Global Promotion

1
Global Promotion

• Promotion objectives
• Problems and opportunities in promotional
  transplantation
• Legal issues

2
Promotion Strategic and Tactical Objectives
Emerging Markets/ New Products

• Awareness
• Trial
• Attitude toward the product
• Beliefs
• Preference
• Temporary sales increases

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
AGENCY OR IN-HOUSE SELECTION
BUDGETING
OBJECTIVE DETERMINATION
CAMPAIGN EVALUATION
MEDIA SELECTION
MESSAGE CREATION
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--hes 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
Contrasting Advertising Perspectives (Aithison
2002)

• Western
• Atomisticbroken 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

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