9.02 International Advertising

Understand the steps involved in developing an advertising campaign and the advertising

themes

9.1 Review

Promotional Campaign Step What does that mean?

1 Identify Target Audiences May have multiple target audiences that are different than American target• 20 – 45, Educated, White Collar, Lives in warm weather near beach•20-35. Highly Skilled, Blue Collar, Lives in Warm weather in Urban area

2 Set Communication Goals What do you want communicated about your product to the target•Reliable, Sporty, Sophisticated, Safe, etc..

3 Develop a Promotion Budget Set your budget based on:What your competition does, % of your sales, Spend as much as possible, or objective & task (ideal)(Predict the amount of promotion needed to reach goal)

4 Develop a Media Strategy Promotional Media are the tools you select to carry your message. Broadcast, print, outdoor, Online, & SMS

5 Select a Promotional Mix Advertising, Personal Selling, Public Relations, & Sales Promos. Use a variety to be effective (Remind, Inform, & Persuade).

6 Implement the Plan May hire local ad agencies for help with media strategies, selecting promotional mix methods, & implementing the plan

7 Evaluate Campaign Effectiveness Use market research to determine effectiveness. May be hard.

9.2: International Advertising• Advertising: any form of paid, non-personal communication

– Creates Interest & Awareness• Goal is to create desire & obtain action (Usually done in personal selling)

– Part of promotional mix

– Used in combination with other mix components• Sales Promotions, PR, & Personal Selling

– 2/3 of advertising is Business – Consumer in established markets• In Growing International Markets its about 50-50 business to business

• https://www.youtube.com/watch?v=gqkQKZYDImM

Types of Advertising

• Commercials: https://www.youtube.com/watch?v=gqkQKZYDImM

• Guerilla Advertising– https://www.youtube.com/watch?v=ocCYlqvJKC4 – https://www.youtube.com/watch?v=IkaRlaG-ZEA

• Magazine Ads– https://www.youtube.com/watch?v=GEaN2_tbTSA

Billboards

Magazine Ad

Transit Ads

Eight Steps of an Advertising Campaign

Step #1: Identify Target Audiences– Larger companies will create a standardized profile (Global Target)– Localize content to match culture.– Must create ads that meet the needs, norms, & habits of your

country.• Example: Coffee in America is on the go• In Europe it is café based, more social, cars don’t have cup holders.

Step #2: Set Communication Goals – Individual ads are created to support overall goal of campaign

– New product in new market will require advertising to create awareness (More informative)

– If product is existing, then reminder ads are used

Eight Steps of an Advertising Campaign

• Step #3: Develop an Advertising BudgetSet your budget based on:– What your competition does– Percentage of your sales– Spend as much as possible– Objective & task (ideal method)

Predict the amount of promotion needed to reach goalCompanies need to know the amount that will equal effectiveness

Eight Steps of an Advertising Campaign

• Step #4: Develop a Media Strategy• Based on Promotional Goals, Available Media, Media Characteristics, A

cultures Media Habits, & Any regulatory restrictions

– In Developed Countries, marketers have more options to advertise Examples: Broadcast, print, outdoor, Online, & SMS

– In Developing Countries your options are minimized

• Need to understand the preferred media usage of your country & your target audience• Japan has largest television market• United Sates has largest radio (China has very low)• Developing countries use Newspapers (India)

Eight Steps of an Advertising Campaign• Step #5: Create the Advertisements– Know your media characteristics

Advertising Example:• Broadcast & Print Ads can carry a short message• Outdoor Ads are done to remind due to short exposure

– Know Media Habits around the world• Internet is more popular• Netflix, DVR, & Online Streaming are changing viewing habits• Companies have to create promotions that are versatile

– MTV sells ad space that can be seen on tv, internet, cell phones, & video games– Product Placement: https://www.youtube.com/watch?v=GP9enms7xY4 (tv)

https://www.youtube.com/watch?v=oMS23XGrQzM (video)

– Publicity: Free communication through the media» PR specialists send news releases to media outlets

Eight Steps of an Advertising Campaign• Step #6: Develop a Media Schedule– Media Schedule: A calendar that lays out when ads

will play & in which media• Helps track media exposure

• Example of Media Schedule for BMW– Begin with a television ad to make target audience aware of the

new model• Ad will air on multiple networks, at multiple times to ensure it is seen

– Once awareness occurs, Print Ads are created to build interest– Sales Promotions (Coupons, Personal Appearance, In Store

Demonstrations, etc…) are done to create action

Eight Steps of an Advertising Campaign

• Step #7: Implement the Plan– Once ad campaign is planned it gets carried out

• Step #8: Evaluate the Plan– Difficult to measure the effectiveness of a campaign

– Traditional media measures are easier to track in developed countries (Nielsen's Ratings)

– Electronic Media is beneficial because it can track individual behavior

Create Advertisements

• There are two main types of advertisements:– Organizational Ads: Promote a company or entity & its brand image

• NFL: https://www.youtube.com/watch?v=6aKYZFcmAmU

– Product Ads: Ads that promote a single product

• Advertisements are often built around a theme– Advertising Theme: Organizes the design of an advertisement & helps

to focus communication efforts• Direct v. Indirect• Comparative Advertising• Emotional appeals v. Sophistication• Humor• Gender Roles• Popular v. Traditional Culture

Advertising Theme: Direct v. Indirect– Direct:• Directly tell the viewer your product is better• Can be viewed as arrogant in some cultures

– Indirect:• Indirectly tell the consumer why your product is better

Advertising Theme #2: Comparative Advertising

Comparative Advertising:Directly comparing one product

to anotherhttps://www.youtube.com/watch?v=VohEkWMkbsI

• Comparative ads are illegal in some countries

• Viewed as bragging

• Not used on products you want to be viewed as unique

Advertising Theme #3: Emotional Appeals v. Sophistication

• American companies use emotional appeals to promote their products– https://www.youtube.com/watch?v=ULE8gC3FPMk

• European countries focus on sophistication to promote products– Higher quality products

Advertising Theme #4: Humor

• Humor is common in the United States

• International Marketers must be careful when using humor– What is funny in America, may not be funny elsewhere– Humor should match products image– Humor would not work on more sophisticated products

like BMW

Advertising Theme #5: Gender Roles• Gender roles vary across culture– Some countries have very strict cultural norms for male &

female roles– Example:

• BMW could not create a commercial with a female driver because in some cultures women are not allowed to drive individually

• American audiences view popular culture content favorably • Some countries are more traditional & do not want new trends

presented• More sophisticated products tend to avoid fad ads

Advertising Theme #6: Popular v. Traditional Culture