1. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Global Promotional Strategies Chapter 18

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

3. Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Planning Promotional Campaigns 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 Who are our customers?

4. 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.

5. 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.

6. 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

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

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

9. 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

10. 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

11. 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.

12. 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

13. 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

14. 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.

15. 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 must be carefully considered. –Varying local regulations may prevent or limit the types and use of sales promotions. 50% off with Coupon

16. 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.