Chapter 18 Global Promotional Strategies Copyright 2007

7 Stages in Promotional Campaign Planning Determine the target audience Determine campaign objectives Determine the budget Determine media strategy Determine the message Determine campaign approach Determine campaign effectiveness Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved.

Planning Promotional Campaigns Who are our customers? • Target Audience – Promotional campaigns affect more than consumers who purchase the product or service. • Suppliers, intermediaries, government, local community, bankers and creditors, media organizations, shareholders, and employees. – Research to determine multi-market target audiences is required as firms become more internationally involved. – Cause related marketing – Global image campaigns Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved.

Campaign Objectives • Global objectives – General guidelines and control for broad-based campaigns (consistency of message). • Regional objectives • Local objectives – Specific and measurable targets (awareness, image, market share) for individual markets. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved.

The Budget • The promotional budget links marketing objectives with media, message, and control decisions. • Acts as a control mechanism. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved.

Media Strategy • Development of media schedule – target audience characteristics – campaign objectives – budget • Media vehicle chosen based on – media availability in market – product or service offered – audience media habits Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved.

Advertising Spending Copyright © 2007 by South-Western, a division of Thomson Learning. All rights

Product Influences • Product advertising restrictions – National consumer protection regulations – Special rules in certain markets reflecting local cultural values. • Advertiser’s responses – Adaptation – Innovation • Product placement – Diversification Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved.

Audience Characteristics • Strategy is to reach the intended target audience with the minimum of waste. • Marketing strategist needs to know – Media distribution (number of copies) – Media audience composition – Advertising exposure Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved.

Global Media • Print publications providing global coverage with regional language and content editions. • Pan-regional radio and television, the Internet • Important global media characteristics – Targetability – Client-compatible editorial – Editorial quality • Who advertises in global media? – Airline, financial services, telecommunication, automobile, and tobacco companies Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved.

The Promotional Message • Know customer habits and motivations: What are consumers really buying and why? • Factors in developing the message: – Diffusion of the product or service into the market. – Criteria on which customers evaluate the product. – The product’s positioning. • The ideal is to have a world brand. – “…a product that is manufactured, packaged, and positioned the same around the world. ” – Localize international symbols with regional or country area themes and personalities. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved.

The Media Campaign Approach • What type of outside services to use? • How to establish decision-making authority? • Outside services are chosen by their quality of coverage. • Conflict in the use of mega-agencies – Conflicts of interest when two competitors are represented by the same agency Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved.

Decision-Making Authority • Centralized or decentralized decisions about advertising? – Centralization= scale, synergy, consistency – Decentralization= proximity, flexibility, sensibility • Overall organizational goal to continually improve advertising quality at the local level. • Coordinated decentralized approach to pan-regional campaign development – strong central control – knowledge of local markets – avoids NIH syndrome Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved.

Measuring of Advertising Effectiveness • Typical effectiveness-testing techniques – Pre-testing of copy appeal and brand recognition. – Post-testing of product or brand recognition. – Measuring campaign’s impact on sales. • Measures – Sales increases and sales pattern changes. – Increases in consumer awareness and recall. – Intention to buy, coupon return. • There are no universally accepted parameters of measurement and analysis to compare one country audience to another. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved.

Other Promotional Elements • Personal Selling – Typically associated big-ticket (high-priced) items such as industrial goods. – Proper training is crucial to success. • Sales Promotions – Couponing, sampling premiums, education and demonstration, point-of-purchase, direct mail. – The impact of promotions on intermediaries 50% off must be carefully considered. with Coupon – Varying local regulations may prevent or limit the types and use of sales promotions. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved.

Public Relations • Public Relations (PR) builds images – PR’s goal is understanding and acceptance. • PR provides internal and external acceptance for the organization. • Internally, PR functions to – Provide Information through internal publications (e. g. , newsletters and intranets). – Help create the appropriate corporate culture. • Externally, PR in multinational corporations is concerned with – Building a global identity to build sales, product and service differentiation. – Providing information furthering marketing objectives. – Anticipating and counting criticism of the organization. – Taking a lead role in crisis management. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved.