8 - international marketing and promotion Flashcards
factors influencing the communication situation
- language differences
- economic differences
- sociocultural differences
- legal/regulatory differences
- competitive differences
on language differences
- A slogan or advertising copy that is effective in one language may mean something different in another language.
- Thus the trade names, sales presentation materials and advertisements used by firms in their domestic markets may have to be adapted and translated when used in other markets.
on economic differences
- In contrast to industrialized countries, people in developing countries may be more likely to have radios than television sets.
- In countries with low levels of literacy, written communication may not be as effective as visual or oral communication.
on sociocultural differences
- Dimensions of culture (religion, attitudes, social conditions and education) affect how individuals perceive their environment and interpret signals and symbols.
- For example, the use of colour in advertising must be sensitive to cultural norms. In many Asian countries, white is associated with grief; hence an advertisement for a detergent where whiteness is emphasized would have to be altered for promotional activities
on legal & regulatory conditions
- Local advertising regulations and industry codes directly influence the selection of media and content of promotion materials. Many governments maintain tight regulations on content, language and sexism in advertising.
- The type of product that can be advertised is also regulated. Tobacco products and alcoholic beverages are the most heavily regulated in terms of promotion.
on competitive differences
As competitors vary from country to country in terms of number, size, type and promotional strategies used, a firm may have to adapt its promotional strategy and the timing of its efforts to the local environment.
communication tools
- one-way communication
- public relations
- sales promotions
- two-way communication
- direct marketing
- personal selling
on public relations
- annual reports
- corporate image
- press relations
- public relations
- events
- sponsorships
- celebrity endorsement
- product placement
on sales promotions
- rebates (partial refund) & price discounts
- catalogues & brochures
- samples, coupons & gifts
- competitions
on direct marketing
- direct mail/databases marketing
- internet marketing
- telemarketing
- mobile marketing
- social media
- viral marketing
on personal selling
- sales presentations
- salesforce management
- trade fairs & exhibitions
The major international advertising decisions
- Objective setting
- Budget decisions
- Message decisions
- Media decisions
- Agency selection
- Advertising evaluation
on objective setting
- communication objectives
- sales objectives
on budget decisions
- percentage of sales/affordable approach
- competitive parity approach
- objective and task approach
on message decisions (creative strategy)
- unique selling proposition (USP)
- standardization VS adaptation
on media decisions
- reach
- frequency
- impact
- types (TV, radio, newspapers, magazines, outdoor advertising)
on agency selection
national (local) VS international agency
on advertising evaluation
- communication impact
- pretesting of print/TV ads
- testing finished ad: awareness/competitor testing
- sales impact: experiments
competitive parity approach
involves estimating and duplicating the amounts spent on advertising by major rivals.
Con- determining the marketing expenditures of foreign-based competitors is difficult
Con- competitors may not necessarily be right
objective and task approach
The weaknesses of the above approaches have led some firms to follow the objective and task approach, which begins by determining the advertising objectives and then ascertainIng the tasks needed to attain these objectives.
affordable approach/percentage of sales
Affordable approach budgeting techniques link advertising expenditure directly to some measure of profits or, more commonly, to sales. The most popular of these methods is the percentage of sales method, whereby the firm automatically allocates a fixed percentage of sales to the advertising budget.
advantages of percentage of sales method
+ for firms selling in many countries, guarantees equality
+ easy to justify in budget meetings
+ guarantees the firms spends as much as it can afford
disadvantages of percentage of sales method
- uses historical performance rather than future
- ignores possibility that extra spending on advertising might be necessary
- method cannot be used to launch new products
- encourages local management to maximise sales by using easiest most flexible marketing tool
media selection can be based on the following criteria:
- reach: total number of people in a target market exposed to at least one advertisement in a given time period
- frequency: average number of times within a given time period that each potential customer is exposed to the same advertisement
- impact: depends on compatibility between the medium used and the message
A media’s gross rating points (GRPs) are the result of
multiplying its reach by the frequency with which an advertisement appears within the media over a certain period.
Traditionally, media planning is based on a single measure,
such as cost per MILLE/ thousand (CPM)
Budget decisions:
- Affordable approach/percentage of sales
- Competitive parity approach
- Objective and task approach
Unique selling proposition (USP):
a distinctive characteristic of a product or brand identified by the marketer as the one on which to base a promotional campaign
Developing a viral marketing campaign
- Prepare your growth: In order to satisfy properly the customer needs you gotta be prepared
- Know your target audience
- Have a clear message
- Find the right channel
- Offer an incentive for anyone who shares your content
- Work on people’s emotions
- Make it visually oriented
