Promotion objectives

Problems and opportunities in promotional

transplantation
Legal issues

Global Promotion
Promotion: Strategic and Tactical
Objectives
Awareness
Trial
Attitude toward the product
Beliefs
Preference
Temporary sales increases
Emerging
Markets/
New Products
Mature markets
/established
products

Promotion: Strategic and Tactical Objectives
Tools in Integrated Marketing
Communication
Advertising
Media
Direct mail
Billboards
Other
Sales promotion
Public relations
Distribution as promotion
Endorsements
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
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%
Hong Kong $419.00 $25,330 1.65%
India $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%
Russia $0.02 $1,750 0.00%
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
(Hollywood 2 Kollywood)

Global Advertising
International TV channels: CNN, Skytel
Magazines with regional editions: Time,
Newsweek, Playboy, Cosmopolitan
International newspapers: Financial Times,
Wall Street Journal
Internet
Advertising Budgeting Approaches
Percentage of sales
Competitive parity
Affordability
Objective and task

Promotional Tools
In-store promotions
Customers
Cross-marketing
Publicity and public relations
Cause marketing
Product placement
Trade fairs

Constraints on Global
Communications Strategies
Language barriers
Cultural barriers
Local attitudes toward
advertising
Media availability
Advertising regulations
Newyork 2 Shanghai
Reebok - Rui bu,
quick steps.
And Colgate Gao lu
jie, revealing
superior cleanliness.
Lays Le shi
happy things.
Nike Nai ke
BMW Bao Ma,
Flops in the Transplantation of
Advertising

A can a week is all we
ask(Blue Diamond
Almond)
Follow the leader--hes
on a Honda!
Get your teeth their
whitest!
Marlboro man in Hong
Kong
Symbolism
Green: Health in U.S.; in Latin America, jungle
(associated with danger)

Perfume against raindrop: Cool, refreshing
feeling to Europeans; symbol of fertility to
some Asians
Cultural Dimensions in Advertising
Directness vs. indirectness
Comparative advertising
Humor appeal
Gender roles
Explicitness
Popular vs. traditional culture
Information content vs. fluff



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
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
Disadvantages
Cultural differences
Advertising and promotional
regulations
Market lifecycle stage (maturity)
Local commitment to campaign
(Not-invented-here)
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
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
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.
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)
Legal Issues in Promotion
Media allowed for
advertising
Comparative
advertising
Price promotions
coupons
premiums
Thank You
http://www.nytimes.com/interactive/2011/11/12/world/as
ia/chinese-products-in-translation.html?ref=asia
http://www.inthe80s.com/tvcommercials/h.shtml
http://www.bluediamond.com/index.cfm?navId=436
http://en.wikipedia.org/wiki/International_Center_for_Pro
motion_of_Enterprises
http://www.galamarketlaw.com/membersonly/pdfs/Condu
ctingEconomy.pdf
http://searchenginewatch.com/article/2049194/Make-
Sure-Your-Promotion-Is-Legal