The International Promotional Mix and Advertising Strategies

1. The International Promotional Mix and Advertising Strategies Dana-Nicoleta Lascu Chapter 13

2. 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

3. International Promotional Mix • Advertising • Salesforce Management • Sales Promotion • Public Relations • Publicity

4. 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.

5. SENDER RECEIVER MEDIUM International Communication Process 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.

6. Non-Personal Communication Media • Print media • Broadcast media • Interactive media • Not widely available in developing countries

7. Personal Media • Salespeople • Telemarketers • Trade show and exhibits • Individuals can interact with knowledgeable company representatives

8. 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

9. Lessen Communication Challenges • Hire research firms to evaluate message in multiple international environments • Evaluate effectiveness communication in attracting target market attention • Evaluate effectiveness communication in getting consumers to purchase the product

10. Advertising A nonpersonal communication by an identified sponsor across international borders, using broadcast, print, and/or interactive media.

11. Media Infrastructure • Availability • Reliability • Restrictions • Costs

12. Media Reliability • Extent to which the existing media reliably reach the target consumer • Print lag times • Poor quality • Off-air Television

13. Media Restrictions • Limitations imposed by existing media • Limiting the number and types of advertisements • Cultural differences • Clustered ads • Media scheduling

14. 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

15. 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

16. Global Media • Television • CNN, Bloomberg, MTV • Tonight Show, Disney • Fox Broadcasting, 20th Century Fox, 20th Century Television

17. Infomercials & TV Shopping • Shopping • QVC, Home Shopping Network • Home Order Television

18. 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

19. 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

20. 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

21. 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)

22. 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

23. 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

24. Budgeting Decisions • Objective-and-Task Method • Identify advertising goals • Conduct research • Determine cost of achieving goals • Allocate the necessary sum • Percent-of-Sales Method • Base budget on past or projected sales

25. Budgeting Decisions, continued • Historical Method • Base budget on past expenditures giving more weight to recent expenditures • Competitive Parity • Use international competitors’ budgets as benchmark • Executive-judgment method • Use collective executive opinion • All-you-can-afford • Best suits small and medium firms

26. 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