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Global Promotion

Global Promotion. Promotion objectives Problems and opportunities in promotional transplantation Legal issues. Promotion: Strategic and Tactical Objectives. Awareness Trial Attitude toward the product Beliefs Preference Temporary sales increases. Emerging Markets/ New Products.

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Global Promotion

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  1. Global Promotion • Promotion objectives • Problems and opportunities in promotional transplantation • Legal issues

  2. Promotion: Strategic and Tactical Objectives • Awareness • Trial • Attitude toward the product • Beliefs • Preference • Temporary sales increases Emerging Markets/ New Products Mature markets /established products

  3. Tools in Integrated Marketing Communication • Advertising • Media • Direct mail • Billboards • Other • Sales promotion • Public relations • Distribution as promotion • Placements/endorsements

  4. Advertising Prominence • Higher income countries tend to spend more on advertising. However: • Some exceptions • Lower media costs in developing countries may understate extent of use • U.S. has especially high advertising spending.

  5. Ad Spending vs. Income Note questionable reliability of data and possible accounting issues. Average =0.82%

  6. Country Economic Growth vs. Ad Spending: No Clear Pattern 2.0% 0.0%

  7. Regional Media Tendencies • India: Outdoor • Europe: Print media; radio advertising avoided • Television: U.S., China, Japan, Latin America (e.g., novelas) • Movie going countries: Cinema advertising

  8. Global Advertising • International TV channels: CNN, SkyTel • Magazines with regional editions: Time, Newsweek, Playboy, Cosmopolitan • International newspapers: Financial Times, Wall Street Journal • Internet

  9. Advertising Budgeting Approaches • Percentage of sales • Competitive parity • Affordability • Objective and task COUNTRY PRIORITY COMPETITIVE INTENSITY GATEWAY POTENTIAL GROWTH POTENTIAL CURRENT MARKET COUNTRY PRESTIGE

  10. Advertising (Agency) Processes OBJECTIVE DETERMINATION BUDGETING AGENCY OR IN-HOUSE SELECTION MESSAGE CREATION MEDIA SELECTION CAMPAIGN EVALUATION

  11. Promotional Tools • In-store promotions • Customers • Cross-marketing • Publicity and public relations • Cause marketing • Product placement • Trade fairs

  12. Constraints on Global Communications Strategies • Language barriers • Cultural barriers • Local attitudes toward advertising • Production/cost • Media availability • Advertising regulations

  13. Flops in the Transplantation of Advertising • Man and his dog • “A can a week is all we ask” • “Follow the leader--he’s on a Honda!” • Detergent ad • “Get your teeth their whitest!” • Marlboro man in Hong Kong

  14. Symbolism • Green: Health in U.S.; in Latin America, jungle (associated with danger) • Marlboro man: freedom in U.S.; dusty, unappealing life in Hong Kong • Perfume against raindrop: Cool, refreshing feeling to Europeans; symbol of fertility to some Asians

  15. Cultural Dimensions in Advertising • Directness vs. indirectness • Comparative advertising • Humor appeal • Gender roles • Explicitness • Sophistication • Popular vs. traditional culture • Information content vs. fluff

  16. Promotion as a Means of Positioning • How do people see advertising and promotion efforts? • Promotion as a means to communicate • benefits of product • use of product • product image • Differences in desires by culture

  17. Advertising Standardization: Advantages • Economies of scale • Consistent image • Appeal to global consumer segments • Conservation/maximum utilization of creative talent • Cross-fertilization--moving knowledge across markets Essentially parallel to product/ positioning standardization

  18. Disadvantages • Cultural differences • Advertising and promotional regulations • Market lifecycle stage (maturity) • Local commitment to campaign (“Not-invented-here) Again, parallel to product/ positioning standardization

  19. Humor • Humor appears to be a universal phenomenon • However, there are great differences in form across the World • “A can a week is all we ask” worked in U.S. but was seen as silly in Canada

  20. Values • Americans tend to emphasize individuals; in other cultures, standing out from the group may not be desirable • Popular vs. traditional culture • Perception of comparative advertising • Eastern Europeans want more facts in advertising

  21. Western “Atomistic”—broken down to smallest component parts “Unique selling propositions” “How to” Positioning May be “dull and boring” “Copy focused” Asian Holistic “Everything relates to everything else” How things “fit together” and “relate” Visual and oral Contrasting Advertising Perspectives (Aithison 2002) Jim Aitchison, How Asia Advertises, New York: Wiley, 2002.

  22. Advertising Content Comparisons • American: • Individual benefit and pleasure (e.g., “Make your way through the crowd) • Korean • Collective values (e.g., “We have a way of bringing people together)

  23. Legal Issues in Promotion • Media allowed for advertising • Comparative advertising • Price promotions • coupons • premiums

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