International Promotion Policy

8/2/2019 International Promotion Policy

1/44

INTERNATIONAL PROMOTION

POLICY


2/44

Factors influencing communication at

international level

Language differences

Cultural differences

Social differences

Economic differences

Legal differences Competitive differences

Noise differences


3/44

INTERNATIONAL PROMOTIONAL

PLAN

1. Selecttargetaudience andpositioning theme

2. Setcampaign objectives + degree of worldwide

standardization3. Determine the promotional mix

4. Determinepromotionalbudget

5. Developmessage strategy

6. Decide on mediastrategy

7. Assess effectiveness


4/44

1. SELECT TARGET AUDIENCE

AND POSITIONING THEME

Targetaudience = marketsegmentlocal vs.global segment ?Shall itchoose the audience according tothe

similaritiesand commonalitiesbetween

consumers from differentcountries?

Positioning = image foreachcountry

global positioning?Globalpositioning = transmitthe same image all overthe world

Usually, globalpositioning comes with global marketsegments

Whoare the consumersto whomthe company will

addressthe products?


5/44

2. SET CAMPAIGN OBJECTIVES AND

DEGREE OF STANDARDIZATION

Promotional objectives: brand awareness,

improve perception, promote new service

Degree of standardization : Isthe company going tohave astandard

promotional campaign in all countries?

Is it going toadaptto local conditions? To what degree shall the company standardize?

To what degree shall the company adapt?


6/44

Degree of standardization

Segment

Positioning

Promotional objectives

Promotional mix Message strategy

Mediastrategy


7/44


8/44

WHAT IS GLOBAL ADVERTISING ?

Pattern AdvertisingPattern Advertising

World BrandsWorld Brands

Pan-European AdvertisingPan-European Advertising

Global Market SegmentationGlobal Market Segmentation

Advertising


9/44

PATTERN ADVERTISING

PLAN GLOBALLY, ACT LOCALLY!

global advertising strategy (suchasa

standardized basicmessage)

some degree ofmodification (different

media ) tomeet local needs

Ex: Levi (the quality ofthe productand the Americanorigin)

Advertising


10/44

WHAT IS GLOBAL ADVERTISING ?

Global Advertising offersthe Advantagesof

creating a global image forthe productand

ofobtaining cost savings

Advertising


11/44

CHALLENGES TO GLOBAL

ADVERTISING

Legal ConsiderationsLegal Considerations

Language LimitationsLanguage Limitations

Cultural DiversityCultural Diversity

Media LimitationsMedia Limitations

Advertising


12/44

Legal considerations in advertising

comparative advertising

contentofadvertising message

advertising of viciousproducts

advertising towardschildren advertising taxation

Advertising


13/44


Comparative advertising referstocomparisonsmade betweenproducts in ads

Canbe explicitorimplicit

In USA directcomparative advertising is

commonplace, while in othercountriescomparative

advertising ismore orlessrestricted.

In EU, implicitcomparisonsare allowedbut explicitcomparisonsare banned.

Otherexamples: India Pepsodent (Unilever)

Advertising


14/44


Contentofadvertising message regulated in some industries in differentcountries.

Pharmaceuticals: in Austriaadvertising fordrugs is

forbiddenby law, in Denmarkis forbidden advertising

fornon-prescription drugsand in Francepriorapproval

ofa governmentauthority is needed toadvertise drugs.

In Australia, there isan Advertising Standard Council In Vietnamthe Ministry of Trade, the Ministry of

Culture, the Customs department, any TV station or

newspapercan censoran ad.

Advertising


15/44


Contentofadvertising message slimming products in Finland ;

pregnancy testsand contraceptives (forbidden inIreland),

sweets (ads forsweetshave to display atoothbrush

symbol in Netherlands),

cars (ads forcarshave tocontain costsoftaxesand

insurance and figuresof net fuel consumption in

Portugal),

pornographicadsorany adsoffensive tothe public

taste are forbidden in UK.

Advertising


16/44


Advertising of viciousproducts

TV advertising ofthe

socalled vicious

productssuchas

alcohol, tobacco is

alsoregulated in

many countries.

Advertising


17/44


Advertising towardschildren

In Quebec, Canada TV stationsare notallowed

toairtowardschildren and the same in Sweden. In Finland children cannotspeakorsing the

name ofaproduct in acommercial.

In Italy commercials in cartoonprogramsare

banned. Advertising forwartoysand gamesofchance

are forbidden in Germany.

Advertising


18/44


Advertising taxation

In some countriesspecial taxesapply to

advertising. Ex: Austria, Romania

France also intendsto introduce suchtaxeson

TV and radioadvertising.

Suchtaxes increase the costofpromotion andthepercapitacostofadvertising.

Advertising


19/44

Language Limitations

Errorsoftranslations:

Simple carelessness: Avoid embarrassment, use

Parker Pens Multiple meaning words (where more dialects

are spoken in one country orwhere one

language isspoken in more countriesand the

same word has differentmeanings). Idiomsorlocal slogan can determine blunders in

international marketing.

You cannot use a more fine napkin at your dinner

table

Advertising


20/44

Language Limitations

Solutions:

to involve a local advertising agency,

forEnglishspeaking audiences, use the Englishslogan world wide.

