Session 12
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The chapter discusses international promotional strategies and advertising. It describes the components of the international promotional mix, including advertising, sales promotion, public relations and personal selling. It then explores challenges in international communication and ways to overcome them, such as evaluating message effectiveness. Finally, it addresses factors to consider in international advertising strategies and budgeting decisions.
Session 12
- 1. The International Promotional Mix and Advertising Strategies Dana-Nicoleta Lascu Chapter 13 Copyright Atomic Dog Publishing, 2002
- 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 Copyright Atomic Dog Publishing, 2002
- 3. International Promotional Mix • Advertising • Salesforce Management • Sales Promotion • Public Relations • Publicity Copyright Atomic Dog Publishing, 2002
- 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. Copyright Atomic Dog Publishing, 2002
- 5. 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
- 6. Non-Personal Communication Media • Print media • Broadcast media • Interactive media Not widely available in developing countries Copyright Atomic Dog Publishing, 2002
- 7. Personal Media • Salespeople • Telemarketers • Trade show and exhibits Individuals can interact with knowledgeable company representatives Copyright Atomic Dog Publishing, 2002
- 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 Copyright Atomic Dog Publishing, 2002
- 9. 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
- 10. Advertising A nonpersonal communication by an identified sponsor across international borders, using broadcast, print, and/or interactive media. Copyright Atomic Dog Publishing, 2002
- 11. Media Infrastructure • Availability • Reliability • Restrictions • Costs Copyright Atomic Dog Publishing, 2002
- 12. 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
- 13. 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
- 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 Copyright Atomic Dog Publishing, 2002
- 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 Copyright Atomic Dog Publishing, 2002
- 16. Global Media • Television CNN, Bloomberg, MTV Tonight Show, Disney Fox Broadcasting, 20th Century Fox, 20th Century Television Copyright Atomic Dog Publishing, 2002
- 17. Infomercials & TV Shopping • Shopping QVC, Home Shopping Network Home Order Television Copyright Atomic Dog Publishing, 2002
- 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 Copyright Atomic Dog Publishing, 2002
- 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 Copyright Atomic Dog Publishing, 2002
- 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 Copyright Atomic Dog Publishing, 2002
- 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) Copyright Atomic Dog Publishing, 2002
- 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 Copyright Atomic Dog Publishing, 2002
- 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 Copyright Atomic Dog Publishing, 2002
- 24. 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
- 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 Copyright Atomic Dog Publishing, 2002
- 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 Copyright Atomic Dog Publishing, 2002