© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 18 Global Promotional Strategies

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning Promotional Campaigns Determine the target audience Determine specific campaign objectives Determine the budget Determine media strategy Determine the message Determine the campaign approach Determine campaign effectiveness

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The target audience –Expectations of various audiences have to be researched to ensure the appropriateness of campaign decision making. –Some firms may sponsor events to boost its image with the government and the local community; one of the approaches available is cause-related marketing. –An important aspect of research is to determine multimarket target audience similarities. –Companies are engaging in corporate image advertising in support of their more traditional tactical product-specific and local advertising efforts. Planning Promotional Campaigns

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The target audience –An umbrella campaign may help multidivisional companies to either boost the image of lesser-known product lines or make the company itself be understood correctly or perceived more positively. –Companies may announce repositioning strategies through image campaigns to both external and internal constituents. (GE’s Ecoimagination Campaign) –Costs may also be saved in engaging in global image campaigning, especially if the same campaign or core concepts can be used across borders. Planning Promotional Campaigns

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Campaign objectives –Can be divided into overall global and regional objectives as well as local objectives. –Objectives that are set at the local level are more specific and set measurable targets for individual markets. –Have to be measurable for control purposes. –Local objectives are developed as a combination of headquarters (global or regional) and country organization involvement. Planning Promotional Campaigns

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Budget –The promotional budget links established objectives with media, message, and control decisions. –Budgets can also be used as a control mechanism if headquarters retains final budget approval. Planning Promotional Campaigns

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit Budgeting Methods for Promotional Programs

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Media strategy - The major factors determining the choice of the media vehicles to be used are: –The availability of media in a given market. –The product or service itself. –Media habits of the intended audience. Planning Promotional Campaigns

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit Restrictions on Advertisements for Specific Products in Selected European Countries

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global media –Media vehicles that have target audiences on at least three continents and for which the media buying takes place through a centralized office. –Advertising in global media is dominated by major consumer ad categories, particularly airlines, financial services, telecommunications, automobiles, and tobacco. Planning Promotional Campaigns

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global media –In choosing global media, media buyers most importantly consider targetability, client-compatible editorial, and editorial quality. –The Internet provides the international marketer with a global medium. Planning Promotional Campaigns

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The promotional message –Executing an advertising campaign in multiple markets requires a balance between conveying the message and allowing for local nuances. –The localization of global ideas can be achieved by various tactics, such as adopting a modular approach, localizing international symbols, and using international advertising agencies. Planning Promotional Campaigns

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The promotional message –Marketers may develop multiple broadcast and print ads from which country organizations can choose the most appropriate for their operations. –Product-related regulations will also affect advertising messages. –The stage of economic development may vary and differentiate the message from one market to another. Planning Promotional Campaigns

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The campaign approach –What type of outside services to use The choice of an agency will largely depend on the quality of coverage the agency will be able to give the multinational company. The main concern arising from the use of mega-agencies is conflict. –How to establish decision-making authority for promotional efforts. range from complete centralization to decentralization. Planning Promotional Campaigns

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit Coordinated Approach to Panregional Campaign Development

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit Coordinated Approach to Panregional Campaign Development

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Measurement of advertising effectiveness –Should range from pretesting of copy appeal and recognition, to post-testing of recognition, all the way to sales effects. –The measures most used are sales, awareness, recall, executive judgment, intention to buy, profitability, and coupon return, regardless of the medium used. Planning Promotional Campaigns

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Other Promotional Elements Personal selling –Most personal selling is done by the subsidiaries, with varying degrees of headquarters’ involvement. –If personal selling constitutes the primary thrust of the corporate promotional effort and the global customer groups can be identified, unified and coordinated sales practices may be called for.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Other Promotional Elements Sales promotion –Used for promotion that does not fall under advertising, personal selling, or publicity. –The appeal is related to several factors: cost and clutter of media advertising, simpler targeting of customers compared with advertising, and easier tracking of promotional effectiveness. –For sales promotion to be effective, the campaign planned by manufacturers, or their agencies, must gain the support of the local retailer population. –Regulations make global sales promotions rare and difficult to launch.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit Regulations Regarding Premiums, Gifts, and Competitions in Selected Countries

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Public relations –Is the marketing communications function charged with executing programs to earn public understanding and acceptance. –Communication can be both internal and external. –Internal communication is important to create an appropriate corporate culture. –A basic part of most internal programs is the employee publication produced and edited by the company’s public relations or advertising department and provided in hard-copy and electronic formats. Other Promotional Elements

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Public relations –External public relations (also known as marketing public relations) is focused on the interactions with customers. –External campaigns can be achieved through the use of corporate symbols, corporate advertising, customer relations programs, and publicity. –Unanticipated developments in the marketplace can place the company in a position that requires reactive public relations, including anticipating and countering criticism. Other Promotional Elements

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Public relations –Crisis management is becoming more formalized in companies, and these policies should have— openness, preparedness, integrity, and clarity. –With interactive technology, consumers can find or initiate topics of interest on the Web and engage in online discussions that strongly affect their and others’ views; this new form of communication is called consumer-generated media (CGM). Other Promotional Elements

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Public relations –The public relations function can be handled in-house or with the assistance of an agency. –The use and extent of public relations activity will vary by company and the type of activity needed. Other Promotional Elements

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Sponsorship marketing –Sponsorship involves the marketer’s investment in events or causes. –Sponsorship of events is driven by the desire to be associated with a worldwide event that has a positive image, global reach, and a proven strategic positioning of excellence. –An event may become embroiled in controversy, thus hurting the sponsors’ images as well. –Ambush marketing is the unauthorized use of an event without the permission of the event owner. Other Promotional Elements