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MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 1 Global Promotion Promotion objectives Problems and opportunities in promotional transplantation.

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Presentation on theme: "MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 1 Global Promotion Promotion objectives Problems and opportunities in promotional transplantation."— Presentation transcript:

1 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 1 Global Promotion Promotion objectives Problems and opportunities in promotional transplantation Legal issues

2 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 2 Promotion: Strategic and Tactical Objectives Awareness Trial Attitude toward the product –Beliefs –Preference Temporary sales increases Emerging Markets/ New Products Mature markets /established products

3 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 3 Tools in Integrated Marketing Communication Advertising –Media –Direct mail –Billboards –Other Sales promotion Public relations Distribution as promotion Placements/endorsements

4 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 5 Ad Spending vs. Income CountrySpendingPC IncomeRatio U.S.$445.00$35, % Canada$157.00$21, % Argentina$76.00$6, % Brazil$32.00$3, % Chile$43.00$4, % China$0.30$ % Hong Kong$419.00$25, % India$1.20$ % Japan$262.00$35, % Australia$246.00$19, % France$157.00$22, % Germany$230.00$23, % Italy$118.00$19, % Sweden$211.00$25, % UK$252.00$25, % Russia$0.02$1, % Average =0.82% Note questionable reliability of data and possible accounting issues.

6 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 6 Country Economic Growth vs. Ad Spending: No Clear Pattern 2.0% 0.0%

7 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 9 Advertising Budgeting Approaches Percentage of sales Competitive parity Affordability Objective and task COUNTRY PRIORITY COUNTRY PRESTIGE GATEWAY POTENTIAL COMPETITIVE INTENSITY GROWTH POTENTIAL CURRENT MARKET

10 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 10 Advertising (Agency) Processes AGENCY OR IN-HOUSE SELECTION BUDGETING OBJECTIVE DETERMINATION CAMPAIGN EVALUATION MEDIA SELECTION MESSAGE CREATION

11 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 11 Promotional Tools In-store promotions Customers Cross-marketing Publicity and public relations Cause marketing Product placement Trade fairs

12 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 12 Constraints on Global Communications Strategies Language barriers Cultural barriers Local attitudes toward advertising Production/cost Media availability Advertising regulations

13 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 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 MKT 376 PROMOTION AND E-COMMERCE Lars Perner, Instructor 23 Legal Issues in Promotion Media allowed for advertising Comparative advertising Price promotions –coupons –premiums


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