Global Promotion Promotion objectives Problems and opportunities in
Global Promotion • Promotion objectives • Problems and opportunities in promotional transplantation • Legal issues MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 1
Promotion: Strategic and Tactical Objectives • Awareness • Trial • Attitude toward the product – Beliefs – Preference • Temporary sales increases MKT 376 PROMOTION AND E-COMMERCE Emerging Markets/ New Products Mature markets /established products Lars Perner, Instructor 2
Tools in Integrated Marketing Communication • Advertising – – • • Media Direct mail Billboards Other Sales promotion Public relations Distribution as promotion Placements/endorsements MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 3
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. MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 4
Ad Spending vs. Income Country Spending PC Income Ratio U. S. $445. 00 $35, 610 1. 25% Canada $157. 00 $21, 930 0. 72% Argentina $76. 00 $6, 940 1. 10% Brazil $32. 00 $3, 070 1. 04% Chile $43. 00 $4, 590 0. 94% China $0. 30 $890 0. 03% $419. 00 $25, 330 1. 65% $1. 20 $460 0. 26% Japan $262. 00 $35, 610 0. 74% Australia $246. 00 $19, 900 1. 24% France $157. 00 $22, 730 0. 69% Germany $230. 00 $23, 560 0. 98% Italy $118. 00 $19, 390 0. 61% Sweden $211. 00 $25, 400 0. 83% UK $252. 00 $25, 120 1. 00% $0. 02 $1, 750 0. 00% Hong Kong India Russia MKT 376 Note questionable reliability of data and possible accounting issues. PROMOTION AND E-COMMERCE Lars Perner, Instructor Average =0. 82% 5
Country Economic Growth vs. Ad Spending: No Clear Pattern 2. 0% 0. 0% MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 6
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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 7
Global Advertising • International TV channels: CNN, Sky. Tel • Magazines with regional editions: Time, Newsweek, Playboy, Cosmopolitan • International newspapers: Financial Times, Wall Street Journal • Internet MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 8
Advertising Budgeting Approaches • • Percentage of sales Competitive parity Affordability Objective and task COUNTRY PRIORITY COMPETITIVE INTENSITY GATEWAY POTENTIAL GROWTH POTENTIAL CURRENT MARKET COUNTRY PRESTIGE MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 9
Advertising (Agency) Processes OBJECTIVE DETERMINATION MESSAGE CREATION MKT 376 BUDGETING AGENCY OR IN-HOUSE SELECTION MEDIA SELECTION CAMPAIGN EVALUATION PROMOTION AND E-COMMERCE Lars Perner, Instructor 10
Promotional Tools • • In-store promotions Customers Cross-marketing Publicity and public relations Cause marketing Product placement Trade fairs MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 11
Constraints on Global Communications Strategies • Language barriers • Cultural barriers • Local attitudes toward advertising • Production/cost • Media availability • Advertising regulations MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 12
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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 13
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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 14
Cultural Dimensions in Advertising • Directness vs. indirectness • Comparative advertising • Humor appeal • Gender roles • Explicitness • Sophistication • Popular vs. traditional culture • Information content vs. fluff MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 15
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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 16
Advertising Standardization: Advantages Essentially parallel to product/ positioning standardization MKT 376 • Economies of scale • Consistent image • Appeal to global consumer segments • Conservation/maximum utilization of creative talent • Cross-fertilization--moving knowledge across markets PROMOTION AND E-COMMERCE Lars Perner, Instructor 17
Disadvantages • Cultural differences • Advertising and promotional regulations • Market lifecycle stage (maturity) • Local commitment to campaign (“Not-inventedhere) Again, parallel to product/ positioning standardization MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 18
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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 19
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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 20
Contrasting Advertising Perspectives (Aithison 2002) • Western • Asian – “Atomistic”—broken down to smallest component parts – “Unique selling propositions” – “How to” – Positioning – May be “dull and boring” – “Copy focused” – Holistic – “Everything relates to everything else” – How things “fit together” and “relate” – Visual and oral Jim Aitchison, How Asia Advertises, New York: Wiley, 2002. MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 21
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) MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 22
Legal Issues in Promotion • Media allowed for advertising • Comparative advertising • Price promotions – coupons – premiums MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 23
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