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International Brand Management

International Brand Management. Week 3. Week 3 Objectives. Understand how management sets direction and priorities on strategy for promotional programs. Learn how brands are introduced, promoted, maintained and managed throughout the process to achieve optimum results.

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International Brand Management

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  1. International Brand Management Week 3

  2. Week 3 Objectives • Understand how management sets direction and priorities on strategy for promotional programs. • Learn how brands are introduced, promoted, maintained and managed throughout the process to achieve optimum results. • Acquire understanding needed to observe promotions and assess the company’s marketing strategies, and to contrast competitors’ efforts. 2

  3. Terminology • Goal/Objective • Strategy/Tactics • Integrated Program • Promotional “Mix” • Advertising • Public Relations • Sales Promotion • Personal Selling 3

  4. What Is a Promotional Strategy? • A planned and controlled, integrated program of communications methods and materials • Designed to present the organization and its products to prospective customers • That communicates persuasive, need-satisfying attributes of products • To facilitate sales and thus contribute to long-run profit performance 4

  5. Developing Promotional Strategy • Brand strategy is already determined – and brand values and attributes have been determined (and validated by research) • Promotional Strategies begin with deciding • Budget available • Distribution of budget among advertising, public relations, sales promotion or personal selling. 5

  6. Budget Strategy • No clear formula or percentage for spending • Management considers business strategy – for example, spending levels vary for: • Defender • Differentiated Prospector • Low-Cost Defender • Management considers appropriate level of investment in promotion 6

  7. Promotional Strategy Alternatives- Decide on the “Mix” • Advertising: non-personal through paid media, involving both copy/content and media costs • Public Relations: personal communications WITH target audiences through non-paid media and other two-way communications opportunities • Sales Promotion includes a broad diversity of other promotions (i.e., trade shows) • Personal Selling encompasses both designing a selling program and supervising sales people 7

  8. Management Considerations • Competing marketing needs (such as designing new packaging) • Product pricing strategy (premium priced products allow greater promotional spending) • Sales response to promotions (difficult to forecast) • Ability to leverage a variety of promotions • Long term effect of promotional efforts (varies by product/service and frequency of purchase) 8

  9. But Remember….. • Constant challenges with Promotions • Decisions often are influenced by • Many people • Lack of measurable results • Personal selling decisions made separately • An INTEGRATED communications plan can make sure all messages, delivered by all promotional efforts, will be consistent with the overall brand strategy 9

  10. Goal/Objective and Strategy/Tactic • GOAL - Overall statement of what is to be achieved over long-run • OBJECTIVE – Specific, measurable, time-limited • STRATEGY - How to achieve objective • TACTIC – “Execution” or specific activity in a time period to achieve specific Objective 10

  11. Goal/Objective and Strategy/Tactic • GOAL - “We will dominate the market as market leader” (meaning more than 50% market share) • OBJECTIVE – “We will increase our market share in 2005 from 39% to 45%” • PROMOTIONAL STRATEGY - “We will add an interactive Internet communication channel” • TACTIC – “In January 2005 we will launch an interactive Internet website, with a supporting promotional program, enabling customers to communicate directly with sales persons” 11

  12. Advertising Strategy • Advertising strategy and tactics should focus on what phase is targeted and measure results accordingly • All advertising leads to sales eventually • May “condition the market” • May move a customer from one phase to the next – from product awareness, to familiarity, to receptivity, to purchase • May directly impact near-term sales 12

  13. Advertising Steps • “Copy” - all aspects - picture, words, symbols, color, layout • What most appeals to management may not succeed – customer research is invaluable • Advertising Tactical Options: • Source credibility – use of spokespersons • Balance of argument – appeals to better educated people • Message repetition – questionable value without change • Rational versus emotional appeals – no conclusive research • Comparison advertising – positioning against competing products or services, by name - little research on effectiveness - specifically prohibited in many European countries 13

  14. Public Relations Strategy • Public Relations is very important in: • “Conditioning the market” • Moving a customer from one phase to the next – from product awareness, to familiarity, to receptivity, to purchase • Some products and services benefit significantly from personal communications WITH audiences (complex new products, personal services, etc.) • Media coverage about products and services in non-paid media provide source credibility • Public relations offer lower-cost promotional opportunities 14

  15. Personal Selling Strategy • Sales person builds a close, trusting relationship with the customer • Customer values the sales person as a trusted, knowledgeable advisor, not a “sales person.” • Brand strategy may offer the brand promise of an advisor relationship • More important in business-to-business markets • Important for higher-priced products and services • Very expensive for multinational companies 15

  16. Sales Promotion Strategy • Influenced by the specific industry, business and marketing strategies, and product market position • Tactics must reflect the brand position on • Quality (high-priced, complex products might require customer demonstrations and exhibits at trade shows), • Competitors’ promotions • Customers’ expectations for such products • Other issues such as product lifecycle (new consumer product introductions might require sales and dealer incentives, point-of-purchase promotions). 16

  17. What Is a Promotional Strategy? • A planned and controlled, integrated program of communications methods and materials • Designed to present the organization and its products to prospective customers • That communicates persuasive, need-satisfying attributes of products • To facilitate sales and thus contribute to long-run profit performance 17

  18. Week 4 – Next Class • Test 1 – Overview of International Branding • Week 1 – Evolution of Branding Concepts • Week 2 - Branding Strategy Alternatives • Week 3 - Promotional Strategies • What to Expect • Terminology • True/False statements • Some writing on an issue 18

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