Transcript Chapter 13
The International Promotional Mix and Advertising Strategies Dana-Nicoleta Lascu Chapter 13 Copyright Atomic Dog Publishing, 2002 Chapter Objectives • Describe the international promotional mix and the international communication process • Explore the international advertising formats and practices around the world • Describe the international advertising and media infrastructure and infrastructure-related challenges in different markets • Describe advertising strategies and budgeting decisions and offer examples of international applications Copyright Atomic Dog Publishing, 2002 International Promotional Mix • Advertising • Salesforce Management • Sales Promotion • Public Relations • Publicity Copyright Atomic Dog Publishing, 2002 International Promotional Mix, continued Understanding the norms, motivations, attitudes, interests, and opinions of the target market is crucial to company success in marketing to and communicating with different cultures around the globe. Copyright Atomic Dog Publishing, 2002 International Communication Process SENDER MEDIUM RECEIVER Sponsor (sender) encodes message and sends it through the channel (medium) to the international consumer (receiver); the international consumer receives the message and decodes it into meaningful information. Copyright Atomic Dog Publishing, 2002 Non-Personal Communication Media • Print media • Broadcast media • Interactive media Not widely available in developing countries Copyright Atomic Dog Publishing, 2002 Personal Media • Salespeople • Telemarketers • Trade show and exhibits Individuals can interact with knowledgeable company representatives Copyright Atomic Dog Publishing, 2002 International Communication Challenges • Media infrastructure • Unreliable mail • Limited broadcast media • Media is not use for advertising • Translation deficiencies—meanings intended may not be the meanings conveyed Copyright Atomic Dog Publishing, 2002 Lessen Communication Challenges 1) Hire research firms to evaluate message in multiple international environments 2) Evaluate effectiveness communication in attracting target market attention 3) Evaluate effectiveness communication in getting consumers to purchase the product Copyright Atomic Dog Publishing, 2002 Advertising A nonpersonal communication by an identified sponsor across international borders, using broadcast, print, and/or interactive media. Copyright Atomic Dog Publishing, 2002 Media Infrastructure • Availability • Reliability • Restrictions • Costs Copyright Atomic Dog Publishing, 2002 Media Reliability • Extent to which the existing media reliably reach the target consumer Print lag times Poor quality Off-air Television Copyright Atomic Dog Publishing, 2002 Media Restrictions • Limitations imposed by existing media Limiting the number and types of advertisements Cultural differences Clustered ads Media scheduling Copyright Atomic Dog Publishing, 2002 Media Costs • Differ greatly between countries, and even within a particular country Income per capita of target market Competition for media Firm status Translation costs Copyright Atomic Dog Publishing, 2002 Various International Formats, Features, and Trends • Posters on Kiosks and Fences • Advertising on the Sides of Private Homes • Advertising on Plastic Shopping Bags • Advertising on Outdoor Umbrellas • Billboards Copyright Atomic Dog Publishing, 2002 Global Media • Television Copyright Atomic Dog Publishing, 2002 CNN, Bloomberg, MTV Tonight Show, Disney Fox Broadcasting, 20th Century Fox, 20th Century Television Infomercials & TV Shopping • Shopping Copyright Atomic Dog Publishing, 2002 QVC, Home Shopping Network Home Order Television Using English In Local Advertisements • English: Requires less space in print and broadcasting time Conveys a cosmopolitan attitude Endows a product or service with status Copyright Atomic Dog Publishing, 2002 Product Placement Placing brands in movies and television programming with the purpose of promoting the products to viewers • U.S. movies’ box-office receipts are steadily increasing • U.S. films are very successful abroad Copyright Atomic Dog Publishing, 2002 Advertising Regulations • Comparative Advertising • Advertising to Children • Advertising Vice Products • Other Regulations: Vary by country; examples: - France: Requirement to keep the French language pure - Islamic countries: Ban the use of sex in advertising Copyright Atomic Dog Publishing, 2002 International Advertising Infrastructure • Develop ads in-house • Local advertising agencies • Home-country agencies • International agencies Top agencies are: - Omnicom Group Interpublic Group Young & Rubicam (U.S.) WPP Group (U.K.) Dentsu, Inc. (Japan) Copyright Atomic Dog Publishing, 2002 International Advertising Strategy • Standardization vs. Adaptation Standardization reduces costs: No duplication of effort for each market Individual campaigns delay product launches Consumers increasingly share similar frames of references with regard to products and consumption Copyright Atomic Dog Publishing, 2002 Barriers to Standardization • Communication infrastructure • Agencies might not serve a particular market • Consumer literacy • Legal restrictions and self-regulation • Differing values and purchase motivations • Attitudes toward product country of origin • Promotional mix elements Copyright Atomic Dog Publishing, 2002 Budgeting Decisions • • Objective-and-Task Method 1. Identify advertising goals 2. Conduct research 3. Determine cost of achieving goals 4. Allocate the necessary sum Percent-of-Sales Method Base budget on past or projected sales Copyright Atomic Dog Publishing, 2002 Budgeting Decisions, continued • Historical Method • Competitive Parity • Use international competitors’ budgets as benchmark Executive-judgment method • Base budget on past expenditures giving more weight to recent expenditures Use collective executive opinion All-you-can-afford Best suits small and medium firms Copyright Atomic Dog Publishing, 2002 Chapter Summary • Addressed the international promotional mix and the international communication process • Explored international advertising formats and practices around the world • Described international advertising and media infrastructure, and infrastructure-related challenges in different markets • Addressed advertising strategies and budgeting decisions Copyright Atomic Dog Publishing, 2002