Examplesare United Coloursof Benetton; Coke is it

orAlways Coca-Cola; Pepsi the choice ofa New

Generation; Philipsmakesthingsbetteretc. ,to use of voice-oversthatsay an adapted local

slogan.

Advertising


21/44


22/44


23/44


24/44

Little true international selling,because salespeoplecarry outmostoftheirsales within one country.

In international selling the salesperson hastoknow

the local customsand tobe able to formrelationships

withthe customers. Personal selling is influencedby the company culture

andby the country culture.

Personal selling


25/44


26/44


27/44


28/44

Formost international companiessalespromotionshave

alocal character due to:

different stages of the market maturity: in early stagesof

PLC, samplesand couponsto induce the trial ofthe product

are appropriate, while in more established markets (the

maturity stage ofthe PLC) bonuses, in-packcoupons,price

reductions in orderto encourage repeatpurchase arerecommended,

different cultural perceptions about different formsofsales

promotions. Forinstance, European consumers use far

fewercouponsthan the American consumers

differences in local trade structure and the balance of

power between manufacturers and distributors. Ex. P&G

in Germany

government regulations forpremiums, price reductions

(sales), contests/lotteries

Sales promotions


29/44

Public Relations (PR) isthe actionsofacorporation,

store, government, individual, etc., in promoting

goodwillbetween itselfand the public, the community,

employees, customers, etc.

Public relations


30/44

promote awarenessofthe existence ofthe company,

anticipate and countercriticismofthe company and to

minimise damage tothe company image, in relationshipwithproduct issuesand corporate conduct,

toovercome prejudice againstthe use ofthe companys

product,

topromote and establishabrand image in a foreignmarket,

to increase acompanyssphere of influence and achieve a

highprofile.

Public relations

P.R. Objectives


31/44

Public relations

P.R. Tools


32/44

Public relations

Crisis Management

Danone: o criza simpla, consecine complicate

Ieri s-a incheiatosaptamana de panica, in care

recipientul de 125 de grame de iaurt Danone a devenitvedeta in presaromaneasca.

Dioxina, scandal, analize si guar, otrava indiana

infiltrata inprodusele unui gigant european, care se

ascunde in tacere. Oficialii Danone au venit insacu o explicatie simpla:

nu au datalertamai devreme deoarece aveau dinainte

rezultatele linistitoare oferite de laboratorul din

Budapesta.


33/44

Thepromotional toolstobe used in ordertoreach

thepromotional objectivesare set.

3. INTERNATIONAL PROMOTIONAL MIX


34/44

INTEGRATED MARKETING

COMMUNICATION

convey one and the same idea witha

UNIFIED VOICE

all promotional mix elementstocenter

around aSINGLE KEY IDEA


35/44

4. SETTING THE GLOBAL

PROMOTIONALBUDGET

SET THE BUDGET

1. Percentage ofsale %

2. Competitiveparity

3. Objective-and-task

ALLOCATEACROSS

COUNTRIES

1. Bottom-up

2. Top-down

3. Region angle


36/44


37/44

5. MESSAGE STRATEGY:

STANDARDIZATION VS. ADAPTATION

BARRIERS TO

STANDARDIZATION

cultural differences

advertising regulations

marketmaturity

non-invented-heresyndrom (NIH)


38/44

5. MESSAGE STRATEGY:

STANDARDIZATION VS. ADAPTATION


39/44

6. MEDIA STRATEGY

Choosing the right media:

Reach. Referstothe numberof individualsorhouseholds

reached. Frequency. Referstothe numberoftimesamessage is

delivered totargetaudiences.

Continuity. Referstothe pattern ofmessage delivery.

Size. Referstothe space ortime unit employed.


40/44

6. MEDIA STRATEGY

TACTICALTACTICAL

CONSIDERATIONSCONSIDERATIONS

availability

cost

coverage

lack of market data

SPECIFICMEDIASPECIFICMEDIA

newspapers

magazines radio and television

satellite and cable TV

direct mail

internet


41/44

7. ASSESS EFFECTIVENESS

controlling and monitoring

reachpromotional and marketing objectives

corrections


42/44

COORDINATING INTERNATIONAL

ADVERTISING

cooperative advertising (monetary incentives)

advertising manuals

lead-country concept

global orpan-regional meetings


43/44

CHOOSING AN ADVERTISING

AGENCY

Local vs. Multinational agency (ex: Jaguar)?

marketcoverage

quality coverage

expertise in central international campaigns

quality ofsupportservices

the image the company wantstoprojects (local vs.

global)

size

conflicting accounts


44/44

CHOOSING AN ADVERTISING

AGENCY

Top 10 Global Advertising Agencies1. Dentsu (Omnicom)

2. BBDO Worldwide (Omnicom)

3. McCann-Erickson Worldwide (Interpublic)4. DDB (Omnicom)

5. TBWA (Omnicom)

6. JWT (WPP)

7. Publicis (Publicis)

8. Leo Burnett (Publicis)

9. Saatchi & Saatchi (Publicis)

10.Ogilvy & Mather(WPP)

Documents

International Promotion Policy