuances.
– The localization of global ideas can be achieved by
various tactics, such as adopting a modular approach,
localizing international symbols, and using international
advertising agencies.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Planning Promotional Campaigns
• The promotional message
– Marketers may develop multiple broadcast and print
ads from which country organizations can choose the
most appropriate for their operations.
– Product-related regulations will also affect advertising
messages.
– The stage of economic development may vary and
differentiate the message from one market to another.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Planning Promotional Campaigns
• The campaign approach
– What type of outside services to use
• The choice of an agency will largely depend on the
quality of coverage the agency will be able to give the
multinational company.
• The main concern arising from the use of mega-agencies
is conflict.
– How to establish decision-making authority for
promotional efforts.
• range from complete centralization to decentralization.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 18.10 - Coordinated Approach to
Panregional Campaign Development
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 18.10 - Coordinated Approach to
Panregional Campaign Development
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Planning Promotional Campaigns
• Measurement of advertising effectiveness
– Should range from pretesting of copy appeal and
recognition, to post-testing of recognition, all the way to
sales effects.
– The measures most used are sales, awareness, recall,
executive judgment, intention to buy, profitability, and
coupon return, regardless of the medium used.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Other Promotional Elements
• Personal selling
– Most personal selling is done by the subsidiaries, with
varying degrees of headquarters’ involvement.
– If personal selling constitutes the primary thrust of the
corporate promotional effort and the global customer
groups can be identified, unified and coordinated sales
practices may be called for.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Other Promotional Elements
• Sales promotion
– Used for promotion that does not fall under advertising,
personal selling, or publicity.
– The appeal is related to several factors: cost and
clutter of media advertising, simpler targeting of
customers compared with advertising, and easier
tracking of promotional effectiveness.
– For sales promotion to be effective, the campaign
planned by manufacturers, or their agencies, must gain
the support of the local retailer population.
– Regulations make global sales promotions rare and
difficult to launch.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 18.11 - Regulations Regarding Premiums,
Gifts, and Competitions in Selected Countries
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Other Promotional Elements
• Public relations
– Is the marketing communications function charged with
executing programs to earn public understanding and
acceptance.
– Communication can be both internal and external.
– Internal communication is important to create an
appropriate corporate culture.
– A basic part of most internal programs is the employee
publication produced and edited by the company’s
public relations or advertising department and provided
in hard-copy and electronic formats.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Other Promotional Elements
• Public relations
– External public relations (also known as marketing
public relations) is focused on the interactions with
customers.
– External campaigns can be achieved through the use
of corporate symbols, corporate advertising, customer
relations programs, and publicity.
– Unanticipated developments in the marketplace can
place the company in a position that requires reactive
public relations, including anticipating and countering
criticism.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Other Promotional Elements
• Public relations
– Crisis management is becoming more formalized in
companies, and these policies should have—
openness, preparedness, integrity, and clarity.
– With interactive technology, consumers can find or
initiate topics of interest on the Web and engage in
online discussions that strongly affect their and others’
views; this new form of communication is called
consumer-generated media (CGM).
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Other Promotional Elements
• Public relations
– The public relations function can be handled in-house
or with the assistance of an agency.
– The use and extent of public relations activity will vary
by company and the type of activity needed.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Other Promotional Elements
• Sponsorship marketing
– Sponsorship involves the marketer’s investment in
events or causes.
– Sponsorship of events is driven by the desire to be
associated with a worldwide event that has a positive
image, global reach, and a proven strategic positioning
of excellence.
– An event may become embroiled in controversy, thus
hurting the sponsors’ images as well.
– Ambush marketing is the unauthorized use of an event
without the permission of the event owner.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.