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Global Promotion

Promotion objectives Problems and opportunities in promotional transplantation Legal issues

MKT 376

PROMOTION AND E-COMMERCE

Lars Perner, Instructor

Promotion: Strategic and Tactical Objectives


Emerging Markets/

Awareness Trial Attitude toward the product


Beliefs Preference

New Products

Temporary sales increases


MKT 376

Mature markets /established products

PROMOTION AND E-COMMERCE

Lars Perner, Instructor

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

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

Ad Spending vs. Income


Country U.S. Canada Argentina Brazil Chile China Hong Kong India Japan Australia France Germany Italy Sweden UK Russia Spending $445.00 $157.00 $76.00 $32.00 $43.00 $0.30 $419.00 $1.20 $262.00 $246.00 $157.00 $230.00 $118.00 $211.00 $252.00 $0.02 PC Income $35,610 $21,930 $6,940 $3,070 $4,590 $890 $25,330 $460 $35,610 $19,900 $22,730 $23,560 $19,390 $25,400 $25,120 $1,750 Ratio 1.25% 0.72% 1.10% 1.04% 0.94%
Pctg. Ad Spending
2.00% 1.50% 1.00% 0.50% 0.00% -0.50% $0 $10,000 $20,000 $30,000 $40,000

Ad Spending vs. PC Income

0.03% 1.65% 0.26% 0.74% 1.24% 0.69% 0.98% 0.61% 0.83% 1.00% 0.00%

Per Capita Income

Note questionable reliability of data and possible accounting issues.

Average =0.82%

MKT 376

PROMOTION AND E-COMMERCE

Lars Perner, Instructor

Country Economic Growth vs. Ad Spending: No Clear Pattern


Economic Growth To PC Ad Spending Ratios
% Income Spent on Advertising
2.0%

0.0%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

Economic Growth

MKT 376

PROMOTION AND E-COMMERCE

Lars Perner, Instructor

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

Global Advertising
International TV channels: CNN, SkyTel 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

Advertising Budgeting Approaches


Percentage of sales Competitive parity Affordability Objective and task

COUNTRY PRIORITY

COMPETITIVE INTENSITY GATEWAY POTENTIAL COUNTRY PRESTIGE


MKT 376

GROWTH POTENTIAL

CURRENT MARKET

PROMOTION AND E-COMMERCE

Lars Perner, Instructor

Advertising (Agency) Processes


OBJECTIVE DETERMINATION BUDGETING AGENCY OR IN-HOUSE SELECTION

MESSAGE CREATION

MEDIA SELECTION

CAMPAIGN EVALUATION

MKT 376

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-hes 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


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


MKT 376

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
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.

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

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